NZ Funds KiwiSaver Scheme - Product Disclosure Statement

 
NZ Funds KiwiSaver Scheme - Product Disclosure Statement
NZ Funds KiwiSaver Scheme
Product Disclosure Statement

Issued by New Zealand Funds Management Limited
29 March 2019

This document replaces the Product Disclosure Statement dated 28 March 2018

This document gives you important information about this investment to help you decide whether you want to invest. There is other useful
information about this offer on disclose-register.companiesoffice.govt.nz. New Zealand Funds Management Limited has prepared this
document in accordance with the Financial Markets Conduct Act 2013. You can also seek advice from a financial adviser to help you to
make an investment decision.
NZ Funds KiwiSaver Scheme - Product Disclosure Statement
. Key information summary

What is this?
This is a managed investment scheme. Your money will be pooled         You may apply to make an early withdrawal in limited
with other investors’ money and invested in various investments.       circumstances, including:
New Zealand Funds Management Limited (NZ Funds, we, us or our)         • First home purchase;
will invest your money and charge you a fee for its services. The
                                                                       • Significant financial hardship;
returns you receive are dependent on the investment decisions of
NZ Funds and the performance of the investments. The value of          • Serious illness; and
those investments may go up or down. The types of investments          • Permanent emigration (other than to Australia).
and the fees you will be charged are described in this document.
                                                                       If you permanently emigrate to Australia, you can apply to
                                                                       transfer your investment to an Australian complying
What will your money be invested in?                                   superannuation fund.
The NZ Funds KiwiSaver Scheme (Scheme) offers you four
                                                                       Your ability to withdraw from the Scheme may be affected by
investment options to choose from: three funds (called the
                                                                       NZ Funds' ability to suspend withdrawals.
Income Strategy, the Inflation Strategy, and the Growth Strategy)
and a life cycle investment option (called the LifeCycle Process).           See section 2 of this PDS ‘How does this investment work?’
The LifeCycle Process is the default investment option.                      on page 6 for more information.

These investment options are summarised in the table on page 4.
                                                                       How will your investment be taxed?
More information about the investment target and strategy for
each investment option is provided on page 10.                         The Scheme is a portfolio investment entity (PIE).

The LifeCycle Process investment option automatically allocates        The amount of tax you pay in respect of a PIE is based on your
your investment across the three funds in the Scheme each year,        prescribed investor rate (PIR). To determine your PIR, go to
based on your age. The portion of your investment allocated to         www.ird.govt.nz/toii/pir/.
each fund will change over time. We have selected three examples             See section 6 of this PDS ‘What taxes will you pay?’ on page
(age 0-54, age 65, and age 75) as specified life cycle stages to             14 for more information.
provide information on the LifeCycle Process investment option
in this Product Disclosure Statement (PDS).                            Where can you find more key information?
Who manages the NZ Funds KiwiSaver Scheme?                             NZ Funds is required to publish quarterly updates for each fund
                                                                       and for each specified life cycle stage in the LifeCycle Process.
The manager of the Scheme is NZ Funds.                                 The updates show the returns, and the total fees actually charged
     See section 7 of this PDS ‘Who is involved?’ on page 14 for       to investors, during the previous year. The latest fund updates are
     more information.                                                 available at www.nzfunds.co.nz. NZ Funds will also give you copies
                                                                       of those documents on request.
How can you get your money out?                                        Some of the features of this offer, including the use of derivatives,
KiwiSaver is designed to help you save for retirement. Unless you      may mean an investment in the Scheme is not appropriate for
satisfy one of the early withdrawal criteria, you cannot withdraw      you. We recommend you discuss the features of this offer with a
your investment until you reach the Qualifying Age which, at the       financial adviser before deciding whether to invest.
date of this PDS, is the later of:
• The age at which you become eligible for New Zealand
  Superannuation (currently 65); or
• The date on which you have been a member of a KiwiSaver
  scheme for five years, or if you transferred from a complying
  superannuation fund, five years after you joined that fund (the
  five year membership requirement).
If you first join a KiwiSaver scheme on or after 1 July 2019, your
Qualifying Age will usually be the age at which you become eligible
for New Zealand Superannuation (currently 65) regardless of
whether you meet the five year membership requirement.
Once you have reached the Qualifying Age, you can withdraw
some or all of your investment at any time.

                                                                nz funds kiwisaver scheme : : product disclosure statement : : 29 march 2019   3
. Key information summary (continued)

fund /
investment                                                                                                                                   estimated annual
option name           objective                    strategy summary                                  risk indicator                            fund charges
                                The Strategies are able to invest in a wide range of assets and do not have a target investment mix.
                   They may be invested in permitted assets in any proportion. The Strategies may invest directly, indirectly through derivatives,
                             and use specialist investment managers. The Strategies may also take active foreign currency positions.

                      To provide exposure          It is anticipated that the Strategy will
                      to income assets             mainly hold cash and cash equivalents, and                                                         1.12%
 Income               using an active              Australasian and international bonds. It may
                      management                   also invest in other permitted assets.*
 Strategy
                      approach.

                      To mitigate the              It is anticipated that the Strategy will mainly
                      impact of inflation          hold inflation-sensitive assets including                                                          1.42%
 Inflation            on your investment           cash and cash equivalents, Australasian and                                                 Includes estimated
                      over the medium              international bonds, and Australasian and                                                    performance fees.
 Strategy
                      and/or long term             international shares. It may also invest in                                                   See page 12.
                      by investing in              other permitted assets.*
                      income and growth
                      assets using an
                      active management
                      approach.

                      To grow your                 It is anticipated that the Strategy will mainly
                      investment over              hold Australasian and international shares,                                                        1.67%
 Growth               the long term by             and/or hedge funds. It may also invest in                                                   Includes estimated
 Strategy             investing in income          other permitted assets.*                                                                     performance fees.
                      and growth assets                                                                                                          See page 12.
                      using an active
                      management
                      approach.

                      To allocate your             Strategy allocation:
                      investment                                                                                                                      1.62%
 LifeCycle            across the three                                                                                                         Includes estimated
                      Strategies based                                             5%                                                           performance fees.
 Process                                                          Age
                                                                                  10%
                      on your age to                              0-54                                                                           See page 12.
 – age 0-54           ensure that your                                            85%
                      investment is
                      allocated in a
                      manner that is
                      consistent with              Strategy allocation:
                      your investment                                                                                                                 1.43%
                      timeframe.                                                                                                               Includes estimated
 LifeCycle                                                                        27%                                                           performance fees.
 Process                                                           Age
                                                                                  34%
                                                                   65                                                                                See page 12
 – age 65             Note: The
                                                                                  39%
                      LifeCycle Process
                      is the default
                      investment
                      option.
                                                   Strategy allocation:
                                                                                                                                                      1.39%
                                                                                                                                               Includes estimated
 LifeCycle                                                                        35%                                                           performance fees.
 Process                                                          Age
                                                                                  34%
                                                                  75                                                                             See page 12.
 – age 75                                                                         31%

                                                                Income Strategy          Inflation Strategy           Growth Strategy

* See section 3 of this PDS for a list of permitted assets for each Strategy.

