KiwiSaver

Consilium says it has seen a surge in advisers using its KiwiWRAP KiwiSaver scheme along with an increasing interest in personalised KiwiSaver advice from high-balance investors.

The KiwiWRAP scheme, available to advisers only, now has more than $200 million in funds under management.

"KiwiWRAP continues to attract investors with higher balances who are seeking tailored advice on their KiwiSaver investments. Over the past year, the number of KiwiWRAP accounts with balances exceeding $1million has nearly doubled, and the scheme’s average portfolio balance has increased from $174,000 to $188,000," the company says.

With more than 40 adviser firms nationwide offering the KiwiWRAP KiwiSaver Scheme, the market is signalling growing demand in an adviser-led KiwiSaver solution.

"Many financial advisers aren’t just recommending the scheme to their clients, they’ve invested their own KiwiSaver balances in it too."

Hamilton Hindin Greene financial adviser, Jeremy Simpson, says, “I’ve got a KiwiWRAP account myself. All our advisers have transferred their KiwiSaver to it.”

“It’s the best way to truly understand the scheme.”

That sentiment is echoed across the growing network of accredited adviser firms using the scheme to deliver better outcomes for clients, particularly those with significant balances and more personalised investment needs.

“This isn’t just a generic KiwiSaver scheme that advisers recommend, it’s one they have incorporated into their suite of advice solutions and are personally backing with their own retirement savings,” Consilium chief executive Louisa Yandle says.

“That speaks volumes about the confidence advisers have in KiwiWRAP’s flexibility, transparency and long term value as part of their business.”

With over 1,000 investors onboard, KiwiWRAP is carving out a niche in the market, giving advisers the tools to offer clients a KiwiSaver solution that aligns with their wider portfolio strategy.

Three companies have celebrated $2 billion milestones recently.

Tauranga-based First Mortgage Trust recently cracked the $2 billion funds under management.

FMT’s strongest growth has come from existing investors and borrowers sharing their positive experiences. “Most of our new investors come to us through word of mouth, from a friend, a family member, or someone they trust,” chief executive Paul Bendall says.

FMT's has more than 7,000 investors and it offers a retail fund, PIE fund, and a wholesale fund.

More on FMT here.

With little fanfare, except on social media, Kernel also surpassed the $2 billion in funds under management. This is quite remarkable growth as it celebrated the $1 billion mark in June last year. It took five years to get the first billion and just over a. year to get the second.

Milford also rolled out the $2 billion cake saying last week its KiwiSaver Plan now exceeding $2 billion in funds under management (FUM) through its independent financial adviser channel.

"This growth has been driven by strong adviser support, long-term investment performance, and a commitment to delivering high-quality service to the intermediary market," he company says.

This milestone sits within the broader context of Milford’s KiwiSaver Plan, which has now grown to $11.8 billion in total FUM, with the firm expecting to surpass $12 billion in the coming weeks.

“This achievement is a clear endorsement of the relationships we’ve built with independent financial advisers. It reflects not only our long-term performance, but the value created through strong partnerships and a clear focus on client outcomes,” Head of Wholesale Distribution Michael Robson says.

Milford’s Adviser Portal has been instrumental in supporting advisers to deliver efficient, transparent, and scalable KiwiSaver advice to clients. The portal enables approved financial advisers to:

● Seamlessly onboard and service clients
● Monitor investment performance
● Apply ongoing advice and admin fees
● Access comprehensive features to support ongoing engagement.

“We’re proud of the role our team and technology play in helping advisers deliver strong financial outcomes to New Zealanders,” Robson said.

The Financial Markets Authority says there has been a."dramatic" shift of KiwiSaver funds to riskier assets and one fund manager says that's a good thing.

In an Occasional Paper Series the regulator has observed a dramatic increase in the overall risk categorisation of KiwiSaver funds in recent years.

"The proportion of KiwiSaver invested in risk category 5 funds (high volatility) has quadrupled from around 10% in 2021 to more than 40% in 2024, with the proportion in risk category 3 funds (low to medium volatility) decreasing from 30% to 10% over the same period."

While it does not say whether that is a good or a bad thing it does try to understand the reasons for this shift.

Fisher Funds general manager KiwiSaver David Boyle says, "we think the increase in the amount of KiwiSaver funds invested in higher risk funds is a good thing for investors seeking to grow their retirement savings over the long term."

He says KiwiSaver has turned 18 this year and it – and investors – are maturing. He says there are six things worth noting:

1. Greater saver sophistication: consumers know more about the role of growth assets for a long-term savings scheme like KiwiSaver
2. Better education: Fund managers are responding to consumer interest and providing education on the risks and benefits of different fund types.
3. We’ve weathered storms: consumers have seen the impact of market events like the GFC, Covid and more recently the impact of tariffs. They have seen markets bounce around the generally rally and recover.
4. The democratisation of investing: the advent of platforms that allow investors to build their own portfolios allows providers to launch single sector specialist offerings that are often at the riskier end of the spectrum.
5. New asset classes: like our own private equity strategy increases risks, but offer the potential for better long-term outcomes when prudently introduced into diversified portfolios
6. Low risk choice abounds: Members still have the choice from many lower risk funds and savings options which may hold appeal for those decumulating funds as they enjoy their retirement years.

More than a million people will be seeking advice on their KiwiSaver, Harbour Asset Management co-chief executive Andrew Bascand says.

More than a million people will be seeking advice on their KiwiSaver, Harbour Asset Management co-chief executive Andrew Bascand says.

Speaking at the recent launch of the Evidential KiwiSaver scheme, Bascand laid out his forecast for the growth of KiwiSaver.

“The all-consuming wave is well underway.”

“You can’t avoid that KiwiSaver is the future of financial advice in New Zealand.”

“Under the current KiwiSaver settings I think that KiwiSaver goes to just under $400 billion in 10 years’ time.”

(This speech was made before the Budget announcements).

Bascand’s model assumes members over 65 take money out of KiwiSaver, he has used an average contribution rate of 4.3% and salary and wage inflation at 3% annually. His market return is 4.25% after tax.

“I think in all respects my $400 billion here of KiwiSaver is slightly conservative.”

Under this model KiwiSaver goes from being $2 in every $10 of household wealth to $4 in every $10.

Bascand looks to Australia and how superannuation has grown.

One of the trends he expects New Zealand to follow is that an increasing amount of superannuation (KiwiSaver) will move to managed portfolios on platforms.

He reckons 50% of super in Australia sits on platforms and New Zealand is around 25%. New Zealand will grow, maybe not to the same level as Australia, but in his view it will increase.

More and more KiwiSaver members will start seeking advice making it a profitable sector to operate in.

Surveys show 25% of members have sought advice so far, however Bascand questions the data and whether it is true independent financial advice or just information from a provider to a member.

The key takeout is “people are thinking about (advice).”

Based on his $400 billion growth predictions and 25% of members seeking advice that means there will be $60 billion of funds which could come under advice

He notes Australia has been struggling with providing advice as its superannuation has grown. New Zealand will be no different.

“I actually don’t think there are enough advisers in New Zealand to do this today.”