AMP Business Superannuation Investment Statement

52 Pages·2014·1.23 MB·English

AMP Business Superannuation
Investment Statement
25 March 2014
AMP Business
Superannuation
Investment Statement
Important information In addition to the information in this document, important
information can be found in the current registered prospectus
(The information in this section is required
for the investment. You are entitled to a copy of that
under the Securities Act 1978.) prospectus on request.
The Financial Markets Authority regulates
Investment decisions are very important. They
conduct in financial markets
often have long-term consequences. Read all
The Financial Markets Authority regulates conduct in New
documents carefully. Ask questions. Seek Zealand’s financial markets. The Financial Markets Authority’s
advice before committing yourself. main objective is to promote and facilitate the development of
fair, efficient, and transparent financial markets.
Choosing an investment For more information about investing, go to
http://www.fma.govt.nz
When deciding whether to invest, consider carefully the
answers to the following questions that can be found on the
Financial advisers can help you make
pages noted below:
investment decisions
Page
Using a financial adviser cannot prevent you from losing money,
but it should be able to help you make better investment
What sort of investment is this? 5 decisions.
Financial advisers are regulated by the Financial Markets
Who is involved in providing it for me? 10 Authority to varying levels, depending on the type of adviser
and the nature of the services they provide. Some financial
advisers are only allowed to provide advice on a limited range of
How much do I pay? 13 products.
When seeking or receiving financial advice, you should check:
What are the charges? 17
– the type of adviser you are dealing with:
– the services the adviser can provide you with:
– the products the adviser can advise you on.
What returns will I get? 20
A financial adviser who provides you with personalised financial
adviser services may be required to give you a disclosure
What are my risks? 30
statement covering these and other matters. You should ask
your adviser about how he or she is paid and any conflicts of
Can the investment be altered? 35 interest he or she may have.
Financial advisers must have a complaints process in place
and they, or the financial services provider they work for, must
How do I cash in my investment? 38
belong to a dispute resolution scheme if they provide services
to retail clients. So if there is a dispute over an investment, you
Who do I contact with inquiries about can ask someone independent to resolve it.
my investment? 41
Most financial advisers, or the financial services provider
they work for, must also be registered on the financial service
Is there anyone to whom I can complain providers register. You can search for information about
registered financial service providers at
if I have problems with the investment? 43
http://www.fspr.govt.nz
You can also complain to the Financial Markets Authority if you
What other information can I obtain
have concerns about the behaviour of a financial adviser.
about this investment? 45
This is an investment statement for the purposes of the
Securities Act 1978 and has been prepared in accordance with
the Securities Regulations 2009.
Your guide to this Investment
Statement
After a lifetime of working hard, we all deserve to enjoy financial freedom
in our retirement.
But it’s important to choose an investment that’s right for you and your
needs. That’s why we encourage you to keep your specific goals in mind
as you read through this Investment Statement. After all, the decisions you
make today can make a big difference to your future.
This document has been divided into easy to follow sections to help you
better understand exactly what your employer’s AMP Business
Superannuation workplace plan (‘plan’) can offer you. It should also help
you answer any questions you may have and assist you to make an
informed decision about your investments.
Some key information
This section highlights the main features of the plan. The detail for each
topic mentioned will be found in the following pages of the Investment
Statement. So, it is important that you read through the following pages
before making your investment decision.
Your plan is offered under AMP Business Superannuation which is a
division of Superannuation Master Trust (‘Scheme’). The Scheme is a
superannuation scheme designed principally to provide benefits for
retirement and managed by AMP Wealth Management New Zealand
Limited, part of the AMP group. Its trustee is New Zealand Permanent
Trustees Limited.
Contributions are payable by you and/or your employer in accordance
with the options selected and included on your member application form.
Any contributions you make will be credited to an account opened in your
name (‘Member Account’). Any made by your employer will be credited to
an employer account, also in your name (‘Employer Account’).
All contributions will be used to purchase units in the investment portfolio
or portfolios selected. Unit values change regularly, either up or down, to
reflect the value of your investments. You can choose to change the
investment portfolio(s) invested in if you wish.
There are three diversified investment portfolios to choose from, each
providing a different level of risk and potential returns. Alternatively, there
are 10 individual sector portfolios that invest in specific asset classes
should you prefer to design your own investment portfolio.
Each of the investment portfolios involve risk and you should note that
no one guarantees your investments. You may not get back as much as
has been contributed, or the level of return may not be what you might
have expected.
There are fees and charges associated with the plan. These cover the costs
of administration, servicing and investment.
Because the Scheme is designed principally to provide retirement
benefits, your investment cannot normally be withdrawn until you reach
your retirement age. Your retirement age is chosen by you and your
employer when you join and can be at any time from age 55. Earlier
payments can be made in certain circumstances, including if you leave the
employment of your employer or are earlier disabled or die.
What sort of investment is this?
