Nikko plans roboadvice service

Giant Asian fund manager Nikko Asset Management has quietly launched a KiwiSaver scheme, but intends to make a real noise in July when it will launch a roboadvice service.

Though it’s not a household name here, Nikko provides investment services to superannuation schemes, charities and trusts.

Some of its funds are already sold through the AMP and Aon KiwiSaver schemes.

But now it has launched its own, and intends to apply for a roboadvice ‘‘exemption’’ from the Financial Markets Authority, said George Carter, Nikko’s New Zealand managing director.

In July, Nikko will unveil an online roboadvice service helping ordinary people plan their savings, he said.

Roboadvice is seen as the great hope for delivering investment and retirement planning advice to the mass of people who have no access to a financial adviser.

It utilises artificial intelligence to gather information from users in order to be able to deliver them personalised investment advice.

‘‘This is targeting people who do not have the time, the money, or the inclination to go to a financial adviser,’’ Carter said.

People would be able to plan their retirement saving from the privacy of their own home, he said.

‘‘We believe there is a need in the market for some assistance for people who do not receive advice, to have a tool to get them some help to determine what sort of retirement plan they should have in place.’’

The public was welcome to apply to join the Nikko KiwiSaver scheme now, Carter said, but the big push for savers would begin in July with a ‘‘brand launch’’ for the roboadvice service.

Nikko’s New Zealand operation used to be called Tyndall Investments, but in 2014 it was sold to Japanese fund manager Nikko by its then owner, Suncorp.

Nikko has about $5 billion in funds under management in New Zealand. Its KiwiSaver scheme has eight funds, which investors can mix and match to get the investment mix they want.