SUPERLIFE KIWISAVER SCHEME INVESTMENT STATEMENT
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SuperLife
KiwiSaver scheme
Investment statement
January 2015
Important information
(The information in this section is required under the Securities Act 1978).
Investment decisions are very important. Financial advisers can help you make
They often have long-term consequences. investment decisions
Read all documents carefully. Ask questions.
Seek advice before committing yourself. Using a financial adviser cannot prevent you
from losing money, but it should be able to
help you make better investment decisions.
Choosing an investment Financial advisers are regulated by the
Financial Markets Authority to varying levels,
When deciding whether to invest, consider depending on the type of adviser and the
carefully the answers to the following nature of the services they provide. Some
questions that can be found on the pages financial advisers are only allowed to provide
noted below: advice on a limited range of products.
Question Page When seeking or receiving financial advice,
What sort of investment is this? 44 you should check:
Who is involved in providing it for me? 46
• the type of adviser you are dealing with;
How much do I pay? 47
What are the charges? 48 • the services the adviser can provide you
What returns will I get? 50 with;
What are my risks? 54
• the products the adviser can advise you
Can the investment be altered? 57
on.
How do I cash in my investment? 57
Who do I contact with enquiries about 57
A financial adviser who provides you with
my investment?
personalised financial adviser services may be
Is there anyone to whom I can complain 58
required to give you a disclosure statement
if I have problems with the investment?
covering these and other matters. You
What other information can I obtain 58
should ask your adviser about how he or she
about this investment?
is paid and any conflicts of interest he or she
may have.
In addition to the information in this
document, important information can be Financial advisers must have a complaints
found in the current registered prospectus for process in place and they, or the financial
the investment. You are entitled to a copy of services provider they work for, must belong
that prospectus on request. to a dispute resolution scheme if they provide
services to retail clients. So if there is a
dispute over an investment, you can ask
The Financial Markets Authority regulates someone independent to resolve it.
conduct in financial markets
Most financial advisers, or the financial
The Financial Markets Authority regulates services provider they work for, must also be
conduct in New Zealand’s financial markets. registered on the financial service providers
The Financial Markets Authority’s main register. You can search for information
objective is to promote and facilitate the about registered financial service providers at
development of fair, efficient and transparent http://www.fspr.govt.nz.
financial markets. For more information You can also complain to the Financial
about investing, go to http://www.fma.govt.nz. Markets Authority if you have concerns
about the behaviour of a financial adviser.
This investment statement gives you important information about KiwiSaver and about the KiwiSaver scheme known
as “SuperLife” which is managed by SuperLife Limited (“ we, us, our, Manager”). This investment statement was prepared
by us on 16 January 2015 and applies from this date until it is replaced. Call us to check if this is the latest investment
statement.
www.SuperLife.co.nz 1
Introducing SuperLife
KiwiSaver is about helping you save and Five things that are important to us
invest for a better future.
We think that you should consider SuperLife
for your KiwiSaver savings because of:
We have designed SuperLife to provide you
with a robust KiwiSaver solution. We
1. Low fees: Low fees mean that more of
recognise that every $1 you pay in fees is a $1
the returns go into your savings so you
off your return. To deliver value for money,
are better off. Our focus is on delivering
we look to provide you with quality service
quality service and value.
and flexibility.
2. Flexible investment options: We have a
By flexibility we mean that we: wide range of investment options that
give you flexibility. With SuperLife, you
• Do not impose any minimum can tailor and manage your investment
contribution levels if you are not an strategy to your investment needs. We
employee; and do not impose a charge to change, or
• Give you a range of investment options limit how often you can change, your
to let you choose how your savings are to investment strategy. As a principle, we
be invested; and do not restrict this flexibility unless it is
required by the Act.
• Let you change your investment strategy
as often as you like; and 3. Clear communication: We are focused on
giving you simple and relevant
• Let you choose whether your benefits are information. You can expect to be
to be paid to you as a lump sum, an regularly informed about your
income, or a combination of both. investment in SuperLife. We
communicate regularly and run
We implement the investment arrangements investment educational seminars
of SuperLife by investing in the separate but throughout the country. Internet access
related SuperLife superannuation scheme gives you instant access to see your
(“SLSS”). This gives us greater economies of account details and transactions; to see
scale. how your savings are invested and to
make changes.
SuperLife and SLSS let you manage your
KiwiSaver and non-KiwiSaver 4. This lets you
Allocate returns in dollars:
superannuation savings alongside each other, see clearly how your funds are managed.
as one or separately. Through SLSS1, you There is transparency of investment
can also take out life insurance, income returns, taxes and fees.
protection insurance and medical insurance. 5. Solutions:We focus on providing
solutions. This lets you manage your
Through SuperLife we help you get the best KiwiSaver savings to achieve your goals
out of KiwiSaver. and meet your needs.
How do you join SuperLife?
To join SuperLife, complete the membership form at the back of this investment statement. Also, if you wish to
save by direct debit from your bank account, complete the direct debit form. When you join SuperLife, we are
required to verify your identity and your address. The range of documents that are permitted and the people,
besides one of our employees, who can certify your identity, are shown on page 60.
On the membership form, you need to tell us your prescribed investor rate for tax purposes. You can work this
out using the flowchart diagram on page 59.
1 For details on SLSS, phone us for an investment “If you want to join KiwiSaver, think about SuperLife.” By joining
statement. SuperLife, you are in a KiwiSaver scheme with a focus on low
fees, flexibility and a range of investment choices.
www.SuperLife.co.nz 2
Key information
The key information section only provides a If you are an employee, you can choose to
snapshot of an interest in SuperLife that is contribute 3%, 4% or 8% of your gross salary
being offered to you at the date of this or wages by payroll deductions. If you do
investment statement. The main offer terms, not choose a contribution rate, your rate will
benefits and risks summarised below are not be 3%. If you are eligible, your employer is
exhaustive. You should read the entire required to contribute 3% of your gross
investment statement and the prospectus to salary or wages. Your employer’s
understand all the terms of the interest that is contributions are subject to tax and only the
being offered by us. net amount is credited to your KiwiSaver
Account. Your contributions and those of
your employer are paid by your employer to
Nature of the offer the Inland Revenue Department (“IRD”) who
in turn pays them to us. You may also make
The investments being offered are interests additional contributions direct to us for any
in SuperLife. SuperLife is a KiwiSaver amount you choose.
scheme (KSS 10022) under the KiwiSaver
Act 2006 (“Act”) and is governed by its trust If you are self-employed or you are not an
deed and the Act. All contributions and employee, you choose your contribution rate.
benefit payments are subject to the Act. There is currently no minimum or maximum
SuperLife is also referred to as “SLKS”. amount of contributions payable.
