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What is the Automatic
Fund?
The Automatic Fund has target asset allocations which are set by the Scheme’s Trustee from time to time and which depend on the member’s age, with the initial allocation based on the age of the member when they enter the fund. Each month the members’ savings will be reviewed against the targets that are set out in the table below:.
Within each of these asset classes, the current target asset allocation of the Automatic Fund has a range of investments including overseas equities (hedged, un-hedged and socially responsible investment funds), Trans-Tasman equities, property, overseas and New Zealand fixed interest securities and cash. Currently the target asset allocation for overseas equities for each age includes 10 % investment in socially responsible investment funds. The target asset allocation of the Automatic Fund is set out in the table below:
| Asset | Age 20 | Age 40 | Age 60 | Age 80 |
| Overseas Equities Un-hedged | 53.4% | 32.5% | 17.1% | 5.7% |
| Overseas Equities Hedged | 11.6% | 12.5% | 10.4% | 4.3% |
| Trans-Tasman Equities | 20% | 17.5% | 12.5% | 5% |
| Property | 10% | 12.5% | 15% | 10% |
| Overseas Fixed Interest Hedged | 2% | 12% | 20% | 15% |
| New Zealand Fixed Interest | 1% | 8% | 20% | 30% |
| Cash | 2% | 5% | 5% | 30% |
The Automatic Fund will automatically reduce investment risk as you get older
and removes the need to continually reassess your investment strategy. Each
month as you get older the Automatic Fund is designed to smoothly reduce your
investment risk by reducing your target proportion of investments in
growth assets (eg shares) and increasing your target proportion of investments in
income assets (eg fixed interest investments). This reduces the need to recover
from any short-term losses and provides you with greater stability as you
approach or are in retirement.
AMP Capital Investors (NZ) Ltd and ASB Group Investments jointly currently manage the assets in the Automatic Fund.
AMP Capital Investors (NZ) Ltd
AMP Capital Investors (NZ) Ltd is a specialist investment manager with over $11 billion of funds under management. AMP Capital Investors operates with a pure investment focus independently but with the benefit of the resources of its parent AMP Limited which is listed on the Australian and New Zealand stock exchanges.
ASB Group Investments Ltd
ASB Group Investments Limited (ASBGI) was established in 2003 combining the investment businesses of ASB and Sovereign and is a wholly owned subsidiary of the Commonwealth Bank of Australia. ASBGI is ranked as New Zealand’s third largest fund manager with over $4.7 billion of funds under management.
If you would like more information on any aspect of this fund, this is
available in the SuperEasy Brochure, Investment
Statement and Prospectus.
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