AMP KiwiSaver Scheme 2017 Annual Report. Look forward to a bright retirement.

Transcription

1 AMP KiwiSaver Scheme 2017 Annual Report Look forward to a bright retirement. 1 1

2 For 10 years our AMP KiwiSaver Scheme has helped New Zealanders on the road to achieve an aspirational retirement $4.5 billion invested in the AMP KiwiSaver Scheme. AMP now has 236,000 KiwiSaver members. AMP KiwiSaver Scheme members have received $552 million in Member Tax Credits. We ve helped more than 9,500 Kiwis to purchase their first home using their KiwiSaver account. The average AMP KiwiSaver Scheme member balance is $19,600, The industry average is $15,000.

3 Average AMP KiwiSaver Scheme member balance men $22,600 women $16,600 22,021 AMP customers have downloaded the MyAMP app enabling them to top up their AMP KiwiSaver Scheme account. AMP has paid 11,700 KiwiSaver members more than $245 million upon retirement. Across the industry, more than $41 billion is invested in KiwiSaver, and funds under management is growing at about $7 billion every year. Across the industry this year 2.7 million KiwiSaver members contributed $2.94 billion of their own money into KiwiSaver; employers contributed $1.76 billion; and the Government chipped in over $700 million. That totals $5.4 billion in contributions, and on top of that another $1.6 billion was earned by KiwiSaver funds after tax and fees.

4 The Annual Report contains: Year in review 5 Details of scheme 6 Information on contributions and scheme participants 6 Changes relating to the scheme 7 Other information for particular types of managed funds 8 Changes to persons involved in the scheme 11 How to find further information 11 Contact details and complaints 12

5 Year in review How s it going? Every year we look back at the recent history of the AMP KiwiSaver Scheme (the Scheme), so that we can present you with a concise annual report of what s been going on. In the pages that follow you can find out about market conditions and current Scheme investment options. This report also covers off new services we ve introduced to make your life easier. Because KiwiSaver is about your future, it s important to understand what s been happening with the Scheme. Please take the time to have a good read through. The year s highlights: More funds to choose from. The Scheme now offers 28 investment options, so there s more flexibility than ever to design a KiwiSaver portfolio that matches your goals. Updates to strategic asset allocations. We have made some changes to the strategic asset allocations to ensure the funds are well positioned for the future expected economic environment. Topping up with the My AMP app. We ve introduced a great new service that lets you top up your AMP KiwiSaver Scheme account from your phone or tablet whenever you want. Improved My AMP portal. The updated design and functionality of the My AMP portal makes it easier to find information and make decisions. Increase in funds under management. We re pleased to report that the funds invested in the Scheme have increased 14% to more than $4.5 billion, since last year. Need advice or assistance? If you have any questions about the AMP KiwiSaver Scheme, we re always happy to help. Call us on , talk to your Adviser or visit amp.co.nz/kiwisaver. If you don t currently have an Adviser, contact us and we ll be happy to put you in touch with one. Thank you for saving with the AMP KiwiSaver Scheme. Regards, Blair Vernon On behalf of the Manager AMP Wealth Management New Zealand Limited 1 SuperRatings does not issue, sell, guarantee or underwrite this product. Go to superratings.com.au for details of its ratings criteria. A disclosure statement is available from your Adviser, on request and free of charge. 5

6 Details of scheme AMP Wealth Management New Zealand Limited (the Manager, us, we) as manager of the AMP KiwiSaver Scheme presents this Annual Report to the members of the Scheme for the year ended 31 March 2017 (Year). The supervisor of the Scheme is The New Zealand Guardian Trust Company Limited (Supervisor). The Scheme is a registered KiwiSaver scheme with a Product Disclosure Statement (PDS) dated 31 March 2017 and Fund Update Booklet dated 12 June 2017 and is open to applications. The Scheme s latest fund updates for the quarter ended 30 June 2017 for each fund were made publicly available on 28 July The Scheme s latest financial statements and auditor s report were dated 25 May 2017 and were lodged with the Registrar of Financial Service Providers on 1 June Information on contributions and scheme participants Membership The table below provides a summary of the numerical changes in the membership of the Scheme during the Year: 6 Number of contributing members as at 1 April 2016 Number of non-contributing members as at 1 April 2016 Total number of Scheme members as at 1 April 2016 Number of Members 144,608 99,897 Total Amount ($) 244,505 4,006,941,499 New Scheme members during the Year by reason of: Transfers from other schemes 1,693 Other new members 13,116 Total new members during the Year 14,809 Scheme members who ceased to be members during the Year by reason of: Retirement 2,158 Death 305 Transfers to other schemes 18,969 Other reasons 1,059 Total number who ceased to be members during the Year Total number of Scheme members as at 31 March 2017 Number of contributing members as at 31 March 2017 Number of non-contributing members as at 31 March , ,823 4,565,795, ,922 96,901