This plan has been set up for you by your employer as a long-term
savings scheme. It’s been designed to work towards giving you the
retirement you deserve.
This is a shared arrangement, which means you’re not the only person
making contributions.
Each and every member enjoys the benefits of AMP’s experience in
helping Kiwis save for their retirement.
You and your employer can also nominate any retirement age over 55 to
receive your benefits.
This is a superannuation scheme 6
Your investment portfolio options 7
Adding insurance to your plan 9
What sort of investment is this?
This is a superannuation scheme
The securities offered in this Investment Statement are interests in the Superannuation Master
Trust (‘Scheme’), which is a registered superannuation scheme. The aim of this Scheme is primarily
to provide you with retirement benefits through long-term savings.
This Investment Statement relates only to AMP Business Superannuation, which is a division of
the Scheme.
The Scheme is a Portfolio Investment Entity (‘PIE’) for tax purposes (see “Taxation”, on page 28 for
more details).
Your employer has set up this plan for you to join
By setting up this plan, your employer is giving you the opportunity to save for your retirement.
Membership enables you and the other Members to pool your investments and obtain the
benefits of professional investment management.
Your employer chooses what type of plan you are able to join - whether your plan is locked-in or
not and/or a plan that complies with the exempt employer rules (‘exempt employer plan’). These
rules are contained in the KiwiSaver Act 2006, Superannuation Schemes Act 1989 and the Income
Tax Act 2007 and are referred to as the ‘Governing Requirements’ in this Investment Statement.
Nominating your expected retirement age
Your nominated retirement age is the age at which you expect to retire and is nominated by you
and your employer on your Member Application.
Your retirement age must not be less than 55. You and your employer can agree to raise your
retirement age at any time. The Trustee may raise your retirement age if it is necessary to ensure
that the Scheme remains a registered superannuation scheme.
Your plan year
A plan year is the period between each plan annual review date. Your employer selects the plan
annual review date and may change it at any time with our consent.
You may be able to nominate another person to join
If your employer allows, you may nominate one other person (‘Nominated Member’), such as your
spouse or partner, to join the Scheme under your plan. Nominated Members cannot nominate
another person to join the Scheme. A Member Application must be completed by the nominated
person and signed by you as the nominator.
You may also withdraw your nomination of your Nominated Member at any time and nominate
another person to join the Scheme.
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What sort of investment is this?
Your investment portfolio options
Contributions to the plan purchase units in investment portfolios. The returns of each portfolio
are reflected in the value of its unit price. Unit prices will fluctuate in line with market values, so
at any time the value of your Member and Employer Accounts may go down or up.
Your plan has a range of portfolios for you to choose from, each reflecting different levels of risk
and earning potential. The table that follows lists all of the portfolios available for investment.
Your employer decides which portfolios are available to you under the plan and, if your employer
requests us to limit the list of portfolios, they will advise you in writing which portfolios are
available to you.
You can contribute to and hold investments in any number and any combination of the
portfolios available to you. It’s your responsibility to choose the portfolio(s) that best suit your
investment needs. Neither the Trustee nor the Administration Manager are responsible for your
choice of portfolio(s).
The three Diversified Portfolios invest in a diversified range of different categories of investment.
These categories are described as asset classes and fall under two main types, ‘income’ assets and
‘growth’ assets.
– Income assets include investments such as cash and fixed interest (bank deposits and bonds).
Income assets aim to provide steady interest income and capital preservation but their long
term earning potential is generally expected to be lower than for growth assets.
– Growth assets include investments such as commodities, infrastructure, property and shares.
Growth assets aim to provide capital growth and usually have a higher risk than income assets.
The investment mix for each Diversified Portfolio provides a different level of risk and earning
potential as shown in the table that follows. The basic objective underlying the investment policy
for each portfolio is to protect the assets of the Scheme while striving to maximise the total
return to the extent possible without assuming excessive risk commensurate with the risk profile
of the particular portfolio.
If you would prefer to manage the mix of investments yourself, you can choose to invest in one
or more of the Sector Portfolios. Each sector portfolio focuses on investing in just one single type
of investment.
So, which portfolio is right for you? Choosing how you save for your retirement is an important
decision. We advise you to talk to a financial adviser to help with making choices that are right
for you. A disclosure statement is available from your financial adviser, on request and free
of charge.
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Diversified portfolios
Portfolio Risk profile
A conservative risk profile will be adopted. Assets will be diversified across income assets and
Conservative Portfolio
growth assets, heavily weighted towards income assets.
A less conservative, balanced, risk profile will be adopted. Assets will be diversified across
Balanced Portfolio
income assets and growth assets, generally with an emphasis on growth assets.
A more growth orientated risk profile will be adopted. Assets will be diversified across income
High Growth Portfolio
assets and growth assets, heavily weighted towards growth assets.