You also pay an administration fee of $36.00 per year ($3.00 per month) to the Scheme’s Administration Manager.

     See page 11 for an explanation of the risk indicator and for information about other risks that are not included in the risk indicator. To help you
     clarify your own attitude to risk, you can seek financial advice or work out your risk profile at www.nzfunds.co.nz/AdviceSolutions/RiskProfile/

4      nz funds kiwisaver scheme : : product disclosure statement : : 29 march 2019
contents

1. Key information summary                   3

2. How does this investment work?            6

3. Description of your investment options   10

4. What are the risks of investing?         11

5. What are the fees?                       12

6. What taxes will you pay?                 14

7. Who is involved?                         14

8. How to complain                          14

9. Where you can find more information      14

10. How to apply                            14

                                                 nz funds kiwisaver scheme : : product disclosure statement : : 29 march 2019   5
2. how does this investment work?

The NZ Funds KiwiSaver Scheme (Scheme) is registered under                   manner in which a Strategy is exposed to each security or asset
the Financial Markets Conduct Act 2013 as a KiwiSaver scheme                 class; investing directly or indirectly; using derivatives and/or
and is governed by an amended and consolidated trust deed                    any resulting leverage; using collective investment vehicles;
(Trust Deed) dated 12 October 2016, between NZ Funds and the                 using specialist investment managers (including hedge funds);
Scheme’s supervisor, The New Zealand Guardian Trust Company                  taking foreign currency positions; applying hedging; or taking
Limited (Supervisor).                                                        short positions.
The Scheme is designed to help you save for retirement. It is a              The way in which our active management approach is implemented
'defined contribution' scheme. This means that you contribute                may change over time. This may result in the Strategies being
to the Scheme over time and the benefits payable depend on                   constructed with different combinations of investments.
the amount of contributions made by you, your employer and the
                                                                             Wholesale trusts and specialist investment managers
Government, investment returns on those contributions, and tax
and fees deducted.                                                           The Strategies may invest directly, or indirectly via wholesale
                                                                             trusts. A wholesale trust is a wholesale fund managed by
The Scheme is made up of three actively managed funds (also
                                                                             NZ Funds which holds investments. Those investments may
referred to as Strategies in this PDS): the Income Strategy, the
                                                                             include directly held securities and/or investments in funds,
Inflation Strategy and the Growth Strategy. The money you
                                                                             managed by either NZ Funds or external specialist investment
invest into a Strategy is pooled with other investors’ money to
                                                                             managers (including hedge funds). The wholesale trust
purchase assets. You will be allocated units in each Strategy
                                                                             structure provides an effective way for investors to access
you invest in which represent your proportionate holding in
                                                                             these specialist investment managers. Specialist investment
the Strategy. The units do not give you legal ownership of the
                                                                             managers may be selected where NZ Funds considers their
Strategy’s assets but they give you the right to a share of any
                                                                             investment approach will help meet the objectives of the
returns from those assets.
                                                                             Strategies. The current specialist investment managers are
The number of units you are allocated is based on the price per              available on our website.
unit, called the unit price. The performance of your investment
                                                                             Use of derivatives
will be measured by the rise or fall of the unit price. As the
combined value of the assets owned by a Strategy increases or                It is important that you know that each Strategy has the ability
decreases, so too will the unit price.                                       to use derivatives. A derivative is a financial instrument, the
                                                                             value of which is derived from changes in the value of another
It is important to note that no person guarantees the
                                                                             asset (for example, a share market index, a commodity, a bond,
performance of the Scheme, including any returns or repayment
                                                                             or a currency). Examples of derivatives include futures, options,
of your investment. There is no Government guarantee for any
                                                                             forwards and swaps.
KiwiSaver scheme or any KiwiSaver fund you invest in.
                                                                             Some examples of how derivatives may be used in a Strategy
The assets of a Strategy are not available to meet the liabilities
                                                                             include:
of any other Strategy in the Scheme.
                                                                             • To gain exposure to an asset and/or asset class;
Features and benefits                                                        • To modify exposure to an asset and/or asset class; and
Some of the features of this offer, including the use of derivatives,        • To hedge or seek to mitigate exposure to an asset and/or
may mean an investment in the Scheme is not appropriate for                    asset class.
you. We recommend you discuss the features of this offer with a              The use of derivatives can result in a Strategy being leveraged
financial adviser before deciding whether to invest.                         which means small changes in the value of an underlying asset on
LifeCycle Process                                                            which the Strategy holds a derivative may result in substantial
                                                                             gains or losses for the Strategy.
The LifeCycle Process is the default investment option. The
LifeCycle Process automatically allocates your investment                    Economic exposure
across the three Strategies each year, based on your age.                    Economic exposure is a measure developed and used by
Regularly reallocating your investment can have a significant                NZ Funds to illustrate a Strategy's total exposure. The use of
bearing on the long term success of your investment in KiwiSaver.            derivatives can result in a Strategy's economic exposure being
Active management                                                            greater than it's net asset value. There are limits on the economic
                                                                             exposure that may be incurred by some Strategies. For more
NZ Funds uses an active investment management approach that                  information on the Strategies’ economic exposure, see the ‘Other
seeks to maintain a balance between preserving your capital                  Material Information’ document on the offer register at disclose-
and growing your wealth in a manner that is consistent with each             register.companiesoffice.govt.nz.
Strategy’s objective.
In managing the Strategies, we take a wide variety of actions and
are not constrained by a benchmark or target asset allocation.
The actions we take include, but are not limited to: altering the
proportion invested in each security or asset class; altering the

6    nz funds kiwisaver scheme : : product disclosure statement : : 29 march 2019
2. how does this investment work? (continued)

