KEY POINTS:
Mike Pero Mortgages is to become the distribution arm for Huljich Wealth Management's KiwiSaver funds.
Mike Pero, which is 50 per cent owned by the NZF Group of which Peter Huljich is a director and shareholder, yesterday announced it would be branching out into KiwiSaver and personal loans.
But unlike the mortgage-broking arm, it will not be going out to KiwiSaver providers to find the best deal.
It will offer access only to Huljich funds rebranded under the name Mike Pero Saver.
Peter Huljich launched his boutique fund management firm last August.
Former National Party leader Don Brash is its chairman and Auckland Mayor John Banks has also shown support for the business.
Mike Pero Mortgages chief executive Sandra Pigram said the company had decided to launch into KiwiSaver because it wanted to provide more of a one-stop-shop for its customers.
"KiwiSaver was a natural addition."
Pigram said queries were already coming in from customers regarding KiwiSaver and in particular about mortgage diversion.
But Mike Pero would not be giving advice on which KiwiSaver fund to invest in.
"We are just distributing this product. We are not providing financial advice."
Pigram said the reason Mike Pero chose the Huljich funds was because they offered a product that was easy to understand - not because of the connection to Peter Huljich.
"A lot of them are quite complex. Also, the reputation of those involved, Don Brash and John Banks, gives us confidence."
She said Huljich Wealth Management had set up a dedicated hotline for Mike Pero KiwiSaver clients - a service the larger providers were unlikely to offer.
Pigram said Mike Pero Mortgages would not charge its customers a fee but would receive a small up-front payment from Huljich Wealth Management to cover the cost of administrating the funds.
Huljich's funds charged $36 a year for management of its products, which was under the $40 subsidy provided bythe Government to cover fees, shesaid.
"We earn a small up-front fee. That doesn't get passed on to the customer."
Mike Pero had also begun to offer personal loans.
Pigram said the firm decided to offer the loans because a number of its mortgage clients were coming to it with other debts which could be consolidated into one loan, helping them to manage their finances better.
The loans are open to anyone - not just those who have a mortgage through Mike Pero.
In December last year Mike Pero Mortgages told the Herald it had seen a significant drop-off in its mortgage business and was processing one-third fewer loans than it did during the same time in 2006.
Mortgage brokers have also seen their commission earnings fall as the major banks have dropped the rates they pay.
