KiwiSaver effect has wide reach

Many big providers are outsourcing parts of their KiwiSaver products, such as stock selection, to smaller operators.

AMP announced this month that it was to outsource its New Zealand equity management to a third party. Big banks, such as ASB, also have aspects of their KiwiSaver investments managed externally.

Stephen Bennie, of Castle Point Funds, said it meant the country’s boutique managers were not shut out from the KiwiSaver flow of investment.

“They’re not in-house managing the money, that’s going to funds managers in some cases like ourselves. You saw the example of AMP recently – that’s the way a lot are going. That’s the favoured approach to getting the best decision made at a stock selection level.”