7 Contributions The table below provides a summary of the contributions received during the Year by reason of: Changes relating to the scheme This section provides information on the material changes which occurred to the Scheme during the Year: Governing document There have been no material changes to the Scheme s trust deed during the year. The most recent trust deed is dated 12 April Terms of the offer Number of Members Total Amount ($) Member contributions 172, ,157,354 Employer or other sponsor contributions Member voluntary additional contributions 326, ,554,679 17,950 39,082,584 Total 696,794,617 New Funds added On 28 July 2016, 16 new funds were added into the Scheme. The Scheme now offers a range of funds from 5 different underlying fund managers. As a result of increasing the number of funds offered the Scheme is now offered by way of a Product Disclosure Statement and a Fund Update Booklet. These two documents together provide members with appropriate information to make informed decisions on their investment in the Scheme. Events since 31 March 2017 In April 2017 we were informed by an underlying fund manager of additional fee information relating to the Nikko AM Balanced Fund which required us to restate the Quarterly Fund Updates for this fund. Copies of the restated fund updates can be obtained from the Scheme s offer register at companiesoffice.govt.nz/disclose and on the AMP website at amp.co.nz/kiwisaver. SIPO The SIPO was updated on 30 June 2016 to include the 16 new funds added into the Scheme. The SIPO has also been updated a number of times during the period due to changes in the benchmark asset allocations for various funds. The most recent SIPO is dated 1 May 2017 and a copy can be obtained from the Scheme s offer register at companiesoffice.govt.nz/disclose and on the AMP website at amp.co.nz/kiwisaver. Related party transactions All related party transactions are conducted on arms-length terms. There have been no material changes to any of the Scheme s related party transactions during the year. 7

8 Other information for particular types of managed funds Withdrawals During the Year, the following withdrawals were made from the Scheme: Withdrawals Withdrawals during the Year by reason of: Total Number of Members Qualifying date 3,509 Australian complying superannuation fund 26 Release under other enactments 7 First home withdrawal 1 2,291 Death 305 Significant financial hardship 887 Serious illness 202 Permanent emigration 207 Meeting tax liability on foreign superannuation Transfers of members accumulations out of the Scheme into other superannuation schemes Late opt out and invalid enrolment withdrawals 17 19, Total Withdrawals 27,055 1 Includes second chance home withdrawals. 8

9 Unit Prices Unit Prices ($) at 31 March 2017 Unit Prices ($) at 1 April 2016 AMP Default Fund 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 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* *These funds commenced on 28 July Therefore, there are no unit prices for these funds as at 1 April

10 Market Overview for the year ended 31 March 2017 The year to 31 March 2017 began with worries about global growth and deflation, but by the end of the period growth was looking solid and headline inflation started heading higher. Despite periods of anxiety and market volatility, and a few political surprises, the end result was a constrained but okay year for diversified investors. Share markets started the year badly on growth and deflation fears, before rebounding as such fears faded. The Brexit vote, the US election and the Italian referendum caused only short-lived scares. US shares outperformed in developed markets as the Fed paused, the US earnings recession ended and investors anticipated stimulus under a Trump presidency. Emerging markets stabilized, particularly in commodity export countries such as Russia and Brazil, and resources shares outperformed as commodity prices rebounded helping the Australian share market to perform relatively well. After a rallying in the first half of the year, global bond markets gave up their gains in the second half, spurred along by anticipation of fiscal stimulus under Donald Trump. Upward pressure on global bond yields because of better growth and inflation outcomes, 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 grow strongly. Despite a weather-related dip at the end of 2016, GDP growth was solid, largely off the back of strong population gains. At the same time, employment growth remains strong, rising budget surpluses are providing the National-led government with choices as it heads into an election-year budget, and our external position is in good shape. 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 and the KiwiSaver scheme rules have been paid; and b) the market value of the Scheme property at 31 March 2017 equalled or exceeded the total value of benefits that would have been payable had all members of the Scheme 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 31 March

11 Changes to persons involved in the scheme Directors of the Manager The directors of the Manager as at 31 March 2017 were: Blair Robert Vernon Simon John Hoole Thérèse Mary Singleton Elaine Jennifer Campbell The following changes to the directors of the Manager of the Scheme have taken place since 1 April 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 Key Personnel of the Manager The key personnel of the Manager as at 31 March 2017 are its directors. Directors of the Supervisor The following changes to the directors of the Supervisor of the Scheme have taken place since 1 April 2016: Andrew Howard Barnes resigned as a director of the Supervisor on 4 April 2016 Timothy James Shaw resigned as a director of the Supervisor on 3 August 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 Schemes trust deed, SIPO and financial statements. The offer register contains information on the investment options/funds offered by a Scheme including fund updates and product disclosure statements. 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 on page 12. There is no charge for requesting this information. 11

12 Contact details and complaints We are happy to help with any queries or complaints you may have, please contact the Manager at: Manager, AMP KiwiSaver Scheme AMP Wealth Management New Zealand Limited PO Box 55 Shortland Street Auckland 1140 Phone: International phone number: kiwisaver@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 6140 Phone: International phone number: 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 6143 Phone: info@ifso.nz Financial Services Complaints Limited PO Box 5967 Wellington 6011 Phone: 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. 12

13 This page has been left blank intentionally. 13

14 14 This page has been left blank intentionally.

15 This page has been left blank intentionally. 15

16 Phone Web amp.co.nz Want to know more? 16 For more information about the Scheme, please see the Scheme s current Product Disclosure Statement and Fund Update Booklet at amp.co.nz/kiwisaver, contact us on 0800 AMP KIWI ( ) or talk to your Adviser today. A disclosure statement is available from your Adviser on request and free of charge. WEL /17