Joining the Scheme                                                       The LifeCycle Process is designed for investors who want
                                                                         to remain invested through their retirement years and draw
As at the date of this PDS, you can join the Scheme if you are:          down on their savings regularly. It may not be appropriate for
• A New Zealand citizen or entitled to be in New Zealand                 investors who plan to withdraw all or a significant portion of their
  indefinitely;                                                          investment when they reach the Qualifying Age or early into their
• Living or normally living in New Zealand (with some                    retirement years. The LifeCycle Process may also be unsuitable
  exceptions); and                                                       for investors who plan to make a first home purchase withdrawal
• Under the age of eligibility for New Zealand Superannuation            in the short to medium term.
  (currently 65) unless you are transferring from another                MemberChoice Process
  KiwiSaver scheme.
                                                                         If the LifeCycle Process is not suitable for you, you can invest
From 1 July 2019, you no longer need to be under the age of              using the MemberChoice Process. Under the MemberChoice
eligibility for New Zealand Superannuation (currently 65) to join        Process, you choose which Strategy or Strategies your
the Scheme, so long as you meet the other eligibility criteria above.    contributions will be invested in (and the proportion to be
You can join the Scheme by completing an application form at the         invested in each Strategy).
back of this PDS or by applying online at www.nzfunds.co.nz.             If you are thinking about opting out of the LifeCycle Process, you
                                                                         should discuss your options with a financial adviser or NZ Funds.
Investment choices
                                                                         You can switch between the LifeCycle Process and MemberChoice
You can invest in the Scheme in one of two ways: using either the
                                                                         Process at any time, subject to NZ Funds' ability to suspend
LifeCycle Process or the MemberChoice Process. It is generally
                                                                         switches. See page 9 for more information on how to switch.
intended that members will use the LifeCycle Process which
ensures their investment is allocated across the Strategies based        Making investments
on their age. Your investment will automatically be allocated
according to the LifeCycle Process, unless you select the                Member contributions
MemberChoice Process.                                                    You can contribute to the Scheme in the following ways:
LifeCycle Process                                                        • For employees only, by payments via your employer through
                                                                           the PAYE system.
The LifeCycle Process automatically allocates your investment
across the Strategies each year, based on your age. Until you turn       • For all members (including employees), by regular or lump sum
55, your allocation across the Strategies will remain constant and         payments made directly to the Scheme or to Inland Revenue.
your investment will be largely in the Growth Strategy. As you get       If you are an employee, you can elect a contribution rate of 3%,
closer to retirement, more of your investment will automatically         4%, 6%, 8%, or 10% of your before-tax salary or wages. If you
be allocated to the Inflation Strategy and the Income Strategy.          don’t elect a contribution rate, your contribution rate will be set at
The chart below shows the current Strategy allocations under the         3%. You can change your contribution rate at any time by telling
LifeCycle Process. You should be aware that these allocations            your employer.
may change from time to time.

LifeCycle Process - current Strategy allocations
This chart shows the current Strategy allocations under the LifeCycle Process. These allocations may change from time to time.

                                                                  nz funds kiwisaver scheme : : product disclosure statement : : 29 march 2019   7
2. how does this investment work? (continued)

Your employer will deduct your contributions from your after-tax             Withdrawing your investments
salary or wages and pay them to Inland Revenue who will forward
them to the Scheme.                                                          KiwiSaver is designed to help you save for retirement. Under
                                                                             the KiwiSaver Act 2006, unless you satisfy one of the early
If you are an employee, and under the Qualifying Age, you must               withdrawal criteria, you cannot withdraw (other than to transfer
contribute at the minimum employee contribution rate (3%)                    to another KiwiSaver scheme) until you reach the Qualifying Age.
unless you take a savings suspension.
                                                                             If you first join a KiwiSaver scheme on or after 1 July 2019,
Any member (including if you are self employed or not employed)              your Qualifying Age will usually be the age at which you become
can make voluntary contributions to the Scheme by lump sum                   eligible for New Zealand Superannuation (currently 65). However,
payments or regular contributions. There is currently no minimum             if you first joined a complying superannuation fund before that
amount for voluntary lump sum or regular contributions. We will              date (and then transfer to a KiwiSaver scheme from that fund)
notify you if we introduce a minimum contribution amount.                    you must still meet the five year membership requirement.
If you choose to make a lump sum contribution, payment can be                From 1 April 2020, you can opt out of the five year membership
made directly to the Scheme or to Inland Revenue. To make a                  requirement by notifying us (meaning that your Qualifying Age
payment directly to the Scheme, you will need to complete a lump             will then be the age at which you become eligible for New Zealand
sum contribution form and send it to the Administration Manager.             Superannuation (currently 65)). However, if you opt out, you will
This form is available on our website.                                       no longer be eligible to receive any Government contributions or
If you choose to make regular contributions, you will need to                compulsory employer contributions once you become eligible for
complete the direct debit form at the back of this PDS.                      New Zealand Superannuation.

Employer contributions                                                       Reaching KiwiSaver Qualifying Age

You may be eligible to receive compulsory employer contributions             Once you reach the Qualifying Age, you can withdraw some or all
if you:                                                                      of your investment at any time. There is no obligation for you to
                                                                             withdraw when you reach the Qualifying Age.
• Are an employee and contributing to the Scheme through your
  salary or wages;                                                           Early withdrawals
• Are aged 18 years or older; and                                            You may apply to withdraw some or all of your investment before
• Have not reached the Qualifying Age.                                       you reach the Qualifying Age in the following circumstances:

Compulsory employer contributions are currently 3% of your                   First home purchase
before-tax salary or wages.
                                                                             You can apply to withdraw some of your investment to purchase a
Your employer does not have to make compulsory employer                      first home in New Zealand if you meet all of the following:
contributions to the Scheme if you are not contributing (for                 • You have been a member of a KiwiSaver scheme or complying
example, if you are taking a savings suspension or are on leave                superannuation fund for a combined total period of at least
without pay). Your employer may choose to make voluntary                       three years;
employer contributions to the Scheme at any time over and above
                                                                             • The property you are going to purchase is, or is intended to be,
the compulsory employer contribution rate.
                                                                               your principal place of residence;
All employer contributions will be subject to employer’s                     • You have never owned property before (unless Housing New
superannuation contribution tax (ESCT) which is deducted from the              Zealand confirms you are in the same financial position as a
employer contributions before these are forwarded to the Scheme.               first time home buyer); and
Government contributions                                                     • You have not made a withdrawal for a first home purchase
                                                                               before.
You may also be eligible to receive a member tax credit from the
Government at the rate of 50 cents for each dollar you contribute            You must leave $1,000 and any amount transferred from an
up to a maximum of $521.43 per year.                                         Australian complying superannuation fund in your KiwiSaver
                                                                             account after the withdrawal.
Member tax credits are calculated annually based on the total
contributions you have made during the last year (1 July to 30               Significant financial hardship
June) and the number of days during that year that you were
                                                                             If you are suffering or are likely to suffer significant financial
eligible to receive member tax credits. You will be eligible if you:
                                                                             hardship, you may apply to the Supervisor to withdraw some
• Are aged 18 years or older;                                                of your investment. To withdraw on the grounds of significant
• Have not reached the Qualifying Age; and                                   financial hardship, the Supervisor must be reasonably satisfied
• Live (or normally live) in New Zealand (subject to some                    you are suffering (or are likely to suffer) significant financial
  exceptions).                                                               hardship and that reasonable alternative sources of funding have
                                                                             been exhausted.
To receive the maximum, you must have been eligible for the full
year (1 July to 30 June).

