by David Chaplin
McCarten said while member sign-ups to Huljich have been minimal “this is just the start of the relationship”.
“This really a trial to see how it works,” he said.
Unite, which bills itself as the country's “fastest growing private sector community union”, struck up a deal with Huljich in January to promote the KiwiSaver scheme to its members.
McCarten said Unite engaged a consultant to select an appropriate scheme to distribute after receiving numerous enquiries from members about how to choose a KiwiSaver provider.
“I did consider IRIS [a union-based KiwiSaver and superannuation scheme] and was approached by other unions to use it,” he said. “But we got a view of each scheme based around some criteria: it had to be New Zealand-owned; have an ethical investment policy, and; returns were also important.”
Huljich emerged from the pack based on these three crucial factors but it also “got” the message that many Unite members wanted to save for a house deposit through the KiwiSaver concessions.
McCarten said most of Unite's members worked in highly transient service industries such as restaurants, were lowly-paid and mainly young.
“About half of the members are in their first job,” he said.
Unite collects a $40 fee for each sign-up to Huljich, which “just covers administration costs”, McCarten said.
Despite coming from different ends of the political spectrum – McCarten is a high-profile advocate of the left while Huljich directors include former National Party chief, Don Brash, and Auckland mayor, John Banks – he said the two organisations also share a “cultural affinity”.
“We're both growing organisations, we work hard and we back ourselves,” McCarten said. “Although I would fight [Brash and Banks] all the way on political issues I'd trust them with my wallet.”
Huljich has also formed distribution relationships with associated mortgage-broking companies NZF and Mike Pero.
Peter Huljich, head of Hulich Wealth Management, said distribution was crucial for KiwiSaver providers.
“If you don't have distribution you won't be around very long,” Huljich said. As at March 31, 2008, the Huljich KiwiSaver scheme reported just over $100,000 in funds under management, equating to about 50 members.
However, Huljich told Good Returns the scheme has since signed up over 20,000 members with funds under management hitting $14 million.
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