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Simplicity vs Milford KiwiSaver NZ 2026: Passive vs Active Fees and Returns

Updated

Simplicity and Milford take two different approaches to KiwiSaver: Simplicity runs mostly passive index funds at a low fee, and Milford uses active management by a team of portfolio managers. Our Simplicity KiwiSaver review covers Simplicity’s funds, fees and features in full; this page sets the two providers’ growth funds side by side, as one of our KiwiSaver head-to-head comparisons. The wider market is in compare KiwiSaver providers.

Milford is an active manager. Over the 5 years to 30 June 2026, Simplicity’s Growth fund returned more than Milford’s Active Growth fund after fees. This page uses the current numbers.

Quick Comparison: Simplicity vs Milford

Feature Simplicity Milford
Investment approach Passive index (tracks market) Active management (stock picking)
Structure Not-for-profit Fund manager, majority Kiwi-owned with significant staff ownership
Growth fund base fee 0.23% ~1.05% (plus any performance fee)
Growth fund 5-yr return (after fees and tax, to 30 June 2026) 7.23% p.a. 6.60% p.a.
Default provider (2021) Yes No
Ethical screening Exclusions on all funds (such as fossil fuel extraction, weapons and gambling); no separate ethical fund Exclusions on direct holdings in all funds (such as cluster munitions and tobacco) and ESG analysis; no separate ethical fund
Admin fee No No
Member portal Online dashboard Member portal

Return figures sourced directly from each fund’s page on Sorted Smart Investor, 5 years to 30 June 2026, after fees and tax at 28% PIR. Check current figures: the order can and does change.

The Fee Gap

Simplicity’s growth fund fee is 0.23% (from 1 October 2026). Milford’s Active Growth fund has a base fee of 1.05%, before any performance fee (its latest fund update estimates total charges of 1.44% on performance to date).

On different balances, the annual fee difference is approximately:

Balance Simplicity fee (0.23%) Milford base fee (1.05%, before performance fees) Annual difference
$50,000 $115 $525 $410
$100,000 $230 $1,050 $820
$200,000 $460 $2,100 $1,640
$500,000 $1,150 $5,250 $4,100

Simplicity’s lower fee reflects passive index funds (no stock-picking research team) and its not-for-profit structure, under which surplus goes back to members and charitable causes.

Performance After Fees

5-year returns after fees and tax (growth funds, to 30 June 2026, source: Sorted Smart Investor):

  • Milford Active Growth: 6.60% p.a.
  • Simplicity Growth: 7.23% p.a.

The difference is approximately 0.63 percentage points a year, with Simplicity’s fee about a quarter of Milford’s. Both returns are positive.

If those rates repeated (past returns don’t predict future ones), $100,000 over 10 years would grow to:

  • ~$189,500 at Milford’s 6.60% p.a.
  • ~$201,000 at Simplicity’s 7.23% p.a.
  • a difference of ~$11,500

Earlier versions of this comparison described Milford ahead after fees. “Milford has historically outperformed” is a claim about a past period, so the current 5-year figure is the one to check.

For context, Generate’s Focused Growth fund returned 8.03% p.a. after fees and tax over the same 5 years, with an estimated annual fund charge of 1.25% plus a $36 a year member fee. More providers’ figures are in our KiwiSaver fund returns tables, and the fees vs returns comparison looks at whether fees explain the differences.

Active vs Passive Management

An active fund’s after-fee return depends on whether its managers’ choices add more than the extra fee; a passive fund’s return follows its index minus the fee, so it can’t beat the index. How the two approaches have compared over time, and the research on it, is covered in our passive index KiwiSaver funds guide.

Providers are listed alphabetically.

Milford: Features and Limitations

Features:

  • Active management by a team of portfolio managers
  • Six KiwiSaver funds, from Cash to Aggressive

Limitations:

  • Base fee of about 1.05%, more than four times Simplicity’s 0.23% (from 1 October 2026)
  • 5-year growth return after fees and tax (6.60% to 30 June 2026) is below Simplicity’s and Generate’s over the same period
  • No dedicated ethical fund

Simplicity: Features and Limitations

Features:

  • Passive index funds at 0.23%, with no member fee
  • Returns track the index minus a known fee
  • 5-year growth return of 7.23% a year after fees and tax, to 30 June 2026

Limitations:

  • Cannot outperform its benchmark index
  • No separate ethical fund (its exclusions apply across all its funds instead)

Summary

Milford Active Growth Simplicity Growth
Approach Active Passive index
Base fee ~1.05% 0.23%
5-year return after fees and tax, to 30 June 2026 6.60% p.a. 7.23% p.a.
Annual fee at $200,000 ~$2,100 ~$460

These figures change, so check them when you compare, via Sorted Smart Investor.

Where to check the latest data

Rates, fees and returns change often. Before deciding, check current figures yourself:

  • Sorted Smart Investor: compares fees, returns and risk levels of KiwiSaver and managed funds.
  • Disclose register: holds each fund's product disclosure statement and quarterly fund updates.
  • The provider's latest fund update: gives the fund's current fees, returns and holdings.

Frequently Asked Questions

Has Simplicity ever outperformed Milford before? The 5 years to 30 June 2026 show Simplicity ahead (7.23% a year against 6.60%, after fees and tax). The order can differ over other periods; both funds’ past returns are in their fund updates and on Sorted Smart Investor. This back-and-forth is common in active-vs-passive comparisons, which is why this page uses a dated, checkable 5-year figure.

Can I switch between Simplicity and Milford easily? Yes. You can switch at any time; IRD says the transfer takes about 2 weeks, and your old provider may charge a transfer fee. See our switching KiwiSaver providers guide.

Does Simplicity’s not-for-profit status affect the fund’s stability? No. Simplicity’s KiwiSaver scheme runs under the same KiwiSaver rules as other providers’ schemes. Its not-for-profit status affects how profits are distributed (back to members and charity), not the security of your investment.

Is there an ethical option at either provider? Milford’s six KiwiSaver funds are not ethical-specific funds (it applies ESG analysis and some exclusions on direct holdings across its investing), while Simplicity says all its funds are ethically invested. Providers with dedicated ethical options include Booster’s SRI range and Pathfinder; see how ethical KiwiSaver providers compare.