Page 1

march 2019

About NZ Funds KiwiSaver Scheme

NZ Funds KiwiSaver Scheme client with daughter _ Rotorua


The members of the NZ Funds KiwiSaver Scheme have accumulated approximately 1.5x* more than the average New Zealander.

* NZ Funds KiwiSaver Scheme average member balance $27,194, KiwiSaver industry average member balance $17,834. Source: Workplace savings New Zealand 31 December 2018.

we help new zealanders make better financial decisions


About NZ Funds? >30 Years Track record in managing New Zealanders’ wealth.

7 Years Average tenure of NZ Funds’ wealth management clients.

13,200 New Zealand individuals, families and trusts, trust us with their wealth.

+1,000 Estimated number of individual securities held in an average client’s portfolio.

>$1 billion We manage the hard earned savings of New Zealanders in the same way we manage our personal wealth.

8,014 KiwiSaver Scheme members. As at 31 March 2019.


Proprietary LifeCycle technology Our LifeCycle technology matches your assets to your age, so you will never have to switch funds again.

100% 80% 60% 40% 20% 0% 0-40

years old

45

years old

50

years old

55

years old

60

years old

65

years old

70

years old

75

80

years old

years old

age

age

age

0-54

65

75

Income Strategy To provide exposure to income assets using an active management approach.

Inflation Strategy To mitigate the impact of inflation on your investment over the medium and/or long term by investing in income and growth assets using an active management approach.

85

years old

Growth Strategy To grow your investment over the long term by investing in income and growth assets using an active management approach.

we help new zealanders make better financial decisions

90

years old


A strong performance track record

NZ Funds KiwiSaver Scheme’s returns were ranked top quartile for the last six years, and top four for three of those years.

* David Chaplin, research commissioned 2018. Returns are annualised, after fees and tax, and not risk-adjusted. Six year returns are averaged. Rankings: 2017 (4th), 2015 (1st) and 2012 (2nd).


KiwiSaver Client Performance: Calendar year returns* 31 March 2019

strategy

2019 (ytd)

2018

2017

2016

2015

2014

2013

2012

since inception (pa) 3

Income Strategy

2.93%

2.01%

5.56%

7.15%

2.53%

5.51%

3.92%

9.01%

5.19%

Income Strategy

2.64%

0.84%

4.37%

5.94%

1.44%

4.52%

2.76%

7.89%

4.06%

Inflation Strategy

10.53%

(4.50%)

9.74%

3.35%

2.36%

12.81%

7.04%

11.25%

6.46%

Inflation Strategy

10.18%

(5.77%)

8.29%

1.98%

1.08%

11.57%

5.69%

9.92%

5.11%

Growth Strategy

10.71%

(6.87%)

18.69%

(1.49%)

8.63%

13.17%

29.73%

17.87%

9.03%

Growth Strategy

10.32%

(8.25%)

16.96%

(2.93%)

7.13%

11.79%

27.91%

16.42%

7.54%

2019 (ytd)

2018

2017

2016

2014

2013

2012

Client performance

10.30%

(6.17%)

17.11%

(0.55%)

7.76%

12.79%

25.90%

16.79%

8.64%

Client performance

9.92%

(7.54%)

15.43%

(1.97%)

6.30%

11.45%

24.17%

15.37%

7.17%

2018

2017

2016

2014

2013

2012

(before tax and fees*)

(before tax and after fees*)

(before tax and fees*)

(before tax and after fees*)

(before tax and fees*)

(before tax and after fees*)

40 year old client 2

(before tax and fees*)

(before tax and after fees*)

65 year old client 2

2019 (ytd)

2015

2015

since inception (pa) 3

since inception (pa) 3

Client performance

8.49%

(3.60%)

10.00%

3.75%

3.60%

10.71%

9.68%

11.74%

6.55%

Client performance

8.14%

(4.89%)

8.58%

2.41%

2.34%

9.53%

8.32%

10.46%

5.24%

(before tax and fees*)

(before tax and after fees*)

max decline 12 months

volatility 5 years

(0.57%)

1.85%

(10.88%)

7.75%

(15.79%)

11.27%

max decline 12 months

volatility 5 years

(14.54%)

max decline 12 months

10.26%

volatility 5 years

(9.90%)

Fees include all investment management fees.

*

1. Please note that past performance is no indication of future returns. 2. 40 year old Client strategy weights: Income 5%, Inflation 10%, Growth 86%. 65 year old Client strategy weights from 1 January 2018: Income 27.3%, Inflation 34%, Growth 38.7%. 65 year old Client strategy weights to 31 December 2017: Income 30%, Inflation 53%, Growth 17%. 3. The inception date of NZ Funds KiwiSaver is 1 November 2010.

we help new zealanders make better financial decisions

6.22%


KiwiSaver Client Performance: Rolling year returns* 31 March 2019

strategy

year 1 month 3 month 6 month 12 month 2 (pa)

3 year (pa)

5 year (pa)

7 year since (pa) inception (pa) 3

Income Strategy

1.12%

2.93%

3.29%

5.69%

4.58%

4.79%

4.90%

5.09%

5.19%

Income Strategy

1.03%

2.64%

2.70%

4.49%

3.40%

3.61%

3.77%

3.96%

4.06%

Inflation Strategy

2.45%

10.53%

0.15%

7.24%

5.99%

6.20%

6.16%

7.00%

6.46%

Inflation Strategy

2.34%

10.18%

(0.52%)

