Milford Asset Management will go it alone as a KiwiSaver provider, with its new scheme due to launch on April 1.
Milford, which to date has marketed a KiwiSaver product via the Aonsaver platform, will offer members two investment options in the revamped scheme – its Aggressive Fund and a new balanced fund.
Currently, Milford only offers its Aggressive Fund to KiwiSaver investors on Aonsaver, sourcing about $16 million in funds under management through the platform.
In total, Milford manages just over $570 million.
A spokesperson for AonSaver, confirmed the Milford KiwiSaver scheme would no longer be offered through its administrative system. However, the Milford Aggressive Fund would remain as an investment option on both the Aonsaver retail and employer schemes, the spokesperson said.
“Milford said the dual branding [of its KiwiSaver scheme] with Aonsaver was a little bit confusing for investors,” the Aonsaver spokesperson said.
Milford’s new KiwiSaver scheme will be administered by Trustee Executors.
However, at least two new potential KiwiSaver managers were rumoured to be in talks with Aonsaver to include schemes on the firm’s platform.
The Auckland-based boutique manager Milford has been in an expansive mood of late after scoring a $50 million New Zealand equities mandate from the New Zealand Superannuation Fund in January.
Earlier this month Milford bought almost 17% of listed investment company Salvus Strategic Investments from exiting major shareholder, Anthony Hubbard, majority owner of South Canterbury Finance.
Milford was expected to be officially registered as a KiwiSaver provider with the Government Actuary within days, the first new scheme to do so since 2008. It is understood that KiwiBank, which formerly distributed the Mercer scheme, was also close to finalising its new KiwiSaver offering.