Sector portfolios
Cash NZ and Australian Shares (Multi-Manager)
NZ Fixed Interest NZ and Australian Shares (Value)
International Fixed Interest International Shares (Growth)
Listed NZ and Australian Property 1 International Shares (Value)
Listed International Property 1 International Shares (Passive)
1 The assets underlying the portfolio may include property securities or real property.
Important notes:
– Throughout this Investment Statement ‘we’, ’our’ or ‘us’ means AMP Wealth Management New Zealand Limited
(‘the Administration Manager’).
– The underlying assets of each of the portfolios are managed by one or more selected fund managers. These underlying
fund managers may in turn appoint one or more specialist fund managers for the assets of the Scheme.
– The level of exposure to individual fund managers in the sector portfolios and the fund manager(s) associated with
each portfolio may change at any time, as may the underlying funds into which the Scheme invests without prior
notice to you.
– To find out the current fund manager(s) at any time you can contact us.
– The investment ranges, mixture of investments, objectives, strategies and benchmarks, and the nature of the assets in
which each portfolio can and does invest, may change at any time, subject to the Trust Deed. Further information can
be obtained from the current registered prospectus, or by contacting us at any time.
– At the date of this Investment Statement, each of the portfolios is invested in a range of wholesale unit trusts
developed and managed by AMP Capital Investors (New Zealand) Limited (‘AMP Capital’).
– We form part of a group of AMP entities in New Zealand which is collectively known as AMP Financial Services (‘AFS’).
AFS has established governance procedures to oversee the activities carried out by the members of the group, and
make decisions on behalf of members of the group.
– AFS makes investment management decisions for the Scheme on our behalf. AFS seeks advice and recommendations
from AMP Capital about matters concerning the investment management of the Scheme and the underlying wholesale
unit trusts into which the Scheme invests, including whether or not to add or remove an underlying fund manager and
asset allocation decisions.
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What sort of investment is this?
Adding insurance to your plan
No matter how cautious we are, the unexpected can happen to any one of us at any time. Having
an insurance plan in place can give you peace of mind knowing your loved ones are protected
should anything happen to you.
You may have the option of adding insurance to your retirement savings plan. Check with your
employer to find out whether insurance is offered with your plan.
If your plan offers insurance, you can choose to be an ‘insurance only’ Member, provided there is
at least one other Member under your plan who has an account expressed as units in a portfolio.
The insurance options are:
Insurance options What they offer
This option provides a sum of money in the event of your
death. Terminal Illness cover is also included at no extra cost.
Death cover Terminal Illness cover brings forward the death cover payout
should you be diagnosed as having less than 12 months to live,
regardless of any treatment that might be undertaken.
This option provides a sum of money in the event of your
Death or total and permanent
death or your Total and Permanent Disablement. The Terminal
disablement cover
Illness cover described above also applies.
This option provides a sum of money in the event you suffer
Trauma cover
one of a number of specified major illnesses or injuries.
All of the above covers are subject to acceptance by the Insurer and the terms of the relevant policy.
Options for your insurance cover
The cover basis under each plan is selected by your employer. Generally the same basis applies to
all Members who have insurance cover under the plan. However, the insurance definitions may
vary depending on the insurer and when you joined the Scheme. We may agree to allow more
than one basis for a plan on a case by case basis.
The options available are:
a. A fixed amount of cover;
b. A multiple of your salary; and
c. A percentage of your salary multiplied by the number of years (calculated in years and
complete months) to your retirement age.
Providing cover for your nominated member
Cover may be available for Nominated Members with the consent of your employer and subject
to acceptance by the Insurer. However, different premium rates and underwriting conditions
may apply. For Nominated Members, where a plan’s cover basis is b or c above, the Nominated
Member may indicate a salary on the Member Application no higher than that of the relevant
nominating Member.
Insurance definitions may determine your benefit
If you take up insurance cover (with the agreement of your employer), the circumstances in which
the insurance becomes payable may not be the same as the circumstances in which a Total and
Permanent Disablement Benefit becomes payable under the Trust Deed. You may be able to get a
benefit under your insurance policy even if a benefit is not available under the Trust Deed. Similarly
you may not be able to get a benefit under your insurance policy when a Total and Permanent
Disablement benefit is payable under the Trust Deed. This is because whether or not an insured
benefit is paid depends on the insurance definitions in the policy which provides your cover.
You must ensure you get a copy of the insurance terms and conditions to determine the
circumstances in which a benefit becomes payable under the policy. If you become eligible for a
terminal illness payment under a death benefit or you become entitled to a benefit on Total and
Permanent Disablement under the Trust Deed, the insured benefit will only be paid if the relevant
definition of terminal illness or total and permanent disablement in the insurance policy is also met.
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Who is involved in providing it
for me?
You work hard for your money. So knowing that it’s in experienced hands
is important for your peace of mind. In this section we introduce you to
those who are responsible for the management and administration of
the plan.