31 Mar 2014

KiwiSaver default providers named

11:45 am on 31 March 2014

The Government has chosen nine KiwiSaver default providers with a focus on reducing fees.

AMP, ANZ, ASB, BNZ, Grosvenor, KiwiBank, Mercer, Fisher Funds and Westpac have been appointed.

The providers applied through a tender process which the Government says was assessed by an independent panel according to a range of criteria, including the provider's fee levels.

It says under the new default funds, the total average annual fee will be $56 for a typical $7000 balance, compared with the current $69 average.

There are currently 2.2 million KiwiSaver members with about $20 billion of funds under management, and about 22 percent of all members are in default funds.

The new providers will serve seven-year terms, starting from July.