More information is on page 44. More information is on pages 8 to 9 and 47.
Parties involved in the offer Withdrawals (benefits) from SuperLife
We (SuperLife Limited) are the Manager of Withdrawals from SuperLife are governed by
SuperLife. As part of our role, we are the Act. Unless you meet the early
responsible for investing the assets. We are withdrawal criteria, you cannot make a
also the issuer and promoter of SuperLife. withdrawal from KiwiSaver until your
Our directors are also the promoters. “KiwiSaver Retirement Age”. Your KiwiSaver
Retirement Age is the later of:
The trustee of SuperLife is Public Trust
(“Trustee”). a) the date you reach the standard age of
eligibility for New Zealand
More information is on pages 41 to 42 and Superannuation (currently 65 years); or
46. b) the date you have been a member of a
KiwiSaver scheme for five years, or
which is five years after the date the
Contributions to SuperLife IRD first received a KiwiSaver
contribution for you (whichever is
Contributions are made by you, your earlier); or
employer (if you are an employee) and the
government. They are made in accordance c) the date you have been a member of a
with the Act. complying superannuation fund (or of
a KiwiSaver scheme and a complying
Your contributions and the contributions in superannuation fund) for five years.
respect of you go into an investment account
under SuperLife in your name (your At any time after you satisfy (a) or (b) or (c)
“KiwiSaver Account”). and you reach your KiwiSaver Retirement
Age, you can withdraw some or all of the
www.SuperLife.co.nz 3
value of your KiwiSaver Account under Mix”). In addition there is an ethical
SuperLife. You can also set up a regular investment option (“Ethical Fund”), Ethica.
withdrawal facility. We call this a “managed You can combine the different Funds to
withdrawal”. make your own investment strategy or
choose a standard mix of the Funds to form
Early withdrawals can be made if you are your investment strategy (“Investment
eligible: Strategy”). You can also change your
Investment Strategy at any time and there is
• to help purchase a first home (or for
no charge for doing so.
“previous home buyers”);
• upon your death; At times throughout the year (normally
monthly), we will rebalance your KiwiSaver
• upon your significant financial hardship;
Account to your chosen Investment Strategy.
• upon your serious illness; This happens automatically unless you tell us
not to. This way the investment of your
• following your permanent emigration;
KiwiSaver Account is maintained consistent
• upon your early retirement (after age 60) with the Investment Strategy decision you
if you have transferred the balance in have made.
your Australian superannuation fund to
KiwiSaver where the Australian More information is on pages 12 to 36.
superannuation fund was regulated by the
Australian Prudential Regulation
Authority (“APRA”); and Fees and charges
• for payment of tax liability and repayment
The key fees you pay are the administration
of student loan.
fees, trustee fees and the investment
management fees.
You may also transfer to another KiwiSaver
scheme at any time.
Administration fees:
More information is on pages 10 to 11 and A net $2.75 a month deducted from your
51 to 53. KiwiSaver Account plus 0.2% p.a. of the
value of your account.
Investment options Trustee fees:
0.03% p.a. of the gross value of the assets
Under SuperLife, you can determine the plus any additional costs incurred by the
investment strategy for your KiwiSaver Trustee and reimbursable from the assets of
Account from the investment options made SuperLife.
available. The options currently include a
range of “Funds” that are sector options Investment management fees:
(cash, bonds, property and shares) (“Sector The investment management fee ranges from
Funds”) and a range of Funds that have 0.3% p.a. of assets to 0.87% p.a. of assets
managed investment strategies (“Managed depending on your Investment Strategy. If
Funds”) There is a range of standard you choose a Managed Fund, the investment
risk/return options of the Funds (“Mixes”). management fee is in the range of 0.31% to
Each of these Mixes invests in one or more 0.45% of assets.
of the Funds and has a particular objective
and is therefore the strategy of a Mix and is The asset-based fees are deducted from the
not a Fund. In some cases the investment investment returns before the returns are
strategy of the Mix will be varied (“Variable credited to your KiwiSaver Account. They
www.SuperLife.co.nz 4
are indirectly incurred by you. as “SLSS”. We are also the investment
manager for SLSS. The trustee of SLSS is
Transaction fees: SuperLife Trustee Limited.
If you transfer to another KiwiSaver scheme,
a transaction fee of a net $100 is deducted Prior to 16 January 2015, SuperLife Limited
from your KiwiSaver Account. was owned by Aventine Group Limited
(“Aventine”). From 16 January 2015, NZX
In-fund costs: Limited (“NZX Limited”) became the owner of
We may debit from SuperLife’s assets as a SuperLife Limited. NZX Limited is also the
whole regulatory and audit costs, legal operator of the New Zealand Stock
expenses, printing, postage and other similar Exchange (“NZX”). Aventine was and
expenses directly associated with SuperLife. remains independent of NZX Limited.
More information is on pages 48 to 49. MCA NZ Limited (“MCA”) was and remains
a subsidiary of Aventine and is the
investment consultant for SuperLife. MCA’s
Tax
role as the Investment Consultant is
unaffected by the change in ownership of
SuperLife is a portfolio investment entity SuperLife Limited. MCA’s fees are met from
(“PIE”). As a PIE, we deduct tax from the our fees and are not additional to the fees
investment returns allocated to you at your and charges you pay.
prescribed investor rate (“PIR”). The current
PIRs are 10.5%, 17.5% and 28%. More Since 16 January 2015 we are separate to
information is on page 59. MCA but the directors of MCA remain
directors of us.
Risks
We are independent of the trustee of SLSS
and the Trustee of SuperLife.
Your investment in SuperLife is exposed to
the normal market risks (investment, In this investment statement, words in bold
economic and currency) relevant to your text within brackets are defined terms.
