News Sheets

JUNE 2017

 

Your 2017 Member Annual Statement is available for your inspection.

21 June, 2017

If you joined our SuperEasy KiwiSaver Superannuation Scheme or SuperEasy employer scheme before 1 April 2017, your Annual Statement and Report is available for your inspection.

You can access your Statement and Report by entering in your Member Login and Password in the Member Services section which is located on the top right-hand side of the homepage of our website.  This will bring up your personal details.  Then click on the “Online Statements” button which will allow you to view your Annual Statement and Report.

If you wish to see how your account balance has been tracking over recent months and previous years just click on the “Annual Balances” button.  The SuperEasy website will provide you with easy, accessible, informative information on all aspects of our SuperEasy KiwiSaver Superannuation Scheme and SuperEasy employer scheme.

If you have joined either scheme after 1 April 2017 you will receive your first Annual Statement after the end of our next financial year, 31 March 2018.

 

Attention – What you need to do in the next month to receive your KiwiSaver payment from the Government.

1 June, 2017

Did you Know?

If you are a KiwiSaver member , contributing to your account, over 18 years of age and not yet entitled to withdraw your funds (with some exceptions), you are entitled to receive a KiwiSaver Member Tax Credit (MTC) from the government.  Unlike tax credits, the MTC has nothing to do with your tax return or how much you earn; it is solely dependent on how much you have personally paid into your KiwiSaver account in the previous KiwiSaver year. Whether you are a salaried employee, self-employed, a student or not working, as long as you contribute to your KiiwSaver account and are over 18 years of age you are entitled to receive the MTC.  Think of it as a contribution bonus.  To determine how to ensure you receive your maximum KiwiSaver subsidy from the government click here.

MAY 2017

 

May Budget 2017

26 May, 2017

For KiwiSaver The Song Remains The Same!
Yesterday the Finance Minister, Stephen Joyce delivered the Government’s 2017/18 budget.  After sitting on the side-lines for the previous eight years this was his first budget being in the driver’s seat as the Finance Minister. As largely predicted in the Government’s pre-budget build-up it is no surprise to see there are no changes to KiwiSaver. So just to confirm, here is how it works.

 Say you are an employee earning $50,000 per annum.

• You are contributing the minimum rate of 3% of your gross salary through your work place, an amount of $1,500 per year. 
• Your employer also has to contribute to your KiwiSaver account at the matching statutory compulsory rate, 3% of gross salary
• In July each year the Government will pay you a Member Tax Credit (MTC).
What will you, your employer and the government pay into your KiwiSaver account?

Years in KiwiSaver Total You Have Paid Total Employer Has Paid Total Govt. Has Paid Total Paid Into Your KiwiSaver Account
1 $1,500 $1,237 $521 $3,258
2 $3,000 $2,475 $1,042 $6,517
5 $7,500 $6,187 $2,605 $16,292
10 $15,000 $12,375 $5,210 $32,585
15 $22,500 $18,562 $7,815 $48,877
20 $30,000 $24,750 $10,420 $65,170
AND ON IT GOES TO AGE 65

This is down to two simple reasons:
• Matching Compulsory Employer Contribution: of 3% of gross salary, less ESCT (employer superannuation contribution tax) at a rate of 17.5% (applicable rate for annual income of $50,000) means net additional payment from employer of $1,237 each year.
• The Government pays: into your KiwiSaver account in July each year a Member Tax Credit (MTC) at a rate of $0.50 cents for each dollar you paid in (does not include any payment from your employer) during the previous KiwiSaver Year up to maximum of $521. The KiwiSaver Year runs from 1 July to 30 June each year.

When are you able to withdraw your funds at retirement?

As it stands at the moment you are entitled to withdraw your funds from your KiwiSaver as a Retirement Benefit on the later of:

·         when you reach New Zealand superannuation qualification age (currently 65); and

·         five years’ membership of your KiwiSaver scheme.

MARCH 2017

 

Scheme Member Review Update

1 March, 2017
  • Change of Fund Manager
  • Administration Manager changes its name to Civic Financial Services Limited
  • Change in how fees are disclosed

This update is to inform you of the outcome of a review we recently conducted for our SuperEasy KiwiSaver Superannuation Scheme and SuperEasy employer scheme (also known as Local Government Superannuation Scheme). 

Our SuperEasy KiwiSaver Superannuation Scheme and SuperEasy employer scheme were the first restricted KiwiSaver and employer schemes to register under the new Financial Markets Conduct Act (“FMCA”) regime on 1 April 2016.

The combined funds under management for our schemes is now over $270 million. 

