OTHER MATERIAL INFORMATION SUMMER KIWISAVER SCHEME
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Other Material Information Summer KiwiSaver Scheme Date: 19 March 2021 This document contains important information relating to the offer of membership in the Summer KiwiSaver Scheme that is not contained in the Product Disclosure Statement for the Scheme or the other documents within the Scheme’s entry on the register of offers of financial products at www.companiesoffice.govt.nz/disclose. It should be read together with those documents. The information in this document could change in the future. Please check the offer register at www.companiesoffice.govt.nz/disclose for any updates.
Table of Contents
Date: 19 March 2021
Account fee ................................................................ 20
Additional information on the Scheme and
Trail Commission ...................................................... 20
the persons involved......................................... 6
Manager ....................................................................... 6 Additional information on the funds in the
Supervisor .................................................................... 7 Scheme............................................................. 20
Licence .......................................................................... 7 Statement of investment policies and
Directors....................................................................... 7 objectives.................................................................... 20
Incorporation and parent company ...................... 7 Underlying funds ...................................................... 21
Custodian ..................................................................... 8
Additional information on taxation ............. 21
Solicitors ....................................................................... 8
Taxing multi-rate PIEs .............................................. 22
Other Parties ............................................................... 8
Tax on investments made by the Scheme ......... 23
Auditor .......................................................................... 8
PIE tax advantages ................................................... 24
Solicitors ....................................................................... 8
Other Professional Advisers .................................... 8 Additional information on risks .................... 24
Scheme Provider Agreement .................................. 9 Market risk ................................................................. 24
No Guarantee ............................................................. 9 Credit risk ................................................................... 24
Counterparty risk ...................................................... 24
Additional information on the terms of the
Derivative risk ............................................................ 25
Scheme ............................................................... 9
Benchmark risk ......................................................... 25
Establishment ............................................................. 9
Multi asset risk .......................................................... 25
Scheme ......................................................................... 9
Underlying funds risk............................................... 25
Funds ............................................................................ 9
Risks relating to the collection and payment of
Commencement and termination of
contributions by employers ................................... 26
membership .............................................................. 10
Regulatory risk........................................................... 26
Account closure ........................................................ 10
Other general risks................................................... 26
Contributions ............................................................ 10
Savings suspension for employees...................... 11 Related party transactions, conflicts of
Government contributions .................................... 11 interest, and changes to the Scheme ........... 27
Units ............................................................................ 12 Related party transactions ..................................... 27
Applications for units .............................................. 12 Conflicts of interest .................................................. 27
Issue of units ............................................................. 12 Changes to the Scheme .......................................... 31
Valuation .................................................................... 12
Unit Value................................................................... 12
Unit issue price ......................................................... 12
Distributions .............................................................. 12
Withdrawals ............................................................... 13
Switching .................................................................... 17
Transfers .................................................................... 17
Suspension ................................................................ 17
Winding up................................................................. 17
Liability of, and indemnities available to, Manager
and Supervisor.......................................................... 18
Additional information on fees .....................18
Annual fund charges ............................................... 18
Page 2 of 31General Information
• where words are defined in this section,
In this document: those words have the meaning given
whenever they are used in this document
• the words ‘you’ or ‘your’ refer to you and
other persons who apply for membership
• where we refer to something that we or
of the Scheme or who are accepted as
someone else ‘currently’ does, this
members of the Scheme
describes our or their practice at the date
of this document only. We can review and
• the words ‘we’, ‘us’, ‘Manager’ or ‘our’
change our practices without notice to
refer to Forsyth Barr Investment
you, as long as we comply with the Trust
Management Limited, the Manager of the
Deed and the Governing Requirements.
Scheme. We have prepared the
Other parties may change their practices
information in this document
at any time.
Page 3 of 31Glossary
Australian Complying means an entity that is a complying superannuation fund for the
Superannuation Scheme purposes of Part 5, Division 2 of the Superannuation Industry
(Supervision) Act 1993 (Aust) and that is regulated by the Australian
Prudential Regulation Authority.
You can find a list of these schemes at superfundlookup.gov.au.
Effective Date means 19 September 2016, being the date on which the Scheme opted-
in to the FMCA regime
Financial Markets Legislation has the meaning given in the FMCA
fund means one of the funds in the Scheme, currently:
• Summer New Zealand Cash
• Summer New Zealand Fixed Interest
• Summer Global Fixed Interest
• Summer New Zealand Equities
• Summer Australian Equities
• Summer Listed Property
• Summer Global Equities
• Summer Conservative Selection
• Summer Balanced Selection
• Summer Growth Selection
FMA means the Financial Markets Authority
FMCA means the Financial Markets Conduct Act 2013 (and includes the
Financial Markets Conduct Regulations 2014)
Governing Agreements means the KiwiSaver scheme provider agreement(s) relating to the
Scheme
Governing Legislation means as appropriate, all laws and regulations applicable to the
Manager (including compliance by the Manager with the terms of its
licence under the FMCA as a manager of registered schemes), the
Supervisor, and the Scheme at applicable points in time, and which may
include without limitation, the Financial Markets Legislation and the
KiwiSaver Act and methodologies or frameworks issued by the FMA
under the Financial Markets Legislation
Governing Requirements means the Governing Legislation and the Governing Agreements
KiwiSaver Act means the KiwiSaver Act 2006 and includes the KiwiSaver Rules
KiwiSaver Rules means the KiwiSaver Scheme Rules contained in Schedule 1 to the
KiwiSaver Act
member means, in relation to a fund, a natural person for the time being entered
on the register of members as the holder of a unit in that fund, and in
relation to the Scheme means a natural person for the time being
entered on the register as the holder of any unit
Page 4 of 31Glossary
PDS means the Product Disclosure Statement for the Scheme (as defined in
the FMCA)
PIE means Portfolio Investment Entity
Scheme means the Summer KiwiSaver Scheme as a whole, which is a registered
KiwiSaver scheme under the FMCA
SIPO means the Statement of Investment Policies and Objectives for the
Scheme (as defined in the FMCA)
Trust Deed means the Deed under which the Scheme was established, and Trustees
Executors Limited is appointed as Supervisor and Forsyth Barr
Investment Management Limited is appointed as Manager
Unit means an undivided part or share in a fund in the Scheme as described
in the Trust Deed, and includes part of a unit
Valuation Day means, in respect of a fund of the Scheme, a day specified as a day in
respect of which the value of the assets of the Scheme attributable to
the fund is determined
Page 5 of 31Additional information on the Scheme and the persons
involved
The Summer KiwiSaver Scheme was experience. Andy is a FCA Chartered
established on 16 May 2008 in Dunedin, New Accountant and has a BEng (Hons) degree in
Zealand when the Trust Deed was signed. The mechanical engineering from the University of
Scheme opted in to the FMCA regime from the Nottingham.
