KiwiSaver

Superlife says it is business as usual for the organisation, despite losing its distribution agreement with TSB.

TSB took a 26.39% stake in Fisher Funds almost six months ago.

Fisher is New Zealand’s biggest locally-owned KiwiSaver operator. Superlife has now been dropped from TSB’s website and details of the Fisher KiwiSaver are tipped to appear soon.

Michael Chamberlain of Superlife said TSB was just a small part of its distribution system. He would not say what percentage it represented.

“TSB was one of the many distribution channels we have. Superlife is the only growing master trust in the market.” He said its main distribution network was through employers.

“I would also argue that people that use us do so because of the service they get and the level of information we provide.”

TSB is in the process of educating staff about Fisher products.

Murphy told media for the time-being TSB staff would recommend the Fisher products under ‘class advice’ rules, which don’t require employees to hold AFA status. But TSB would eventually have its own AFAs. Superlife manages about $260 million in its KiwiSaver scheme, an increase of just over $56 million in the 12 months to the end of March this year.

AMP has been given the sign-off to combine its two KiwiSaver schemes.

The FMA has approved the transfer of the AMP Wealth KiwiSaver Scheme members to its AMP KiwiSaver Scheme, which AMP says now has the strengths of both schemes.

It will mean more than 260,000 members in the AMP KiwiSaver Scheme, with lower fees and access to AMP’s Lifesteps Investment Programme, which moves people through different investment funds depending on their age and investment profile.

Managing director Jack Regan said: “We’ve very pleased to move to a single AMP KiwiSaver Scheme that offers members the high-quality investment choices and services you’d expect from a company with the scale and experience of AMP.”

It follows a review of AMP’s strategic asset allocation of diversified funds in May.

The AMP Wealth KiwiSaver Scheme was the top-performing default fund in the year to June 30, according to Morningstar.

Regan said enhancements to AMP’s KiwiSaver scheme, including a multi-manager investment approach, were a tangible benefit of having brought AMP and AXA together.

Fidelity Life has confirmed that it has done a deal to sell its KiwiSaver business to Grosvenor Financial Services which will also see it take an ownership stake in the company.

Under the deal Grosvernor will assume management of the Fidelity KiwiSaver Scheme and will also work with it on other investment related business.

Currently Grosvenor uses Fidelity as its insurance provider.

Terms of the transaction remain confidential.  However, as part of the deal, Fidelity Life will take a minority shareholding in Grosvenor. 

Once the transaction is complete Grosvenor will manage KiwiSaver assets worth more than $600 million on behalf of nearly 100,000 members.

It will be one of the country’s largest New Zealand-owned and operated KiwiSaver providers – and the seventh largest overall.

“This is about two successful New Zealand owned companies working in a strategic alliance that allows them to focus on what each of them does best,” Grosvenor managing director Allan Yeo says.

“In addition, there is strong synergy between the two companies, both are dedicated and loyal advocates of New Zealand’s thriving independent adviser network.”

“With Grosvenor’s track record and experience in funds management, we believe the combined fund will lead to even more exciting opportunities. We have an unwavering commitment to our advisers and will continue to help members grow their retirement savings through the delivery of effective financial advice,” Yeo says.

“The transaction also puts the combined organisations in a strong position to gain default provider status in the future.”

Fidelity Life chief executive Milton Jennings says the company will continue to work with Grosvenor on investment-related issues while focusing on its core business of providing market-leading risk products.

“This alliance will allow the two companies to share resources – services, products and support – for the benefit of our adviser networks.”

The type, range and costs of funds to existing members will not change as a result of the deal.

A formal agreement between Grosvenor and Fidelity Life is now in place and, subject to usual commercial considerations the transaction is expected to be completed by September 2013.

Grosvenor says it has no comment to make on reports today that it has bought Fidelity Life’s KiwiSaver business.

“You shouldn’t listen to rumours,” a spokesman said.

It has been reported that a deal was done on Tuesday between the two businesses.

Fidelity Life has $244 million in KiwiSaver FUM and bought the Tower life insurance business in May.

It already has links to Grosvenor via TriMax, a life insurance joint venture.

Fidelity Life chief executive Milton Jennings could not be reached for comment.

Many Camelot advisers deal with Grosvenor’s existing KiwiSaver scheme, which has $191 million FUM.