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Pie KiwiSaver Scheme Review

​Our review of the Pie KiwiSaver Scheme (previously JUNO KiwiSaver scheme) looks at the fund choices, fees, must-know facts and considerations to help you decide if it's right for you.
Updated 20 December 2024
Summary of the Pie KiwiSaver Scheme:
  • The Pie KiwiSaver Scheme offers three KiwiSaver funds, with the aim of making market-beating returns while making it simple for contributors to understand where their money is invested and how their retirement is being funded.
  • Pie KiwiSaver Scheme fees are not a percentage of your fund balance, but instead charged in tiers specific to a certain balance. For example, if you have between $25,000 and under $50,000, you'll pay $20/month or $240 a year.
  • There are no performance fees, despite the funds being actively managed. Some KiwiSaver fund managers take a bite of any market-beating returns - the Pie KiwiSaver Scheme funds do not.
  • Pie Funds staff, directors, and shareholders invest alongside their clients, with over $100 million of the funds under management (as at 31 July 2024) being their own money. We believe this approach ensures decisions are made carefully given the investment team are also investors in the funds they manage.
  • Pie Funds employs a team of global investment specialists actively managing investments, with teams based in New Zealand, Australia, and the UK. The firm's global approach is to leverage local expertise to navigate and understand the markets it invests in.
  • The funds launched in August 2018 under 'JUNO KiwiSaver Scheme' branding before rebranding under the parent company Pie, to the Pie KiwiSaver Scheme in December 2023. 
  • Switching between any Pie KiwiSaver Scheme fund is free. There are no joining fees or exit fees if you take your money to another fund.
Read this First: Fees, Performance and Understanding What's Best For Your Situation
A lot of media attention focuses on KiwiSaver fees, but this is only one thing to consider when picking the most suitable provider and fund for your retirement needs. Being comfortable with what you're investing in is the most important aspect of saving for your retirement. 

With three fund options available and a public commitment to make fees and underlying investments transparent to investors, the Pie KiwiSaver Scheme offers investors fixed-fee flexibility with actively managed funds aiming to beat the market.
Our Review 
In this review, we outline what the Pie KiwiSaver Scheme is, what funds they offer to KiwiSaver members and how they're different to other funds, as well as looking at alternatives and the level of fees involved.
 
Please note: MoneyHub is not a Financial Adviser, and this review has been published to explain the investment fundamentals and outline the pros and cons of the Pie KiwiSaver Scheme as a KiwiSaver investment option.
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Our review covers:
How does the Pie KiwiSaver Scheme compare with other options?
Advertising Disclosure: We include the funds below based on merit, although we may have commercial arrangements with specific innovative and market-leading schemes for general promotion. Our Advertising Policy has more details. We rely on Morningstar data for all fund returns information.

The Pie KiwiSaver Scheme Fees

Fees are charged monthly and range from $0 to $60 for balances under $100,000, an additional fee of $30 applies for every additional $100,000 invested, as described in the table below. The same fee is charged for the three funds - Conservative, Balanced and Growth. The larger your fund, the more you'll pay.

The general idea is that your KiwiSaver fund is a long-term investment and you will benefit from having an actively growing balance.
KiwiSaver Balance (at month end)
Monthly Fee
Annual Fee (Monthly Fee X 12) 
Under 13 years old
Free
Free
​13 - 17 years old or balances under $5,000
$2.50
$30
Balances $5,000 to under $15,000
$5
$60
​$15,000 to under $25,000
$8
$96
​$25,000 to under $50,000
$20
​$240
​$50,000 to under $75,000
$40
$480
​$75,000 to under $100,000
$60
$720
​$100,000 to under $200,000
$90
$1,080
Larger balances? Investors are charged an extra $30 per month for every additional $100,000 invested (e.g. balances of $200,000 are charged $90 + $30 ($120) per month; balances of $300,000 are charged $90 + $30 + $30 ($150) per month. 