Effective Date.
Nicholas Hegan, Wellington
Prior to the Effective Date the Scheme was Head of Legal, Forsyth Barr Limited
known as the Forsyth Barr KiwiSaver Scheme.
Nick joined Forsyth Barr in 2014. He has over
20 years experience in the financial and legal
Manager industries in NZ and overseas. Nick holds an
LLB (Hons) from Victoria University of
We act as the Manager of the Scheme. As Wellington and a BSc (Hons) Mathematics from
Manager we are responsible for offering and the University of Canterbury. He is also Deputy
issuing interests in the Scheme to members, Chair of the NZ Markets Disciplinary Tribunal.
managing the assets of the Scheme, and
administering the Scheme. We are licensed Shane Edmond, Christchurch
under the FMCA as a manager of registered Head of Wealth Management, Forsyth Barr
schemes. Further information on our licence is Limited
available on the FMA website Shane joined Forsyth Barr in 2002 as Head of
(www.fma.govt.nz) and also on the Financial Retail Broking, having operated in the
Service Providers Register website stockbroking industry since 1986. Shane is a
(www.companiesoffice.govt.nz/fsp). member of the Financial Advice Code
Some information about us as at the date of Committee appointed by the Minister of
this document is below: Commerce and Consumer Affairs.
Directors
Our Directors may change from time to time
Neil Paviour-Smith, Wellington without notice to members. The current
Managing Director, Forsyth Barr Limited directors may be found on the Companies
Neil was appointed Managing Director of Office website, at
Forsyth Barr in 2001 and has been working in www.companiesoffice.govt.nz/companies
NZ’s capital markets for 30 years. He is also (company number 2095523).
Chancellor of Victoria University of Wellington
and Chairman of the NZ Regulatory Board of
Chartered Accountants Australia and New Senior Management
Zealand (CAANZ). He is a Fellow of the Institute As at the date of this document we have
of Finance Professionals NZ (INFINZ), a Fellow delegated investment management and daily
Chartered Accountant and a former director of administration of the Scheme to Forsyth Barr
NZX Limited. Limited (see “Other Parties” below).
Andrew Bowley, Upper Hutt The following Forsyth Barr Limited personnel
Head of Research, Forsyth Barr Limited are involved in the management of the
Andy joined Forsyth Barr in 2012 as Head of Scheme:
Research. He has over 20 years of industry
Page 6 of 31Craig Alexander Licence
Co-Head of Funds Management
The Supervisor has been granted a full licence
Craig joined Forsyth Barr in 2013. He has over
under the Financial Markets Supervisors Act
25 years of experience spanning New Zealand’s
2011 to act as a KiwiSaver supervisor. The
banking, insurance and fund management
licence expires on 16 January 2023 and is
industries.
subject to reporting conditions. Further
Jason Lindsay information on the Supervisor’s licence is
Co-Head of Funds Management available on the FMA website
(www.fma.govt.nz) and also on the Financial
Jason joined Forsyth Barr in 2019. He has over
Service Providers Register website
15 years of experience spanning New Zealand’s
(www.companiesoffice.govt.nz/fsp).
equity research and fund management
industries. Jason holds a BCA from Victoria
University of Wellington and is a member of Directors
Chartered Accountants Australia and New
The directors of the Supervisor are:
Zealand (CAANZ).
Victoria Grace of New York
Rob Mercer Graeme Kirkpatrick of Switzerland
Director/Equities, Wealth Management Research
Ryan Bessemer of Auckland
Rob joined Forsyth Barr in 2001. He has Richard Klipin of Auckland
worked in the financial markets since 1986. Laurence Kubiak of Auckland
Kevin Stirrat The directors may change from time to time.
Director/Strategy, Wealth Management Research The current list of directors may be found on
Kevin joined Forsyth Barr in 2005. He has over the Companies Office website, at
30 years of experience in the areas of money www.companiesoffice.govt.nz/companies
market research, trading and sales, liability (company number 142877).
management, fixed income distribution,
balance sheet management and asset
Incorporation and parent company
management.
The Supervisor was incorporated in New
The ultimate holding company of both the Zealand in 1881, and was re-registered to
Manager and Forsyth Barr Limited is Forsyth become a company under the Companies Act
Barr Group Limited. 1993 on 30 June 1997. On 1 May 2002 the
Supervisor’s status as a statutory trustee
As at the date of this document we manage company was confirmed under its own Act of
other managed investment schemes. Parliament, the Trustees Executors Limited Act
2002. The Supervisor changed its name to
Supervisor Tower Trust Limited on 1 May 2002 and
changed from this name to its current name
Trustees Executors Limited acts as the on 1 August 2003.
Supervisor of the Scheme. The Supervisor is
responsible for supervising the performance of The Supervisor’s ultimate holding company is
our functions as manager. The Supervisor (or Sterling Grace (NZ) Limited, incorporated in
someone else it appoints) also holds all assets New Zealand on 30 July 2003.
of the Scheme in trust for the Scheme’s
members. Some information about the
Supervisor is below:
Page 7 of 31Custodian Deloitte has no relationship with, or interests
in, the Scheme.
