Bank to jettison Mercer as KiwiSaver provider

Kiwibank has dropped Mercer as its KiwiSaver provider because it wants to get more involved in superannuation.

The bank announced the move yesterday as part of its annual result, confirming market speculation.

Chief executive Sam Knowles said Kiwibank had acted as a retail partner but had left the investment management up to Mercer. But he said because Kiwibank now had its own wealth management division and was eyeing more active involvement in the superannuation and managed funds sector, it was essential to end its ties with Mercer.

Mercer New Zealand chief Martin Lewington said the decision was disappointing but Mercer remained committed to KiwiSaver and to staying in the New Zealand market.

Mercer will keep savers it has picked up as a default provider as well as people who signed up to KiwiSaver through Kiwibank.