ANZ committed to active management following KiwiSaver default provider change

The Government has announced a reduced number of KiwiSaver default providers in its review of the default provider system as the scheme matures and becomes an established part of New Zealand’s investment landscape.

Along with four other existing default providers, ANZ Investments will not be a default provider from the end of the year, but will continue to be New Zealand’s largest KiwiSaver manager and be committed to helping Kiwis prepare for a more secure financial future.

People not currently in KiwiSaver who are automatically enrolled by their employer when they start a new job are assigned to a default provider.

Default providers are appointed every seven years by the Government, and ANZ Investments has been chosen as a default provider for the past 14 years.

ANZ New Zealand Managing Director, Wealth and Private Bank Craig Mulholland said one of the main reasons ANZ was appointed at the beginning was because, as New Zealand’s biggest financial services provider, trust and reach was critical to it being successful … “and we’re proud of playing a part in that.”

Mr Mulholland said the aim of active management is to deliver better outcomes for investors over time.

Actively managed funds are where investment managers make active decisions on what investments to buy or sell in your KiwiSaver account, while passive investments copy what the market is doing by tracking and buying the index.

ANZ Investments is New Zealand’s largest KiwiSaver provider, and has been the top performing default provider on an after-fees returns basis over the last 10 years.

“We believe that after-fee returns are more important than fees alone,” Mr Mulholland said.

When assessing potential investments, ANZ Investments also takes both financial and non-financial criteria into account, including environmental (e.g climate change), social and governance factors.

The bank is also a signatory to the United Nations-supported Principles for Responsible Investment, and more information on ANZ’s investment policies can be found here.

“Remaining members of the ANZ Default KiwiSaver Scheme should rest assured that the scheme continues as is," Mr Mulholland said.

“Members’ money continues to be looked after by the same investment team as the ANZ KiwiSaver Scheme, who are some of the best in the business."

"The investment team has received consistently high ratings and awards from independent research houses.”