Two KiwiSaver schemes report larger losses but make revenue gains

Two of the newer KiwiSaver schemes chalked up larger losses in their latest financial year.

Wednesday, August 28th 2024, 9:03AM

by Jenny Ruth

But while Sharesies KiwiSaver scheme had about 5,000 members at March 31, it has since reached about 8,000 members and needs about another 5,000 to join to allow it to break even, according to Sharesies co-founder and chief executive Leighton Roberts.

Roberts says his company only went public with its KiwiSaver offer in December last year, suggesting momentum towards break even is on its side.

The KiwiSaver vehicle, Sharesies Investment Management, reported a net loss of just over $1 million for the year ended March, up from the previous year's $331,000 loss, according to accounts published with the Companies Office.

While the accounts show net equity at balance date of $123,000, suggesting the company will need more capital in a hurry, Roberts says the parent company will tip in further equity as needed.

The KiwiSaver company's revenue climbed from just $1,000 in the year ended March 2023 to $534,00 in the year ended March this year.

Sharesies currently has about 700,000 members using its share trading platform, up from nearly 600,000 this time last year, providing it with an audience for its KiwiSaver offering.

Koura Wealth, which allows its KiwiSaver investors to choose between nine different funds, one of which is a bitcoin-based fund, filed accounts with the Companies Office showing it lost $1.7 million in the year ended March, up from the near $1.5 million net loss the previous year.

The accounts show its equity holders contributed another $1.2 million during the latest year, bringing their total contributions to $6.1 million.

After accumulated losses of just over $6 million, Koura Wealth had equity of $107,000 at March 31.

But it does appear Koura is making progress, with revenue rising to $655,000 in the latest year from $305,000 the previous year.

The accounts note that Koura has a related-party relationship with Hobson Wealth, which stock broking firm Forsyth Barr bought late last year for an undisclosed sum.

Hobson Wealth former principal Warren Couillaut's Audrey Investments owns 14.8% of Koura, according to Companies Office records.

Hobson provided Koura with brokerage, execution and accounting services during the year and Koura was also a sub-tenant of a property owned by Hobson.

The accounts show key management personel were paid $378,000 in the year ended March, up from $268,000 the previous year.

Tags: KiwiSaver