New Zealand Retirement Trust

Transcription

1 New Zealand Retirement Trust Annual Report for the year ended 30 June

2 The Annual Report contains: Welcome to your annual report 3 Market Overview 4 The year at a glance 5 Details of scheme 6 Information on contributions and scheme participants 7 Changes relating to the scheme 8 Other information for particular types of managed funds 11 Changes to persons involved in the scheme 13 How to find further information 14 Contact details and complaints 15 2

3 Welcome to your annual report A glance in the rear view mirror for the year just been It s great that you re saving with the New Zealand Retirement Trust (NZRT or Scheme). We would like to let you know what your savings are up to. We are working to make it easier for you to take control of your savings to help you achieve the retirement you want. This annual report looks back on the year to 30 June 2017 and includes information on market conditions, contributions, withdrawals and the unit prices for each of the funds in the NZRT. The year s main events: More choice with a bigger range of funds. NZRT now offers 29 investment options so you ve got more flexibility than ever to create a mix of funds that works for your stage of life and your goals. Remember, your Adviser is always available to help you make good fund choices for your situation.* We re investing in positive change with our Responsible Investment Balanced Fund which recognises broader environmental, social and ethical considerations.* My AMP had a makeover. We ve updated My AMP to make it easier for you to find your balance, see how your investments are performing, check transactions, switch investment funds and update your details. Updates to asset allocation. We have made some changes to the strategic asset allocations to ensure the funds are well positioned for the future expected economic environment. Making the complex a little easier to understand. NZRT transitioned to the new requirements of the Financial Markets Conduct Act (FMCA) This means you ll see more consistent and clear reporting not only from us, but across similar products in the market. Reduced fees. As part of our ongoing commitment to helping you achieve your savings goals, we re pleased to let you know that we have reduced some of our fees. If you are a My Super member we no longer charge contribution fees on any money you put into your account. We ve also lowered the investment management fees on six of our single sector funds. You can find out more about this in the Terms of the offer section in this report. Any questions? Just ask. If you have any questions about the New Zealand Retirement Trust, we re always happy to help. Talk to your Adviser, call us on or workplaceadmin@amp.co.nz or visit amp.co.nz. Thanks for saving with us and we look forward to helping you achieve your retirement goals. Blair Vernon Managing Director *Please check your member booklet or talk to your Adviser to see if the investment option(s) is/are available to you. 3

4 Market Overview The year to 30 June 2017 was a period of continuing confidence in investment markets. Investors took a lengthy list of worries in their stride, including Brexit and Trump developments, a subdued growth patch in the US, and mounting indications that major central banks are beginning to contemplate removing some of the extraordinary levels of stimulus that has supported assets over recent years. Global developed equity markets performed strongly, with the US and UK markets extending their record highs, despite increasing concerns surrounding political stability and the outlook for economic policy in both countries. US strength set the tone with equity markets across the board posting gains over the period. Emerging markets enjoyed a surprisingly strong year, with a 22% gain in local currency terms since last July. These strong returns were logged despite less agreement on global trade and political risk an increasing feature of the investment landscape in the last 12 months. Global bond markets rose slightly over the year following the fall in bond values and the appreciation of the US dollar after the election of Donald Trump. The expectation is for the US Federal Reserve to continue on its interest rate normalisation process, slowing the reinvestment into bonds as they mature. Upward pressure on global bond yields because of better growth and expectations that inflation will continue to lift from current levels, will likely continue to see low returns from bonds. Domestically, the New Zealand economy continued to perform well, driven in large part by population growth and the strong rebound in commodity prices. After a quiet patch in late 2016 and early 2017, the economy recovered some momentum to return to slightly above trend growth. Business investment continued to grow and employment growth remains strong. Retail spending was also strong, reflecting solid growth in household income. Underlying inflationary pressures remain low and stable. We re investing in positive change. An increasing number of Kiwis are wanting to invest their savings in a socially responsible way and that s why our customers are choosing our Responsible Investment Balanced Fund, which recognises broader environmental, social and ethical considerations. This helps give peace of mind as there s a real focus towards investing in companies that are leaders in their responsible approach. Learn more about responsible investing at amp.co.nz* 4 *Please check your member booklet or talk to your Adviser to see if the investment option is available to you.

