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Home » … closes Nikko door in KiwiSaver, NZRT

… closes Nikko door in KiwiSaver, NZRT

February 18, 2024

Jeff Ruscoe: AMP NZ managing director

Nikko diversified funds have been scratched from the AMP KiwiSaver and NZ Retirement Trust (NZRT) platforms, reducing the external manager count to four.

According to updated disclosure documents, the AMP-hosted Nikko conservative, balanced and growth funds closed to new money last week.

The Nikko funds have accrued about $300 million across the AMP products, split about equally between the NZRT and KiwiSaver schemes.

AMP has offered the Nikko balanced fund to KiwiSaver and NZRT members since at least 2016, later adding the conservative and growth strategies.

Over the years AMP NZ, now headed by Jeff Ruscoe, has expanded and changed the third-party investment options distributed via its schemes with four off-brand managers and 12 products now available.

As well as the Mercer balanced fund, the AMP schemes offer three diversified funds each from ANZ and SuperLife (ex ASB master trust) and four from Milford, which was added only in 2021. The group also lists the ANZ property fund on the KiwiSaver and NZRT.

ANZ remains the most popular non-house brand on the AMP schemes with about $752 million under management including almost $600 million in its balanced fund.

SuperLife managed more than $230 million of AMP-sourced money as at the end of last year followed by Milford ($200 million) and Mercer ($185 million).

All of the external managers on the AMP platforms also run KiwiSaver products under their own labels.

Collectively, the five (including Nikko) third-party branded funds manage about $1.7 billion across the AMP KiwiSaver and NZRT, equating to almost 18 per cent of the total $9.6 billion held in the two schemes as at the end of last year.

AMP hired BlackRock in 2021 to manage its in-house diversified funds on a passive basis, dumping then sister firm, AMP Capital, in the process. The ASX-listed parent later divested AMP Capital in several stages, offloading the NZ arm to Macquarie, which later handed the assets to Mercer.

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