AFC · Total fund charge · MER
Annual fund charge
The total ongoing percentage charge paid out of a NZ managed fund each year — covering management fees, supervisor/custodian fees, audit, and other operating costs.
The annual fund charge is the headline fee figure NZ retail managed funds and KiwiSaver scheme funds must disclose in the standardised Quarterly Fund Update. It is expressed as an annual percentage of the fund's value and includes the management fee, supervisor and custodian fees, audit, and other recurring operating costs.
It does *not* include: performance fees (disclosed separately), buy/sell transaction fees applied at order time, or platform-level fees charged by InvestNow / Sharesies / etc.
Annual fund charge is the like-for-like comparison number across funds — but two funds with the same headline charge can still differ on performance fee mechanics, transaction fees, and underlying fund-of-fund layering. Always read the PDS for the full fee picture.
Primary sources
Related terms
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QFU · Fund Update
Quarterly Fund Update (QFU)
A standardised FMA-mandated quarterly report each NZ retail managed fund publishes, summarising fees, returns, risk indicator, asset mix, top-10 holdings and fund size.
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performance-fee
Performance fee
An additional fee a fund manager charges only when fund performance exceeds a defined benchmark or hurdle rate, typically subject to a high-water mark.
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PDS
Product Disclosure Statement (PDS)
The headline legal document a NZ managed fund or KiwiSaver scheme provides to retail investors, summarising the fund, fees, risks, and how to invest.