ASB joins AMP on the BlackRock bandwagon

ASB, like AMP, has signed up with the world's largest investment firm to manage its KiwiSaver and other managed funds.

Tuesday, July 20th 2021, 7:00AM 2 Comments

The bank has entered into a strategic partnership with BlackRock to help manage the $20 billion it has in funds under management across KiwiSaver and its other managed funds.

BlackRock will provide asset allocation and currency advice to ASB. Unlike AMP it is not moving to use any of BlackRock's funds.

ASB executive general manager Private Banking, Wealth and Insurance Adam Boyd says asset allocation and currency are the two main drivers of returns.

Modelling done by the bank shows the move to BlackRock will provide better returns for its KiwiSaver members and investors.

“We have invested in world-class expertise to manage our asset allocation and currency decisions as we see these as the most significant driver of fund performance,” he says.

Previously asset allocation and currency was done in house at the bank with the support of external advisers.

Boyd says investment decisions will be quicker and more efficient now it has started using BlackRock.

The cost of BlackRock's services will be covered by the bank, rather than increased fees on its products.

“Our intent is to build on the solid history of performance across our funds and deliver even better investment outcomes for customers," Boyd says.

"The BlackRock Multi-Asset team that will manage our investments has a very strong track record.”

Individual asset classes, for example Australasian equities or international bonds, will continue to be managed by a number of local and international investment firms, overseen by ASB in collaboration with BlackRock.

The majority of ASB's funds use passive managers including Vanguard, BlackRock, StateStreet and First Sentier Investors. It also uses First Sentier Investors and Mercer for the few funds which have active management.

Head of BlackRock Asia Pacific Rachel Lord says in a statement the partnership with ASB is unique in the region in that it encompasses the entire investment platform.

“We are excited to bring the full breadth of our global investment expertise as well as our end-to-end investment and technology platform to ASB. We look forward to helping to deliver an enhanced offering to its investment customers.” 

Boyd describes BlackRock as a global thought leader in the responsible investment space and its values are strongly aligned with ASB’s.

Tags: ASB Blackrock KiwiSaver

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Comments from our readers

On 21 July 2021 at 3:22 pm Graeme33 said:
...aren,t they the Amateur group that pushed our Electricity providers to the moon,only to dump them out of the ETF a small time later....maybe a step backward for ASB ? Graeme
On 29 July 2021 at 1:01 pm Contrarian said:
Congratulations must be given to AMP for offering incredibly expensive passive! Will be interesting to see how ASB prices, using the same provider...

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