8    nz funds kiwisaver scheme : : product disclosure statement : : 29 march 2019
2. how does this investment work? (continued)

The Supervisor may limit the amount withdrawn to an amount                 Payment of withdrawal proceeds
that it considers is sufficient to alleviate the particular hardship
                                                                           Withdrawal proceeds are normally paid to your nominated bank
and you cannot withdraw any Government contributions.
                                                                           account within 35 days of the withdrawal request being received
Serious illness                                                            and processed by the Administration Manager.
If you are suffering from a serious illness, you may apply to the          Suspension of withdrawals, transfers or switches
Supervisor to withdraw your entire investment.
                                                                           In certain circumstances, NZ Funds may suspend withdrawals,
The Supervisor will require medical evidence from you to support           transfers or switches where it considers it is not practicable or
your application to withdraw for reasons of serious illness.               would prejudice the interests of members.
Death                                                                            For more information on withdrawals, see the ‘Other
                                                                                 Material Information’ document on the offer register at
If you die while a member of the Scheme, your personal
                                                                                 disclose-register.companiesoffice.govt.nz. Withdrawal
representatives (the executors or administrators of your estate)
                                                                                 forms are available on our website.
can apply to withdraw the balance of your investment in the
Scheme which will be paid to your estate.
                                                                           How to switch between funds
Permanent emigration
                                                                           If you invest using the LifeCycle Process, your investment will be
If you move overseas and do not intend to return to New Zealand            reallocated between the Strategies each year based on your age.
to live, you may apply to withdraw your investment (less the               You do not need to complete a switch form for this to occur as
member tax credits and any amounts transferred from an                     your holdings will be switched automatically.
Australian complying superannuation fund) one year after you
                                                                           If you invest using the MemberChoice Process and wish to
have permanently left New Zealand.
                                                                           change the allocation of your investment, or if you wish to switch
These rules do not apply if you permanently move to Australia.             between the LifeCycle Process and the MemberChoice Process,
If you permanently move to Australia, you may apply to transfer            you will need to complete a switch form and send it to the
your investment in the Scheme (including member tax credits) to            Administration Manager. This form is available on our website.
an Australian complying superannuation fund.
                                                                           NZ Funds may suspend switches in certain circumstances as
Other withdrawals                                                          outlined above.
If you have transferred savings from an Australian complying
superannuation fund to a KiwiSaver scheme you can withdraw
that amount when you reach age 60 and satisfy the 'retirement'
definition in Australian legislation.
If you make a transfer from a foreign superannuation or pension
scheme (excluding an Australian scheme) and New Zealand tax
is payable by you in connection with the transfer, or an additional
student loan repayment obligation arises as a result of the
transfer, you may be able to make a withdrawal from the Scheme
to pay that tax or repayment obligation.
The Supervisor and NZ Funds will comply with the provisions of
any legislation or Court order that requires either to release some
or all of your investment from the Scheme whether or not you
have reached the Qualifying Age (for example, in relation to the
Property (Relationships) Act 1976).
Conditions apply to each of the above withdrawals. For example,
you will need to provide information confirming that you are
eligible to make a withdrawal.
Transfer to another KiwiSaver scheme
You may apply at any time to transfer your investment in the
Scheme to another KiwiSaver scheme. You can only be a member
of one KiwiSaver scheme at a time. If the provider of the KiwiSaver
scheme to which you are transferring accepts your application
for membership, NZ Funds will transfer your investment to that
scheme and you will cease to be a member of the Scheme.

                                                                    nz funds kiwisaver scheme : : product disclosure statement : : 29 march 2019   9
3. description of your investment options

                                                                                                                                                                               minimum
fund /                                                                                                                                                                        suggested
investment                                                                                               strategy                                           risk             investment
option name           objective                             permitted assets*                            summary                                          category            timeframe

                                The Strategies are able to invest in a wide range of assets and do not have a target investment mix.
                   They may be invested in permitted assets in any proportion. The Strategies may invest directly, indirectly through derivatives,
                             and use specialist investment managers. The Strategies may also take active foreign currency positions.

                      To provide exposure to                •   Cash and cash equivalents                It is anticipated that the Strategy will                              2 years+
                      income assets using an active         •   New Zealand fixed interest               mainly hold cash and cash equivalents,
 Income               management approach.                  •   International fixed interest             and Australasian and international
 Strategy                                                                                                bonds. It may also invest in other
                                                            •   Alternative securities**
                                                                                                         permitted assets.

                      To mitigate the impact of             •   Cash and cash equivalents                It is anticipated that the Strategy will                              5 years+
                      inflation on your investment          •   New Zealand fixed interest               mainly hold inflation-sensitive assets
 Inflation            over the medium and/or                •   International fixed interest             including cash and cash equivalents,
 Strategy             long term by investing in                                                          Australasian and international bonds,
                                                            •   Australasian equities
                      income and growth assets                                                           and Australasian and international
                      using an active management            •   International equities                   shares. It may also invest in other
                      approach.                             •   Listed property                          permitted assets.
                                                            •   Commodities
                                                            •   Alternative securities**
                      To grow your investment over                                                       It is anticipated that the Strategy                                  10 years+
                      the long term by investing in                                                      will mainly hold Australasian and
 Growth               income and growth assets                                                           international shares, and/or hedge
 Strategy             using an active management                                                         funds. It may also invest in other
                      approach.                                                                          permitted assets.

                      To allocate your investment           At age 0-54, your investment will be allocated as follows:                                                        10 years+
                      across the three Strategies
 LifeCycle            based on your age to ensure
                      that your investment is                                                               5% Income Strategy
 Process                                                                           Age
 – age 0-54           allocated in a manner that                                                           10% Inflation Strategy
                                                                                   0-54
                      is consistent with your                                                              85% Growth Strategy
                      investment timeframe.

                                                            At age 65, your investment will be allocated as follows:                                                          10 years+
 LifeCycle
 Process                                                                                                   27% Income Strategy
                                                                                    Age
 – age 65                                                                           65
                                                                                                           34% Inflation Strategy
                                                                                                           39% Growth Strategy

                                                            At age 75, your investment will be allocated as follows:                                                           5 years+

 LifeCycle
 Process                                                                                                   35% Income Strategy
                                                                                    Age
 – age 75                                                                                                  34% Inflation Strategy
                                                                                    75
                                                                                                           31% Growth Strategy

* The asset classes listed are from the Financial Markets Conduct Regulations 2014 (Regulations), except for ‘alternative securities’ which falls under ‘Other’ in the Regulations. These are
  the same asset classes used in the fund updates. For more information on each asset class, see the Statement of Investment Policy and Objectives (SIPO).
** ‘Alternative securities’ means asset classes not usually accessed by retail investors, for example, private equity, venture capital and hedge funds. These tend to be asset classes where
   valuation and liquidity may be uncertain and returns may be volatile.

