The Aurora KiwiSaver will diversify its underlying managers next year following super-charged growth that will see the scheme hit $100 million by year-end.
Simon Rolland, Aurora founder, said the KiwiSaver scheme is on track to hit the twin milestones of $100 million under management and 5,000 members less than 18 months since launch late last year.
“We should hit our [2022] goal of reaching $100 million by late this week,” Rolland said. “The scheme is getting between 120 to 150 new members each week.”
Up to 70 per cent of Aurora KiwiSaver members were previously in bank-based schemes and 20 per cent with other providers: the remaining 10 per cent are typically new KiwiSaver members.
Aurora, fueled by a network of about 70 financial advisers, accrued 2,150 members and almost $50 million at the end of March this year – a record from-scratch achievement in the KiwiSaver world bar the inaugural 2007/8 year for the regime.
With assets building up at speed the Aurora scheme plans to expand its underlying manager suite next July, he said.
Currently, the Aurora KiwiSaver uses Mint Asset Management for the core conservative and growth funds while allocating to BlackRock exchange-traded funds (ETFs) for the ‘Future Focused’ strategy.
Rolland said the scheme would replace the BlackRock ETFs once the new multi-manager arrangements are confirmed.
Aurora Capital – headed by former AMP Capital head of multi-asset, Sean Henaghan – is the formal investment manager of the KiwiSaver scheme, which is in turn offered under the auspices of fund-hosting firm, Implemented Investment Solutions.
According to Rolland, the fact Aurora has grown strongly despite volatile markets in 2022 should set the scheme up well for when the economic mood turns upwards.
He said the Aurora financial advisers have been working hard to reassure clients in the face of negative returns over the year to date.
More recently, the Aurora KiwiSaver scheme added a first home-buyers fund to the mix.
The wider Aurora financial services business, which includes insurance and mortgage broking, has also been growing quickly this year.
In fact, the mortgage business has expanded at a greater pace than the KiwiSaver scheme, Rolland said.
The Christchurch-headquartered Aurora Financial Group also picked up its third Deloitte NZ ‘Fast 50’ award, he said.