First KiwiSaver fund to close

Eosaver, which has around 3,000 KiwiSaver clients with assets totalling $5.5 million, withdrew from the market at the end of last month. Existing clients will be allocated to a default provider if they fail to choose a new fund.

The "exit from the market is primarily due to a saturation of the KiwiSaver provider market," the company said in a statement.

Good Returns understands Eo looked for a buyer in March after its published accounts showed the KiwiSaver provider lost just over $2 million in the 13 months ended June 30 last year, with a recorded revenue of around $28,000 from administration fees.

The company entered the market in 2007 and was confident it would be able to provide superannuation services to its recruitment clients on both sides of the Tasman.