The Specs of the Pie KiwiSaver Scheme and Where Your Money is Invested

  • Pie Funds Management Limited, a fund manager, is the manager of the three Pie KiwiSaver Scheme funds.
  • The three funds have distinct investment profiles:
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1: Pie KiwiSaver Scheme Conservative Fund
  • Risk factor: 3
  • Minimum suggested investment timeframe: 3 years

Investment Composition:
  • Cash and cash equivalents 25%
  • New Zealand fixed interest 15%
  • International fixed interest 35%
  • Australasian equities 6%
  • International equities 19%

The Conservative fund aims to preserve members’ capital with modest capital growth over a periods exceeding three years. The Fund invests primarily in fixed interest and cash, with an allocation to equities. 

Our view: This is the Pie KiwiSaver Scheme's least aggressive fund, with 75% of your money being invested in fixed interest and cash and cash equivalents. 25% of your money is allocated to an active investment manager picking shares that are expected to increase in value. 

2: Pie KiwiSaver Scheme Balanced Fund
  • Risk factor 4
  • Minimum suggested investment timeframe: 5 years

Investment Composition:
  • Cash and cash equivalents 10%
  • New Zealand fixed interest 10%
  • International fixed interest 20%
  • Australasian equities 10%
  • International equities 50%

The Balanced fund aims to provide members with steady capital growth over a period exceeding five years. The Fund invests in equities with a reasonable allocation towards fixed interest.

Our view: This is the Pie KiwiSaver Scheme's 'middle of the road' fund, giving investors a mix of conservative investing and riskier growth. 60% of your money allocated to an active investment manager picking shares that are expected to increase in value. 40% of your money is invested in fixed interest and cash and cash equivalents.

3: Pie KiwiSaver Scheme Growth Fund
  • Risk factor 5
  • Minimum suggested investment timeframe: 7 years

Investment Composition:
  • Cash and cash equivalents: 5%
  • New Zealand fixed interest 5%
  • International fixed interest 10%
  • Australasian equities 15%
  • International equities 65%

The Growth fund aims to provide investors with "capital growth", generated by investments in "international and Australasian equities with a focus on globally-known brands, along with a cash and fixed interest exposure".

We say: This is the Pie KiwiSaver Scheme's most aggressive fund, with 80% of your money allocated to an active investment manager picking shares that are expected to increase in value. 20% of your money is invested in fixed interest and cash and cash equivalents.​

Summary
  • The three funds all invest in income and growth assets; the higher the proportion of equity investments, the more aggressive the fund and the expectation of a higher return. As with any fund, past performances do not indicate future results, but generally the characteristics of how each fund behaves remain the same. 

Who is the Pie KiwiSaver Scheme Suited To?

  • With free fees for anyone under 13 and a minimal fee of $2.50 per month for those aged 13 to 17, or with a balance of less than $5,000, the Pie KiwiSaver Scheme is immediately attractive to students and anyone working for the first time.
  • At 3% employer contribution rate, and a 3% individual contribution, a $5,000 balance in KiwiSaver represents around $80,000 of earnings (without considering fund growth). This could mean 2-3 years of low KiwiSaver fees (for an actively managed fund) for young New Zealanders. 
  • If you're looking for an actively managed fund supported by traders and analysts, the both the Balanced and Growth funds may meet your expectations. 
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Standout Features:
  1. The low fees for anyone with less than $5,000 in their fund or under the age of 17 and with KiwiSaver reporting that the average balance for 'millennials' at $8,500, there is a lot of opportunity for new members to save on membership fees, and certainly in the beginning of their KiwiSaver journey.
  2. It's free to change funds; the monthly membership fee means you can move between funds as often as you like.
  3. The scheme has pledged to be an ethical investor, following Pie Funds' policy, meaning companies trading in weapons, tobacco, gambling, nuclear and other “unethical” business will be avoided.

