On Friday 14 May, the Government announced changes to the KiwiSaver default provider arrangements. These include reducing the number of default KiwiSaver providers, and Fisher Funds will no longer be a default KiwiSaver provider as of 1 December 2021. It is surprising and naturally somewhat disappointing not to have been reappointed as Fisher Funds is a highly capable default fund provider, however the default fund is only a small part of our KiwiSaver business.
The changes do not impact our core KiwiSaver and fund management services; we will continue to provide our award-winning KiwiSaver and investment services to New Zealanders. For the majority of our clients, nothing will change.
What does this mean for me?
For most of our clients this doesn’t mean anything. You can be confident that Fisher Funds will continue to operate our two award-winning KiwiSaver schemes with the same focus on investment returns and service that we have always had, and our team will be here to help you if you need it.
If you are one of our default fund clients, we encourage you to call our team to discuss your options and we will be trying to contact you over the next few months. Keep an eye out for your KiwiSaver Annual Statement over the next couple of weeks to learn more about your options.
I started out as a default client but I then chose a fund – does this impact me?
If you have already chosen a KiwiSaver fund – even if you chose to stay in the default fund (Cash Enhanced Fund) and told us about it, the changes will not affect you.
How do I know if I am in the default fund?
You are only a default client until you make an active choice with your default provider - or until you choose to move providers. Basically once you have made a decision about your KiwiSaver fund or provider you are no longer a default client - even if that's how your KiwiSaver account was started.
You will only be impacted if you meet all three points below:
- You were automatically enrolled in KiwiSaver by IRD and allocated to Fisher Funds; and
- You are invested in only the Fisher Funds Two KiwiSaver Scheme Cash Enhanced Fund; and
- You have not actively made a choice to stay in this fund.
If we have your current contact details on file we will let you know over the next few weeks if you are impacted by these changes. If your information has changed, or if you don’t hear from us and think you may be in this group please get hold of us.
I am a Fisher Funds default client - if I do nothing, what will happen?
You will stay being a Fisher Funds client until the government changes are implemented at the end of November. If you do not choose a fund with Fisher Funds or choose to move to another provider before 30 November 2021, you will be transferred automatically to another provider on 1 December 2021, and you will also be moved into a higher-risk balanced KiwiSaver fund.