BNZ has released a new suite of retail funds under the ‘YouWealth’ banner.
The five risk-weighted multi-manager funds range from income to growth with respective annual fees rising from 1.1 per cent to 1.4 per cent.
According to the YouWealth product disclosure statement (PDS): “The Funds invest in a range of different types of assets from New Zealand and around the world.
“We’ve selected specialist investment managers to manage the assets of the Funds, based on our in-depth research and analysis. We’ve chosen these investment managers because we believe they are expert at what they do and how they do it.”
The YouWealth products mirror the earlier Private Wealth Series of funds launched for BNZ-advised high net worth clients last February.
Underlying managers include the BNZ Australian parent bank-owned MLC (via the JANA Multi-Manager Global Shares Trust) as well as Nikko Asset Management (cash and Australasian equities), Mint Asset Management (Australasian equities), AMP Capital (NZ fixed income), Russell Investments (global fixed income) and Harbour Asset Management (NZ fixed income).
MLC, a subsidiary of BNZ parent National Australia Bank, outsources investment consulting and some management services to JANA. JANA also provides investment advice to BNZ.
“In 2017, the NAB Group sold part of its interest in JANA, but retains a minority interest,” the BNZ disclosure document says.
The launch of the YouWealth range coincides with the changes (reported here last December) to the manager line-up in the BNZ KiwiSaver scheme that has seen Nikko and Mint replace Russell Investments in the Australasian shares asset class – worth about $173 million as at the end of last year. The Russell NZ shares funds invests via Harbour and Devon Funds Management.
Russell, which originally managed almost all of the BNZ KiwiSaver funds, also dipped out in NZ fixed income: the scheme now splits the approximately $140 million portfolio between AMP Capital and Harbour. The Russell NZ fixed income fund invests wholly through Harbour.
BNZ is sticking with its existing administration arrangements for both the KiwiSaver scheme and new YouWealth range including: Guardian Trust as supervisor and custodian; Trustees Executors for registry; and, MMC for “certain administrative services”.
Last March, Donna Nicolof, BNZ head of wealth and private bank, told Investment News the bank had shifted to “discrete mandates with investment managers” across its fund business as it implemented a new responsible investing framework.
Formally, though, the BNZ scheme does not consider responsible investment “including environmental, social, and governance” factors, the KiwiSaver PDS says.
“However, the underlying investment managers of funds we invest in may have their own responsible investment policies.”
BNZ, which has had an on-again-off-again relationship as a fund-issuing shop, has raised about $1.5 billion through its fast-growing KiwiSaver scheme and almost $2 billion in the Private Wealth Series.