Kiwisaver, who is really reaping the benefits?

  • Bart Frijns Auckland University of Technology
  • Alireza Tourani-Rad Auckland University of Technology
DOI: https://doi.org/10.24135/afl.v3i2.45
Keywords: kiwiSaver, fund performance, fund fees

Abstract

New Zealand KiwiSaver fund industry enjoys a near monopoly situation, with no exposure

to international competition. Annual fees that KiwiSaver funds charge New Zealanders

(which are now close to $350 million p.a.) are far above international standards and not

justifiable given their relatively poor performance since inception. We believe that allowing

self-managed retirement portfolio investments by employees, expanding the menu of

investment choices including low cost international ETFs, and opening the industry to

international competition will be beneficial for individual investors and the country as whole.

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Author Biographies

Bart Frijns, Auckland University of Technology

Bart Frijns is Professor of Finance at the Auckland University of Technology, New Zealand, and the Director of the Auckland Centre for Financial Research

Alireza Tourani-Rad, Auckland University of Technology

Alireza Tourani-Rad is Professor of Finance and Chair of the Department of Finance at the Auckland University of Technology, New Zealand

Published
2014-11-30
How to Cite
Frijns, B., & Tourani-Rad, A. (2014). Kiwisaver, who is really reaping the benefits?. Applied Finance Letters, 3(2), 12-15. https://doi.org/10.24135/afl.v3i2.45
Issue
Vol. 3 No. 2 (2014): Current Issues in Fund Management
Section
Articles submitted to regular issue

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