MEDIA RELEASE
8 July 2013
New Zealand Companies Form Exciting Kiwisaver Alliance
Two Kiwi companies are joining forces to build a stronger local presence in a KiwiSaver market currently dominated by
foreign-owned fund providers.
Grosvenor Financial Services Group, a locally-owned specialist investment services and KiwiSaver provider, will assume
management of the Fidelity KiwiSaver Scheme from Fidelity Life, the country’s largest New Zealand-owned life insurer.
This means that Grosvenor, who has a successful 15-year track record in funds administration and investment management,
will become the issuer and manager of the Fidelity KiwiSaver Scheme.
Terms of the transaction remain confidential. However, as part of the deal, Fidelity Life will take a minority
shareholding in Grosvenor.
Once the transaction is complete Grosvenor will manage KiwiSaver assets worth more than $600m on behalf of nearly
100,000 members.
It will be one of the country’s largest New Zealand-owned and operated KiwiSaver providers – and the seventh largest
overall.
“This is about two successful New Zealand owned companies working in a strategic alliance that allows them to focus on
what each of them does best,” says Grosvenor Managing Director, Allan Yeo. “In addition, there is strong synergy between
the two companies, both are dedicated and loyal advocates of New Zealand’s thriving independent adviser network.”
“With Grosvenor’s track record and experience in funds management, we believe the combined fund will lead to even more
exciting opportunities. We have an unwavering commitment to our advisers and will continue to help members grow their
retirement savings through the delivery of effective financial advice,” says Mr Yeo. “The transaction also puts the
combined organisations in a strong position to gain default provider status in the future.”
Fidelity Life CEO Milton Jennings says the company will continue to work with Grosvenor on investment-related issues
while focusing on its core business of providing market-leading risk products. .
“Both companies have proud local roots, strong networks of non-aligned advisers and have worked together in the past,”
says Mr Jennings. “This alliance will allow the two companies to share resources – services, products and support – for
the benefit of our adviser networks. In addition, our large pool of clients will benefit from being with a trusted
KiwiSaver provider that is owned and operated by New Zealanders that genuinely have the interests of Kiwis at heart.”
The type, range and costs of funds to existing members will not change as a result of the deal.
A formal agreement between Grosvenor and Fidelity Life is now in place and, subject to usual commercial considerations
the transaction is expected to be completed by September 2013.
ENDS