Another new KiwiSaver scheme launches

There are now more than 30 KiwiSaver schemes on offer. Photo / file

Another new KiwiSaver scheme is being launched, bringing the number of schemes on offer to 35.

Select Wealth Management, a fund manager based in Auckland's Takapuna, has set up the Select KiwiSaver Scheme and will target members through its financial adviser client base.

Select Wealth Management is owned by Investment Services Group (ISG), which also owns Devon Funds Management, Clarity Funds Management and JMI Wealth.

ISG's major shareholder is Investment Hub Trustees - a company owned by well-known investment manager Paul Glass and his wife Sally.

The scheme will use JMI Wealth as its investment manager and the NZX-owned Smartshares as its licensed manager and issuer.

It will have three funds - conservative, balanced and growth - with total fund charges ranging from 1.1 per cent per annum for the conservative fund, 1.23 per cent for the balanced and 1.29 per cent for the growth.

On top of that it will charge an annual membership fee of $36.

The charges will put the new scheme at the more expensive end of the market.

Fund research firm Morningstar's September report put the average asset management charge at 0.67 per cent for a conservative fund, 1.01 per cent for balanced and 1.05 per cent for growth.

While dollar fees averaged $25.5 for conservative, $27 for balanced and $27.72 for growth funds annually.

Debbie Tuddenham, head of Select Wealth, said it launched the fund on the back of demand from its existing adviser clients.

"Select Wealth has grown to over $800 million and we felt this solution was a natural extension to offer to existing advisers and beyond.

"Select Wealth values the important part a financial adviser has in managing and growing
clients' savings, and an ever-growing component of those discussions include KiwiSaver.

"We have been managing portfolios for over 20 years and are excited to be able to offer that expertise through to advisers and KiwiSaver members," Tuddenham said.

The scheme is open for investment from November 23.

More than three million Kiwis belong to KiwiSaver, with more than $71 billion invested.