The $14 billion Fisher Funds has snapped up the over $730 million Aon KiwiSaver scheme in a deal set to close at the end of November.
In a note to clients today, Aon said both providers “will be working through a seamless transition for all Aon KiwiSaver Scheme members” once the sale goes through.
“On completion Aon KiwiSaver Scheme members will benefit from Fisher Funds’ active investment team, online platforms, and award-winning client services team,” the note says.
“Until the sale and the transition are complete, each business will continue to operate separately, and existing members will continue to receive the same quality service, in the same way, by the same people. All Aon KiwiSaver Scheme employees have been offered the opportunity to join Fisher Funds.”
The Aon KiwiSaver operates as a multi-fund type arrangement with products offered by Milford Asset Management and Russell Investments the most popular items.
“In determining the best buyer, Fisher Funds stood out through its demonstrated ability to serve as a strong sponsor partner to similar businesses in our industry and has strong conviction in the potential to maintain and grow the business,” the Aon note says. “The team at Fisher Funds places high value on the existing business and its potential to grow and diversify and has a proven history of supporting growth and diversification of portfolio companies as a knowledgeable partner. We are excited about the opportunity this sale offers our clients, members, and colleagues.”
The deal likely also includes the almost $200 million Aon employer superannuation master trust, which has a similar underlying investment offering.
As at the end of March this year, the Aon KiwiSaver scheme reported $734 million under management spread across almost 19,250 members. Russell manages about $490 million of the Aon KiwiSaver through various ‘Lifepoint’ funds (that offer target retirement date-based asset allocation) with Milford responsible for just over $190 million: the remainder is shared between Nikko and ANZ.
The Aon master trust is the smallest by far of the six schemes operating in the employer super market with almost $193 million at the end of June this year, according to the latest EriksensGlobal survey
Aon, headed in NZ by Geoff Blampied, put its KiwiSaver and employer super scheme out to market in August this year, hiring the Sydney-based Allier Capital to manage the process.