5 The year at a glance $3.01 billion invested in the NZRT There are now 39,025 members in the NZRT The average NZRT member balance is $77,274 25,066 AMP customers have downloaded the My AMP app so they can track their savings anytime, anywhere 5

6 Details of scheme Name of the Scheme New Zealand Retirement Trust (NZRT or Scheme) Type of Scheme The NZRT is a managed investment scheme with workplace savings, personal superannuation and legacy superannuation sections as explained in the Sections and Status of the Scheme below. Manager AMP Wealth Management New Zealand Limited (Manager) Supervisor The New Zealand Guardian Trust Company Limited (Supervisor). Sections and Status of the Scheme The NZRT has three sections: A workplace savings section with a Product Disclosure Statement (PDS) dated 31 March 2017 and Fund Update Booklet dated 4 September 2017 which is open for applications from employees of participating employer plans. Personal superannuation section with a PDS dated 8 May 2017 and Fund Update Booklet dated 4 September 2017 which is open for applications from individuals including those with UK pensions they wish to transfer to New Zealand as it is a Qualifying Recognised Overseas Pension Scheme (QROPS). Legacy superannuation section. As this section is a legacy section and is closed to new applications it does not have a PDS. Fund Update The NZRT s latest fund updates for the quarter ended 30 September 2017 for each of the funds were made publicly available on 30 October These are available at companiesoffice.govt.nz/disclose and at amp.co.nz/nzrt. Financial Statements and Auditor s Report The NZRT s latest financial statements and auditor s report were dated 4 October 2017 and were lodged with the Registrar on 12 October

7 Information on contributions and scheme participants Membership A summary of the changes in membership: Number of Members Total amount ($) Number of contributing members as at 1 July ,360 Number of non-contributing members as at 1 July ,408 Total number of Scheme members as at 1 July ,768* 2,599,572,142 New Scheme members during the Year by reason of: Transfers from other schemes 1,532 Other new members 1,876 Total new members during the Year 3,408 Scheme members who ceased to be members during the Year by reason of: Retirement 555 Death 49 Transfers to other schemes 244 Other reasons 2,303 Total number who ceased to be members during the Year 3,151 Total number of scheme members as at 30 June ,025 3,015,619,480 Number of contributing members as at 30 June ,429 Number of non-contributing members as at 30 June ,596 *Due to a change in the way we calculate, the total number of scheme members as at 1 July 2016 of 38,768 does not align to the closing balance for the previous year of 38,652. The difference of 116 members is due to the inclusion of employer plans holding units in the reserve account and the removal of investors who were recorded as members but did not hold any units in the scheme. 7

8 Contributions NZRT received the following contributions: Member contributions 30,138 $ 252,222,826 Employer or other sponsor contribution 30,439 $ 180,229,879 Member voluntary additional contributions 4,079 $ 13,185,193 Total contributions $ 445,637,898 Changes relating to the scheme Here s a summary of changes we made to the NZRT. Financial Markets Conduct Act 2013 (FMCA) registration We registered NZRT under the FMCA on 1 December 2016 so it is now a registered Managed Investment Scheme. Other changes included: Opening a new personal superannuation section and closing the original personal section to new membership. Replacing the investment statement and prospectus with a PDS for each open section. The statement of investment policy and objectives (SIPO) was updated and is now available at amp.co.nz. We now produce quarterly fund updates so you can see how your investments are performing. You can find these at amp.co.nz/nzrt. Governing Document The trust deed was amended on: 14 July 2016 to create the option of QROPS membership. 15 November 2016 to comply with the requirements of the FMCA and other relevant legislation this included the appointment of AMP Wealth Management New Zealand Limited as Manager of the Scheme and add the New Zealand Guardian Trust Company Limited as Supervisor of the Scheme. 6 April 2017 to comply with new Her Majesty s Revenue and Customs (HMRC) requirements for QROPS membership. 8

