Kiwibank buys Gareth Morgan Investments

Wednesday 18th January 2012 4 Comments

State-owned lender Kiwibank has extended its mark in the funds management business with the acquisition of high profile KiwiSaver funds manager, Gareth Morgan Investments.

GMI, which was set up by economists Gareth Morgan and Andrew Gawith, manages some $1.3 billion in funds in KiwiSaver, superannuation and private investment schemes.

Morgan is known for his forthright economic rationalist views, and philanthropy after his big pay-day as an early investor in online auction site Trade Me when it was sold to Fairfax Media for some $700 million.

Kiwibank targeted wealth management in 2009 when it teamed up with AMP Capital with four actively managed funds. It later ditched Mercer as the distributer of its KiwiSaver scheme, replacing it with AMP Capital.

(BusinessDesk)

BusinessDesk.co.nz

Comments from our readers

On 18 January 2012 at 10:03 pm Alberre said:

Hope they can do better with it than Gareth did.

On 19 January 2012 at 9:32 pm Erwin Meier said:

Strange, I did not sign up with Kiwibank, but know I have no choice since we are locked into the scheme. As usual us ordinary people who have money invested did not get a say in this. Is this legal??

On 20 January 2012 at 10:10 am Floyd said:

1: Nobody is locked into any scheme. 2: Your question in, is it legal to buy and sell businesses? You are asking this on a share trading website? You should be glad someone else is managing your money for you.

On 20 January 2012 at 11:01 am JL said:

You do have a say as to which provider you want to invest with and can be easily changed if you do wish to switch providers.