Change of fund manager:  Every three years, and more frequently if circumstances dictate, we review our fund asset allocation and fund managers for the investment funds within both our schemes.  This is to inform you of the outcome of our review.

  • The underlying asset allocation of each of our funds within both schemes will not change.
  • In January 2017, the Schemes’ investments in Property and Global Bonds sectors switched from being managed by ASB Group Investments Ltd (“ASB”) to AMP Capital Investors (New Zealand) Ltd (“AMP”) through its wholesale funds. AMP will continue to manage the existing investment of the New Zealand and Global Shares sectors, with no change in the wholesale funds invested in.
  • In March 2017, the investments in New Zealand Bond and Cash sectors will switch from being managed by ASB to ANZ New Zealand Investments Ltd (“ANZ”) through its wholesale funds.

These changes have been made as we believe that in the long run this will get the best results for our members.

Scheme Administrator changes its name to Civic Financial Services Limited:  As part of the changes taking place on 1 March 2017, we are using the same Administration and Investment Manager as before, with two differences. Firstly the Administration and Investment Manager will be the Administration Manager and is now known by its new name of Civic Financial Services Limited (‘Civic’). Civic was previously known as New Zealand Local Government Insurance Corporation Limited (trading as Civic Assurance) before changing its name on 1 March 2017.

Secondly, the limited investment management of the scheme’s cash holdings that Civic has been carrying out will now sit with Local Government Superannuation Trustee Ltd (LGST) as trustee of the schemes.  LGST will continue to be responsible for choosing the underlying funds in which the schemes invest with Civic continuing to administer the schemes.  

Change in how we disclose our fees:  Currently we show our annual fund charge as a 0.5% per annum fee, with the underlying fund manager’s fees paid from this amount. There are also costs charged to the underlying funds that are reflected in the unit prices of those funds.  We have now been provided with an estimate of these costs by our fund managers, so are able to include these amounts when disclosing our fee structure. 

These in-fund costs vary between 0.03% and 0.06% per annum between the various funds the schemes invest in. Going forward we will show the total fund charges as ranging from 0.53% to 0.56% per annum. These in-fund costs may change from time to time.    

The actual charges deducted from your investment in the schemes have not changed – it is just that we now have access to information that enables us to include a reliable estimate of the in-fund costs involved in the underlying funds within the stated charges.  

Other than that there is no other change to the schemes.

The current operation of the schemes is set out in more detail in the schemes’ Product Disclosure Statement (“PDS”) and Statement of Investment Policy and Objectives (“SIPO”) which can be viewed or downloaded from our Scheme website www.supereasy.co.nz or via the Disclose Register (www.companiesoffice.govt.nz/disclose). The Disclose Register is the new public register administered by the Companies Office and the Registrar of Financial Services Providers. 

 

How do we select the companies our funds are invested in?

1 March, 2017

You may be aware that there has been recent commentary in the media regarding the ways in which KiwiSaver and other superannuation funds invest. We have set out information below that explains how we structure our schemes’ investment portfolios.

For each of our investment funds there is a target asset allocation for growth assets such as trans-Tasman equities, overseas equities, and property, and income assets such as overseas and New Zealand fixed interest securities and cash. As most readers will know, the target allocations for our Automatic Fund vary with the member’s age.

The schemes’ trustee has determined to invest the schemes’ assets using managed funds. The managers of the underlying funds are:
• AMP Capital Investors (New Zealand) Ltd (AMP);
• ANZ New Zealand Investments Limited.

With the exception of the AMP Capital Responsible Investment Leaders Global Shares Fund, all growth assets are to be invested on an indexed basis. 

For the New Zealand equities component of the portfolio, this is indexed against the top 50 companies on the New Zealand stock exchange (NZX 50). The index is reviewed quarterly by the exchange and from time to time the securities included are changed in line with minimum liquidity requirements and market capitalisations. The NZX website can provide you with all the current securities within this index. The schemes’ trustee does not participate or have any influence in which companies are included in the NZX 50 index.

The overseas equities component of the portfolio is benchmarked against the Morgan Stanley Capital International (MSCI) World Index. This is the global industry standard for measuring the equity market performance of developed markets and includes approximately 1,600 constituents.

Investing on a passive basis is purely a mechanical process that generally means less volatile returns than if the funds were to invest on an active basis and also gives better long-term investment performance through lower fees. Because there are so many companies comprising the indexes used by AMP, the schemes’ exposures to any individual company are very small.

