AMP a laggard with KiwiSaver default status on the line

The latest Morningstar report shows AMP delivering the lowest returns in each timeframe, except the past quarter. Across the past decade, AMP has generated an annual 4.9 percent return after fees for its default fund investors compared to more than 5.5 percent from its peers.

ANZ’s default conservative fund has been the best performer, generating a 6 percent annual return in the past 10 years, followed by Fisher Funds at 5.8 percent.   

The government is in the process of choosing the next set of default providers to replace, or renew, existing providers appointed in 2014. The tender is open until December.

The Ministry of Business, Innovation and Employment’s request for proposal document expresses a preference for appointing five default funds, meaning almost half the incumbents could miss out.