Kiwibank buys Gareth Morgan Investments

GMI currently manages over $1.5 billion, of which $650 million is KiwiSaver related, on behalf of more than 57,000 clients.

GMI will operate as a stand-alone entity under the Kiwibank Wealth and Insurance line of business. Gareth Morgan will remain a major client of the business and a member of the investment strategy team. Both GMI principals, Morgan and Andrew Gawith, will remain directors of GMI alongside two Kiwibank-appointed directors.

The deal will significantly increase the size of Kiwibank's KiwiSaver business, which launched last year after the bank ended its distribution deal with default provider Mercer.  It currently has about 15,000 members.

Kiwibank chief executive Paul Brock described the purchase as "a unique opportunity to rapidly grow our Wealth and KiwiSaver businesses, while remaining true to the values that have built Kiwibank".