9 Terms of the offer The terms of the offer for five employer plans changed in a beneficial way to members during the scheme year. Members who were affected by these changes will be notified directly by the Manager and provided with the specific details of any such changes. In summary, these changes include: the addition of a deferred member category allowing members to remain in their plan after leaving employment; adding new categories of plan membership; increasing the fund choices available under an employer plan; the addition of a number of new benefits for an employer plan including first home withdrawal and permanent emigration withdrawal; and allowing plan members to contribute to a deferred member category. Furthermore, eight new employer plans were created under the NZRT during the scheme year. The specific details of these plans have been disclosed to affected members. Increased fund choice We now provide you with greater choice of funds following the introduction of ten new funds, including goals-based funds and a responsible investment fund. The new funds are: Funds introduced on 28 July 2016 Fund name AMP Global Multi-Asset Fund AMP Income Generator Fund AMP Responsible Investment Balanced Fund ANZ Conservative Fund Nikko AM Conservative Fund ASB Moderate Fund ANZ Growth Fund ASB Growth Fund Nikko AM Growth Fund Fund introduced on 25 November 2016 Fund name Koru Balanced Fund 1 1 Available only to selected employers For more information on these funds, please see the latest applicable PDS, fund update booklet, member booklet (if you are a workplace savings member) or speak to your Adviser. 9

10 Single sector fee reductions We know that every little bit helps, so to help you pay less and have more in your account, on 28 July 2016 we reduced the amount you pay in investment management fees for the following funds: Fund name Old fee (per annum) New fee (per annum) AMP New Zealand Fixed Interest Fund 0.40% 0.20% AMP International Fixed Interest Fund 0.60% 0.30% AMP Australasian Shares Fund 0.65% 0.50% AMP International Shares Fund 0.80% 0.50% AMP Passive International Shares Fund 0.35% 0.20% AMP Property Fund 0.60% 0.50% Funds renamed During the year we changed the names of our single sector funds, to include AMP in each of their names; NZ Fixed Interest Fund was renamed to AMP New Zealand Fixed Interest Fund. The ANZ Balanced Plus Fund was also renamed to ANZ Balanced Growth Fund. Approved QROPS by HMRC The NZRT got QROPS status, so we can now accept eligible UK-sourced pension fund transfers into the NZRT. For further information on the NZRT s QROPS offer, please contact your Adviser or call us on Restatement of quarterly fund updates In April 2017 Nikko Asset Management advised us of additional fee information relating to the Nikko AM Balanced Fund, which required us to restate the December quarterly fund update for this fund. A copy of the restated fund update is available at amp.co.nz/nzrt or companiesoffice.govt.nz/disclose. Changes to the SIPO On 28 July 2016 the SIPO changed to include the following funds; AMP Responsible Investment Fund, AMP Global Multi-Asset Fund, AMP Income Generator Fund, ANZ Conservative Fund, ANZ Growth Fund, Nikko AM Conservative Fund, Nikko AM Growth Fund, ASB Moderate Fund and the ASB Growth Fund (New Funds). On 1 December 2016 the SIPO was updated due to the Scheme registering under FMCA which also included the addition of the Koru Balanced Fund. On 31 March 2017 the SIPO was changed to reflect new asset allocations for the AMP Conservative Fund, AMP Moderate Fund, AMP Moderate Balanced Fund, AMP Balanced Fund, AMP Growth Fund, AMP Aggressive Fund. These funds also make up the Lifesteps investment option. On 1 May 2017 the SIPO changed to reflect new asset allocations for the Nikko AM Conservative Fund, Nikko AM Balanced Fund, Nikko AM Growth Fund. A copy of the most recent SIPO can be obtained from the scheme register at companiesoffice.govt.nz/disclose or on the AMP website at amp.co.nz. Related party transactions On 1 December 2016 the Manager entered into a related party transaction with AMP Capital Investors (New Zealand) Limited (ACI). Under this transaction ACI provides investment management services in respect of a number of investment funds offered by the Scheme. Furthermore on 28 July 2016 ACI started to provide further investment services in respect of the New Funds. Then on 28 November 2016 ACI started providing investment services in respect of the Koru Balanced Fund, a fund offered by the NZRT to certain employers. For more details on these funds and the services provided by ACI please see the SIPO at amp.co.nz. For more information on fees payable by members please refer to the PDS or Fund Update Booklet. On 1 December 2016 an insurance agreement between the Manager and AMP Life Limited (AMP Life) was novated from the Manager to the Supervisor in order to ensure compliance under the FMCA. Also on that date, a Managed Funds Policy, held in respect of the AMP Capital Assured Fund was also transferred from the Manager to the Supervisor in accordance with FMCA. 10