The Supervisor has not contracted an external
custodian for the Scheme. It holds the assets
of the Scheme through its wholly-owned Solicitors
nominee company, T.E.A. Custodians Limited.
DLA Piper New Zealand has advised us in
relation to preparation of the disclosure
Solicitors documents for the Scheme (including the PDS
and this document).
DLA Piper New Zealand are the solicitors for
the Supervisor.
Other Professional Advisers
Other Parties Martin Hawes, a financial author and licensed
financial advice provider, is the chair of the
Service Providers Manager’s Investment Committee for the
Scheme. The Investment Committee provides
We may appoint administration or investment
the Manager with a general investment view to
managers to carry out administration or
support the asset allocation decisions made by
investment management (as applicable) of the
the Manager in connection with the Summer
Scheme. Any administration or investment
Conservative Selection, Summer Balanced
managers appointed by us may change from
Selection, Summer Growth Selection and, to
time to time without notice to you.
help members make tactical asset allocation
As at the date of this document we have decisions. In addition the Investment
delegated the functions of investment Committee reviews the Scheme’s sector
accounting and registry to: investments and investment performance.
Trustees Executors Limited Martin also contributes to communications to
Level 11, 10 Customhouse Quay members and potential members about the
PO Box 10-519 Scheme.
Wellington 6143
Martin has over 30 years of experience in the
As at the date of this document we have financial industry. He is a director of
delegated investment management and daily Retirement Income Group Limited and its
administration to: subsidiaries, board member of the
Forsyth Barr Limited Shareholders Association and a trustee of
193 Princes Street Limbs4all.
Private Bag 1999 He is the past National President of Save the
Dunedin 9054 Children New Zealand and past Chair of
Forsyth Barr Limited is an authorised body Queenstown Lakes Community Housing Trust.
under our licence as a manager of registered Martin has consented to the statement above
schemes. being included in this document in the form
and context in which it is included.
Auditor
Deloitte has been appointed as Auditor of the
Scheme. Deloitte is registered under the
Auditor Regulation Act 2011. Other than in its
capacity as auditor, and the provision of tax
compliance services which it provides to us,
Page 8 of 31Scheme Provider Agreement No Guarantee
A Scheme Provider Agreement dated 20 March There is no guarantee from the Crown or any
2007 (as subsequently amended and varied) other person in respect of the Scheme or any
governs the relationship between us and fund of the Scheme.
Inland Revenue in relation to the Scheme, and
No person associated with the Scheme
explains how we will work together to
guarantees the repayment of capital or the
administer the Scheme.
investment performance of the Scheme. Our
obligations, and those of the Supervisor, are
not guaranteed by any third party.
Additional information on the terms of the Scheme
This section provides information about the obligations held by the Supervisor (or its
Scheme and how it works. custodian or nominee).
Legally, the Scheme is a single trust fund.
Establishment Where the assets of a particular fund are not
enough to meet the fund’s liabilities, those
The Scheme was originally established under a
liabilities will be met from the assets of
Trust Deed dated 16 May 2008, as amended on
another fund or funds, in the manner that we
12 September 2012 and further amended on
(with the approval of the Supervisor) decide.
16 September 2016 by way of a consolidated
Except in this situation, the investments of a
Trust Deed that was effective as of the Effective
particular fund will be for the benefit of
Date. The Trust Deed is available on the
members who have invested in that fund.
schemes register at
www.companiesoffice.govt.nz/disclose
(scheme number SCH10648). Funds
The Scheme is registered on the register of The Scheme is divided into a number of funds,
managed investment schemes under the FMCA under guidelines set by us with the Supervisor.
as a KiwiSaver scheme. The operation of the If you do not select a fund or funds to invest in,
Scheme is governed by the FMCA and the we nominate one fund as the ‘default fund’ for
KiwiSaver Act. your investments. Currently, the default fund
is the Summer Balanced Selection. If in the
When you become a member of the Scheme
future the Summer Balanced Selection is
you get the benefit of, and are bound by, the
closed, we will nominate another fund as the
terms of the Scheme as set out in the Trust
default fund.
Deed. The KiwiSaver Act provides that the
KiwiSaver Rules (which, amongst other things, Unless it would be materially prejudicial to
set out the rules around permitted members generally, we may:
withdrawals from the Scheme) and certain
• change the terms of a fund - where this is
other terms are implied into the Trust Deed.
not a material change we just need to
notify the Supervisor;
Scheme • terminate or merge funds, if we think it
would be beneficial for better operation of
The Scheme consists of all of the investments,
the Scheme – if this change is material we
cash, property and other assets, liabilities and
Page 9 of 31need to notify the Supervisor and affected Contributions
members.
If you are in paid employment you can
We can’t make any changes that are contrary contribute to the Scheme 3%, 4%, 6%, 8% or
to the Trust Deed or the Governing 10% of your gross (before tax) salary or wages.
Requirements. Minimum contributions are 3%. If you do not
choose a contribution rate (or notify a new
employer of your contribution rate) the rate
Commencement and termination of
will be 3%. The rate of contribution that you
membership have selected will continue until you notify a
To be eligible to join the Scheme you must change. Your new rate will apply to the next
meet the New Zealand criteria set out in the payment of salary or wages after this
FMCA, which are that you are, or are normally, notification has been provided to your
living in New Zealand and are a New Zealand employer.
citizen (or entitled to be permanently resident Contributions will be deducted from your after-
in New Zealand). tax salary or wages by your employer and paid
If you are a State Services employee serving to Inland Revenue, who will then forward them
outside New Zealand, on New Zealand terms to us.
and conditions, in a jurisdiction where it is You may also make additional lump sum
lawful to offer KiwiSaver membership, you are contributions via Inland Revenue or directly to
eligible to join too. You are also eligible if you us. There is currently no minimum initial lump
were previously a member of another sum or regular contribution required after
KiwiSaver scheme and are transferring your joining.
account to the Scheme.