Investment Strategy. Defined terms only appear in bold text the
first time they are used. See the glossary on
In addition, there are risks that the page 61 for a full list of the defined terms.
government changes the rules that relate to
KiwiSaver and third party risks. The third
party risks include the risk that you get back
less than you expect because of a failure in
our performance, the Trustee or one of the
Make SuperLife your KiwiSaver scheme
ultimate investment managers appointed to Anyone who is eligible to join KiwiSaver, or is
manage the assets of the Funds and Mixes. already in KiwiSaver, can join SuperLife. Joining
SuperLife is easy. There is no joining fee.
More information is on pages 37 to 38 and
Complete the Membership Form at the back of
54 to 56. this investment statement and get the proof of
your address and identity document(s) and
return them to us.
Other factors
Transfer to SuperLife
If you are already in KiwiSaver, but not in
The assets of SuperLife are invested in a SuperLife, you can transfer to SuperLife to get
related registered superannuation scheme the SuperLife advantage. To transfer - just join.
(AS/1068) of the same name and referred to We will then organise the transfer of your
existing KiwiSaver savings to SuperLife.
www.SuperLife.co.nz 5
About KiwiSaver
KiwiSaver can help you save for your future. Government payments
You do not have to be an employee to join. Details of the government payments are on
KiwiSaver is for employees, the self- page 7. The government pays an initial tax-
employed and those not in paid employment, free $1,000 to get you started. Also, if you
including stay-home parents, children, are 18 or older and under your KiwiSaver
students and beneficiaries. You are eligible Retirement Age, your savings are subsidised
to join KiwiSaver if you are: by the government each year.
• a New Zealand citizen, or entitled to stay
in New Zealand indefinitely (if you hold a
Contributions
temporary, visitor or student permit, you
cannot join KiwiSaver); and
Details of the contributions are on page 8.
• in New Zealand, or normally resident in You can choose how much to save and when
New Zealand; and to save (but if you are an employee, you must
save a minimum of 3% of your taxable pay
• under the standard age of eligibility for
and must save during the first year of your
NZ Super (currently age 65).
KiwiSaver membership unless you are on a
contributions holiday due to financial
For new employees, it operates on the
hardship).
principle of “auto-enrolment”. The auto-
enrolment rule applies to all new eligible
Your savings go into your KiwiSaver
employees (age 18 to 64) who join an
Account which is credited/debited with your
employer, unless the employer has an
investment returns. Fees and tax are also
alternative scheme and exempt status. Other
deducted from your KiwiSaver Account.
eligible employees and all other eligible
people have to “opt-in” to join.
Benefits
Auto-enrolled employees can choose to “opt-
out” if they don’t want to save. The ability to
Details of the benefits under KiwiSaver are
opt-out applies from day 14 of employment
on pages 10 to 11. When you become
(and must be exercised on or before day 56
entitled to a retirement benefit, you can take
i.e. within 8 weeks). This means that auto-
out your balance as a lump sum. SuperLife
enrolled employees will, as a minimum,
also lets you take your balance out as an
contribute between days 1-13. Contributions
income, or a combination of lump sums and
are refunded if you then opt-out.
an income. There is no tax payable on
benefits paid to you.
An employee who doesn’t opt-out (or
employees who opt in) must save for at least
In some circumstances, you can take the
their first year unless they cease to be an
money out before your KiwiSaver Retirement
employee or if they applied successfully to
Age; to help buy your first home and on
the IRD for a contributions holiday as they
significant financial hardship, serious illness
are suffering or likely to suffer financial
or permanent emigration.
hardship. After 1 year’s membership, they
can also stop saving by going on a
On death, your KiwiSaver Account balance is
contributions holiday (see page 8).
paid to your estate or the person entitled
under section 65 of the Administration Act
The government encourages you to join
1969 if there is no Will.
KiwiSaver and to save. It may also make an
extra payment outside KiwiSaver to help you
to buy your first home, if you are eligible.
www.SuperLife.co.nz 6Government payments
$1,000 kick-start First home subsidy
The government pays an initial one-off If you have saved in KiwiSaver for at least
$1,000 contribution to your KiwiSaver three years, you may be eligible for a first-
Account to kick-start your KiwiSaver savings. home subsidy. Housing New Zealand
It is only paid once and is paid three months administers the subsidy on behalf of the
after you first join. The $1,000 is tax-free government and the subsidy is separate to the
and applies to everyone (including children) KiwiSaver withdrawal benefit to help with
when they first join KiwiSaver. the purchase of your first home (see page 11).
The eligibility criteria to receive the first-
Annual MTC (Member tax credits) home subsidy are set by Housing New
Zealand and include minimum savings levels,
If you’re 18 or older, the government will pay maximum household yearly income levels
into your KiwiSaver Account, after the end and maximum house price values. See our
of each year (i.e. after 30 June), a “member guide “Buying your first home” on our
tax credit” or “MTC”. This payment website for a summary and go to
subsidises the savings you made that year. It www.hnzc.govt.nz for more details.
is up to a maximum of $521.43 (equivalent to
$10 a week). This is payable each year until If you qualify, the first-home subsidy is
your KiwiSaver Retirement Age. A $1,000 for each year you have saved to a
proportionate MTC applies in your first and maximum of $5,000 after 5 years ($10,000 for
last years. a couple where both qualify).
To qualify for the MTC, your principal place
of residence must be in New Zealand (there Changes to the rules
are some exceptions).
The government may change the rules at any
If your savings for the year are below the time and change the payments that it will
level required for the maximum MTC, you make.
can top-up your savings before 30 June so
that you receive the maximum MTC for that
year. KiwiSaver works on a 1 July to 30 June
year.
To get the maximum MTC, you should save To find out how much you have saved and whether
at least $1,042.86 each year (1 July to 30 June) you qualify for the full MTC, you can see your details
over the internet – see pages 39 and 40 for more
(i.e. $20 a week or $86.91 a month). details.
www.SuperLife.co.nz 7Your savings and contributions
How much you must save depends on provider. However, if you are a Member of
whether or not you are an employee. All SuperLife and choose to make extra
savings that you make go to your KiwiSaver contributions, you can pay them directly to
Account. us.
