The Medical Assurance Society (MAS) has slashed fees for its KiwiSaver funds, bringing the headline costs of all products below 1 per cent.
Under the changes revealed last week, MAS has more than halved the price of the KiwiSaver cash fund from the previous 0.51 per cent to the new low of 0.25 per cent.
Fees dropped from .07 per cent to 0.14 per cent across the remainder of the scheme’s funds to leave a pricing range of 0.85 per cent for the conservative strategy to 0.99 per cent for growthier products.
At the same time, MAS has come into line with industry peers by removing the variable member administration impost.
The manager told members in a note: “From 1 October 2023, we have removed the minimum quarterly manager’s fee of $12.50 ($50 per annum) for members of the MAS KiwiSaver Scheme who are aged 25 or over, to help make it easier to save. This fee has always been waived for under 25s.”
Just about all large schemes, and many smaller counterparts, have either erased or never charged the member admin fee, which has been the focus of regulatory ire. During the 12 months to the end of March this year, total KiwiSaver fees fell in nominal terms (to $660 million from $720 million in the 2021/22 period) for the first time, mostly as big players including ANZ, AMP and Westpac cut the fixed dollar admin charge.
The medical sector specialist shifted from restricted to retail scheme status in 2021, hoping to appeal to a broader market.
Also last week, the Cook Islands National Superannuation Fund (CINSF) finalised its administrative move to the NZX Wealth Technologies platform.
CINSF, which also hired the NZX-owned Smartshares as investment manager in 2021, appointed Wealth Technologies in June with a four-month transition period set for a reasonably complicated upgrade.
“The project included complex data migration from multiple sources, new reporting functionality and automation of administrative tasks across insurance, pension and investment member functions,” according to a Wealth Technologies release.
David Brown, chief investment officer for the $200 million CINSF, said the new platform would enable both better client reporting and a smoother portfolio management process.
“The NZXWT platform supports multi-asset classes which enables an agile and diverse investment approach – vital in today’s volatile markets,” Brown said in the statement.
“Across our organisation, NZXWT gives us a single 360-degree client view with access to accurate, secure and reliable data. NZXWT empower us to deliver a world-class investment experience, while based in a Pacific Island location.”
Wealth Technologies chief, Lisa Turnbull, said the string of recent transitions – including the Northland advisory firm Yovich & Co last month – would “likely attract new opportunities” to the platform, which last reported over $11 billion in funds under administration (FUA).
The NZX expects the platform FUA to quickly hit $20 billion with an upper-end target of $50 billion in the medium term.
Elsewhere, the Investor Services Group (ISG) subsidiary, JMI Wealth, added a dual-location advisory firm to its network with the purchase of the wealth management arm of sole adviser business, Financial Services Auckland (FSA), last week.
FSA, founded by Mike Beuvink in 1998, has offices in both Auckland and Cambridge, expanding the JMI brand into the Waikato region.
Over the last few years JMI has built up its adviser force with a mix of recruitment and acquisition, growing to 17 before the FSA buyout.
The aging financial advisory workforce and new regulatory environment has triggered an uptick in adviser exits and consolidation with a number of recent transactions by groups such as Amplifi (the financial services group that includes Mint Asset Management) and Consilium.
Beuvink said in a statement: “I have been looking to join an organisation that shares my values and will continue to offer my clients a personalised and high-quality advice service. I’m very comfortable that I’ve secured that outcome, by partnering with JMI Wealth.”
Aside from JMI Wealth, ISG operates holds several companies under its banner including Devon Funds, Clarity Funds and the Select Wealth platform.