You may also apply to transfer funds from an
You can join the Scheme if your employer approved Australian Complying
selects the Scheme as its ‘employer choice’ Superannuation Scheme to a KiwiSaver
scheme, or by applying to us (on terms scheme if you have permanently emigrated to
detailed in the Trust Deed, or on other terms New Zealand.
determined by us or the Supervisor).
In most circumstances employers are required
We can decide not to accept your application to make contributions to KiwiSaver schemes
to join the Scheme. If that happens we will let for their employees who are members and not
you know. yet eligible to withdraw or if they joined
Your membership will terminate if you do not KiwiSaver at age 60 or over prior to 1 July 2019,
hold any units, and we notify you that your and have not opted out of the five year
membership is to terminate, or where you opt- membership requirement. Employers of
out of KiwiSaver in accordance with the members who have made a life-shortening
KiwiSaver Act. congenital condition withdrawal are not
obliged to make contributions in respect of
those members. Currently, compulsory
Account closure employer contributions are 3% of gross salary
We may close your account if it has a zero or wages. Employers can contribute additional
balance but we will contact you before we do amounts on top of that. Employer
so. contributions are subject to tax.
If you are not an employee (or are self-
employed) you can make voluntary
contributions. These can be regular or lump-
sum contributions.
Page 10 of 31In addition to the contributions described You can revoke and reinstate your savings
above you can decide to contribute additional suspension by notifying your employer.
amounts, or make arrangements for your However, unless your employer agrees, you
employer (or others) to make additional cannot take a savings suspension for that
contributions for you. employer for less than three months.
All contributions paid to us or the Supervisor Savings suspensions will not affect any
must be held in trust (this means held for your contributions made directly to us, although
benefit), in accordance with the FMCA. you can generally change the amount of these
contributions at any time.
You can split your contributions between one
or more of the funds of the Scheme by
selecting them on the application form that Government contributions 1
you complete when joining, and you can
For every dollar you contribute to the Scheme,
change this at any time. If you do not select
the Government (in most circumstances) will
any funds your contributions will be invested
add an extra 50 cents to your savings as a tax
into the default fund, which is the Summer
credit, up to a maximum of $521.43 each year.
Balanced Selection.
This could change in the future.
Generally, in order to be eligible for a
Savings suspension for employees Government contribution you must:
If you are an employee you may apply to
• be over 18 years old and
Inland Revenue for a savings suspension. A
• not yet eligible to withdraw, and if you
savings suspension, if granted, allows you to
joined KiwiSaver at aged 60 or over
put your contributions on hold, meaning your
prior to 1 July 2019, and not have opted
employer will stop deducting contributions
out of the five year membership
from your pay.
requirement and
While you are on a savings suspension, your • not have made a life-shortening
employer does not need to continue with congenital condition withdrawal and
employer contributions. • have made personal contributions and
be a New Zealand resident.
Currently, a savings suspension will be
granted by Inland Revenue if you are suffering, The Government contribution is calculated for
or are likely to suffer, financial hardship (and the year from 1 July to 30 June, and the
Inland Revenue has received at least one maximum available credit reduces pro-rata
contribution from you), or one year has passed from $521.43 if you were not eligible for the
since you first contributed to KiwiSaver, or whole year.
became a member of a complying
If you are a member of the Scheme and are
superannuation fund.
eligible, we will make a claim for this
A savings suspension must be for a minimum Government contribution on your behalf in July
of three months (unless your employer agrees each year. It will be automatically credited to
otherwise) and a maximum of one year. If the your account.
suspension was taken because of financial
If eligible, to achieve the maximum
hardship it will be for a three month period,
Government contribution of $521.43 each
unless Inland Revenue agrees to a longer
year, you will need to have contributed at least
period.
$1,042.86 (or approximately $20 each week)
1 Previously known as member tax credits or MTCs.
Page 11 of 31into your account between 1 July and 30 June We may refuse to accept any application for
each year. units and do not need to give you reasons why.
Units Valuation
The Scheme is divided into units. Each unit The Trust Deed sets out the methodology used
relates to a particular fund and confers an to value the Scheme’s investments.
equal interest in the assets of that fund.
We may agree with the Supervisor that another
Members do not however acquire any direct
method is appropriate to determine the value
interest in the individual investments of a fund.
of specific investments.
We may consolidate or subdivide units, and
units can be divided into part-units. The Scheme’s investments are valued on each
Valuation Day, in normal circumstances this
will be each day that banks are open for
Applications for units business (other than a Saturday or Sunday).
Contributions that we receive from you will be
treated as an application for the number of
Unit Value
units (which can be rounded down to four
decimal places) in the fund that you have The unit value for a fund of the Scheme is
selected, or the default fund, which is the calculated by dividing the total value of the
Summer Balanced Selection. If your fund (its assets minus its liabilities) by the
application is received before 5pm on a number of units that have been issued in the
Valuation Day your application will be effective fund.
for that Valuation Day. If your application is
received at or after 5pm on a Valuation Day, or
Unit issue price
on a day that is not a Valuation Day, your
application will be effective for the next The price at which units in a fund are issued is
following Valuation Day. The actual calculation the unit value (see above) for the Valuation Day
of unit values and issue of units happens on on which your application for units is effective,
the next Valuation Day following the effective adjusted to reflect an equitable proportion of
date of the application. the management fees, Supervisor fees, and
other fees accrued or payable at the relevant
We may specify minimum investment amounts
time that are not already reflected in the unit
for initial and subsequent contributions to
value.
each fund of the Scheme. See the PDS for any
current minimums.
