AMP has promised a “simpler and more cost-effective investment structure”, with the new approach to cover its AMP KiwiSaver Scheme, its offering under New Zealand’s voluntary retirement savings system.
BlackRock Investment Management will be appointed to deliver the new passive structure, with funds expected to transition by the end of the first half, next year.
According to the wealth giant, the change is a response to broader and long-term trends in expectations from clients, regulators and governments for KiwiSaver schemes.
AMP is one of the largest providers of default KiwiSaver accounts with more than NZ$6.2 billion invested on behalf of more than 200,000 members.
The New Zealand arm of AMP Capital will continue to provide active investment management options on the New Zealand Wealth Management’s (NZWM) WealthView platform, as well as other investment solutions for external clients, across real asset capabilities of real estate and infrastructure and in fixed income and global equities.
AMP indicated last month that it is undertaking a review of its assets and businesses, after it saw an influx in inquiries following the sale of its life insurance segment.
The company canned the sale of the Kiwi wealth business earlier this year and decided to develop it, after the offers it received did not meet its expectations.