For more information on NZ Funds’ investment approach, see the Statement of Investment Policy and Objectives (SIPO). NZ Funds may
make changes to the SIPO at any time after consulting with the Supervisor. A description of any material changes to the SIPO will be
included in the Scheme’s annual report. Where required by the Trust Deed or law, you will receive notice of material changes before they
occur. The current SIPO for the Scheme is available on the scheme register at disclose-register.companiesoffice.govt.nz.
Responsible investment, including environmental, social, and governance considerations, is taken into account in the investment
policies and procedures of the Scheme as at the date of this PDS. You can obtain an explanation of the extent to which responsible
investment is taken into account in those policies and procedures at our internet site at www.nzfunds.co.nz.
Further information about the assets in each Strategy can be found in the fund updates at www.nzfunds.co.nz.

10     nz funds kiwisaver scheme : : product disclosure statement : : 29 march 2019
4. what are the risks of investing?

Understanding the risk indicator                                            be high risk. The use of these instruments and techniques may
                                                                            increase the volatility of a Strategy and may also significantly
Managed funds in New Zealand must have a standard risk indicator.           increase the risk and extent of any loss. Examples include:
The risk indicator is designed to help investors understand the
                                                                            • Derivatives. A derivative is a financial instrument, the value
uncertainties both for loss and growth that may affect their
investment. You can compare funds using the risk indicator.                   of which is derived from changes in the value of another asset
                                                                              (for example, a share market index, a commodity, a bond, or
The risk indicators for the investment options offered under this             a currency). The use of derivatives can result in a Strategy
PDS can be found on page 4.                                                   being leveraged which means small changes in the value of an
                                                                              underlying asset on which the Strategy holds a derivative may
                                                                              result in substantial losses for the Strategy.
                                   4                                        • Short positions. When taking a short position, the seller seeks
                                                                              to profit from a fall in the price of a security. However, there is
                                                                              no assurance that the price will fall and if it rises a loss will
                                                                              be incurred.
The risk indicator is rated from 1 (low) to 7 (high). The rating
reflects how much the value of the fund’s assets goes up and down           • Asset concentration. The Strategies can hold permitted asset
(volatility). A higher risk generally means higher potential returns          classes and securities in any proportion or concentration,
over time, but more ups and downs along the way.                              meaning that the Strategies may not be diversified. For example,
                                                                              a Strategy may be predominantly invested in a specific security,
To help you clarify your own attitude to risk, you can seek financial
                                                                              specialist investment manager, asset class, country or sector
advice or work out your risk profile at www.nzfunds.co.nz/
                                                                              and may be particularly exposed to any adverse circumstances
AdviceSolutions/RiskProfile/.
                                                                              affecting them.
Note that even the lowest category does not mean a risk-free                • Higher risk securities and/or managers. The Strategies can
investment, and there are other risks (described under the heading            invest in some securities or managers (for example, hedge funds)
'Other specific risks') that are not captured by this rating.                 which are higher risk than the risk indicator of the Strategy
The risk indicator is not a guarantee of a fund’s future                      where NZ Funds assesses that the investment will not materially
performance. The risk indicator is based on the returns data for              alter the Strategy’s risk indicator. In making this assessment,
the five years to 31 December 2018. While risk indicators are                 NZ Funds may consider the different types of risk a Strategy is
usually relatively stable, they do shift from time to time. You can           exposed to, asset correlations, liquidity and NZ Funds' active
see the most recent risk indicator in the latest fund update for              management approach. However, actual results may differ,
the relevant investment option.                                               increasing the risk and/or extent of any loss.

The risk indicator is based on historical returns only. It takes no         Other specific risks
account of expected future risk or potential returns. It may not be
a reliable indicator of future risk, volatility or expected returns.        Other circumstances that can significantly increase the risk
                                                                            to returns for investors and that are not reflected in the risk
General investment risks                                                    indicator include:

Some of the things that may cause a Strategy’s value to move up             LifeCycle Process risk
and down, which affect the risk indicator, are:                             There is a risk that the predefined age-based asset allocation
Market risk                                                                 used in the LifeCycle Process may not be suitable for you as it
                                                                            does not take into account your personal circumstances, such as
Market risk is the risk of volatility or loss caused by a change
                                                                            your attitude to risk or your financial circumstances. If you have
in the value of the investments held by a Strategy. Market risk
                                                                            any concerns about the LifeCycle Process you should discuss
arises from uncertainty about the future value of investments
                                                                            them with a financial adviser or NZ Funds.
held by a Strategy. These changes may be caused by factors
specific to an investment, or as a result of factors affecting              Active management
financial markets generally.
                                                                            NZ Funds uses an active management approach. An active
Illiquid securities                                                         management approach is subject to different risks (which may be
The Strategies may hold illiquid securities. Illiquid securities are        considered higher risks) than a non-active management approach.
assets that cannot quickly be converted or exchanged for cash (or           As a result, NZ Funds’ active management approach may cause
not without a significant loss in value). Illiquid securities generally     the returns and capital stability of the Strategies to significantly
carry a greater risk than liquid securities, particularly during times      differ from the returns and capital stability of the underlying
of market turmoil. Investment illiquidity may make it difficult to          asset classes utilised.
value, acquire or dispose of assets.                                        Wide mandates
Certain investment instruments and techniques                               The Trust Deed and SIPO for the Scheme enable NZ Funds to
NZ Funds and underlying specialist investment managers are able             invest in a wide range of assets and to change assets quickly
to use certain investment instruments and techniques which can              and without notice to investors. As part of its investment

                                                                     nz funds kiwisaver scheme : : product disclosure statement : : 29 march 2019   11
4. what are the risks of investing? (continued)

management process, NZ Funds has developed internal                                    loss. NZ Funds has a due diligence process for appointing specialist
investment guidelines which assist in the oversight of                                 investment managers and all managers are monitored and reviewed.
each Strategy.                                                                         Key person risk
Specialist investment managers                                                         The Strategies may be dependent on the services of key personnel
NZ Funds’ investment strategy may include the selection of                             of NZ Funds and may be adversely affected by the departure or
underlying specialist investment managers. There are a number                          performance of key personnel.
of risks associated with investing with a specialist investment                               For more information on the risks of investing in the Scheme,
manager, including wide mandates, redemption restrictions, and                                see the 'Other Material Information' document on the offer
the risk that a manager selected underperforms or generates a                                 register at disclose-register.companiesoffice.govt.nz.

5. what are the fees?

