The Independent Kiwi Saver 
- I don’t like the lack of transparency.
- I don’t like their overall poor performance.
- And, I don’t like the lack of say in terms of where my money is going.
So I’ve chosen to use the ABN Amro Craig personalised option scheme.
This lets me choose from a list of New Zealand and international shares. I am able to change my selection time to time and so I can hold multiple shares within my portfolio. Whenever the fund receives contributions, be it from me or the state, ABN Amro Craig purchases those shares on specific days of the month on my behalf.
Unfortunately to cap the tax implementations, the list of New Zealand shares seem to be limited to PIEs (Portfolio Investment Entities). A number of international shares are included - they are treated by FDR (Fair Dividend Regime) so that limits the tax liability to 5% of the opening value of the share at the beginning of each year.
They charge:
- $60 per year admin fee (this is offset by the government $40 subsidy),
- 2.5% brokerage fee when selling and purchasing shares (except when selling to buy other shares),
- and a 1.25% yearly custodial fee.
As I am currently on sabbatical I am putting in the minimum $1040 per year to take advantage of the 'tax credit', once I am back in the work force I will apply for a 5 year contributions holiday.