Distributions
Issue of units The Scheme does not distribute income other
than through the redemption of units when a
The number of units issued to you will reflect
permitted withdrawal is made.
the amount you have invested (less any fees
that apply – see below) and the unit issue price
(see below). The number of units issued is
rounded down to four decimal places, if
necessary. We may, after having told the
Supervisor, stop issuing units in one or more
funds, for a set period or until the relevant
fund or the Scheme is wound up.
Page 12 of 31Withdrawals The KiwiSaver Act defines a ‘serious illness’ as
an injury, illness or disability that:
The KiwiSaver Act allows withdrawals only in
certain circumstances: • results in you being totally and
permanently unable to engage in work for
Withdrawal when you reach superannuation which you are suited by reason of
age experience, education, or training, or any
combination of those things, or
You can withdraw part or all of your
• poses a serious and imminent risk of
investment in the Scheme after you reach the
death.
age where you are entitled to New Zealand
superannuation (currently age 65). The Supervisor may require you to provide
medical evidence in support of your serious
If you joined KiwiSaver at aged 60 or over prior
illness application, and may require this to be
to 1 July 2019, you’ll also need to have been a
verified by oath, statutory declaration or other
member of a KiwiSaver scheme for five years.
formal process.
You can opt out of this five year requirement,
but once you do, you lose your eligibility for Life-shortening congenital condition
Government or compulsory employer
contributions. Investments that have been If the Supervisor approves your request, you
transferred to a KiwiSaver scheme from an can apply to withdraw from your KiwiSaver
approved Australian Complying account if you suffer from a life-shortening
Superannuation Scheme can be withdrawn congenital condition. You can choose the
when you reach age 60 and have “retired” (in amount you withdraw, up to the full value of
terms of the relevant Australian legislation). your account.
You don’t have to take your money out, you Life-shortening congenital condition means a
can choose to leave your money in the condition that exists for a person from the
Scheme. date of their birth and is likely to reduce the life
expectancy of that person, or for persons
Death generally with the condition, below the New
Zealand superannuation qualification age.
If you die while a member of the Scheme, we
must on application by your personal The Government has identified the following
representatives (such as the executors or conditions ('listed conditions') that qualify as
administrators of your estate), pay your estate life-shortening congenital conditions:
the value of your investment in the Scheme. If
• Down syndrome (Down’s syndrome)
your investment is less than a set minimum
• cerebral palsy
($15,000 as at the date of this document) and
• Huntington’s disease (Huntington’s
the requirements of the Administration Act
chorea)
1969 are met, we can pay the value of your
• fetal alcohol spectrum disorder.
investment directly to a surviving partner or
caregiver (or other person permitted in that This list will be effective from 26 March 2021.
Act). In the meantime, you may still make a life-
shortening congenital condition withdrawal if
Serious illness you have a condition that meets the definition
If the Supervisor is reasonably satisfied that above, i.e. a condition that exists for a person
you are suffering from serious illness then you from the date of their birth and is likely to
may, by applying to the Supervisor, make a reduce the life expectancy of that person, or
serious illness withdrawal. The withdrawal may for persons generally with the condition, below
be up to the full value of your account. the New Zealand superannuation qualification
age.
Page 13 of 31After 26 March 2021 you can still make a life- example a bank) seeking to enforce the
shortening congenital condition withdrawal if mortgage
you have a condition that is not a listed • the cost of modifying a home to meet
condition but still meets this definition. Please special needs arising from you or a
contact us to discuss how you can progress an dependant having a disability
application for withdrawal. • the cost of medical treatment for an
illness or injury suffered by you or a
If you make a life-shortening congenital
dependant
condition withdrawal you may continue to
• the cost of palliative care for you or a
make contributions to the Scheme but you will
dependant
no longer be eligible for Government
• the cost of a funeral for a dependant
contributions or compulsory employer
• you suffering from a serious illness (as
contributions.
explained above).
Significant financial hardship
Permanent emigration to Australia
If the Supervisor is reasonably satisfied that
If you permanently emigrate to Australia you
you are suffering, or are likely to suffer, from
cannot make a cash withdrawal on the basis of
significant financial hardship, then you may
permanent emigration (as explained below),
make a significant financial hardship
but you may transfer the full value of your
withdrawal. The application must be in the
account (net of taxes and fees but including
form set by the Supervisor, and must include a
any Government contributions) to an
completed statutory declaration of your assets
Australian Complying Superannuation Scheme.
and liabilities.
Your withdrawal application must include a
The amount withdrawn may, subject to the
completed statutory declaration that you have
Supervisor’s approval, be up to the full value of
permanently emigrated to Australia, and proof
your account less the $1,000 kick-start
of your departure from New Zealand (for
contribution from the Government (if you
example, evidence of confirmed travel
received that) 1 and any Government
arrangements, passport evidence and evidence
contributions you have received.
of any necessary visas). You must also show
The Supervisor must be reasonably satisfied that you have lived at an Australian address
that reasonable alternative sources of funding after you left New Zealand.
have been explored and have been exhausted.
The ability to transfer also depends on the
The Supervisor can also direct that the amount
Australian Complying Superannuation Scheme
withdrawn be limited to a specified amount
accepting the transfer. Amounts transferred
that would alleviate the particular hardship.
will become subject to the terms of the
‘Significant financial hardship’ includes Australian Complying Superannuation Scheme
significant financial difficulties that arise they are transferred to.
because of:
Permanent emigration elsewhere
• your inability to meet minimum living
expenses If you permanently emigrate to a country other
• your inability to meet mortgage than Australia you may (at least one year after
repayments on your principal family you move) apply to make a withdrawal. You
home, resulting in the mortgagee (for
1 If you joined KiwiSaver before 2pm on 21 May 2015, the
Government kick-started your account with a tax-free contribution of
$1,000.
