The tiny IwiInvestor KiwiSaver scheme could be up for sale, according to industry sources.
Investment News NZ (IN NZ) understands the IwiInvestor scheme has been shopped around various parties including to a group of associated with a stockbroking firm.
Since its launch in 2011, the IwiInvestor scheme – the only 100 per cent Maori-owned KiwiSaver – has struggled to build membership with the latest periodic reporting data showing about 240 members and about $2 million in funds under management, mostly outsourced to Nikko NZ and Mint Asset Management.
The wider IwiInvestor offering also includes non-KiwiSaver funds management products, insurance (provided by Aon), financial advice and portfolio management (via an FNZ platform).
IwiInvestor sits under the Taupo Moana Group, reporting via the Taupo Moana IwiSaver entity.
According to the 2015 Taupo Moana IwiSaver accounts, the parent group has committed funds up to $2 million to support IwiInvestor for at least 12 months from November last year.
“The Board of Directors recognises that the company has net liabilities of $580,999 and has made a loss in the year of $328,483 and that this is not sustainable,” the 2015 annual financial report says. “The Directors recognise that there needs to be a change in the business to move it towards a profit making position and the Board is taking steps to ensure this occurs.”
Due to the promised parental capital injection, IwiInvestor would continue to be treated as a “going concern”, the report says.
All KiwiSaver schemes are due to transition to the Financial Markets Conduct Act (FMC) regime by December this year, a process that can incur substantial costs for providers.
The Taupo Moana Group’s ultimate owner is the Lake Taupo Forest Trust (LTFT).
The LTFT represents “the interests of the owners of 68 separate Maori land titles on the eastern shores of Lake Taupo”, according to its website.
Richard Jefferies, IwiInvestor CEO, was not available for comment prior to press-time.