The Trustee is mindful of applying the principles of socially responsible and ethical investments and has approximately 10% of the global shares mandate invested with AMP Capital Responsible Investment Leaders Global Shares Fund. AMP’s investment policy for this fund is:

“In line with our overarching investment philosophy, we believe considering environmental, social and governance (ESG) factors within AMP Capital’s investment decision-making and ownership practices provides greater insight into areas of potential risk and opportunity. These insights impact the value, performance (risk and/or return) and reputation of the investments we make on behalf of our clients”

MAY 2016

 

May Budget 2016

27 May, 2016

No news is good news.
As predicted in the Government’s budget 2016/17 there has been no change to KiwiSaver. So just to confirm, here is how it works.


Say you are an employee earning $50,000 per annum and you join today.

• You are contributing the minimum rate of 3% of your gross salary through your work place, an amount of $1,500 per year.
• Your employer also has to contribute to your KiwiSaver account at the matching statutory compulsory rate, 3% of gross salary
• In July each year the Government will pay you a Member Tax Credit (MTC).
What will you, your employer and the government pay into your KiwiSaver account?

Years in KiwiSaver Total You Have Paid Total Employer Has Paid Total Govt. Has Paid Total Paid Into Your KiwiSaver Account
1 $1,500 $1,237 $521 $3,258
2 $3,000 $2,475 $1,042 $6,517
5 $7,500 $6,187 $2,605 $16,292
10 $15,000 $12,375 $5,210 $32,585
15 $22,500 $18,562 $7,815 $48,877
20 $30,000 $24,750 $10,420 $65,170
AND ON IT GOES TO AGE 65


This is down to two simple reasons:
Matching Compulsory Employer Contribution: of 3% of gross salary, less ESCT (employer superannuation contribution tax) at a rate of 17.5% (applicable rate for annual income of $50,000) means net additional payment from employer of $1,237 each year.
The Government pays: into your KiwiSaver account in July each year a Member Tax Credit (MTC) at a rate of $0.50 cents for each dollar you paid in (does not include any payment from your employer) during the previous KiwiSaver Year up to maximum of $521. The KiwiSaver Year runs from 1 July to 30 June each year.

APRIL 2016

 

From 1 April 2016 both our SuperEasy and SuperEasy KiwiSaver Superannuation Scheme are registered under the Financial Markets Conduct Act 2013.

1 April, 2016

Why have we done this?  The Financial Markets Conduct Act 2013 (“FMCA”) came into force and took effect from 1 December 2014. The FMCA works to reform the regulation of financial conduct.  It governs the way financial products are offered, promoted, issued and sold.  This includes the on-going responsibilities of those who offer, issue, manage, supervise, deal in and trade financial products.

 

Both our schemes are treated as restricted managed investment schemes under the FMCA.  Therefore they both have to comply with this new legislation.  SuperEasy is a restricted workplace savings scheme, while the SuperEasy KiwiSaver Superannuation Scheme is a restricted KiwiSaver scheme. Under the transitional provisions of the FMCA we have until 1 December 2016 to register our schemes under the FMCA, although we can elect to transition to the FMCA and register our schemes on an earlier date.

 

We are among the first KiwiSaver and workplace savings schemes to have registered under this new regime.  There are only two other schemes that have already registered: we are the first restricted schemes to register.  This demonstrates our ongoing commitment to providing an exclusive KiwiSaver and superannuation savings scheme for the Local Government sector in NZ.

And the good news is! Our low fees are staying the same!  Not only have we completed all of this work early on in the piece; we can confirm we are maintaining our low fee structure for both schemes.  This is good news for all of our members as we only need to go back to October 2015 where financial services journalist David Chaplin in his 2015 KiwiSaver Annual Market Report showed our SuperEasy KiwiSaver Superannuation Scheme as having the lowest fees as percentage of Funds Under Management compared to any other KiwiSaver scheme.

 

What are the main changes you will see?  As an existing or potential member you will see that we have had to produce some new documents; we have:      

  • registered a new Product Disclosure Statement (“PDS”) and upload information to the online Disclose Register (see below), which together replace the existing Investment Statement and Prospectus
  • updated our current Statement of Investment Policy and Objectives (“SIPO”), and
  • separated the existing umbrella Trust Deed that encompassed both schemes into two by registering a new separate Trust Deed for each scheme. 

 

Where can I view these new documents?  You can view or download a copy of these new documents from our scheme website www.supereasy.co.nz. You can also view or download these documents on the Disclose Register (www.companiesoffice.govt.nz/disclose).  This is the new public register administered by the Companies Office and the Registrar of Financial Service Providers which provides detailed information about managed investment schemes (and other financial products) that have registered under the new FMCA regime. 

 

Our Scheme Website has been updated!  Our Scheme Website www.supereasy.co.nz has been updated to reflect all of the changes that are required to register our schemes under this new regime.