Be aware:
  1. As with any investment, markets go up and down. The Dotcom bubble in the early 2000s sank global share markets, as did the 2008 Global Financial Crisis. While many global share markets are now at record highs, this is no guarantee of future earnings.
The Bottom Line
  • Overall, the Pie KiwiSaver Scheme delivers on a simple fee structure with the choice of three funds for different investor risk profiles. Since launching in 2018, the Scheme had around $571m invested as at 30 September 2024. Most of the funds invested were in the Pie KiwiSaver Growth Fund.
  • The funds are designed to allow investors to easily understand where their money is invested, and how much it costs on a monthly basis. The scheme is unique in its subscription model - investors can easily comprehend that if their balance is $20,000 they'll pay $8 a month for the fund, for example.
  • The are no joining fees, no exit fees, no performance fees and you can transfer between funds for free as many times as you want. 
  • The funds are active funds; they do not follow or recreate a benchmark of a sharemarket index, unlike KiwiSaver schemes like Simplicity, Kernel and Superlife. Pie Funds' investment managers will regularly pick undervalued equities, anticipating that their share price will go up in the short to medium term. This has more risk but also has the potential for greater returns.
  • The annual fees alone should not be the only criteria when comparing KiwiSaver schemes. While some of the Pie KiwiSaver Scheme's fees might be higher than other providers, the Pie KiwiSaver Scheme is actively managed meaning it intends to outperform funds that track sharemarket performance. No two funds are directly comparable, so it's essential to shop around and compare fund objectives as well as fund fees if you're serious about having the biggest KiwiSaver nest-egg possible.
  • The Pie KiwiSaver Scheme has three strengths - a commitment to transparency in fees that are easy to understand, a Growth Fund with a solid long-term market-leading performance, and a trusted and experienced team behind it by way of Pie Funds.
  • In terms of risk, each fund has a risk number (1 = lowest, 7 = highest). The Conservative fund is rated 3; the Balanced fund is rated 4, and the growth Growth fund is rated 5 given the higher proportion of money invested in shares and not cash investments. 

10 Must-Know Pie KiwiSaver Scheme Facts

Pie KiwiSaver Scheme is popular with investors looking for market-leading and long-term growth, with the Pie KiwiSaver Growth Fund making up around 85% of the funds invested as at 30 September 2024. Our must-know facts below highlight key information about the scheme and who is behind it.

The Pie KiwiSaver Scheme is exclusively for KiwiSaver members

The Pie KiwiSaver Scheme is exclusively tailored for KiwiSaver participants, offering funds and a subscription-fee model not available outside the KiwiSaver framework. This sets it apart from its parent company, Pie Funds, which employs a percentage-based management fee structure for its investment products.

It doesn't matter what your employer's default KiwiSaver provider or fund is - you can select the Pie KiwiSaver Scheme and the fund you want

Because the Pie KiwiSaver Scheme launched in mid-2018, most employers won't have heard of it, and even fewer will have considered it as a preferred option for their employees. However, none of that matters - any KiwiSaver member has the right to pick any one of the 25+ providers and the fund they want. So while the Pie KiwiSaver Scheme may be unknown to your employer, you're 100% entitled to pick it as your provider.

There is no minimum investment and it's easy to take contribution holidays

As a Pie KiwiSaver Scheme member, you'll pay the monthly membership fee. This gives you the freedom to invest as you like. And if you want to contribute to your fund at a level above your fixed salary contribution, you can do this by making a manual payment or contact the Pie Funds client services team. 

Distributions your fund receives are reinvested, meaning more cash is invested on your behalf

All three of the Pie KiwiSaver Scheme funds invest in shares, and many will pay dividends. These cash payments represent the profits from companies returning it to the shareholders, i.e. you. When a company declares a dividend, your fund will receive money and it is re-invested into more shares, growing the value of your fund. Despite being a cash payment, and as is the case with all KiwiSaver funds, there is no option to take this money as cash until you turn 65.

