ASB CEO Vittoria Shortt would like to see change when it comes to KiwiSaver policy and is interested in developing the product.
Shortt says she’s very happy with the scheme and the bank's strategic partnership with Blackrock as underlying asset manager has yielded pleasing results which will be evident when it puts out its investing climate report.
This year ASB KiwiSaver members have made $1.7 billion in contributions and investment returns have seen the fund grow by $1.5b, she says.
On the policy front she would like to see KiwiSaver made compulsory and changes to contribution rates. She says both of these have made a massive impact in Australia and I think New Zealand could do the same.
From a provider perspective, it will be interesting to see what different investment categories will open up at scale, as in Australia.
“We want to make sure KiwiSaver conversations are as simple and easy as possible so we are removing barriers from people thinking about saving for their future, because it's not easy… it's not always front of mind for people.
“When they want a home, people are really clear that they want a home. But trying to convince people to think about their retirement when they're 20 is more challenging.”
Hence ASB is focused on helping people make small, everyday steps with their KiwiSaver.
As for private equity allocation in KiwiSaver, she is interested although it’s not something ASB has executed so far.
“I am genuinely interested in the development of KiwiSaver. And I guess, you just have to look across to Australia to see the ways that the big super funds are participating there. I'm interested in understanding what it takes to, in an appropriate way, participate in supporting the country, so yes although we haven’t done anything specific.”
Currently ASB is neck and neck with Fisher Funds in the battle for KiwiSaver market share. Morningstar’s KiwiSaver report for the second quarter of this year put ASB in third place, just behind Fisher, both with 15.1% of the market and assets of $16.8b each.
Fisher outdid ASB for fee revenue with $160.1m compared to ASB’s $100.3m.