Page 14 of 31can withdraw an amount equal to the full value land for a home as a ‘second chance’ buyer. All
of your account, less: of the other criteria must be met, and Kāinga
Ora must confirm that it is satisfied that your
• any Government contributions, and
financial position (in terms of assets and
• any amounts transferred from an
liabilities) is what would be expected of a
approved Australian Complying
person who has never owned a home.
Superannuation Scheme (although any
Information about qualifying is available on the
positive investment returns on those
Kāinga Ora website
amounts can be withdrawn).
(https://kaingaora.govt.nz/).
Alternatively you may ask us to transfer the full
The amount withdrawn must not exceed the
value of your account (less any Government
value of your account, less the sum of $1,000
contributions and amounts transferred from
which must remain in your account, and any
an approved Australian Complying
amounts transferred from an approved
Superannuation Scheme) to an overseas
Australian Complying Superannuation Scheme
superannuation scheme (that is authorised
(although any positive investment returns on
under New Zealand regulations, if any are in
those amounts can be withdrawn).
place).
You may also be eligible to receive a First
Your withdrawal application must include a
Home Grant. First Home Grants are
completed statutory declaration that you have
administered by Kāinga Ora - Homes and
permanently emigrated from New Zealand,
Communities (neither we nor the Supervisor
and proof of your departure from New Zealand
are involved), and are available to members
(for example, evidence of confirmed travel
who satisfy eligibility criteria. Visit
arrangements, passport evidence and evidence
https://kaingaora.govt.nz/ for more
of any necessary visas). You must also show
information.
that you have lived at an overseas address
during the year after you left New Zealand. Withdrawal to meet tax and student loan
liabilities on foreign superannuation
Withdrawal to purchase a home or land for a
transfers
home
If you transfer your investment in a foreign
If you have not previously made a withdrawal
superannuation scheme to the Scheme, and
for this reason, you can make a withdrawal
are liable to pay New Zealand tax on the
from the Scheme to purchase a home or land
transfer, or have New Zealand student loan
for a home in New Zealand (including a home
repayments arising from the transfer, you may
on Māori land), if:
make a withdrawal from the Scheme to pay
• at least three years have passed since those liabilities (but not to pay penalties or
Inland Revenue received your first interest).
KiwiSaver contribution; or
The amount withdrawn can be up to:
• you have been a member of a KiwiSaver
scheme or complying superannuation • in the case of a withdrawal to meet tax
fund for three years or more. liabilities, the lesser of the tax liability
arising from the transfer and your liability
It is a condition that the land or home must be
for terminal tax (this means your final tax
(or be intended as) your main home.
bill taking into account any provisional tax
This type of withdrawal is mainly aimed at already paid) in that tax year; or
those buying their first home. If you have • in the case of a withdrawal to meet
previously owned a home or land, in some student loan repayment obligations, the
circumstances it is also possible to a amount of those loan repayments.
withdrawal to purchase a subsequent home or
Page 15 of 31In addition, the total amount withdrawn a minimum holding or withdrawal amount
cannot be higher than the value of your applies, it must meet those minimums (unless
account less the $1,000 kick-start contribution it is a full withdrawal). A withdrawal notice is
from the Government (if you received that) 1 not deemed to be received unless we have
and any Government contributions you have received all of the required information and
received. any minimums are met.
You must make your application within two For any withdrawal application we, or the
years of the liability for tax or student loan Supervisor (where they are responsible for
repayments being calculated. It must be made deciding on your application), may require
in the form that we set, and be accompanied documents or information within your
by a statutory declaration about the transfer application to be verified by oath, statutory
and resulting tax liability, and any other declaration, or other formal process. This can
information that we need. include requiring you to verify (by providing
medical evidence) any medical matters that
Any withdrawal made will be paid to Inland
you have stated in your application.
Revenue, and not to you, if this is possible.
Otherwise, it will be paid to you. Withdrawal to A completed withdrawal notice received before
meet the above liabilities is optional, and you 5pm on a Valuation Day will be effective for
may need to consider the impact of a that Valuation Day. A completed withdrawal
withdrawal on your foreign superannuation notice received at or after 5pm on a Valuation
scheme benefits or other issues under the laws Day or on a day that is not a Valuation Day will
governing your foreign superannuation be effective for the next following Valuation
scheme. Day. The actual calculation of unit values and
redemption of units happens on the next
Making a withdrawal Valuation Day following the effective date of
If you think you are entitled to withdraw, you the withdrawal.
can apply to make a withdrawal from the The withdrawal value of a unit is the unit value
Scheme by providing us with a withdrawal for the Valuation Day on which your
notice in the form that we (or the Supervisor) withdrawal notice is effective, adjusted to
set. The notice must specify the dollar reflect an equitable proportion of the
amount or number of units to be withdrawn management fees, Supervisor fees, and other
from a fund or funds of the Scheme (or state fees accrued or payable at that time that are
that a full withdrawal is required, in which case not already reflected in the unit value.
the number of units will be adjusted for any
attributed tax or tax credit). When a withdrawal notice becomes effective,
we will arrange the redemption of the
We may prescribe a minimum value of units requested number of units with a value equal
that a Member must hold and a minimum to the withdrawal amount. We will pay this
additional contribution amount for each fund aggregate amount of money to you (or your
(see the PDS for any current minimums). A representatives), less any applicable fees and
withdrawal notice cannot be taken back once taking into account tax not already accounted
given. for. We are required to redeem units within the
Withdrawal notices must contain enough time-frames set out in the Trust Deed and
information to show (in our judgement) that KiwiSaver Act.
you are allowed to make the withdrawal, and if
1 If you joined KiwiSaver before 2pm on 21 May 2015, the
Government kick-started your account with a tax-free contribution of
$1,000.
Page 16 of 31We may have to redeem some of your units if will be treated as a contribution to the Scheme
we think that is necessary to enable the by you.
Scheme to maintain its status as a PIE. If this
happens we will notify you first, and follow the
process detailed in the Trust Deed.