Employees Employer subsidy
If you are an employee, you save at a If you are an employee, age 18 or older and
minimum rate of 3% of your salary or wage. saving at least the minimum rate by payroll
Your “salary or wage” is your total taxable deduction, your employer also contributes at
pay including overtime, bonuses, the minimum rate of your before-tax salary
commissions, allowances, gratuities, holiday or wage. This is subject to tax (see page 50).
pay, and any other kind of remuneration
subject to PAYE, but excludes redundancy Your employer may make additional
payments. contributions to your KiwiSaver Account.
They’ll tell you if they’re going to do this and
“3%” means that you save $3 for every $100 whether there are any special terms and
of your pay before tax comes off. The $3 conditions for the additional subsidy.
comes out of your take-home pay.
You can increase your 3% savings rate to 4% Contributions holiday
or 8%, and reduce it back to the minimum.
Simply tell your employer by completing an If you are an employee and you have been in
IRD KiwiSaver deduction form (KS2). KiwiSaver for at least one year, you can stop
saving at any time by taking a “contributions
While you are an employee, your savings are holiday”. You can also apply for a
deducted from your salary or wage each pay contributions holiday in the first year if
day, unless you’re on a contributions holiday. you’re experiencing, or likely to experience,
significant financial hardship.
If you are away on paid holiday or paid sick
leave, your savings continue. If you are on If you take a contributions holiday, your
unpaid leave, your savings stop, unless you employer contributions will also stop.
make special arrangements to keep them
going. To take a contributions holiday, complete the
IRD KS6 form and send it to the IRD, or
apply online at www.KiwiSaver.co.nz. The
Extra personal savings IRD will tell your employer and us.
You may make voluntary extra KiwiSaver A contributions holiday is for the period you
savings direct to SuperLife at any time. choose between the minimum (3 months)
These can be made by cheque, direct debit, and maximum (5 years). There is no limit to
direct credit or through internet banking. the number of times you can take a
contributions holiday. At the end of a
contributions holiday period, if you are an
Contribution flow employee and you do not choose a new
contributions holiday, the deduction from
Your savings and your employer subsidy are your salary or wages for the employee
paid by your employer to the IRD who then KiwiSaver contributions will automatically
pays them to your chosen KiwiSaver restart.
www.SuperLife.co.nz 8Non-employees Can you stop contributing?
If you don’t earn a salary or wage, you can If you are not an employee, you can stop
choose how much and when you save. contributing at any time. All contributions
Savings can be regular payments or are voluntary.
occasional lump sums. SuperLife has no
minimum requirement and you do not have If you are an employee and have been in
to save anything. You can stop and start KiwiSaver for at least one year, you can stop
your savings at any time. contributing at any time by going on a
contributions holiday. You do this by telling
If you become an employee, your savings the IRD that you wish to go on one (use the
automatically move to the minimum IRD KS6 form). If you have not been in
employee rate and are deducted from your KiwiSaver for one year, you can apply to the
pay unless you go on a “contributions IRD to go on a contributions holiday if you
holiday”. are suffering significant financial hardship.
Contributions from your employer will stop
while you are on a contributions holiday.
Commonly asked questions
Contributions from your pay automatically
stop if you cease to be an employee.
What if you move overseas?
If you move overseas, you can continue to Can I transfer my benefits from an
save, but you will not be entitled to the Australian Super Fund?
annual government MTC subsidy while you
are away. If you have any benefits accruing in an
Australian superannuation fund regulated by
If you permanently emigrate, you may also be APRA (“Australian Super Fund”), you can
entitled to a benefit (see page 10). transfer those funds to your KiwiSaver
Account in SuperLife. You must transfer all
your funds as partial transfers are not
What if you change employers? allowed. There are some special rules that
apply. For example, the transfer value
If you are in KiwiSaver and change cannot be withdrawn under the first home
employers, you remain in KiwiSaver with withdrawal option but some may be
your chosen KiwiSaver provider. Use the accessible from age 60 if you have retired.
IRD’s KiwiSaver deduction form (KS2) to
tell your new employer you are in KiwiSaver,
so they will continue to deduct your
KiwiSaver savings and pay their
contributions. You do not have to change
schemes and can stay in SuperLife.
www.SuperLife.co.nz 9Benefits
Retirement somewhere between 4% and 10% can be
withdrawn each year prior to your KiwiSaver
The main purpose of KiwiSaver is to build Retirement Age.
up your retirement savings to supplement
your New Zealand Super benefit.
What happens if you die before retirement?
When can you receive your retirement If you die, your KiwiSaver Account balance
benefit? is paid to your estate or, if there is no Will, to
the person entitled under section 65 of the
Your KiwiSaver Retirement Age is the later Administration Act 1969. You should have a
of the age when you reach the age of Will and keep your Will up to date to ensure
eligibility for NZ Super (currently age 65) and your benefit gets distributed the way you
the date you complete five years’ want it to.
membership in KiwiSaver and/or a similar
complying fund.
What happens if you move overseas?
Do you have to take your benefit out at If you leave New Zealand permanently, you
your KiwiSaver Retirement Age? can continue with KiwiSaver until retirement.
However, if you move overseas permanently
No. When you reach your KiwiSaver (other than to Australia), once you have been
Retirement Age, you can withdraw your overseas for 12 months or more, you can
KiwiSaver Account balances as a lump sum. then choose to withdraw your KiwiSaver
You can also choose to continue to save and savings. If you choose to withdraw your
invest. However, after your KiwiSaver savings, the benefit payment is your
Retirement Age, you no longer qualify for the KiwiSaver Account balance less the MTCs.
government MTCs and your employer does The MTCs are paid back to the government.
not have to contribute. If you have previously transferred your
superannuation from an Australian Super
Fund, that money must stay in KiwiSaver or
Can you get an income? go back to an Australian Super Fund.
Yes. Under SuperLife you can If you move overseas permanently, (other
also take out your savings as an than to Australia), you can also choose to
income (or make cash transfer your KiwiSaver savings at any time
withdrawals as required). It’s to a foreign superannuation scheme as
your choice. Ask for a copy of defined in the Act. If you choose to do this,
our guide “Thinking about your the benefit payment is your KiwiSaver
retirement”.
Account balance less the MTCs. The MTCs
are paid back to the government. If you have
previously transferred your superannuation
What about the money you transferred from
from an Australian Super Fund, that money
an Australian Super Fund?
must stay in KiwiSaver or go back to an
Australian Super Fund.
