KiwiSaver scheme Kiwi Wealth braces for a restructure as new owners Fisher Funds look to integrate leadership teams.
Restructuring has become a fairly common term in business talk, and the KiwiSaver industry is no outlier.
Last year Fisher Funds acquired Kiwi Banks' KiwiSaver Scheme, Kiwi Wealth. Fisher Funds then became the third largest KiwiSaver provider, with $14 Billion in assets under management, behind ANZ and ASB.
Fisher Funds has just released a statement acknowledging that "the first step of the integration is the establishment of a single leadership team under Fisher Funds chief executive Bruce McLachlan assuming responsibility for the continued delivery of great outcomes for Kiwi Wealth and Fisher Funds clients."
Therefore Kiwi Wealth CEO Rhiannon McKinnon, chief investment officer Steffan Berridge, chief technology officer Craig Ward and chief customer Officer Morne Redgard have all been made redundant, with chief operating officer Craig Holloway staying on for a further year to support the transition. In short, the executive team is no more. This is a significant change for the KiwiSaver scheme and may well relate to further changes in the performance of Kiwi Wealth funds.
'Kiwi Wealth' was founded by economist Gareth Morgan and Andrew Gawith in August 2000.
Whilst this change has been well covered in the media, there are plenty of changes happening in the background of many of our KiwiSaver Providers all the time. These changes to leadership, management and staffing can lead to changes in the fund's performance reports, like fees and the investing style. There's a lot to watch, and who has time for that? We do; it's part of what makes our independent service so important.
This is where the importance of thorough and regular research comes in. National Capital has an Investment Selection Process with six main pillars. In an acquisition, such as the Fisher Fund - Kiwi Wealth situation, we focus on our pillars, 'Organization Capability' and Organization Stability'.
The National Capital Investment Committee, responsible for approving our final KiwiSaver selections, look at the stability of the KiwiSaver fund managers by assessing the potential impacts of staffing changes, knowing that investment decision makers departing or arriving can provoke significant change.
Our research and advice also consider the capabilities of the leadership team and the resources they have at their disposal. Who are the people managing your money? Assessing their experience and expertise, and professional values to give us a more holistic view of the provider we recommend.
Whilst change is inevitable, our investments in KiwiSaver have a job to do and must avoid any negative hits due to organisational changes. There is much research required and for great reason. At National Capital, our service only begins with advice; we continue to work hard in the background researching and reviewing our client's KiwiSaver investments so that you can have #onelessmoneyworry.