Robo-advice KiwiSaver links up with advisers

NZFSG-backed Select Investments has acquired a stake in robo-advice KiwiSaver platform Kōura Wealth, with the digital platform looking to team up with mortgage advisers.

Select Investments, which is jointly owned by Crest Financial and NZFSG, has taken a 45% stake in Kōura to launch a new hybrid digital advice product.

Targeting those who do not think about their KiwiSaver, Kōura has created a "facilitated advice model", a combination of digital and personal advice.

Kōura allows KiwiSaver members to create bespoke retirement savings portfolios through a robo-advice tool, with a selection of passive funds available.

The new service will allow advisers to work in tandem with the platform.

The facilitated advice service will bring in advisers to help with any questions, with mortgage brokers offering a point of contact, and providing annual KiwiSaver reviews.

KiwiSaver members will pay for advice. Its six passive funds have a fee of 0.63%, and members who use the facilitated advice service will be charged an additional 0.3%. There is a $30 annual membership fee for people over the age of 18.

The 30 basis point advice fee is paid to the adviser, with Kōura technically the facilitator.

Other KiwiSaver providers have a model where they pay advisers a trail commission.

Rupert Carlyon established Kōura in 2019 as a digital KiwiSaver advice business in conjunction with sharebrokers Hobson Wealth Partners.

Crest Financial is headed by Mark Solomon. Last year the company bought LifeDirect back from Trade Me.

NZFSG was unavailable for comment on the new partnership.

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