Kiwi Wealth has followed BNZ and put administration of its default KiwiSaver Scheme on the MMC platform.
MMC says this is an extension of its services to Kiwi Wealth. It will provide full registry services, as well as unit pricing and fund accounting for Kiwi Wealth’s Managed Funds and KiwiSaver products.
By transitioning these services from an-inhouse operating model to MMC, Kiwi Wealth will achieve a scalable infrastructure to accommodate growth and deliver enhanced investment outcomes to its members and investors, while also taking advantage of economies of scale.
The soon-to-be implemented operating model will support Kiwi Wealth’s requirements as a default KiwiSaver provider, and includes full PIE and other tax calculations, reconciliation and reporting. MMC’s API interface with IRD will improve automation, speed up KiwiSaver transfers and improve the overall member experience. Kiwi Wealth will also be utilising MMC’s APIs to deliver its industry leading digital investor experience layer.
“By aligning Kiwi Wealth’s KiwiSaver and Managed Funds operations, we are benefitting from operating synergies, agility and reduced operational risk," Kiwi Wealth chief technology officer Craig Wardsays in a statement. "Through outsourcing our investment administration to a trusted partner, our investment and operational teams will be freed up to focus on what we do best; creating better financial futures for Kiwi by helping people get informed about how they can grow their wealth.”
Kiwi Wealth’s relationship with MMC dates back to 2018, when it first started using MMC’s investment administration services for managed funds. Once the KiwiSaver transition is completed, Kiwi Wealth expects its remaining products, such as its Private Portfolio Service, will follow.
MMC’s acquisition of Aegis in December 2019 means it can offer a holistic investment administration solution that spans both fund and wealth administration services.
In the meantime, by being part of MMC’s investment management community, Kiwi Wealth benefit from streamlined and robust operational services leveraging latest cloud technology. This includes regulatory compliance, complex reporting requirements and AML (Anti Money Laundering) checks.