Milestone allowed us to return scale benefits to members, says firm
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Investment manager and KiwiSaver scheme provider Kiwi Wealth has announced that it now manages more than $6 billion in funds on behalf of New Zealanders.
The $6 billion milestone was important because it allowed Kiwi Wealth to return scale benefits to KiwiSaver members and private portfolio clients, Kiwi Wealth general manager customer, product and innovation Joe Bishop said.
“We’ve now achieved a level of scale and efficiency that allowed us to push ahead with work to pass savings back to those who invest with us,” Bishop noted.
Kiwi Wealth added 14,493 members to its KiwiSaver scheme and more than $500 million in funds between April 1, 2018 and March 31, 2019. Recently, Kiwi Wealth slashed fees for its Conservative fund from 1% to 0.83% per annum, with additional reductions for its cash, growth and balanced funds. It also challenged all at-scale KiwiSaver scheme providers to look to cut fees.
Read more: Scheme challenges KiwiSaver industry to keep costs low
“We’ve done it, because we believe any provider that has the capacity to reduce fees has no reason not to. Fee structures should be assessed for every fund, every year,” Bishop said. “That’s what we’re doing to make sure our members are only charged the fairest fees for the investment expertise and services we provide.”
Kiwi Wealth also invested in providing access to quality financial advice and developed award-winning retirement income planning tools, he added.
