Juno KiwiSaver Scheme
The Juno KiwiSaver Scheme is a new KiwiSaver scheme starting in 2018 that offers lower fees than other KiwiSaver providers, and aims to outperform the market to help your KiwiSaver balance grow. Junos predecessor, PieFunds, was established in 2007 by a registered teacher and educator, and their website additionally offers financial and investing advice so that your overall financial literacy can improve, leading to wiser decisions and more growth for your KiwiSaver. As a new KiwiSaver provider, Junos performance has kept up with other providers and has potential to get consistently better, providing you with greater returns and a better retirement. You can use the Juno KiwiSaver calculator to get an idea of how much you can earn and invest with the money you have.
If you’re not sure if Juno is right for you, a comparison of Juno’s KiwiSaver scheme with other providers can be undertaken here on glimp.
Why choose a Juno KiwiSaver scheme?
Juno is a new KiwiSaver provider; this means that they provide a fresh look at investing and charge little fees. Additionally, the performance of Juno’s funds has been strong. Over a one year period the returns of the Conservative Fund (the date of inception of the fund being the 1st of August 2018) reached 4.85%. The Balanced fund has, over the same one year period, performed exceptionally well, reaching a return of 10.33% whilst the Growth Fund has also seen exceptional growth, averaging a growth of 21.04% in the same period. Finally, Junos site also offers financial literacy advice, is 100% Kiwi owned and operated, and (if you are still concerned about them being a relatively new KiwiSaver provider) are owned by Pie Funds Limited, an investing company that has operated with great success since 2007.
Juno KiwiSaver for kids
Juno is the only KiwiSaver provider to charge no fees for under 13 accounts regardless of the balance of their account. If your child has kick-started life by starting work earlier, then you can avoid all account fees by signing them up with Juno. Junos website additionally offers several blog posts and financial advice so that your child can learn financial basics easily and become a smart saver and investor, allowing them to work towards buying their first home easily.
Juno KiwiSaver Fees
As a new KiwiSaver provider, Juno charges little in the way of fees. A typical KiwiSaver provider charges an administration fee, a management fee and sometimes even a performance fee; Juno instead charges a monthly subscription rate similar to digital streaming companies that covers everything. They offer their services for free for under 13 accounts. Fees include:
Monthly subscription rate
Monthly fee (free for accounts under 13)
$5 for balances between $5,000 to $15,000
$8 for balances between $15,000 to $25,000
$20 for balances between $20 for balances between $25,000 to $50,000
$40 for balances between $50,000 to $75,000
$60 for balances between $75,000 to $100,000
$90 for those over $100,000
KiwiSaver fee comparisons can easily be seen here on glimp so you can work out if this fee structure works better for you than your current one.
Types of Juno KiwiSaver Funds NZ - Fees, Returns, Scheme
Conservative
Junos Conservative Fund is perfect for the cautious investor, and aims to preserve your capital whilst adding some growth (about 2-5% annually) over three to five years, making it a good fund type for those looking to withdraw soon. The target investment mix for the Conservative fund is 25% cash and cash equivalents, 35% NZ fixed interest, 15% fixed interest (bonds) and 25% equities. Additionally, Juno takes into account environmental, social and governance matters when they invest, and, for the Conservative Fund, invest where they are confident a company will deliver the returns that they expect without too much risk.
Balanced
Junos balanced fund provides a moderate option for those who are comfortable with some risk, and with their balance occasionally declining in the expectation that this will lead to stronger medium-term growth. This steady capital growth is expected to be between 5% to 10% per annum after fees and taxes, and therefore suits a medium (five to ten year) investor. The target investment mix of the fund is 10% cash and cash equivalents, 30% fixed interest (bonds) and 60% equities (shares).
Growth
The Juno Growth fund is geared towards long term investors who are comfortable seeing their balance sometimes fall in the expectation that long term growth will be high. It seeks to provide its investors with capital growth, averaging 10% or more annually after fees and tax over a period exceeding ten years. To do this, the target investment mix is just 5% cash and cash equivalents, 15% fixed interest (bonds) and 80% equities (shares). These shares are with globally known brands, however Juno also looks for companies that it believes have been mispriced by the market, meaning that they invest in companies that are cheap relative to their value with the expectation that the market will soon recognise this value and that the price will rise, leading to more growth for investors (you!).
