AMP KiwiSaver members should expect major fee reduction
When AMP New Zealand Wealth Management (NZWM) announced yesterday that their KiwiSaver funds will be switching from active to passive funds, many across the industry were taken by surprise.
The move has seen the KiwiSaver scheme and its 220,000 members switching to a passive investment structure. The management of which will no longer be handled by AMP NZWM’s sister company AMP Capital and will now be managed by US-based fund manager BlackRock Investment Management.
Chris Douglas, principal at MyFiduciary told Good Returns that the move was “not a change that we were expecting.”
Douglas says that while this is a massive change “at the end of the day this is about asset allocation. That’s what is going to be driving returns going forward. The underlying active management within the sector funds have been reasonably middling anyway. The multi-manager approach is ultimately index-like. There shouldn’t be too much wholesale change in what an investor should expect.”
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