If you transferred money from an Australian
Super Fund and you retire on or after age 60
If you emigrate to Australia you can transfer
and before your KiwiSaver Retirement Age
your total KiwiSaver Account funds to an
and you meet the Australian retirement rules,
Australian Super Fund.
you can withdraw part of the money that was
transferred in. Typically, if you qualify,
www.SuperLife.co.nz 10What happens if you get very sick or Application for a benefit
disabled and cannot work?
In most cases, if you want to withdraw your
If you become seriously ill, you can withdraw savings or receive a benefit, you ask us.
your KiwiSaver Account before retirement. However, if you experience significant
Serious illness is defined in the legislation and financial hardship or serious illness within the
the Trustee must determine whether you first three months of first joining KiwiSaver,
meet the criteria. you’ll need to apply to the IRD.
The forms you need to complete and details
First home withdrawal of the other information you need to provide
are on our website. You can also phone us
If you have been a member of KiwiSaver for to request a form to be sent to you.
at least three years, you can withdraw part of
your KiwiSaver Account to help you buy
your first home. You cannot withdraw the KiwiSaver rules apply
government’s $1,000 kick-start, the MTCs or
any amount transferred from an Australian The payment of all benefits is subject to the
APRA regulated super fund - these must stay rules under the Act. The government may
for your retirement - but you can withdraw change the rules applicable to benefits.
everything else, including the employer
contributions unless the employer has paid
more than the minimum amount required
and has imposed special restrictions on the
extra subsidy.
To find out how much you have saved, you can see
your balance over the internet – see pages 39 and 40
In some situations, if you do not own a for more details.
house, but have previously owned one, you
may also be able to take out money. Housing
New Zealand will determine your eligibility in
this case.
What happens if you suffer financial
hardship?
If you experience significant financial
hardship, you can apply to the Trustee to
make a withdrawal. If approved, the
withdrawal is the amount determined by the
Trustee to alleviate your financial difficulties,
subject to a maximum of the amount in your
KiwiSaver Account excluding the
government kick-start and MTCs. These
must stay for retirement. The withdrawal
may include amounts transferred from an
Australian Super Fund.
Significant financial hardship is defined in the
legislation and has a strict hardship test.
www.SuperLife.co.nz 11Investment of your
KiwiSaver Account
Our investment philosophy 13
Policy to mitigate risk 14
Investment of your KiwiSaver Account 15
Your investment strategy 16
AIMAge Steps 18
Sector Funds 19
Managed Funds 34
Variable Mixes 35
Ethica 36
Investment returns 37
www.SuperLife.co.nz 12Our investment philosophy
It is important to us that SuperLife’s The overriding objectives for the
investment options are flexible and reflect best implementation of the investment policies of
practice from a member’s perspective. SuperLife, are based on principles of:
To provide flexibility SuperLife has a wide Prospective
range of investment Funds and options that Decisions must be made prospectively
lets you customise your Investment Strategy and cannot be made retrospectively.
to suit your needs and investment objectives.
It is also important to us that we give you
Fair and equitable
Each Fund will be treated fairly and
information to help you make decisions. We
equitably in terms of trade execution
do not give personalised investment advice.
orders and price. Fair dealing is a core
practice in everything we do – from the
Our philosophy is what drives the investment
way we conduct our business, our
options made available and their
relationship with you and the
implementation.
management of your investments and
the services we provide.
Transparent
Our focus is on how we generate the
returns, the risks you may be exposed to
and how we manage those potential
risks. We are also focused on doing the
best we can, for all our members, over
the long-term. All decisions and the
application/execution of the decision
will be fully transparent.
Cost effective
Each decision will be made and
implemented on the basis that is
practical, sensible and logical for the
Fund given its size and all decisions
must be cost effective. The after-tax
and after-all-costs return to you is
improved by managing costs.
Secure
Accurate records are kept and that these
records are subject to appropriate audit,
security and privacy management. We
also focus on the management of risks.
Simple
We look to keep things simple.
www.SuperLife.co.nz 13Policy to mitigate risk
In making investment decisions, we also look We believe that our returns will be
to mitigate risk. We therefore have regard to competitive over the long-term because of our
the principles of: lower fees and our investment philosophy.
But we expect, from time to time, that other
Long-term: managers may do better for a short period
We believe that in making investment while over that period their investment policy
decisions, it is better to take a long-term happened to suit the market movements. We
view and position portfolios for the are more focused on optimising returns over
future, while managing the risks that periods relevant to each type of investment:
might arise over the short-term.
• 1 to 2 years: Cash
Passive:
We believe that when investing for the • 3 to 5 years: Bonds
longer term, a passive approach to
investing will deliver better results. • 7 to 10 years: Property & shares
Passive investing means we will either
invest in an index or index-related fund,
or we will construct a non-indexed fund
which holds a restricted number of
quality assets for the long term. We agree
with historical analysis that demonstrates
that a low-cost, buy-and-hold strategy,
over time outperforms managers whose
approach is to constantly trade the
market and look for short-term winners.
We do not think that constantly changing
our investments, that is trading regularly
and seeking short-term gains, consistently
adds value to your outcome – in fact we
think it adds unnecessary cost and so
lowers the returns you can get.
Diversification:
Better risk-adjusted outcomes arise
through diversification. Diversification is
about buying multiple investments from
those available and spreading your risk by
doing so.
www.SuperLife.co.nz 14Investment of your KiwiSaver Account
Your KiwiSaver Account Currency risks
Your savings build up in your KiwiSaver Several of the Funds have all or part of the
Account. Your KiwiSaver Account is made Fund’s money invested overseas and have
up of: assets in foreign currencies. That means the
value of the Fund’s assets will also go up or
your Savings down if the value of those currencies change
+
in relation to the New Zealand dollar.
the $1,000 kick-start
+ the MTCs (“Member tax credits”) With some of these Funds, we and the
(up to $521.43 a year) investment managers use foreign exchange
+ your employer subsidy contracts to hedge the investments back to
(if you are an employee) the NZ dollar, before-tax, to remove some or
-
nearly all of the effects of currency changes.
administration fee ($33 a year)
+/- net investment earnings With the other Funds, the investment
= your KiwiSaver Account balance managers are instructed to let currency
changes affect asset values. By investing in
Under SuperLife, you can determine the these Funds, you take the additional
Investment Strategy for your KiwiSaver risks/rewards of changes in currency values,
Account using our investment options. as well as changes to the value of the assets
themselves.
