KiwiSaver

In a year that has seen two KiwiSaver providers close up shop, the big bank brands were again dominating fund flows, the second annual Good Returns KiwiSaver survey has found.

View full KiwiSaver table here

According to the figures, as at March 31 the Commonwealth Bank-owned ASB once more topped the list as the single largest KiwiSaver scheme with almost $450 million in funds under management and over 170,000 members compared to $101 million under management and 72,305 members at the same time last year. The ASB-owned FirstChoice scheme also totallled 11,213 members and $37.3 million as at the end of March this year.

However, ING was the most successful overall provider with a total 212,732 members and $523 million across the four schemes it manages – the ING default scheme, ANZ, National Bank and SIL.

The survey, which represents about $2.6 billion in funds under management and almost 980,000 KiwiSaver members, showed the average member balance as at March 31 this year was approximately $2,650 with a wide range across the providers. The Huljich KiwiSaver scheme recorded the lowest average member balance of $670 while the tiny $1.55 million Brook Asset Management scheme scored the highest average with over $7,045 per member.

Among the larger providers, ING’s SIL scheme reported the highest average member balance of $3,463 with its sister bank products managed by ANZ and the National Bank recording the lowest averages of $1,745 and $1,724 respectively.

While the default providers and other major institutions carved out the lion’s share of the KiwiSaver market several mid-tier players were also snapping at their heels, most notably the Gareth Morgan scheme which reported $142.2 million in funds under management as at March 31 this year. Fisher Funds ($53.56 million), Fidelity Life ($37.3 million) and Medical Assurance ($35.6 million) have also accumulated respectable funds under management.

During the year two smaller providers the Australian-backed Eosaver scheme and the union-controlled IRIS scheme shut down after failing to meet growth expectations. The 3,254 Eosaver members, who had collectively accumulated almost $6 million at its close, were given three months to select a new provider before being allocated to a default scheme. Meanwhile, IRIS negotiated a deal with the Gareth Morgan scheme to transfer members. It is understood about 80% of the 1,076 IRIS KiwiSaver members opted for the Gareth Morgan scheme.

See the full report on who is winning the battle for KiwiSavers here

Parliament has passed a major omnibus tax bill into law which clears up rules around payouts to the estates of deceased KiwiSaver members.

The issue hit the headlines earlier this year with media reports about how KiwiSaver managers were unable to make payments to estates due to complications with the law.

The Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill, was passed last week and now provides some clarity around this issue.

One is a change to the KiwiSaver law allowing families of members who die to have quick access to funds in the dead member’s account.

From 1 July 2007, up to $15,000 from a dead member’s account can be paid out directly to nominated persons, without their having to await probate if the member left a will, or letters of administration if the member died intestate.

 

 

 

 

 

 

 

 

Huljich Wealth Management has confirmed that it has sacked a number of advisers selling its KiwiSaver funds due to their selling practices.

As first reported on Good Returns last week the Securities Commission is investigating complaints of illegal house-to-house marketing of KiwiSaver schemes.

“A number of accredited distributors have been terminated for distributing the Huljich KiwiSaver Scheme contrary to our brand and our values,” Huljich managing director Peter Huljich says.

“We will always operate within the law, in keeping with the KiwiSaver brand and in the best interest of our clients and potential clients.

“If any accredited distributor is found to be distributing the Huljich KiwiSaver Scheme door-to-door or breaching any other conditions of (their) distribution agreement, therefore bringing the NZF and Huljich brands into disrepute, they will be terminated immediately.”

Huljich sells its KiwiSaver funds through distribution agreements with NZF and Mike Pero Mortgages.

Last week it announced it had also formalised a distribution deal with Dorchester.

The Huljich KiwiSaver Scheme now has 50,000 members, making it one of the biggest non-default schemes, beating the likes of Gareth Morgan, Fisher Funds and Milford Asset Management.

It says its unit prices across all three KiwiSaver Funds are at all time highs, with the Conservative Diversified KiwiSaver Fund at $1.21, the Balanced Diversified KiwiSaver Fund at $1.14, and the Growth Diversified KiwiSaver Fund at $1.12.

Auckland mayor John Banks and former Reserve Bank governor Don Brash are director of the Huljich business.

Huljich Wealth Management has finalised another distribution deal to sell its KwiSaver funds to the public.

It has formed a strategic sales alliance with financial services company, DorchesterLife to sell its funds.

Huljich already sells its funds through distribution deals with NZF Money and Mike Pero Mortgages.

Currently Huljich has around 45,000 KiwiSaver members and more than $60 million in funds under management.

DorchesterLife has a team of nationwide sales agents which will sell Huljich KiwiSaver alongside the DorchesterLife range of insurance and savings products.

“We recognised the growing acceptance of the KiwiSaver concept amongst our target market, and wanted to align ourselves with the best scheme provider out there,” DorchesterLife chief executive, Henry Lynch says.

Huljich managing director Peter Huljich says “a sales relationship with such an established and experienced financial services company like DorchesterLife is key to the success of our KiwiSaver product, and we believe they will open up a whole new market for us.”