11 Other information for particular types of managed funds Withdrawals During the Year, the following withdrawals were made from the Scheme: Withdrawals Total number of Members Withdrawals during the Year by reasons of: Death 49 Dismissal 14 Retirement 722 Significant financial hardship 66 Serious illness 11 Permanent emigration 21 Redundancy 290 Resignations 684 Transfers of members accumulations out of the Scheme into other superannuation schemes 246 Other withdrawals* 2,356 Regular withdrawal 71 Total Withdrawals 4,530 *Other withdrawals means other types of withdrawals which are permitted in certain circumstances for particular employer plans, such as partial withdrawals. Unit Prices Unit Price as at 30 June 2016 Unit Price as at 30 June 2017 AMP Conservative Fund AMP Moderate Fund AMP Moderate Balanced Fund AMP Balanced Fund AMP Growth Fund AMP Aggressive Fund AMP Responsible Investment Balanced Fund* AMP Global Multi-Asset Fund* AMP Income Generator Fund* AMP Cash Fund

12 Unit Prices continued Manager s Statement AMP Wealth Management New Zealand Limited as manager of the Scheme confirms that: a) All the benefits required to be paid from the Scheme in accordance with the terms of the governing document have been paid, except where some members may have received less than their full benefit entitlement due to errors in connection with the administration of the NZRT. Affected members have either been compensated or are in the process of being compensated. b) The market value of the Scheme property at 30 June 2017 equaled or exceeded the total value of benefits that would have been payable had all members of the NZRT ceased to be members at that date and had provision been made for the continued payment of all benefits being paid to members and other beneficiaries as at 30 June Supervisor s Statement Unit Price as at 30 June 2016 Unit Price as at 30 June 2017 AMP New Zealand Fixed Interest Fund AMP International Fixed Interest Fund AMP Australasian Shares Fund AMP International Shares Fund AMP Passive International Shares Fund AMP Property Fund ANZ Conservative Fund* ANZ Balanced Growth Fund ANZ Growth Fund* ASB Moderate Fund* ASB Balanced Fund ASB Growth Fund* Fisher Balanced Fund Nikko AM Conservative Fund* Nikko AM Balanced Fund Nikko AM Growth Fund* Koru Balanced Fund** AMP Capital Assured Fund *These funds commenced on 28 July Therefore, there are no unit prices for these funds as at 30 June **The Koru Balanced Fund started on 25 November 2016 therefore, there is no unit price for this fund as at 30 June The New Zealand Guardian Trust Company Limited as supervisor of the scheme confirms that: a) All contributions required to be made to the NZRT in accordance with the terms of the Trust Deed have been made, except where some members employers have not provided contribution payments to the Supervisor. 12

