Former Reserve Bank of NZ governor Don Brash took the direct reins of Huljich Wealth Management after the firm was pulled up for failing to disclose that its performance was boosted by compensating payments made by its chief investment officer.Huljich manages three KiwiSaver funds and has around NZ$117 million invested on behalf of more than 70,000 members.Don Brash takes over as managing director and chief investment officer from Peter Huljich, who was responsible for making compensating payments to the funds. Peter Huljich claims he made the payments because he felt "morally responsible for investment decisions which had proved disappointing."The first compensation was made in December 2007 when Peter Huljich made a total payment of around NZ$1.3 million, out of which the KiwiSaver Scheme was compensated with $NZ7,318 directly and the balance was paid to Huljich Unit Trusts through which investments were made in an initial public offer.The second compensation was made in October 2008 of NZ$141,535 for the loss suffered by KiwiSaver funds because the funds were not diversified to the extent required when moving from defensive investment into cash.Without the compensation, the return on KiwiSaver's Conservative Fund for the six month period to March 2008 would have been minus 14.38 per cent against 2.4 per cent; for the Balance Fund it would have been minus 8.2 per cent versus 1.9 per cent; and for the Growth Fund it would have been minus 18.94 versus 1.1 per cent.For the year ended March 2009, return on Conservative Fund would have dropped to minus 0.74 per cent from 7.4 per cent; for Balance Funds it would have fallen to minus 8.8 per cent from minus 1.4 per cent; and for the Growth Fund it would have dropped to minus 12.55 per cent from minus 3.7 per cent. According to Huljich's, the funds' ranking on the Morningstar unit price tables would not have been significantly affected if the compensation was not made.The compensations were provided through discounted purchase transactions.In a statement, Brash, who moved out of the position of chairman, said: "It has become clear that the board has not been kept fully informed in a timely manner about certain transactions, and as a consequence Huljich Wealth Management has not lived up to the highest standards of transparency." Brash returned from overseas last week, after which the board conducted a full review of operations.Brash will take leave from the board of ANZ National while he serves as CEO at Huljich.