Suspension
We may suspend withdrawals relating to a
fund because of:
Switching
• termination of one or more funds
You may switch a monetary sum or number of
• suspension of trading on any market
units between funds by sending us a switching
• financial, political or economic conditions
notice. A switch notice, once given, cannot be
• the nature of any investment
taken back. Switching notices must be in the
• any other circumstance or event relating
form set by us.
to the Scheme or generally, where we
A switching notice takes effect as a withdrawal believe that accepting the withdrawal
of units in the current fund, and an application would not be practicable or would
for units in the new fund that you nominate. materially prejudice members generally or
As a result, the provisions of the Trust Deed the members of the particular fund.
dealing with applications and withdrawals will
A suspension will result in switches out of the
apply (including any fees or minimum amounts
affected fund also being suspended.
applicable to the application or withdrawal).
No minimum switch amounts currently apply. We need to notify the Supervisor about this,
and we will also notify anyone that submits a
We can decide not to accept a switch request.
withdrawal notice or switching notice during
If that happens we will let you know.
this period. A suspension can last up to 90
days, and may be extended with the consent of
Transfers the Supervisor.
If you join another registered KiwiSaver
scheme you can request that we transfer an Winding up
amount equal to the value of your investment
A fund will close and be wound up:
in the Scheme over to that other scheme (less
any applicable fees and tax). You can only be a • if we decide and notify the Supervisor (as
member of one KiwiSaver scheme at a time, long as that is not prohibited in the
but you can transfer between KiwiSaver Governing Requirements); or
schemes at any time. • if the whole Scheme is being wound up.
We may, without the consent of affected Within 14 days of winding up a fund we must
members, transfer an amount equal to the give you notice of the winding up and (unless
value of some or all members’ accounts to the whole Scheme is being wound up) of our
another registered KiwiSaver scheme. Before intention to, at the end of a specified period
this type of transfer can take place we need to (being at least 10 business days), reinvest the
obtain agreement from the Supervisor, and the assets of that fund.
FMA. If the default fund (currently the Summer
If you are entitled to a benefit or transfer from Balanced Selection) is wound up we must
another superannuation scheme or KiwiSaver nominate an alternative fund as the default
scheme, we will, on terms determined by us, fund.
accept a transfer (of an amount notified by the If a fund is wound up, you will need to select a
other scheme) into the Scheme. This amount new fund(s) to invest in following the wind-up.
Page 17 of 31We will specify a substitute fund that will apply payable to remaining members will be dealt
if you do not select another fund. with in accordance with the KiwiSaver Act
(meaning that they will be transferred to the
When a fund is wound up we will sell or
member’s account in the member’s new
convert into cash all investments of the fund,
KiwiSaver scheme).
and pay out or make provision for any
liabilities of that fund. The cash held in respect The Supervisor will follow a procedure set out
of that fund is then reinvested in accordance in the FMCA to let the FMA know about the
with your instructions, or if no instructions are wind-up.
received, in the substitute fund.
The Scheme as a whole may be wound up if we Liability of, and indemnities available
decide (and notify the Supervisor), if the to, Manager and Supervisor
Governing Requirements require it, or if a
court or regulatory authority orders it. After The Trust Deed limits our liability and the
the date that it closes no further members will liability of the Supervisor in certain
be allowed to join, no further contributions will circumstances, and grants certain indemnities
be accepted, no withdrawals or switches may to us in relation to the proper performance of
be made, and the Supervisor will sell all of the our functions. In particular, but subject to the
assets of the Scheme. terms of the Trust Deed and Governing
Requirements:
The proceeds of the sale of assets will be
applied first to cover the costs of winding up • We and the Supervisor act in a
and settling liabilities of the Scheme, second to representative capacity for you, and are
cover any unpaid withdrawals, and third to under no personal liability.
provide for paying out remaining members the • We and the Supervisor, and each of our
value of their accounts on a pro-rata basis. If directors, officers and employees, have a
there is any money left, proceeds will then be general right of indemnity from the
used to top-up amounts payable in respect of Scheme. This covers all liabilities and
unpaid withdrawals and to remaining expenses incurred in operating the
members on a pro-rata basis. All amounts Scheme or exercising our powers.
Additional information on fees
You pay two regular charges: performing our functions as manager
of the Scheme
• an annual fund charge
b) the Scheme’s expenses that are
• an account fee
attributable to the fund, including
There are currently no one-off fees for the expenses incurred by us in managing
Scheme. the Scheme, and fees charged by the
More detail about the components of these Supervisor and any Custodian
charges is set out below. c) management and administration
charges paid out of any other managed
investment scheme that the fund
Annual fund charges invests into (an ’underlying fund’),
including schemes where we are the
An annual fund charge (as set out in the PDS)
manager.
applies for each fund. This covers:
a) management and administration
charges paid to us out of the fund for
Page 18 of 31The amounts in a) and b) are paid out of the We currently pay any amounts due to the
relevant fund, and so directly affect the unit Supervisor out of our fee.
value for that fund.
We are entitled to reimbursement out of the
The amounts in c) are paid out of the relevant Scheme of expenses we incur in performing
underlying fund, and so are reflected in the our services in relation to the Scheme.
value of the relevant fund’s investment in that Currently, we pay those expenses out of the
underlying fund (and as a result indirectly fees paid to us as manager.
affect the unit value for that fund).