13 Changes to persons involved in the scheme Directors of the Manager The directors of the Manager as at 30 June 2017 were: Blair Robert Vernon Blair joined AMP in 2009 and became Managing Director in January Blair was previously AMP s Director Retail Financial Services, responsible for sales, customer service, marketing and supporting AMP s extensive Adviser business networks including Spicers and AdviceFirst. He has also held roles with AMP as Director of Advice & Sales and General Manager Marketing and Distribution. Blair has more than 20 years experience in financial services and has held a number of executive roles within the industry, including with Bank of New Zealand and NAB. Thérèse Mary Singleton Thérèse has held a number of senior legal and compliance roles in the financial services industry specialising in pensions and superannuation, before joining AMP in 2003, and appointed to General Counsel in Thérèse led the due diligence for the acquisition of the AXA business in New Zealand, which included the Commerce Commission approval of the transaction. She also led the first phase of the integration of the two businesses before returning to the General Counsel role for the merged entity. Thérèse has also led AMP s Investment and Insurance teams responsible for AMP s superannuation, investment and insurance products and is currently the General Manager of Advice & Sales. Simon John Hoole Simon has more than 20 years of experience in financial services. He joined AMP in 1998 as Finance Planning Manager in Australia and subsequently took over the role of Financial Controller and then Group Finance Director in 2008, before moving to New Zealand and becoming Chief Financial Officer in Before joining AMP, Simon started his accounting career with Deloitte Haskins & Sells in the UK, before moving to Australia in Still with Deloitte, Simon spent two years in Papua New Guinea and in 1995, became Financial Controller for MLC Lifetime Limited. Simon is responsible for AMP s finance teams, including actuarial and claims. Elaine Jennifer Campbell Elaine has over 20 years of legal experience and has extensive experience within the finance sector. She commenced her career as a solicitor for Kensington Swan before gaining experience in both the UK and USA. She has held senior positions for NZX Limited, New Zealand Markets Disciplinary Tribunal and prior to joining AMP was Director of Compliance for the Financial Markets Authority. During her career, Elaine has lead major transformational programmes including the development and implementation of licensing and supervision regulation for financial market participants. Elaine was awarded a Bachelor of Laws (Hons) from the University of Canterbury. The following changes to the directors of the Manager of the Scheme have taken place since 1 July 2016: Blair Robert Vernon was appointed as a director of the Manager on 15 December 2016 Anthony George Regan resigned as a director of the Manager on 16 December

14 Key Personnel of the Manager The key personnel of the Manager as at 30 June 2017 are its directors. The key personnel of the Manager are also key personnel of AMP Services. The other key personnel of the Administration Manager, AMP Services (NZ) Limited, are: Jeff Ruscoe, General Manager, Product and Marketing Chris Robb, Chief Information Officer Helen McDowall, General Manager, Customer Service Change in Supervisor As part of the implementation of the FMCA, on 1 December 2016 AMP Wealth Management New Zealand Limited changed its role as Trustee of the Scheme to Manager and The New Zealand Guardian Trust Company Limited was appointed as the Supervisor. Directors of the Supervisor The directors of the Supervisor as at 30 June 2017 were James Earl Douglas and Robin Albert Flannagan. The following changes to the directors of the Supervisor of the Scheme have taken place since 1 July 2016: Timothy James Shaw resigned as a director of the Supervisor on 3 August Change in Custodian On 1 December 2016, the Scheme s custodian changed from AMP Wealth Management New Zealand Limited to FS Nominees Limited. How to find further information The Government maintains a register called Disclose. This register is split into a scheme register and an offer register. The scheme register contains information relating to various schemes and you can find information such as the NZRT s trust deed, SIPO and financial statements. The offer register contains information on the investment options/funds offered by a scheme including fund updates, product disclosure statements and other material information. You can access either of these registers at companiesoffice.govt.nz/disclose and search by entering AMP Wealth into the Manager/Issuer search function. Any of the above information is available on request, by contacting us at our address listed below. There is no charge for requesting this information. 14

15 Contact details and complaints We are happy to help with any queries you may have, for enquiries please contact the Manager of the New Zealand Retirement Trust. If you have a complaint you require help with please contact the Customer Response Manager, both can be contacted at: AMP Wealth Management New Zealand Limited PO Box 55 Shortland Street Auckland (International) workplaceadmin@amp.co.nz customerresponse@amp.co.nz If we are unable to resolve your complaint, you can also contact the Supervisor at: The Manager, Corporate Trusts The New Zealand Guardian Trust Company Limited PO Box 3845 Wellington (International) You can also contact the approved independent dispute resolution schemes for the Manager and the Supervisor respectively, at: Insurance & Financial Services Ombudsman Scheme PO Box Wellington info@iombudsman.org.nz Financial Services Complaints Limited PO Box 5967 Wellington info@fscl.org.nz or complaints@fscl.org.nz Neither of the above schemes will charge a fee to any complainant to investigate or resolve a complaint. AMP Services, as securities registrar, can also be contacted at the Manager s address above. 15

16 Phone Web amp.co.nz Follow us on Want to know more? For more information about the NZRT, please see the applicable Product Disclosure Statement and Fund Update Booklet at amp.co.nz/nzrt, contact us on or talk to your Adviser today. A disclosure statement is available from your Adviser on request and free of charge. WEL /17 16