Australian-owned KiwiSaver schemes lost more than $1.2 billion in funds to other providers during the 12 months to March 31 this year with local boutiques sharing most of the spoils.
Based on figures compiled by Investment News NZ, the top three Australian bank-owned KiwiSaver providers – ANZ, ASB and Westpac – plus AMP all reported transfer deficits ranging between $150 million to over $500 million over the annual period.
ANZ reported a collective net transfer loss of about $506 million across its three schemes with the main bank-branded KiwiSaver bleeding $280 million to other providers following a similar $234 million loss in the 2020 reporting year.
Both the ANZ default and adviser-focused OneAnswer schemes have suffered net transfer losses since at least 2014 – continuing the tradition this year – but the bank’s main brand KiwiSaver has generally been among the winners in the competitive sport of member-poaching from rival providers.
Meanwhile, AMP stayed true-to-form in reporting the highest transfer loss of any single scheme as a net $304 million exited to other players during the 12 months to March 31, representing a slight improvement on the $331 million figure last year. Since the 2014/15 year, the AMP KiwiSaver scheme has given up a net $1.7 billion in transfers to other providers.
ASB and Westpac also recorded net transfer losses of $270 million (up from $125 million in 2020) and $150 million (about par year-on-year), respectively, for the 12-month period.
In spite of the reasonably large negative results, the net transfer figures represent only a tiny proportion of the large scheme funds under management: the main ANZ scheme, for instance, still grew funds under management by more than 30 per cent during the 2020/21 reporting year.
ANZ, ASB and AMP are also set to lose more funds later this year after losing out in the default scheme tender in May.
But on the receiving end of the KiwiSaver net transfer money, NZ-owned boutiques fill out the top five places headed by Milford ($404 million), Generate ($284 million), the Pie Funds-owned Juno ($175 million), NZ Funds ($104 million) and Booster ($463 million).
The mostly passive KiwiSaver operator, Simplicity, would likely also feature as second or third on the list, however, it has yet to file annual financial accounts – the only one of the 36 reporting schemes that applied for a one-month deadline extension under a special regulatory exemption.
Simplicity has seen member growth over the 12 months to March this year of more than 12,350 putting it behind the fastest-growing (member-wise) scheme, Generate, which accrued 14,770 or so during the same period.
Unsurprisingly, Milford, Booster, NZ Funds and Juno also featured among the biggest member-growth schemes.
The 2020/21 financial year wasn’t all bad for Australian banks, though, with the National Australia Bank-owned BNZ managing to add on $35 million plus in net transfers as well as over 8,500 members.