Investment options Details of the currency position for each
Fund are on pages 18 to 36.
The investment options are made up of 22
investment Funds (Funds) and 7 variable mixes
of the Funds. Of the 22 Funds, 16 are Sector Investment managers
Funds, 5 are Managed Funds and 1 is an
Ethical Fund. We have chosen, on the advice of MCA, to
invest the capital of each Fund in the
There is a range of standard risk/return equivalent fund under SLSS. The investment
options of the Funds (Variable Mixes). Each manager is therefore SuperLife Limited in its
of these Mixes invests in one or more of the capacity as the investment manager of SLSS.
Funds and has a particular objective and is In that capacity we, on the advice of MCA,
therefore a strategy or a Mix and is not a choose the products which the capital of the
Fund. SLSS fund is invested in and/or the
underlying investment manager(s) appointed
Details of the investment Funds and Variable to invest the Fund’s capital.
Mixes are on pages 18 to 36.
Details of the products and investment
managers for each SLSS fund are set out on
Future changes pages 18 to 36 and the investment managers
are summarised on page 42.
The investment Funds and options available
can be changed by us at any time.
Historical performance
Details of SuperLife’s past returns are on our
website www.SuperLife.co.nz.
www.SuperLife.co.nz 15Your Investment Strategy
Your Investment Strategy or even negative returns, with a view of a
higher expected average return, a less
You can combine the different Funds to conservative approach may be better,
make your own investment strategy, or including an exposure to some property and
choose a standard Mix of the Funds to form shares. This may give you a higher “average”
your Investment Strategy. To advise us of return than a conservative approach, but that
your Investment Strategy, complete a may not always be the case.
SuperLife investment option form or, if
registered for internet use, do it on-line. You If your goals are more long term (at least 12
can also change your Investment Strategy at years) and you want a higher average return
any time and there is no charge for doing so. and are prepared to have low or negative
returns for several years, you might want to
Setting your Investment Strategy (your mix of have even more shares in your Investment
cash, bonds, property and shares) is one of the Strategy.
important decisions you need to make for
your KiwiSaver savings. SuperLife’s Under SuperLife, if you become entitled to a
investment options give you the ability to retirement benefit and the markets are down
tailor your Investment Strategy to suit your (e.g. recent returns were low or negative), you
own needs. can defer receiving your benefit and wait for
the markets to recover. This is your decision.
You also need not withdraw all your savings
How do you decide where to put your at once. You can choose to take your benefit
money? to suit your needs and you choose from
which Funds you want your benefit
Deciding which Funds to put your money in withdrawn.
isn’t easy - there's no single answer. If you
need help to decide, you should talk to an How much investment risk can you afford to
appropriately experienced authorised take?
financial adviser (AFA). For investments, “risk” often refers to the
volatility of returns and, in particular, the
You may also wish to read the SuperLife chance or likelihood of a negative return
Investment Guide and the SuperLife guide to occurring. High volatility over short periods
investing. You can download copies from normally means higher risk i.e. a higher
our website. These can only be a general chance of a negative return.
guide as to the principles involved. The key
factors that you should consider include The general overriding principle is that
when you may receive a benefit and the level investments with higher risk will normally
of risk that is appropriate for you. provide investors over the long-term, with a
higher average return. Note, we emphasise
When will you receive a benefit? the word “average” as, due to the level of
If you think that you may need your benefit risk, the return in any individual year may be
in the near future (e.g. you are going to retire very high, very low or even negative.
shortly), it may make sense to protect the
current value of your existing assets. Some members may not be happy about the
Therefore, an approach that has more possibility of negative returns and will
certainty in the return (less chance of a loss, therefore favour a conservative approach and
i.e. more “conservative”) may be appropriate, be willing to receive lower average returns
that is, predominantly cash and bonds. (i.e. more investments held in cash and bonds
and less in property and shares).
If your goals are medium term (at least seven
years) and you can tolerate some years of low
www.SuperLife.co.nz 16Some members will seek to take on
additional risk due to the possibility of a
higher expected return and therefore adopt a
less certain approach (i.e. fewer investments
held in cash and bonds and more in property
and shares).
What if you do not make a decision?
Until you advise us of your investment option,
your KiwiSaver Account is invested in the
standard option.
The standard investment option is the Cash
Fund for the first three months of your
membership. After three months, it moves to
the AIMAge Steps strategy over the next six
months, as follows:
Cash Fund AIMAge Steps
First 3 months All Nil
Month 4 5/6th 1/6th
5 4/6th 2/6th
6 3/6th 3/6th
7 2/6th 4/6th
8 1/6th 5/6th
Month 9 onwards Nil All
We can change the standard option at our
discretion. If we do this, we will tell you.
See page 18 (AIMAge Steps) and page 19 (Cash
Fund) for more details.
Maintaining your strategy – rebalancing
At times throughout the year (normally
monthly), we will rebalance your KiwiSaver
Account back to your Investment Strategy.
This happens automatically unless you tell us
not to. This way the investment of your
KiwiSaver Account is consistent with your
Investment Strategy.
www.SuperLife.co.nz 17AIMAge Steps
is a mix of the Cash,
AIMAge Steps
Income
SuperLife and SuperLifeGrowth Funds and
has an underlying asset mix that is related to
your age. It therefore splits your SuperLife
Account balance between the other Funds for
cash, bonds, property and shares, based on
your age. At the younger ages, the focus is on
property and shares. It currently moves to be
half property and shares, and half cash and
bonds, at age 65.
AIMAge Steps is designed for someone saving
for retirement where they plan to maintain
their investment into retirement and spend
their savings throughout their retirement.
They are also willing to have a “normal” level
of ups and downs in returns. For many
members, it will not represent the ideal
investment strategy as they may have other
investments, or they intend to use their
savings for other reasons (e.g. to buy a
house), or they wish to have a more
conservative or a more aggressive strategy. If
the savings are planned to be spent in full on
retirement, it may not be suitable to remain
in this strategy approaching retirement.