You will be charged fees for investing in the Scheme. Fees are deducted from your investment and will reduce your returns. If NZ Funds
invests in other funds, those funds may also charge fees. The fees you pay will be charged in two ways:
• Regular charges (for example, annual fund charges). Small differences in these fees can have a big impact on your investment over
  the long term.
• One-off fees (for example, certain transfer fees).

fund name/                                   base fee           service              specialist             nz funds                  total            other charges
investment option                                               charges             investment          performance fees           annual fund
                                                               (estimated)         manager fees              (estimated)             charges
                                                                                     (estimated)                                     (estimated)

        Income Strategy                       0.95%       +      0.17%        +         n/a         +           n/a           =       1.12%

        Inflation Strategy                    1.05%       +      0.17%        +       0.18%         +         0.02%           =       1.42%
                                                                                                                                                      Administration
        Growth Strategy                       1.10%       +      0.17%        +       0.38%         +         0.02%           =       1.67%           fee of $36.00
                                                                                                                                                      per annum per
        LifeCycle Process – age 0-54          1.09%              0.17%                0.34%                   0.02%                   1.62%           member.

        LifeCycle Process – age 65            1.04%       +      0.17%        +       0.21%         +         0.01%           =       1.43%
        LifeCycle Process – age 75            1.03%              0.17%                0.18%                   0.01%                   1.39%

The figures in the table above are expressed as a percentage of the net asset value of each Strategy. The total annual fund charges include a combination of fixed and
variable (performance-based) fees and therefore actual fund charges will vary from the estimates depending on performance. Annual fund charges are deducted from the
Strategy or the underlying funds it invests in (as applicable) and reflected in the Strategy’s unit price.

Description of the above fee categories:
fee                          description

Base fee                     Each Strategy is charged an annual base fee by NZ Funds for managing the Strategy. The base fees are fixed as a percentage
                             of the gross asset value of each Strategy. For the purposes of the table above, these charges have been estimated as a
                             percentage of net asset value. Base fees are accrued daily and paid to NZ Funds monthly in arrears.

Service charges              These cover estimated charges for services provided to the Strategies and related underlying funds (wholesale trusts) that
                             the Strategies invest in, such as fund administration, custody, audit and legal, including the Supervisor’s fees.

Specialist investment        These cover fees, including performance fees, that may be charged by underlying specialist investment managers (not related to
manager fees                 NZ Funds). These fees are an estimate. Actual specialist investment manager fees will depend on the managers selected (which
                             will change from time to time) and on their performance, and will vary from the estimates. Past performance is not indicative of
                             future performance.

NZ Funds                     NZ Funds may charge a performance fee in certain wholesale trusts that a Strategy invests in when specific performance
performance fees             targets are met. These fees are an estimate. Actual performance fees will depend on the performance of the relevant wholesale
                             trust where a performance fee is charged and will vary from the estimates. Past performance is not indicative of future
                             performance. For more information on NZ Funds performance fees, see ‘NZ Funds performance-based fees’ on page 13.

Other charges                The Administration Manager charges you an administration fee of $3.00 per month for the administrative services it performs
                             for the Scheme. The fee is deducted from your investment each month in arrears.

      For more information on the above fees and charges, including the basis of estimates, see the 'Other Material Information'
      document on the offer register at disclose-register.companiesoffice.govt.nz.

12    nz funds kiwisaver scheme : : product disclosure statement : : 29 march 2019
5. what are the fees? (continued)

NZ Funds performance-based fees                                                           Individual action fees
None of the Strategies are charged a performance fee directly by                          There are currently no establishment, contribution, termination or
NZ Funds. However, the Inflation and Growth Strategies currently                          withdrawal fees charged.
invest in the Private Dividend Yield Trust, a wholesale trust in
                                                                                          All fees are stated exclusive of GST or other similar tax. This
which NZ Funds may charge a performance fee. This performance
                                                                                          means that if any GST, or other similar tax, is payable on any fee,
fee is based on a hurdle rate of return. The hurdle rate is the
                                                                                          that tax will be payable in addition to the amount of the fee.
minimum return the Private Dividend Yield Trust must achieve
before being able to charge a performance fee.                                            NZ Funds may, in its discretion and from its own funds, reduce,
                                                                                          pay, contribute to or rebate some of the fees and expenses
The performance fee charged by the Private Dividend Yield Trust
                                                                                          described in this section.
is detailed in the table below:

Hurdle rate        70% S&P/NZX 50 Portfolio Index Gross with                              Example of how fees apply to an investor
of return*         Imputation, 30% S&P/ASX Accumulation 200
                   Index.                                                                    Liam invests $10,000 in the Growth Strategy. He is charged
Amount of   15% of the amount by which the performance of the                                management and administration charges (comprising base
performance Private Dividend Yield Trust (with imputation credits                            fee, service charges, and specialist investment manager
fee         but before tax and after deduction of a notional base                            fees), which work out to about $165 (1.65% of $10,000).
            fee**) exceeds the hurdle rate of return.                                        These fees might be more or less if his account balance has
                                                                                             increased or decreased over the year.
Frequency of A performance fee is accrued if the performance
calculation  of the Private Dividend Yield Trust has exceeded                                Liam may also be indirectly charged a performance-based
and payment its hurdle rate of return. However, the payment of                               fee if the Private Dividend Yield Trust (a related underlying
             any performance fee can only occur once the high                                fund) in which the Growth Strategy is invested earned more
             water mark is achieved.                                                         than its target.
                   The performance fee is calculated and accrued                             Over the next year, Liam pays other charges of $36.
                   on a daily basis and is payable annually in arrears                       estimated total fees for the first year
                   within 30 days of 31 March each year.                                     Fund charges		            $167*
High Water         A high water mark is the value a fund must reach                          Other charges               $36
Mark               before the manager can be paid a performance                              * Includes estimated NZ Funds performance-based fee of $2.

                   fee. The Private Dividend Yield Trust’s high water                        See the latest fund update for an example of the actual
                   mark is the net asset value per unit the last                             returns and fees investors were charged over the past year.
                   time a performance fee was determined to be                               This example applies only to the Growth Strategy. If you
                   payable or 31 March 2019 in the case of the first                         are considering investing in other investment options in the
                   performance fee.                                                          Scheme, this example may not be representative of the actual
                   The Private Dividend Yield Trust uses a                                   fees you may be charged.
                   combination of recognised market indices as its
                   performance hurdle rate. The high water mark
                   ensures all underperformance is recovered before                       The fees can be changed
                   a performance fee is payable. If the high water
                                                                                          Under the KiwiSaver Act, all fees charged to you must be
                   mark is not achieved, performance gains are
                                                                                          ‘reasonable’. NZ Funds, the Supervisor, and the Administration
                   carried forward to the next year.
                                                                                          Manager may alter the fees described in this section or introduce
Maximum            There is no limit on the amount of performance                         new fees, subject to the KiwiSaver Act and the Trust Deed.
amount             fee that may be paid.
                                                                                          NZ Funds must publish a fund update for each fund and each
Changing the NZ Funds may alter the rate and basis of calculation                         specified life cycle stage showing the fees actually charged
performance of the performance fee by providing one month’s                               during the most recent year. Fund updates including past updates,
fee          notice to all investors in the relevant Strategy.                            are available at www.nzfunds.co.nz.
* The hurdle rate of return for the performance-based fee payable to NZ Funds
  is based on the performance of the Private Dividend Yield Trust. This means a
  performance-based fee may be charged indirectly to you even if the Inflation or
  Growth Strategy’s overall performance is below the market index as reported in
  the fund updates.
** The Private Dividend Yield Trust is not charged a base fee by NZ Funds.
   However, for the purposes of calculating performance fees a notional base fee
   of 0.40% per annum is deducted.

