Fisher nets FNZC KiwiSaver Fund

First NZ Capital Investment Management (FNZC) has decided to exit the KiwiSaver market and transfer its business to Fisher Funds.

After securing approval from the government actuary FNZC is to transfer all scheme members into the Fisher Funds KiwiSaver Growth Fund.

“Fisher Funds offers what we consider to be a well resourced and experienced investment management team that will continue to manage your investment according to materially corresponding investment initiatives,” said FNZC director Malcolm Davie.

In a letter to members outlining the move Davie said FNZC believed the transfer would provide a “favourable outcome” for members.

“Fisher Funds is one of the ten largest NZ retail fund managers, managing more than $850 million for more than 35,000 investors, and a number of its products have been independently rated by Morningstar – giving you comfort that their controls and investment processes are of a high standard and have been externally examined.”

Davie said that if the transfer receives government approval members will be automatically transferred into to the Fisher Funds Growth scheme in late November and once complete, the FNZC scheme will be wound up.

Members were also informed they were free to transfer to any other KiwiSaver scheme and in the event the government failed to approve the move members who had not transferred to another fund would be placed in the Inland Revenue Department default scheme.

‘Bumpy’ ride for KiwiSavers may not be over

The September quarter saw KiwiSaver funds rebound, with all types of funds producing positive returns as fears of a double-dip recession eased, according to the latest Mercer KiwiSaver survey.

KiwiSaver returns received a boost as global share markets, which took a battering in the June quarter, bounced back.

KiwiSaver growth funds – which have the greatest weighting towards shares – performed best with a median return of 5.8% for the quarter ending September 30, a significant turnaround from the previous quarter’s negative median return of -6.1%.

“Global share markets have bounced back over the past quarter, as fears of the European debt crisis reduced. All asset classes produced positive returns, including property and commodities, which is great for KiwiSaver funds,” said Mercer New Zealand head Martin Lewington.

However, Lewington cautioned that the economic outlook remained uncertain with weak consumer spending and high unemployment in the US.

“The bumpy ride for KiwiSaver investors may not be over yet, but long term investors should not be overly concerned with short term movements. As the contrast between the June and September quarter shows, it is possible to regain monies notionally lost and over the long term the result should be quite positive.”

According to the survey the best performing fund for the September quarter was the Fisher Funds Growth Fund, which returned 10.5% and 31.2% for the year to September 30.

Over the three years KiwiSaver has been running the survey found funds with the highest weighting towards bonds and cash had been the best performers, reflecting the volatile share market conditions over recent years.

Default schemes were the strongest performers over the three year period, recording a median return of 4.6% per annum compared to -3.1% per annum for growth funds.