Existing default KiwiSaver provider arrangements
The Government selected 9 KiwiSaver default providers for a 7-year term that started 1 July 2014.
The default providers
The default providers are: AMP, ANZ, ASB, BNZ, Grosvenor, KiwiBank, Mercer, Fisher Funds and Westpac.
Review of provider arrangements
We reviewed default KiwiSaver provider arrangements before the current term to determine whether they remained appropriate. The following decisions were made as a result of this review:
Investment approach: KiwiSaver default funds will retain a conservative investment approach including a 15 to 25 per cent allocation to growth assets.
Tender criteria and process: The basic criteria for selecting default providers remained largely the same:
- investment capability
- corporate strength
- administrative capability
- track record and stability.
A new criterion required providers to offer investor education to default members.
Allocation of default members post tender: If a current default provider is not reappointed, their default members will be asked if they want to stay with the provider. If they don't choose to stay, they will be reallocated to a new default provider. If they choose to stay, they cease to be a default member.
It is expected that if they don't choose to stay, the default members will be reallocated evenly across the appointed default providers. New default members will be allocated evenly across the appointed default providers.