The Pie KiwiSaver Scheme offers actively managed funds, and is orientated towards picking market-beating shares

The people who look after your money analyse a range of companies and pick ones they believe are undervalued and have a positive future. By doing this, there is an expectation that the share price will increase, giving a return to the investor when it's later sold. 

​Signing up isn't complicated, but you’ll need to decide what fund to invest in first

Signing up to the Pie KiwiSaver Scheme is effortless, but you’ll need to decide your fund first. Helpfully, the names of the three funds - conservative, balanced and growth, are free of buzzwords or spin.

Generally, if you're looking for a safe investment with the lowest risk of seeing your original investment fall, a conservative fund could be a suitable option. If you're looking for a higher return and are prepared to have your money in higher risk investments which could fall in value, you should select the balanced or growth funds, as they operate in this manner.

The Pie KiwiSaver Scheme is operated by Pie Funds, an experienced fund manager

With over two billion dollars of (non-KiwiSaver) money under management as at June 2024 per this December 2024 Investment News article, thousands of New Zealanders trust Pie Funds' investment team. The asset manager has a track record of managing funds. While past performance does not indicate future returns, it is clear that Pie Funds operates with the infrastructure and experience to offer professional investment management.

Performance continues to be strong, but past results are not any guarantee of future growth

The funds launched in August 2018, and the Pie KiwiSaver Growth Fund and Balanced Fund ranked #1 out of all funds in their respective categories for the year ended 30 September 2024 per Morningstar data. 

Our View: While the Pie KiwiSaver Growth Fund and Balanced Fund's #1 rankings for the year ended 30 September 2024 per Morningstar data are impressive, it’s important to note that a single year of performance is not a sufficient indicator of long-term success. Investment returns can vary significantly due to market conditions, and past performance does not guarantee future results. Relying solely on short-term data may overlook the inherent risks, volatility, and the need to assess consistency over multiple market cycles. 

The Pie KiwiSaver Scheme makes its unique fee and active investment philosophy clear

The subscription-type model indicates the Pie KiwiSaver Scheme wants its members to understand the costs of the scheme up front, in dollar terms. 

Pie Funds is based in Auckland has operated since 2007

Based in Takapuna, Auckland, you can read more about their investing ethos and approach on their website.

Frequently Asked Questions

What makes the Pie KiwiSaver Scheme's fee structure unique compared to other providers?

Unlike most KiwiSaver providers that charge fees as a percentage of your fund balance (also known as basis points LINK), the Pie KiwiSaver Scheme uses a subscription-based fee model. This approach makes fees predictable and transparent, especially for higher balances, where percentage-based fees can be significant.

Is the subscription-fee model more cost-effective for larger KiwiSaver balances?

Yes, the fixed subscription fees can be lower for higher balances than the percentage-based fees charged by other providers. For example, someone with a $100,000 balance would pay $1,080 annually with Pie KiwiSaver compared to $1,500 if charged a 1.50% management fee at another actively managed growth fund.

Are actively managed funds worth the potential for higher fees and risk?

Actively managed funds, such as the three in the Pie KiwiSaver Scheme, aim to outperform market benchmarks through strategic investment decisions. While this approach can lead to higher returns, it also comes with increased fees and risks.

What are the risks of investing heavily in the Growth Fund?

The Growth Fund allocates 80% of its assets to equities, which can be volatile, especially during market downturns. While this offers the potential for high returns, it is best suited for investors with a long-term horizon and a high tolerance for risk.

Our Conclusion​

  • The three funds don't offer extensive diversity compared to other providers, but we believe Pie Funds wants to simplify KiwiSaver options and not offer a bunch of funds with subtle differences that confuse investors.
  • With any Pie KiwiSaver Scheme fund, investors can get exposure to New Zealand, Australian and international sharemarkets, emerging markets, local and global bonds, as well as New Zealand cash deposits.​

​How does the Pie KiwiSaver Scheme compare with other options?