We also currently pay out of our fees any
The annual fund charge is calculated daily. amounts due to Trustees Executors Limited
More details about the components of this and Forsyth Barr Limited for providing
charge are set out below. administrative services in respect of the
Scheme.
a) Fees paid to us as Manager
c) Management and administration charges
We are entitled to a fee from each fund for
for underlying funds
performing our functions as manager of the
Scheme of an amount we determine (plus GST The annual fund charge detailed in the PDS
if any), subject to the Trust Deed and the also includes management and administration
Governing Requirements. The fee is calculated charges paid out of underlying funds. These
on a basis agreed with the Supervisor, and is charges are paid out of the relevant underlying
currently paid monthly in arrears. fund, not the Scheme, and (unless we are the
manager of the underlying fund) are not
We adjust our fee for each fund so that the
calculated by us.
aggregate fund charge for that fund (taking
account of any fee rebates) comes to the level We have to estimate these charges if we are
detailed in the PDS. This means that we need not the manager of that other scheme and the
to calculate the amounts in b) and c) below and charges are not based on fixed percentages of
take account of any relevant fee rebates so net asset value. To do that, we use the charges
that we can calculate our fee. disclosed in the most recent publicly available
annual reports from the manager of the
We may need to estimate the amount in c) (see
underlying fund at the time we make the
below), in which case our fee and the annual
estimation. Where these reports do not fully
fund charge as a whole will be estimated.
cover such charges, we obtain further
We are able to waive or reduce our fees. information from the manager of the
underlying fund.
b) The Scheme’s expenses
The actual amounts incurred may vary from
The Supervisor is entitled to a fee as agreed our estimates.
with us (plus GST, if any), subject to the Trust
Deed and Governing Requirements. The fee is In practice, before calculating our fee we
calculated on a basis agreed between us and rebate to the relevant fund an amount equal to
the Supervisor, and is currently paid monthly the total management and administration
in arrears. The Supervisor is also entitled to charges paid out of underlying funds (using
reimbursement out of the Scheme of expenses charges estimated as above where required).
that it incurs in performing its services in All of the funds in the Scheme can invest into
relation to the Scheme. This includes any underlying funds. A number of the funds may
amounts paid by the Supervisor to any invest into listed property vehicles, but we do
Custodian it appoints in respect of the services not currently consider any of those vehicles to
provided by the Custodian in relation to the themselves constitute underlying funds. The
Scheme.
Page 19 of 31Scheme does not invest into any underlying • rebate or reduce any charge, in respect of
funds that charge performance-based fees. any member or group of members
• vary the amount or calculation basis of
any fees
Account fee • start charging switching, entry, exit, or
An account fee (as set out in the PDS) is transfer fees
deducted by us from your account on the last
If we want to increase our fees, we must notify
day of each month. This fee covers
the FMA. We will also tell you if we are making
administration of your account.
a change.
Reasonable fees
Trail Commission
The KiwiSaver Act requires certain fees
Forsyth Barr Limited may pay a financial advice
charged by KiwiSaver schemes to be
provider associated with your account an
reasonable. You, or the FMA, can apply to the
ongoing commission based on your account
courts for an order that any unreasonable fee
balance. This payment is made by Forsyth Barr
be cancelled or reduced. You must make this
Limited and is not paid out of your account.
application within one year of the fee being
The fees can be changed imposed.
The existing fees may change or we may start
charging fees which are not currently charged.
Subject to the Trust Deed, we are able to:
Additional information on the funds in the Scheme
The Scheme offers a range of funds. You can
choose to invest into one or more of these Statement of investment policies and
funds in any combination. objectives
If you do not make a choice about which Each fund of the Scheme will invest in
fund(s) your contributions are to be invested investments authorised under the Trust Deed
in, your contributions will be invested into the and in accordance with the SIPO that we have
Summer Balanced Selection. agreed with the Supervisor. The SIPO covers
each fund and details the types of investments
The information in this section applies only to that can be made and any limits on those, any
the funds currently offered. See the PDS for limits on the proportions of each type of asset
details of those funds and a summary of their invested in, and explains the way we develop
investment objectives and target investment and amend the investment strategy, and
mix, as well as information relating to risks and measure performance against the objectives of
suggested investment timeframes. the funds. The SIPO also describes our
approach to responsible investment.
There is no guarantee that a fund will meet its
investment objectives, or that a positive All monies available for investment in the
investment return will be achieved. Scheme will be invested in accordance with the
SIPO. The SIPO is available for review on the
schemes register at
Page 20 of 31www.companiesoffice.govt.nz/disclose As at the date of this document the Scheme
(scheme number SCH10648). intends to invest in the following underlying
funds where we are the manager:
Underlying funds • the Forsyth Barr Investment Funds, a
master unit trust comprising a range of
The Scheme may invest into financial products different Funds (which are Portfolio
directly, or may invest indirectly by investing in Investment Entities).
another managed investment scheme (an Information on current investments in any
’underlying fund’) to achieve the desired other underlying funds (if any) is available from
investment exposure. us.
Additional information on taxation
Tax will affect your returns. Tax laws are Tax on employer contributions
complex and can have different consequences
than those described in this section. In Employer contributions are subject to
addition, the information in this section is a employer superannuation contribution tax
simplified overview based on New Zealand tax which with effect from 1 April 2021 1, are at the
laws in force as at 5 March 2021, but tax laws following rates:
are subject to change. Neither we nor the
If your income2 in the your employer
Supervisor accepts any responsibility for the
previous income year superannuation
taxation implications of your investment in the
was… contribution tax rate is…
Scheme. You are advised to consult your own
independent tax adviser. less than $16,800 10.5%
The following information is based on the between $16,801 and 17.5%
Scheme being a multi-rate PIE - if the Scheme $57,600
were to cease being a multi-rate PIE then the
between $57,601 and 30%
tax treatment will be different. In this taxation
$84,000
section, references to 'resident' mean 'tax
resident'. $84,001 and $216,000 33%
$216,001 upwards 39%
1
As at 5 March 2021, there is a tax Bill before Parliament, which wages plus
2 Your ‘income’, for this purpose, is your gross salary and
includes changes to the tax rates. The tax summary in this OMI has employer superannuation contributions, before deduction of
been prepared to reflect the expected tax position as a result of the employer superannuation contribution tax, in the previous tax year
introduction of that Bill. (or, if you have worked for less than a year with your employer your
employer's estimate of this for the current tax year).
Page 21 of 31You can also read
