Kiwi Wealth sold to Fisher Funds for $310m

WELLINGTON: KiwiSaver provider Kiwi Wealth has been sold to Fisher Funds for $310 million.

Kiwi Wealth is part of the stateowned Kiwi Group Holdings, which includes Kiwibank, and the sale to Fisher Funds was widely tipped with the price at the lower end of expectations.

Kiwi Group chairwoman Dame Paula Rebstock said the sale was positive for Kiwi Wealth, a default provider, because it would be able to expand within Fisher Funds as it was gradually integrated.

‘‘Kiwi Wealth’s more than 270,000 members will be gaining access to Fisher Funds’ awardwinning advice and active investment team.’’

Fisher Funds is understood to have headed off competing bids from Jarden Securities and local KiwiSaver provider, Booster.

Fisher Funds chief executive Bruce McLachlan said the acquisition fitted its longterm growth plans in KiwiSaver and funds management in New Zealand.

‘‘This is an exciting moment for Fisher Funds and will further strengthen our position as a leader in New Zealand’s active funds management business.’’

Fisher Funds is the fourthbiggest KiwiSaver provider and is controlled by the Toi Foundation, which owns the New Plymouth TSB Group.

An American investment group, TA Associates has a 34% stake in Kiwi Wealth, which means the sale will also need Overseas Investment Office approval.

The deal will enlarge Fisher Funds’ under management by about $9 billion to $23 billion, and also give it back access to default KiwiSaver provider status, which it lost last year in a revamp.

‘‘Our priority is now on working closely with Kiwi Wealth to ensure a seamless transition for all members and clients involved,’’ Mr McLachlan said.

Kiwibank will have an arrangement to refer its customers to Fisher Funds for investment products.

Once the deal is completed, Fisher Funds and Kiwi Wealth said they would start working on identifying opportunities to grow the value of the combined businesses.

Concern has been voiced by some commentators that a sale to Fisher Funds may lead to job losses at Kiwi Wealth.

Customers have been told it will be business as usual in the near term at least. — RNZ