Kiwi Wealth sale possibility being explored

Kiwi Wealth is a default scheme provider for KiwiSaver. Photo / File

The state-owned financial services firm Kiwi Group Holdings (KGH) has hired an investment bank to shop out its fund management company Kiwi Wealth, according to Australian media reports.

The Australian Financial Review reported that (KGH), which is owned by New Zealand Post, the NZ Superannuation Fund and ACC, had appointed investment banking giant Goldman Sachs to test the market for Kiwi Wealth, after receiving a handful of unsolicited approaches for the company.

Kiwi Wealth offers a range of investment products to customers, including KiwiSaver, managed funds and tailored financial advice.

The paper said Australia's wealth management groups were expected to show interest, to see if Kiwi Wealth could complement their existing businesses.

A possible sale of Kiwi Wealth comes after KGH sold its online investment platform, Hatch, and its insurance business last year.

The recent divestments led some analysts to suggest KGH wanted to focus on Kiwibank, The Australian Financial Review said.

NZ Post, the Super Fund and ACC have all been approached for comment.

Kiwi Wealth was started by Gareth Morgan in 2000 and was originally called Gareth Morgan Investments. In 2012 it was sold to KGH and a subsidiary of NZ Post.

A part of KGH was sold to the Super Fund and ACC in 2016, with NZ Post remaining the main shareholder.

Kiwi Wealth now has about $9 billion under management and was awarded default KiwiSaver fund provider status in 2021.