AMP Wealth Management NZ – an investment company with $9 billion in its investment portfolio, is currently reviewing the investment management of its KiwiSaver and New Zealand Retirement Trust (NZRT) schemes.
One of the options on the table was a shift to passive strategies. Some of the model portfolios in AMP Wealth NZ use Mercer to advise them on manager selection, approved product list and performance reporting. However the final asset allocation of the AMP Wealth products, is ultimately determined by AMP Capital.
An AMP spokesperson says the review could either result in no changes or a change of investment approach and/or investment manager.
Pressure to Lower Fees and Review Process
KiwiSaver providers are currently facing pressure from both competition and the Financial Markets Authority to lower costs across its product range. The Financial Markets Authority is planning to release its ‘value for money’ report later this month which is expected to advocate for lower fees across the KiwiSaver sector.
Moreover, the KiwiSaver default scheme re-tender process is set to make some changes. This could impact AMP who has the largest default exposure with around 90,000 individuals being auto-enrolled among its 220,000-odd members.
AMP provides a wide range of superannuation and investment products, these include their Lifesteps Investment Programme, diversified funds, goal based funds, and single sector funds. The AMP KiwiSaver scheme and NZRT also offer a broad range of other managers including ANZ, ASB, Nikko Asset Management and Mercer.
National Capital's KiwiSaver Research
As a KiwiSaver member, being aware of events surrounding KiwiSaver and KiwiSaver providers can make a big difference. These circumstances can influence both short and long term returns and ultimately your final retirement or first home outcomes. Staying updated on these sorts of events can help indicate future performance of your KiwiSaver fund and help you make more informed decisions.
National Capital understands that spending two hours every night reading up on KiwiSaver updates might not be your cup of tea. This is why you can leave all KiwiSaver related research and matters up to us – the KiwiSaver nerds. We will read up about things that will impact your KiwiSaver fund so you don’t have to.
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