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.

Sharesies’ KiwiSaver scheme should tip over into break-even and profitability in the current financial year, says the company’s KiwiSaver general manager Matt Macpherson.

The scheme’s net loss widened to a $1.1 million net loss in the year ended March 31 from the previous year’s $964,000 loss, although funds under management (FUM) rose from $150 million to $313 million in the latest year and has now risen to about $450 million.

The year just gone is the scheme’s second full year.

Fee income has nearly quadrupled with managed funds referral revenue rising to $2.1 million from $531,000 and transaction fees rising to $176,000 from $83,000, while operating expenses have risen at a slower pace, up to $3.5 million from $1.6 million.

Sharesies tipped in another $1.5 million of equity during the latest year but losses reduced equity at March 31 to $205,000.

Macpherson said the number of members was 11,000 at March 31 and has since risen to 14,500 and that he expects it requires about 15,000 to reach break-even point.

The scheme allows members to do some stock and fund picking and Macpherson says there are about 92 different NZX-listed options and 55 US listed options – the latter was launched on June 25. The company is working on adding some ASX-listed options.

About 45% of members have made at least one stock pick and about 11% of contributions are going into such individual picks.

Members can also choose between a range of exchange-traded funds.

“We’re trying to present as many options as we can,” he says.

“We’re talking to as many people as we can about why they like [the KiwiSaver scheme] and they like having the option for control and it’s easier to track their investments in one place.”

The company has put a lot of work into its app to give people confidence – “people tell us sometimes that they’re not happy with their old schemes and the information they received.”

About 10% of people signing up to the Sharesies KiwiSaver scheme are new to KiwiSaver but most new members are transfers from other schemes.

Sharesies has more than 700,000 investors on its platform.

Macpherson says that in May the Inland Revenue Department data showed Sharesies was getting between 7% and 8% of transfers.

The introduction of the US’ S&P 500 Index option led to a surge of sign-ups, he says, which is not surprising because it is the most popular ETF in the world and the fees are just nine basis points.

Macpherson notes that Sharesies experienced the same massive sell-off in April after US President Donald Trump announced his first version of tariffs on “liberation day” and it has taken until now to return to previous levels.

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.