KiwiSaver provider Simplicity beefs up allocation to unlisted NZ assets

Simplicity is investing in building affordable homes. From left: Shane and Anna Brealey of NZ Living, Simplicity CEO Sam Stubbs and chief operating officer Andrew Lance.

Upstart non-profit fund manager Simplicity has increased its asset allocations to unlisted New Zealand investments across all its existing diversified KiwiSaver and investment funds.

“We are big believers in New Zealand,” said Sam Stubbs, managing director of Simplicity.

“So we’re increasing investment in areas intended to enhance returns for our investors over the long term, support local innovation and help get more families into warm, dry and affordable homes.”

According to a statement, build-to-rent housing, first-home lending and private equity have all increased asset allocations, bringing the total target asset allocation to unlisted assets from 7.5 per cent to about 10 per cent of funds under management.

Expansion plans

Simplicity also said it’s expanding its range of KiwiSaver and investment funds.

The new funds include KiwiSaver high growth and defensive funds and matching investment funds.

All these funds have a low 0.29 per cent per annum total fee.

Simplicity is also launching three new global share and bond investment funds, which will charge a 0.15 per cent total annual fee, with no entry or exit fees.

As international investments will be held in New Zealand-based PIE (portfolio investment entity) funds set up by Simplicity, the funds can now access NZ withholding tax treaty rates for overseas investment income.

The new funds are designed to increase diversified and offshore single-sector investment options for members, all with low fees.

It also reiterated that a recent switch for managing international investments from Vanguard to DWS International GmbH (DWS) reduced Simplicity’s management and administration costs for existing diversified funds, and these savings will be passed directly on to investors.

The total annual fund charge for all existing diversified KiwiSaver and Investment funds dropped by about 3.3 per cent, from 0.30 per cent to 0.29 per cent per annum from April 28, 2023.

Simplicity has roughly $4.83 billion of funds under management with 137,998 members.