                                                                                   nz funds kiwisaver scheme : : product disclosure statement : : 29 march 2019   13
6. what taxes will you pay?                                                     8. how to complain

The NZ Funds KiwiSaver Scheme is a portfolio investment entity.                 In the first instance, please contact NZ Funds. Our contact details
The amount of tax you pay is based on your prescribed investor                  are set out in section 7 of this PDS ‘Who is involved?’.
rate (PIR). To determine your PIR, go to www.ird.govt.nz/toii/                  Complaints about an investment can also be made direct to
pir/. If you are unsure of your PIR, we recommend you seek                      the Supervisor:
professional advice or contact the Inland Revenue Department.
                                                                                Attention: NZ Funds Relationship Manager
It is your responsibility to tell NZ Funds your PIR when you invest             The New Zealand Guardian Trust Company Limited
or if your PIR changes. If you do not tell NZ Funds, a default rate             Level 14, 191 Queen Street
may be applied.                                                                 PO Box 274
If the advised PIR is lower than the correct PIR, you will need to              Auckland 1140
complete a personal tax return and pay any tax shortfall, interest,             T. 09 909 5100
and penalties. If the default rate or the advised PIR is higher than            E. ct-auckland@nzgt.co.nz
the correct PIR, you will not get a refund of any overpaid tax.
        For more information on tax, see the 'Other Material                    Dispute resolution scheme
        Information' document on the offer register at disclose-                NZ Funds and the Supervisor are both members of an approved
        register.companiesoffice.govt.nz.                                       dispute resolution scheme run by Financial Services Complaints
                                                                                Limited (FSCL). If your complaint has not been resolved to your
                                                                                satisfaction, you can contact FSCL:
7. who is involved?                                                             Attention: Early Assistance Officer
                                                                                Financial Services Complaints Limited
                                                                                PO Box 5967
About NZ Funds                                                                  Wellington 6145

NZ Funds is the manager of the NZ Funds KiwiSaver Scheme.                       T. 04 472 3725 or 0800 347 257
                                                                                E. complaints@fscl.org.nz
NZ Funds makes decisions about what assets the Strategies
                                                                                W. www.fscl.org.nz
invest in and may appoint underlying specialist investment
managers. NZ Funds is also responsible for the design of the
                                                                                FSCL will not charge a fee to any complainant to investigate or
LifeCycle Process. Our contact details are:
                                                                                resolve a complaint.
Attention: Head of Client Services
New Zealand Funds Management Limited
Level 16, 21 Queen Street                                                       9. where you can find more information
Private Bag 92163
Auckland 1142
T. 09 377 2277 or 0508 733 337                                                  Further information relating to the Scheme and the Strategies,
E. info@nzfunds.co.nz                                                           such as financial statements, annual reports, quarterly fund
W. www.nzfunds.co.nz                                                            updates, the 'Other Material Information' document, the
                                                                                Trust Deed and the SIPO for the Scheme, is available on the
Who else is involved?                                                           offer register and the scheme register at disclose-register.
                                                                                companiesoffice.govt.nz. A copy of information on the offer
title                name                  role                                 register and the scheme register is available on request to the
                                                                                Registrar of Financial Service Providers.
Supervisor and       The New Zealand       Supervisor of the Scheme
Custodian            Guardian Trust        under the Financial Markets          Fund updates and other information relating to the Strategies
                     Company Limited       Conduct Act 2013,                    (including the ‘Other Material Information’ document and the
                                           responsible for supervising          SIPO) is also available on our website. You may request a copy of
                                           NZ Funds as manager of the
                                           Scheme and holding Scheme
                                                                                this information from us free of charge.
                                           property on trust for the
                                           Scheme.

Administration       Link Market           Appointed as the                     0. how to apply
Manager              Services Limited      administration manager of the
                                           Scheme, responsible for the
                                           day-to-day administration of         You can apply to join the NZ Funds KiwiSaver Scheme by
                                           the Scheme and each Strategy,
                                                                                completing an application form at the back of this PDS or by
                                           including maintaining the
                                           register of members.                 applying online at www.nzfunds.co.nz. You will be required to
                                                                                verify your identity and address for the purposes of the Anti-
                                                                                Money Laundering and Countering Financing of Terrorism Act
                                                                                2009 (AML/CFT Act).

14      nz funds kiwisaver scheme : : product disclosure statement : : 29 march 2019
Application Form
NZ Funds KiwiSaver Scheme Product Disclosure Statement dated 29 March 2019.
Return to Freepost NZ Funds KiwiSaver Scheme, Private Bag 92050, Victoria Street West, Auckland 1142, or by email to
nzfkiwi@linkmarketservices.com.

    1 | Applicant details

    Name
    title          first name                              middle name(s)                               surname

    Date of birth
    day            month        year

    Residential address (not PO box)
    street

    suburb                                                         town / city                                                       postcode

    Postal address (if different)
    street / PO box

    suburb                                                         town / city                                                       postcode

    Phone
    mobile                                             home                                               business

    Email address
    If you supply an email address, we will send you information relating to your investment by electronic means.
                                                                                                                                                  No email
    We suggest using your personal rather than work email address as this is less likely to change over time.

    Are you a member of another KiwiSaver scheme?

             Yes                 No/I don't know    If Yes, please name the scheme.

    IRD number                                                                           Prescribed Investor Rate (PIR) (Please select one rate only)

                                                                                                10.5%             17.5%              28%

    You must provide your IRD number and select a PIR for this investment. The amount of tax you pay on your NZ Funds KiwiSaver Scheme
    investment is based on your PIR.
    To determine your PIR, go to www.ird.govt.nz/toii/pir/. If a rate is not selected, the default rate of 28% will apply. See section 6 of the
    Product Disclosure Statement ‘What taxes will you pay?’ for more information.

                                                                                                                                                  Continued over...

