What is the Automatic Fund?

The Automatic Fund is a life cycle investment option, which as you grow older will automatically and smoothly change your target investments to a more conservative investment mix.

The Automatic Fund has been designed solely for the purpose of retirement savings and is exclusive to members of the SuperEasy KiwiSaver Superannuation Scheme and SuperEasy employer scheme.

The investment objectives of the Automatic Fund are to achieve the optimum long term outcome by accepting a higher investment risk and return volatility in the early stages of a member’s working life as a trade for higher returns.  When a member is younger, the Automatic Fund provides greater exposure to investments with the potential for growth such as overseas and New Zealand equities.

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:

Civic Chart

 

Civic Cups Animated

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 are set out in the table below:

Asset Class Product Age 20 Age 40 Age 60 Age 80
NZ equities AMP Capital New Zealand Shares Index Fund 20.0% 17.5% 12.5% 5.0%
Int. equities Wholesale Unit Trust MSCI Global Index Shares Fund 50.0% 31.4% 17.2% 5.9%
  AMP Capital Hedged Global Index Shares Fund 8.5% 9.1% 7.5% 3.1%
  AMP Capital Responsible Investment Leaders Global Shares Fund 6.5% 4.5% 2.8% 1.0%
Global listed property AMP Capital NZ Property Fund 10.0% 12.5% 15.0% 10.0%
Total Growth Assets   95.0% 75.0% 55.0% 25.0%
           
NZ fixed interest ANZ NZ Fixed Interest Strategy * 1.0% 8.0% 20.0% 30.0%
Int. fixed interest AMP Capital Global Fixed Interest Fund 2.0% 12.0% 20.0% 15.0%
Cash ANZ Wholesale Cash Fund 2.0% 5.0% 5.0% 30.0%
Total Income Assets   5.0% 25.0% 45.0% 75.0%

* The ANZ NZ Fixed Interest Strategy invests 50% into the ANZ Wholesale Sovereign Bond Fund and 50% into the ANZ Wholesale High Grade Bond Fund.

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 (New Zealand) Limited and ANZ New Zealand Investments Ltd jointly currently manage the underlying assets in the Automatic Fund.

AMP Capital Investors (New Zealand) Limited

As at 28 February 2015 AMP Capital Investors (New Zealand) Limited has over $19 billion of funds under management. AMP Capital Investors (New Zealand) Limited 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.

ANZ New Zealand Investments Ltd

ANZ New Zealand Investments Limited (ANZ Investments) is one of New Zealand's largest fund managers and manages more than $25 billion in investments as at 31 December 2016. ANZ Investments form part of ANZ Group and their investment business has operated in New Zealand since 1989.

If you would like more information on any aspect of this fund, this is available in the SuperEasy Product Disclosure Statement, Statement of Investment and Policy Objectives, and the Scheme's register entry, all available at www.companiesoffice.govt.nz/disclose.