Generate emerged as net winner of the KiwiSaver 2017 transfer wars in the latest Investment News NZ (IN NZ) review of the sector.
According to the just-published 10th anniversary IN NZ KiwiSaver special, the Auckland-based boutique scheme pulled in a net $148 million from rival providers, beating BNZ, Milford and the fast-finishing Simplicity in the transfer stakes.
The IN NZ data shows the Generate net transfer flows represented about 40 per cent of its total funds under management (FUM) as at March 31 this year.
Meanwhile, start-up index scheme provider, Simplicity, clawed about $96 million in net gains from competitors from launch last September until March 31 this year. Proportionally, net transfers made up about 90 per cent of Simplicity FUM as at the end of the fiscal period, the IN NZ figures show.
Both Kiwi Wealth and ANZ also scored well in the transfer battle, racking up net gains of about $74 million and $58 million, respectively, during the year.
At the other end of the game, AMP and Mercer suffered the respective highest net transfer losses of $206 million and $101 million.
ASB reported the second-highest transfers in from other schemes (of almost $240 million) but, regardless, clocked up net outflows of almost $50 million to rival providers.
The latest Inland Revenue Department (IRD) annual KiwiSaver statistics show almost 150,000 members switched schemes in the 12 months to June 30– up from just over 140,000 in the previous annual period and not far off the record 2015 year when a little under 158,000 transfers took place.
During the 12 months to June 30 over $600 million departed KiwiSaver under the ‘first home’ purchase provisions, the IRD data shows, up from almost $495 million the previous year and just $62 million five years ago.
Last year the government increased the amount eligible KiwiSaver members could withdraw to help fund a first home purchase.
Of the $360 million identified in the IN NZ report as first home withdrawals (not all providers report the figure) about $147 million flowed out of the main ANZ KiwiSaver scheme.
The full IN NZ dataset – showing trends across FUM, members and fees – is available for a reasonably-priced $260 plus GST ($299 including GST). Please contact the author at david@investmentnews.co.nz for further details.
