Aon has confirmed it will begin shifting its fund administration to Link Market Services from next week.
According to the latest Aon KiwiSaver accounts, “planning is underway for the administration to be sub-contracted to Link” for the $370 million scheme from August 1 this year.
It is understood Aon’s two biggest external KiwiSaver admin clients – the $400 million plus Medical Assurance Society (MAS) and the $130 million NZ Funds Management products – would also transition to Link.
As Investment News NZ (IN NZ) reported last July, Aon sold its New Zealand super fund and KiwiSaver admin business to the Australian-based Link. Link put the costs of absorbing the Aon NZ admin business at A$700,000.
Prior to the sale, Aon claimed it administered “60 schemes including 22 KiwiSaver Schemes, 9 Complying Superannuation Funds and 14 Defined Benefit Schemes”.
However, since last year consolidation in both the traditional superannuation and KiwiSaver markets has considerably lowered the scheme count.
For example, five of the 10 KiwiSaver schemes administered by Aon as at last March have since disappeared: the NZX-owned Smartkiwi now merged with SuperLife; Staples Rodway purchased by SBS; the SRF and Waterfront to a merger under the Maritime Retirement Scheme banner (now administered by Melville Jessup Weaver); and, the closure of IwiInvestor last month.
Aside from NZ Funds and MAS schemes, Aon also provides admin to the tiny Exclusive Brethren-run BCF KiwiSaver and the fast-growing Generate.
Link NZ head of operations, Stan Malcolm, told IN NZ last year the transition of New Zealand Aon admin clients should be completed by the end of October 2016.
While many of the larger schemes keep admin services in-house, Trustees Executors and new entrant, MMC, are also competing with Link in the KiwiSaver registry game.
At the time of the sale to Link, Aon NZ general manager, Janet Hayden, said the group had no plans to sell its KiwiSaver or $100 million plus master trust business.
Aon plans to report under the Financial Markets Conduct Act regime next year, according to the KiwiSaver accounts.