AMP change KiwiSaver from active to passive

Major switch up in the KiwiSaver investment strategy for AMP NZWM

Tuesday, October 20th 2020, 10:14AM

AMP’s New Zealand Wealth Management (NZWM) have today announced that their actively managed KiwiSaver funds will be switching to a predominantly index-based investment approach.

The KiwiSaver scheme and it’s 220,000 members will be switching to a passive investment structure managed by US-based fund managers BlackRock Investment Management.

As well as managing the AMP KiwiSaver scheme funds, BlackRock will take over the management of New Zealand’s largest private super scheme, the $3.42 billion New Zealand Retirement Trust which has 37,828 members.

The announcement comes after AMP suspended attempts to sell off NZWM earlier this year.

AMP Wealth Management Acting Chief Executive Jeff Ruscoe says, “this change to a predominantly index tracking investment management approach is the right decision to ensure we are best placed to deliver long run returns, further value for money and continue to support the financial wellbeing of our clients.”

“We are delighted to partner with BlackRock, a global leader in investing, and to utilise their resources and insights to deliver our enhanced investment approach and significant benefits to our clients. Through BlackRock we will invest mainly using an index tracking style, unless there are asset classes where the anticipated returns outweigh the extra investment management cost.”

Ruscoe says that soon to follow this announcement will be a thorough “repricing of funds within our AMP KiwiSaver Scheme and an implementation of our sustainable investment strategy.”

NZWM is one of the largest providers of default KiwiSaver accounts with over NZ$6.2 billion invested.

The funds are expected to transition by mid 2021.

Tags: AMP AMP Capital AMP Wealth Management