About 15,000 kiwis are joining the scheme per month and total funds have eclipsed $12b. However the government has pulled an expected U turn with regards to auto-enrolment. Previously this was scheduled for 2014/2015 but public consultation has now been deferred to beyond 2012 due to the expected additional costs of kick-start and member tax credit contributions.
From 1 April 2013 ‘kiwi savers’ will be able to evaluate and compare the performances of different funds. New disclosure rules will
ensure fund managers transparently disclose their ‘performance’ including returns, portfolio holdings and fees.
Sounds promising, but it’s unclear who will foot the bill for imposing such regulations – we could see a rise in fees to compensate.
The government has also signalled a review of default provider arrangements to ensure fund managers operate in the best interest of the investors.
* Wilco : The 2012 Budget