The investment strategies at sample ages are:
AIMAge Steps (sample ages)
Funds
20 30 40 50 55 60 65 70
% % % % % % % %
Cash 0 0 0 0 5 12.5 20 20
SuperLifeIncome 4 20 20 25 30 30.0 30 40
SuperLifeGrowth 96 80 80 75 65 57.5 50 40
Total 100 100 100 100 100 100 100 100
Details for all ages are on our website
www.SuperLife.co.nz and are illustrated below:
www.SuperLife.co.nz 18Sector Funds
Currently SuperLife has 14 Sector Funds. Cash Fund
These are the building blocks that let you
form your Investment Strategy. Each Fund Objective:
looks to capture the market returns of a To capture the market returns of the New
particular type of asset. With each Fund, Zealand “cash” investment market.
cash may also be held for liquidity purposes.
Permitted investments:
Cash and cash equivalent assets
The Sector Funds are:
denominated in New Zealand dollars with
Cash a maximum remaining duration of 365
NZ Bonds days, including:
Overseas Government Bonds
Overseas Non-government Bonds • Short-term fixed interest investments,
Property and
NZ Shares
Australian Shares • Bank deposits, and
Overseas Shares Currency Hedged
Overseas Shares (Unhedged) • Other cash and cash equivalent
Emerging Markets investments.
Gemino
Products that primarily invest in the above
SuperLifesmartFONZ permitted investments including exchange
SuperLifesmartMOZY traded funds (“ETFs”) and unlisted funds.
UK Cash
Benchmark returns:
UK Income
UK Growth
The 1 to 2 year returns are evaluated
against the ANZ 90-day Bank Bills Index.
A margin over the index return is expected
over each 2-year period to reflect the
investment risks of the portfolio.
Investment manager:
We have chosen, on the advice of MCA, to
invest the Fund’s capital in the equivalent
fund under SLSS.
Under SLSS, Nikko Asset Management
New Zealand Limited (“Nikko”) has been
appointed to make the investment
decisions on which investments to buy.
Decisions by Nikko are made subject to
the equivalent SLSS fund’s mandate.
www.SuperLife.co.nz 19NZ Bonds Fund
Objective: A margin over the index return is expected
To capture the market returns of the New over each 5-year period to reflect the risks
Zealand investment-grade bond market of the non-government bond investments.
made up of the fixed interest investments
issued by the New Zealand government
and major New Zealand organisations. Investment manager:
We have chosen, on the advice of MCA, to
Permitted investments: invest the Fund’s capital in the equivalent
Any fixed interest security where the fund under SLSS.
interest rate is denominated in NZ dollars:
- of, or guaranteed by, the NZ Under SLSS, Nikko has been appointed to
government; make the investment decisions on which
investments to buy. Decisions by Nikko
- of a corporate entity or bank are made subject to the equivalent SLSS
constituted by or under the laws of fund’s mandate.
NZ;
- of a local authority or other governing
body constituted by or under NZ law.
Any convertible or non-convertible
securities of an organisation which
provides a predetermined rate of dividend
or interest.
NZ dollar securities issued or guaranteed
by foreign governments.
Deposits with a bank and Certificates of
Deposit issued by a bank whether
negotiable, convertible or not.
Bills of Exchange that have been accepted
or endorsed by a bank.
Promissory notes; and floating rate notes.
Cash and cash equivalents.
Products that primarily invest in the above
underlying investments, including ETFs
and unlisted managed investment funds.
Benchmark returns:
The 3 to 5 year returns are evaluated
against the ANZ NZ All Government
Bond Index.
www.SuperLife.co.nz 20Overseas Government Bonds Fund
Objective:
To capture the market return of the global
bond market made up of bonds issued by
the governments of overseas countries
within the developed markets.
Permitted investments:
Fixed interest securities issued by a
government, or guaranteed by a
government, of a country within the
developed markets.
A security that is included in the Citigroup
World Government Bond Index.
Forward currency hedging contracts.
Cash and cash equivalents.
Products that primarily invest in the above
underlying investments, including ETFs
and unlisted managed investment funds.
Hedging:
The foreign currency exposures are
hedged to the NZ dollar by buying
forward currency hedging contracts.
Benchmark returns:
The 3 to 5 year returns are evaluated
against the Citigroup World Government
Bond Index hedged to New Zealand
dollars.
Investment manager:
We have chosen, on the advice of MCA, to
invest the Fund’s capital in the equivalent
fund under SLSS.
Under SLSS, the product used is the State
Street Global Advisors Australia Limited
(“SSgA”) Global Fixed Income Index
Trust. This is a global index fund ex-
Australia and is hedged to the Australian
dollar within the product.
SSgA then hedges the Australian dollar
exposure to New Zealand dollars outside
the product.
www.SuperLife.co.nz 21Overseas Non-government Bonds Fund
Objective: Benchmark returns:
To capture the market return available The 3 to 5 year returns are evaluated
from the investment grade bonds issued against the Citigroup World Government
by organisations in the developed markets. Bond Index hedged to New Zealand
dollars. A margin above this is expected
Permitted investments: to reflect the exposure to investment
Any fixed interest security available in an grade corporate bonds.
overseas developed market characterised
as: Investment manager:
We have chosen, on the advice of MCA, to
- of or guaranteed by a foreign invest the Fund’s capital in the equivalent
government; fund under SLSS.
- of a corporate entity or bank
constituted by or under the laws of an Under SLSS, the products used are:
overseas developed market; • the Vanguard International, Credit
- of a local authority or other governing Securities Index Fund (Hedged) of
body constituted by or under laws of Vanguard Investments Australia
an overseas developed market. Limited (“Vanguard”); and
• the SSgA Global Broad Investment
A security that is included in the Citigroup Grade Fixed Income Trust of SSgA.
World Broad Investment-Grade Bond
Index. Both of these products are index funds
and are hedged to the Australian dollar
Any convertible or non-convertible within the products. The Vanguard fund
securities of a corporation which provide a is benchmarked against the Barclays
predetermined rate of dividend or interest. Global Aggregate Investment Grade
Index ex Mortgage Backed Securities and
Deposits with a bank and Certificates of the SSgA fund is benchmarked against the
Deposit issued by a bank whether Citigroup World Broad Investment Grade
negotiable, convertible or not. Index ex-Australian hedged to Australian
dollars.
