Don Brash

Wellington, April 19 NZPA - The Huljich Kiwisaver Scheme, which is managed by former National Party leader Don Brash, is being required to report more frequently and in more detail by the Government Actuary.

The Government Actuary, David Benison, today directed the trustee, Trustees Executors Superannuation Ltd, to provide quarterly reports similar to those made by the six KiwiSaver providers appointed to run default funds.

The trustee has also been told to put signed Statement of Investment Policies and Objectives (SIPO) and benchmark performance standards in place by April 30. Any future changes to these will have to be filed within five working days.

The quarterly reports must say whether the scheme has complied with its trust deed and if issues arise a statement of actions must be made of how they will be rectified.

The actuary has also directed the scheme to file quarterly Summary Investment Returns Reports in respect of each investment fund.

In March, Peter Huljich resigned as managing director and chief investment officer of Huljich Wealth Management following controversy about Huljich KiwiSaver transactions. Dr Brash took over both roles.

Mr Huljich made two payments as compensation for investment decisions he made, distorting investment performance statistics that have since been restated.

Mr Benison has the power to intervene in a KiwiSaver scheme if it is being inadequately managed. He has decided the scheme required further and closer monitoring.

"I became concerned about the adequacy of the management of the KiwiSaver scheme when it was disclosed to me that compensation payments had been made which affected the quoted investment performance," Mr Benison said.

Dr Brash said he had every confidence that he would be able to satisfy the Government Actuary that the scheme was carefully and responsibly managed.

Mr Benison said the trustee had been co-operative throughout the investigation.

Dr Brash said there was nothing in the law requiring KiwiSaver schemes to have a SIPO but Huljich has been working to prepare one over the last several weeks.

"I have no doubt that it will be in place before the end of the month. We have every intention of being a leader in the KiwiSaver industry in terms of transparency.

"We have also established a new investment committee, with new members and an external consultant experienced in New Zealand and Australian equity markets," Dr Brash said.

Both the Government Actuary and the Securities Commission are investigating Huljich. The actuary's investigation relates to adequacy of management of the scheme by the trustee and manager.