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RNZ News
03-08-2025
- Business
- RNZ News
KiwiSaver shakeup sees billions shifted from big banks to boutique operators
Photo: 123RF KiwiSaver members are quitting big bank providers and shifting their investments to independent and boutique operators. Data for the most recent financial year, compiled from documents filed on the Disclose register, shows that Milford Asset Management was the biggest winner, with almost $1.5 billion of net funds transferred in. In total, there is about $120b invested in KiwiSaver. Generate was second, Simplicity third and Kernel fourth. At the other end of the table, ANZ lost a net $728.7 million in transfers, ASB $476.6m and Westpac $353.2m. ANZ still has the largest market share, at 17.5 percent, followed by ASB with 14.7 percent. In 2015, ANZ had almost a quarter of the market, but since then it has suffered through a period of poor performance . In Morningstar's March survey, ANZ's conservative fund was bottom of the pack over 10 years, balanced was 15th out of 16, and its growth funds were 11th and 14th out of 14. ANZ said the market was "extremely competitive". "Across the industry, a total of 163,000 KiwiSaver members transferred providers in the year to March 2025, up 22 percent. "ANZ continues to focus on helping New Zealanders feel more confident and in control of their KiwiSaver investment. "That means supporting better conversations, especially through our banking channels. We're also proactively checking in and communicating with members, not just waiting for them to come to us. "We're continuing to invest in intuitive tools and digital experiences, such as our Fund Chooser Tool and government Contribution Tracker, to make managing KiwiSaver simpler for customers. "Additionally, we've refreshed our investment beliefs and continued to reduce fees across several of our funds, benefiting our members and reinforcing our commitment to delivering strong, long-term value." Greg Bunkall, data director at Morningstar, said Milford and Generate were the only providers with more than $1b in net inflows in the year. "Those two providers also feature heavily in the top of the league tables regularly. As a provider, you need to have strong brand awareness, marketing, and lead generation functions - but the performance would help. "If you talk to some of the KiwiSaver providers that do well and receive earned media, they will typically see larger than normal switches in days that follow - so that would at least anecdotally support at least some degree of performance chasing in the KiwiSaver cohort." KiwiWrap topped the table on a measure of the number of dollars in versus the number out, followed by Kernel. Kernel had the biggest percentage growth in funds under management. Milford head of KiwiSaver Murray Harris said its long-term returns were helping to draw customers in. Morningstar reports showed Milford among the top performers over three, five and 10-year periods. He said there tended to be more interest in provider switching in the middle of the year, when people were encouraged to check their funds and ensure they had contributed enough to get the full government contribution. "Members are quite focused on their KiwISaver and get a reminder to look at it. We often see a boost this time of year." He said KiwiSaver balances had become more significant for many members, and it made sense that they were looking at what options were available to them. People considering switching should compare long-term returns, he said, not just the most recent quarter or year. "We've seen some very specialist funds do very well, gold and crypto are doing well at the moment… don't just look at the short-term returns but the long-term. "How consistent are they at providing those market-leading returns throughout time? Five and ten years would be the minimum. These are very long-term investments, so the longer the track record you look at, the better." People were more likely to move when markets were performing well, he said. "We've had strong market returns almost every day since the wobble in April, that makes people more confident to transfer. When markets are not doing well, they tend not to transfer because they think they'll crystallise the loss with one provider." But as long as people were moving to a similar fund type, they would not be in a worse position for shifting providers. "You might do better if you recover the fall in value driven by the market sooner." Kernel founder Dean Anderson said people were becoming more engaged and realising that KiwiSaver wasn't just a bank product. "Now that education and awareness is growing, people realise there are better solutions out there." But compared to the number of people who switched for a better deal on their power or phone, he said, switching activity was still very low. "I think we should expect to see that increase. As balances get bigger, people think, 'Am I better off elsewhere? Are there better fees, better service, better values that align with mine?" The growth of smaller, newer providers showed people had confidence in the scheme, he said. "There's confidence that these players are good, stable, growing businesses. You don't have to be with the bank." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Otago Daily Times
02-08-2025
- Business
- Otago Daily Times
Dippie steps down as chairman of tourism giant
Outgoing RealNZ chair Martin Dippie. PHOTO: ODT FILES Queenstown-based tourism giant RealNZ is after a new chair. Prominent Otago businessman Martin Dippie's stepping down after three years at the helm — the company owns Queenstown's iconic steamship TSS Earnslaw, Walter Peak Farm, Cardrona and Treble Cone skifields and Milford and Doubtful Sound coaches and cruises, among other attractions. "Three years is a good period for me," he says, having last year also stood down as chair of the Mitre 10 retail cooperative and from the Otago University Council. "I really enjoyed being part of the team, but I'm a busy guy — [it's] amazing how three years went past in a jiffy." Dippie says he's looking forward to having more time for himself — "and we're doing a lot of endurance rallying and our kids are overseas". In 2022, Dippie along with main investor Milford Asset Management, Queenstown's Rod Drury, Jonty Edgar and Brendan Lindsay poured tens of millions of dollars into RealNZ to shore up its balance sheet and allow investment in technology, innovation and sustainability. However the Hutchins family, who founded the company 71 years ago, remained the majority shareholder. Dippie pays special credit to the Hutchins family — "there's not many businesses, particularly family businesses, that can get to that age". He says "the business is in great heart". "I can't speak highly enough about the business and the people — it's a business with a real warm heart." Milford Asset Management's John Johnston's acting chair while the company searches for a new chair, Dippie says. "I think there'll be a queue of very, very capable people." — Philip Chandler
Yahoo
29-01-2025
- Business
- Yahoo
Gentrack Group Limited (NZSE:GTK) most popular amongst retail investors who own 57% of the shares, institutions hold 34%
The considerable ownership by retail investors in Gentrack Group indicates that they collectively have a greater say in management and business strategy 43% of the business is held by the top 25 shareholders Insiders have been selling lately Every investor in Gentrack Group Limited (NZSE:GTK) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 57% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. And institutions on the other hand have a 34% ownership in the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. In the chart below, we zoom in on the different ownership groups of Gentrack Group. View our latest analysis for Gentrack Group Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. As you can see, institutional investors have a fair amount of stake in Gentrack Group. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Gentrack Group's historic earnings and revenue below, but keep in mind there's always more to the story. It would appear that 7.2% of Gentrack Group shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Milford Asset Management, LTD is currently the largest shareholder, with 8.8% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.2% and 5.5% of the stock. Additionally, the company's CEO Gary Miles directly holds 1.6% of the total shares outstanding. Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Shareholders would probably be interested to learn that insiders own shares in Gentrack Group Limited. As individuals, the insiders collectively own NZ$26m worth of the NZ$1.3b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling. The general public, who are usually individual investors, hold a substantial 57% stake in Gentrack Group, suggesting it is a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio. It's always worth thinking about the different groups who own shares in a company. But to understand Gentrack Group better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Gentrack Group you should be aware of. But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
