What needs to change with KiwiSaver

Consilium's KiwiWRAP KiwiSaver offering has been off to a slow start but it's starting to make good headway, Alman says. He says KiwiWRAP is "vastly different" to other schemes and "we always knew it would be a slightly harder road to hoe."

The scheme is a full advice model and advisers can access more than 400 securities, and to build a portfolio. Currently it has $77 million in funds under management, but "we're making headway and getting strong flows," Alman says on Good Returns TV. He says as a full advice model it takes a different mindset and gets away from a product based offering to a service based one.

Alman says it gives advisers the opportunity to build a broadly diversified KiwiSaver portfolio and it solves the "single manager risk".

That is a big risk in Alman's mind as we seen some active managers go through sudden declines. "Active managers can get some rapid withdrawals," he says.

Originally published on Good Returns: What needs to change with KiwiSaver