However you choose to invest, there will be fees for doing so. And each investment firm will apply their own fee structure, which is likely to differ from other firms. So before you invest, it’s important to understand all the expenses associated with each type of investment. Lower costs give you a greater share of the returns on any given investment, which helps you maximise things like the benefits of compounding returns. Over time, even small differences in costs can have a big impact on performance.
Milford’s Funds have a capped management fee which is used to pay Fund related expenses such as Fund administration, research, company visits and supervisor costs. The Milford KiwiSaver Plan also has a monthly member administration and registry fee. In addition most Milford Funds have a performance fee. This is applied only when we exceed the performance objective for any given Fund.
For example if a Fund’s objective is to return 10% per annum, after fees and before tax, and the Fund returns 12%,
a performance fee is taken from the 2% additional return.
The performance fee is intended to align our interests with those of our investors, so when our clients do well, we do well. Please refer to Milford’s Unit Trust PIE Fund or KiwiSaver Plan Product Disclosure Statements for more information on fees.