Bills of Exchange that have been accepted
or endorsed by a bank; promissory notes. Currency hedging outside the products is
managed by SSgA in respect of the SSgA
Floating rate notes. fund and by the SLSS investment manager
in respect of the Vanguard fund. Where
Forward currency hedging contracts, cash, the hedging contracts are implemented by
cash equivalents. the SLSS investment manager, the services
of Nikko are used.
Products that primarily invest in the above
underlying investments, including ETFs
and unlisted managed investment funds.
Hedging:
The foreign currency exposures are
hedged to the NZ dollar by buying
forward currency hedging contracts.
www.SuperLife.co.nz 22Property Fund
Objective: Investing on a passive basis means that
To capture the market return of the the turnover of the portfolio is expected
property markets of New Zealand, to be low and the portfolio is not
Australia and the non-Australasian expected to be traded. Shares are
developed markets over the long term, by purchased with the expectation that they
passively investing in a diversified will still be held in 5 years’ time.
portfolio of listed or about to be listed
property securities. Hedging:
The foreign currency exposures for global
Permitted investments: property securities are generally hedged to
Property securities and associated the Australian dollar. The currency risks
investments (“Property Shares”) listed on a of Australian property securities and the
board of the NZX, the Australian Stock NZ and Australian exposure of the global
Exchange (“ASX”) or the stock exchange property securities are expected to be 50%
of a developed country. hedged on average to the NZ dollar, but
may at times, vary between 0% and 100%.
Property Shares of New Zealand and
Australian companies that are expected to Benchmark returns:
be listed within 1 year on a board of the The 5 to 7 year returns are evaluated
NZX or ASX. against the NZX Property Index. The
returns are expected to vary relative to the
Shares in this context include futures, index reflecting the exposure to Australian
options, rights and any listed hybrid equity and global property securities. Over the
security including redeemable preference long term (10 years plus) the volatility of
shares, specified preference shares, partly the portfolio is expected to be less due to
paid shares and convertible notes. the higher level of diversification.
Forward currency hedging contracts; cash Investment manager:
and cash equivalents. We have chosen, on the advice of MCA, to
invest the Fund’s capital in the equivalent
Products that primarily invest in the above fund under SLSS.
underlying investments, including ETFs
and unlisted managed investment funds. Under SLSS, for the Australasian markets,
the decisions on which investments to buy
Asset allocation & security selection: are made by the SLSS investment
The SLSS investment manager, on the manager. To help it, it receives advice
advice of MCA decides on the split from Forsyth Barr Limited (“Forsyth Barr”)
between New Zealand, Australia and the and other brokers as appropriate. For
global developed markets. Securities global property securities, the SLSS fund
within New Zealand and Australian currently buys units in the Vanguard
markets are bought to target an equally International Property Securities Index
weighted exposure within each market, but Fund (Hedged), managed by Vanguard.
there will be departures from this principle This is a global ex-Australia property
because of the products invested in, index fund.
market movements, size and liquidity and
efficiency constraints, and for The management of the currency
diversification purposes. management between NZ and Australia is
made by the SLSS investment manager
and implemented through Nikko.
www.SuperLife.co.nz 23NZ Shares Fund
Objective: Investment manager:
To capture the market return of the New We have chosen, on the advice of MCA, to
Zealand share market over the long term invest the Fund’s capital in the equivalent
by passively investing in a diversified fund under SLSS.
portfolio of listed New Zealand shares.
Under SLSS the decisions on which
Permitted investments: investments to buy are made by the SLSS
Shares and associated investments investment manager. To help it, it
(“shares”), listed on a board of the NZX. receives advice from Forsyth Barr and
Shares in this context includes futures, other brokers as appropriate
options, rights and any listed hybrid equity
security including redeemable preference
shares, specified preference shares, partly
paid shares and convertible notes.
Shares of New Zealand companies that
are expected to be listed within 1 year on a
board of the NZX.
Cash and cash equivalents.
Products that primarily invest in the above
underlying assets, including ETFs and
unlisted managed investment funds.
Security selection:
Investments are bought to construct a
passive NZ Share portfolio for a long-
term investor. The portfolio will target an
equally weighted exposure across the
shares, but there will be departures from
this principle because of the products
invested in, market movements, size and
liquidity and efficiency constraints, and for
diversification purposes.
Investing on a passive basis means that
the turnover of the portfolio is expected
to be low and the portfolio is not
expected to be traded. Shares are
purchased with the expectation that they
will still be held in 7 years’ time.
Benchmark returns:
The 7 to 10 year returns are evaluated
against the NZX 50 Index.
www.SuperLife.co.nz 24Australian Shares Fund
Objective: Benchmark returns:
To capture the market return of the The 7 to 10 year returns are evaluated
Australian share market over the long against the S&P/ASX 200 Index (50%
term by passively investing in a diversified hedged to the New Zealand dollar).
portfolio of shares.
Investment manager:
Permitted investments: We have chosen, on the advice of MCA, to
Shares and associated investments listed invest the Fund’s capital in the equivalent
on a board of the ASX. Shares in this fund under SLSS.
context includes futures, options, rights
and any listed hybrid equity security Under SLSS, the decisions on which
including redeemable preference shares, investments to buy are made by the SLSS
specified preference shares, partly paid investment manager. To help it, it
shares and convertible notes. receives advice from Forsyth Barr and
other brokers as appropriate.
Shares of Australian companies that are
expected to be listed within 1 year on a The management of the currency
board of the ASX. exposure between New Zealand and
Australia is managed by the SLSS
Forward currency hedging contracts. investment manager and implemented
through Nikko.
Cash and cash equivalent.
Products that primarily invest in the above
underlying assets, including ETFs and
unlisted managed investment funds.
Security selection:
Investments are bought to target an
equally weighted exposure across the
shares, but there will be departures from
this principle because of the products
invested in, market movements, size and
liquidity constraints and for diversification
purposes.
Investing on a passive basis means that
the turnover of the portfolio is expected
to be low and the portfolio is not
expected to be traded. Shares are
purchased with the expectation that they
will still be held in 7 years’ time
Hedging:
The foreign currency risks between the
NZ and Australian dollar are expected to
be 50% hedged on average, but may at
times be fully hedged or fully unhedged.
www.SuperLife.co.nz 25You can also read
