New Zealand Harbours has selected AMP as replacement provider for its now-closed in-house KiwiSaver scheme.
In a recent member newsletter, NZ Harbours says the AMP scheme offers: investment choice; member communication and online services, and; a “strong focus” on investment education.
AMP also charges “fees which are at least the same as (and in most cases lower than) the New Zealand Harbours KiwiSaver Scheme”, the newsletter says.
“We intend that, subject to receiving prior written approval from the Financial Markets Authority (FMA) for the transfer, all members and assets will be transferred from the New Zealand Harbours KiwiSaver Scheme to the AMP KiwiSaver Scheme by no later than 30 June 2015,” NZ Harbours says. “If the transfer proceeds, the New Zealand Harbours KiwiSaver Scheme will then have neither members nor assets and will be wound up accordingly.”
The FMA approves bulk KiwiSaver transfers only if the conditions in the new scheme are “no less favourable” for members than in the incumbent fund. A number of larger providers have invoked the bulk transfer clause, most notably including, Fisher Funds after it bought the Huljich KiwiSaver scheme and, ANZ when it absorbed the National Bank KiwiSaver.
While the NZ Harbours KiwiSaver attracted only 140 members and $3.6 million, the port industry-based organisation is continuing with its long-standing superannuation scheme.
The NZ Harbours super scheme currently manages about $82 million, spread across a handful of fund managers.
By September this year, NZ Harbours is due to complete the transfer of its direct property investments from Fisher Funds to the AMP Capital Global Infrastructure Fund.
The scheme is also closely monitoring its global fixed income managers.
“While [NZ Harbours trustees] are satisfied with the ANZ (PIMCO) International Bond product they still have the Nikko Global Bond Fund on watch,” the newsletter says.
“Unless there is an improved performance by the end of 2015 the Trustees may consider a replacement manager.”