Who is your KiwiSaver manager making money for? You or the bank that owns them?

This article by Rob Stock from Sunday Star Time, it is important to be aware of the things that are happening with your KiwiSaver.

KiwiSavers in the dark as banks spread risk

Bank KiwiSaver schemes are making a poor fist of telling savers where their cash is invested.

KiwiSaver schemes hold a lot of cash, with many default and conservative savers opting for cash funds, or conservative funds with heavy cash holdings.

At the start of the year, the KiwiSaver cash funds of the two ANZ schemes (the ANZ and National Bank schemes), ASB, and Westpac held a combined $532 million, and that does not include the cash holdings of the popular conservative and balanced funds each of the schemes offers.

But while many of the bank scheme investment mandates have similar wordings that give the schemes the flexibility to invest in "one or more" New Zealand banks, nowhere in the investment statements or websites is it possible to see how they are using that flexibility.

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