Kiwi Group Holdings Limited (KGHL) today announced the sale of Kiwi Wealth to Fisher Funds for NZ$310 million.
Under the terms of the deal, the acquisition will see the Kiwi Wealth business integrated into Fisher Funds over time.
Fisher Funds will also enter into a strategic partnership with Kiwibank, with the bank referring KiwiSaver customers to Fisher Funds.
KGHL Chair Dame Paula Rebstock says that the deal is a positive result that will enable the Kiwi Wealth business to grow as a part of the Fisher Funds family and continue to deliver for its customers across New Zealand.
"Kiwi Wealth's more than 270,000 members will be gaining access to Fisher Funds’ award-winning advice and active investment team," said Dame Paula.
Fisher Funds CEO Bruce McLachlan says that the acquisition is a natural extension of the company’s long-term growth plans in KiwiSaver and funds management in New Zealand.
“This is an exciting moment for Fisher Funds and will further strengthen our position as a leader in New Zealand’s active funds management business.
“As a business founded in New Zealand, we’re delighted to welcome another great New Zealand business of the calibre of Kiwi Wealth into the Fisher Funds family.
“Our priority is now on working closely with Kiwi Wealth to ensure a seamless transition for all members and clients involved,” said Mr McLachlan.
Kiwibank Chief Executive Steve Jurkovich said he was excited about today’s announcement and that he looked forward to working with Fisher Funds to help customers take action to secure their financial future.
“This partnership delivers on our growth strategy and will enable Kiwibank to continue to offer KiwiSaver and other wealth products to our customers, delivering on our purpose of Kiwi making Kiwi better off,” he said.
There will be no immediate change for customers or staff as each business will continue to operate separately.
Once the deal is completed, Fisher Funds and Kiwi Wealth will begin to work through a transition period to identify opportunities to grow the value of the combined businesses.
Through the acquisition Fisher Funds will seek to retain Kiwi Wealth’s default KiwiSaver status. However, there is a formal approval process to be worked through over the transition period.
The acquisition is also conditional on approval by the Overseas Investment Office. This is due to Fisher Funds being 34% owned by TA Associates based in the US. The remaining majority share is owned by the Toi Foundation, a New Zealand community trust.
Customers will receive further information ahead of the completion of the sale. In the meantime, it’s business as usual for the Kiwi Wealth and Fisher Funds teams as they continue to deliver for customers across New Zealand.