A reader asked me about their Superlife fund charges. She notices something funny on her transaction list: Instead of charging $1/month on admin fee, she got charged $1/day.
After checking my transaction, I believe those charges are incorrect and she contacted Superlife. Superlife immediately said the charges were wrong and reversed them straight away.
This is a good reminder for all investors to a take look at their transaction once in a while. I am all for ‘set and forget’ method to invest but we should look at those charges maybe once or twice a year. Not only to Superlife but all of your investments including your KiwiSaver.
I have account with Superlife and KiwiSaver with Simplicity, here is how to check those transactions
Go to superlife.co.nz and click on “Log in”
Click “Transaction history” on the left
Select ‘last 12 months’ on period, select ‘All’ on Funds, select ‘Administration Fees’ on Transaction types.
They should charge $1/month. (The $2.75 charges was before the admin fee price drop)
Go to Simplicity.kiwi and Log in.
Click ‘My transaction’ on the menu.
There will be a list of transactions and Simplicity should charge $2.5/month on member fee.
If you are with a different fund or service and don’t know how to check transactions, call the service provider and ask them.
If there is anything out of the ordinary, you should contact the fund manager and get them to correct that as soon as possible.
(The information in this post is not longer up-to-date. Please check the most recent update here)
In case you don’t know, I am in the camp of passive low-cost investing. So most of my investment are in ETF and index fund.
Currently, the easiest way to buy and hold ETF in New Zealand is with SmartShares and SuperLife. Both companies are owned by NZX and they are selling basically the same ETF product. However, the cost of the ETF are different with those 2 companies and I’ve put together a table to compare them.
In general, SuperLife offers lower fund management fees. However, they do charge a $12/year admin fee which makes SuperLife more expensive when you are starting out. You should, therefore, start with SmartShares and once your hold reaches the “When to Switch” amount, you can move your fund to SuperLife to enjoy the lower cost and the better user interface.
My table is based on the assumption that you have only 1 fund in SuperLife. If you have multiple funds with SuperLife, that $12 admin fee will be shared by those funds and you can divide the “Switch to SuperLife” amount by the numbers of funds you’ve got.
Here is an example:
You are holding $15000 Global Bond ETF and $12000 Aust Property ETF with SmartSshares. Both of them alone did not pass the “When to Switch” limit. However, if you switch both of them to SuperLife, the “When to Switch” will be divided by the numbers of funds, which is 2, and the new “When to Switch” amount will be $24000/2 = $12000. You should, therefore, switch both of them over to save fees.
Email firstname.lastname@example.org or follow me on Twitter @thesmartandlazy if you have any questions.