5.82%

4.59%

4.79%

4.82%

5.66%

5.11%

Growth Strategy

2.34%

10.71%

(4.36%)

5.59%

6.98%

9.33%

8.61%

11.07%

9.03%

Growth Strategy

2.22%

10.32%

(5.06%)

4.04%

5.41%

7.73%

7.09%

9.54%

7.54%

(before tax and fees*)

(before tax and after fees*)

(before tax and fees*)

(before tax and after fees*)

(before tax and fees*)

(before tax and after fees*)

40 year old client 2

year 1 month 3 month 6 month 12 month 2 (pa)

3 year (pa)

5 year (pa)

7 year since (pa) inception (pa) 3

Client performance

2.29%

10.30%

(3.52%)

5.79%

6.79%

8.82%

8.22%

10.40%

8.64%

Client performance

2.17%

9.92%

(4.22%)

4.27%

5.26%

7.26%

6.74%

8.91%

7.17%

(before tax and fees*)

(before tax and after fees*)

65 year old client 2

year 1 month 3 month 6 month 12 month 2 (pa)

3 year (pa)

5 year (pa)

7 year since (pa) inception (pa) 3

Client performance

2.05%

8.49%

(0.72%)

6.28%

5.56%

6.22%

6.20%

7.12%

6.55%

Client performance

1.94%

8.14%

(1.38%)

4.87%

4.18%

4.84%

4.88%

5.81%

5.24%

(before tax and fees*)

(before tax and after fees*)

max decline 12 months

volatility 5 years

(0.57%)

1.85%

(10.88%)

7.75%

(15.79%)

11.27%

max decline 12 months

volatility 5 years

(14.54%)

max decline 12 months

10.26%

volatility 5 years

(9.90%)

Fees include all investment management fees.

*

1. Please note that past performance is no indication of future returns. 2. 40 year old Client strategy weights: Income 5%, Inflation 10%, Growth 86%. 65 year old Client strategy weights from 1 January 2018: Income 27.3%, Inflation 34%, Growth 38.7%. 65 year old Client strategy weights to 31 December 2017: Income 30%, Inflation 53%, Growth 17%. 3. The inception date of NZ Funds KiwiSaver is 1 November 2010.

6.22%


Our returns are competitive Our strong performance track record comes from focusing on long-term returns instead of short-term volatility. NZ Funds Lifecycle Process (Age 0-54) ranked against all available KiwiSaver Funds* 1st/Top Quartile

2013

2014

2015

Top

Top

Top

2016

2017

2018

2019

Top

2nd

TBA

Average

Data not yet available.

3rd 4th/Bottom Quartile

Bottom

* Returns are after fees and tax to year ended 31 March. Source KiwiSaver fund updates. NZ Funds analysis. Further information available on request.

Our fees are transparent We offer complimentary financial advice to all scheme members at no additional cost and a free service for members under 18 years of age.

Inflation Strategy

Income Strategy

1.15%

Growth Strategy

1.35%

**

1.50%

**

**

1.6% 1.2% 0.8% 0.4% 0%

0-54

56

58

60

62

64

66

68

70

72

74

76

78

80

82

84

** Maximum total expense ratio excluding the fixed administration charge of $3.00 per month payable to NZ Funds KiwiSaver Scheme Administration Manager, Link Market Services. In addition, certain investment specialists may charge performance fees. These are not charged by or paid to NZ Funds.


We manage money for social good We work with global experts ISS-Ethix, to screen your investments.

No guns*

No mines

No nukes

No tobacco

No unsustainable palm oil

No material contravention of Environmental, Social or Governance standards

Activist stance: Sanford, pressure to protect the Maui Dolphin

Proactive investments: Lyft, all car rides are carbon neutral. * As at 18 March 2019


Experience New Zealand’s top rated service*

Online balance via myNZFunds

Monthly Portfolio Insights

Get your balance texted to you four times a year

Receive tax summaries and on-track reminders of what to do.

KiwiSaver Scheme Update – monthly email

Use our award winning technology to model your financial future.

* As rated by the Sorted website, 1 April 2019.

New Zealand Funds Management Limited is the issuer of the NZ Funds KiwiSaver Scheme. The Product Disclosure Statement and the Disclose Register contain important informationto help you to understand how your money is managed and the risks associated with investing. A copy of the NZ Funds KiwiSaver Scheme Product Disclosure Statement is available on request or by visiting the NZ Funds website at www.nzfunds.co.nz.

we help new zealanders make better financial decisions


Head office: Levels 15, 16 _ Zurich House _ Auckland


New Zealand Funds Management Limited Level 16, 21 Queen Street Private Bag 92163, Auckland 1142 New Zealand T. 09 377 2277 E. info@nzfunds.co.nz www.nzfunds.co.nz

Wellington

Christchurch

Timaru

Level 3 Central on Midland Park 40 Johnston Street Wellington 6140

Level 1 203 Papanui Road Merivale Christchurch 8014

Level 1 2 Sefton Street East Timaru

Wanaka

Dunedin

Invercargill

Level 2 Brownston House 21 Brownston Street Wanaka 9305

Level 2 Bracken Court 480 Moray Place Dunedin 9016

46 Deveron Street Invercargill 9810

To view our Affiliated Advisers, please see www.nzfunds.co.nz/AdviceSolutions/AffiliatedAdvisers/

Profile for NZ Funds

About NZ Funds KiwiSaver Scheme  

About NZ Funds KiwiSaver Scheme  

Profile for nzfunds