                                                     nz funds kiwisaver scheme : : product disclosure statement : : 29 march 2019 : : application form          15
2 | Investment options (Please select one only*)

           LifeCycle Process - I wish to allocate to the Strategies based on the LifeCycle Process.

           OR

           MemberChoice Process - I wish to make my own allocation to the following Strategy or Strategies:

                                              % allocation

           Income Strategy

           Inflation Strategy

           Growth Strategy

           Total                                 100%

     * I f neither option is ticked, your investment will be allocated according to the LifeCycle Process.
        For details of the LifeCycle Process and each Strategy, see the Product Disclosure Statement.

     3 | Employment status (Please select one only)

           Employed                                          Self employed                                    Not employed

           Minor (under 16 years old)                        Minor (16 to 18 years old)

     Occupation

     Employer name (if applicable)

     4 | Payment options (Please select one or more)

           I wish to contribute from my salary and wages:              3%             4%             6%              8%      10%

           If you are employed and new to KiwiSaver, please ensure you complete the KiwiSaver deduction form (KS2) and provide this to
           your employer. A copy of this form is available either from your employer or from the Inland Revenue website.

           I wish to make a lump sum contribution of         $                             by way of cheque.

           Please make any cheques payable to NZ Guardian Trust - NZ Funds KiwiSaver Scheme marked ‘Account Payee Only’.

           I wish to make regular contributions per the completed Direct Debit Form attached.

                                                                                                                                     Continued over...

16    nz funds kiwisaver scheme : : product disclosure statement : : 29 march 2019 : : application form
5 | Applicant declaration

By signing this Application Form, I confirm that:

• All details provided in this Application Form are correct.                • I authorise NZ Funds to disclose personal information to the
                                                                              Financial Markets Authority as may be required from time to time
• I have received, read and understood the Product Disclosure                 under the Financial Markets Conduct Act 2013 or any other law.
  Statement dated 29 March 2019 to which this Application Form
  was attached. I understand that additional information about the          • I consent to NZ Funds and the Administration Manager
  NZ Funds KiwiSaver Scheme is available on the online register entry         communicating with me, and providing me with information,
  at disclose-register.companiesoffice.govt.nz.                               by electronic means (i.e. by email, as provided by me, and/or by
                                                                              providing me with a URL link, or with information through an
• I agree to be bound by the terms and conditions contained in                electronic facility). These communications may include, but not be
  the Product Disclosure Statement, the Trust Deed (as amended                limited to, general correspondence, investment updates, and legally
  from time to time) and the online register entry relating to the            required communications or documents (including annual reports,
  NZ Funds KiwiSaver Scheme.                                                  annual member statements (confirmation information), and annual
                                                                              tax statements).
• I meet the eligibility criteria for joining the NZ Funds KiwiSaver
  Scheme set out in the Product Disclosure Statement.                       • NZ Funds, the Supervisor and the Administration Manager are
                                                                              entitled to rely on my elected PIR for all investments I have made
• I understand that personal information provided in this Application
                                                                              for this account.
  Form and any personal information provided by me in the future
  will be used by NZ Funds, the Administration Manager and the              • I understand the value of my investment in the Scheme
  Supervisor, and any related companies of these parties, together            can rise and fall depending on market conditions and
  with my financial adviser, for administering the investment,                other circumstances prevailing at the time, and that
  including satisfying the requirements of the AML/CFT Act (this may          there is no promise or guarantee made by any person as
  include using my personal information for the purpose of electronic         to the performance of any investment or the return of any
  identity verification using various third party databases including         funds invested.
  the Department of Internal Affairs database). I understand my
  personal information may also be shared with relevant authorities
  including Inland Revenue. NZ Funds may also use my personal
  information to provide me with information about other products
  and services. I acknowledge that I have the right to access and
  correct this information.

Signature (if applicant is 16 years or older)        Parent/guardian signature*                        day        month      year

                                                    Parent/guardian signature*                         day        month      year

* If the applicant is under the age of 16, both parents/all legal guardians must sign the Application Form. If the applicant is 16 or 17,
 one parent/legal guardian must sign the Application Form.

   Important
   • The AML/CFT Act requires verification of identity of the applicant. Please ensure the relevant identity information on the following
     pages is completed in full.
   • Each parent or guardian signing on behalf of a minor must also complete an 'Identity Information for a Parent or Guardian’ form.

Adviser use only
adviser name                                                                                            adviser FSP number

adviser company                                                                                         adviser code

                                                                                                                                            Continued over...

                                                nz funds kiwisaver scheme : : product disclosure statement : : 29 march 2019 : : application form         17
6 | Identity verification

     NZ Funds is required by the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act) to collect identity
     and address information on its clients.
     All new clients must complete identity and address verification and provide the appropriate documents.
     Existing clients may be required to complete identity and address verification or update their identity documents. NZ Funds or your
     financial adviser will advise if this is required.

     There are three options to complete identity verification:
     Please tick option selected.

             Option 1

       Electronic identity verification by your    • You do not need to complete section 6.
       financial adviser                           • Your financial adviser will need to attach a completed Electronic Verification Certificate.

             Option 2

       Documents verified face-to-face by          • Please complete section 6A and take your original documents along to your financial
       your financial adviser or an NZ Funds         adviser or an NZ Funds office to have section 6C(i) completed.
       employee*

             Option 3

       Documents certified face-to-face by a       • Please complete section 6A and take your original documents along to a Trusted Referee to
       Trusted Referee**                             certify your documents and complete section 6B.
       AND                                         • Please send the original certified copies to your financial adviser who will verify these and
       Verified by your financial adviser or an      complete section 6C(ii). If you do not have a financial adviser, please send your form and
       NZ Funds employee*                            original certified copies to: New Zealand Funds Management Limited, Private Bag 92226,
                                                     Auckland, 1142.

     * To complete verification, the adviser, employee or other authorised person must be listed on NZ Funds’ Register of Individuals Authorised
       to Perform CDD’.
     ** A Trusted Referee must be either a Justice of the Peace, a Lawyer, a Notary Public, a Chartered Accountant, a Registered medical doctor
        or a Registered teacher. A Trustee Referee cannot:
       • Be your spouse or partner;
       • Be related to you;
       • Live at the same address as you; or
       • Be involved in the transaction or business requiring certification.
       Where documents are being certified outside of New Zealand, your Trusted Referee must be a person who is authorised to take statutory
       declarations under the laws of the country, state or territory where the documents are being certified.

         Important
         • Document certification by a Trusted Referee must occur no earlier than three months prior to the date of presentation.
         • Please ensure certified copies of the original documents are attached to this form.
         • Where an individual is unable to supply documents as required, please contact NZ Funds on 0508 733 337 or via email at
           clientservices@nzfunds.co.nz.

                                                                                                                                           Continued over...

18    nz funds kiwisaver scheme : : product disclosure statement : : 29 march 2019 : : application form
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