FISHER FUNDS TWO KIWISAVER SCHEME

2020 Annual Report

The Fisher Funds TWO KiwiSaver Scheme (the “Scheme”) comprises six Funds; the Preservation Fund, the Cash Enhanced Fund (or Default Fund), the Conservative Fund, the Balanced Fund, the Growth Fund and the Equity Fund (together the “Funds”). The annual report for the Scheme covers the period 1 April 2019 to 31 March 2020.

» The Scheme is a registered KiwiSaver scheme.

» The Manager of the Scheme is Fisher Funds Management Limited (“Fisher Funds”), who is also the investment manager of the Scheme.

For more information about our investment team, investment philosophy and historical investment returns please refer to our website ff2kiwisaver.co.nz.

» The Supervisor of the Scheme is Trustees Executors Limited (the “Supervisor”).

» The 13 September 2019 product disclosure statement for the Scheme is open for applications and available at ff2kiwisaver.co.nz/kiwisaver-two-product-disclosure-statement.

» The 30 June 2020 quarterly fund update for each Fund is currently available at ff2kiwisaver.co.nz/fund-updates.

» The31March2020financialstatementsandauditor’s report for the Scheme have been registered under the Financial Markets Conduct Act 2013 and are available at ff2kiwisaver.co.nz/annual-reports.

DETAILS OF THE SCHEME

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DETAILS OF THE SCHEME

AT A GLANCE 31 March 2020

103,255 CLIENTS

$2.29BINVESTEDIN THE SCHEME

$309MTOTAL CONTRIBUTIONS

HELPED 1,005PEOPLE PURCHASE THEIR FIRST HOME

Fund performance figures do not include administration fees, brokerage fees or tax. They are calculated using the change in unit price plus any tax credits applicable to the Funds. The five year performance figures have been annualised. Please note that past performance is not necessarily indicative of future returns. Returns can be positive or negative, and returns over different time periods may vary. No returns are promised or guaranteed. Longer term performance figures are available at ff2kiwisaver.co.nz.

Fund name 1 year 5 years

Preservation Fund 1.4% 2.3%

Cash Enhanced Fund 2.1% 4.4%

Conservative Fund 1.5% 4.5%

Balanced Fund 0.4% 5.6%

Growth Fund -1.0% 5.9%

Equity Fund -1.4% 6.8%

INVESTMENT PERFORMANCE TO 31 MARCH 2020

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INFORMATION ON CONTRIBUTIONS AND SCHEME PARTICIPANTS

MEMBERSHIPThe table below shows the numerical changes in the membership of the Scheme during the year ended 31 March 2020:

Total number of

members

Members’ accumulation

($)

Membership at beginning of year

103,1021 2,164,480,000

PLUS

New members 6,803

Transfers from other KiwiSaver schemes

280

Transfers from Australian superannuation schemes

121

Transfers from other registered schemes

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LESS

Retirement 739

Transfers to other KiwiSaver schemes

5,592

Transfers to Australian superannuation schemes

20

Death 152

Other exits 559

Membership at end of year

103,2552 2,289,014,000

1 The number of members at the start of the year comprised 57,182 contributing members and 45,920 non-contributing members.

2 The number of members at the end of the year comprised 55,737 contributing members and 47,518 non-contributing members.

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CONTRIBUTIONS RECEIVEDThe table below details the total amount of each type of contribution received by the Scheme during the year ended 31 March 2020 and the number of members credited with each type of contribution:

Contributions received were allocated to members as follows:

Number of Members

Total amount ($)

Member contributions 68,836 $149,948,935

Employer contributions 68,722 $81,931,750

Crown contributions 65,597 $27,699,579

Member lump sum contributions

5,861 $32,881,794

Member voluntary contributions over minimum contribution rate

2,664 $4,877,682

Transfers from other KiwiSaver schemes

280 $7,088,687

Transfers from other registered schemes

11 $172,507

Transfers from Australian superannuation schemes

121 $3,951,439

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CHANGES RELATING TO THE SCHEMEThe following is a summary of material changes relating to the Scheme made during the year ended 31 March 2020.

GOVERNING DOCUMENTThere were no changes to the Governing Document for the Scheme.

THE TERMS OF OFFER OF INTERESTS IN THE SCHEME1 April 2019

» New KiwiSaver member contribution rates of 6% and 10% were introduced. From this date members can elect to contribute 3%, 4%, 6%, 8% or 10% of their salary or wages.

» The maximum period for a savings suspension (formerly known as a contributions holiday) was reducedfromfiveyearstooneyear.Youcanapplyfor another savings suspension if necessary.

1 July 2019

» Individuals aged 65 or over can join KiwiSaver. KiwiSaver investors who had previously made a full retirement withdrawal can now rejoin KiwiSaver.

» Thefiveyearminimummembershiprequirementceased for individuals who joined KiwiSaver from 1 July 2019. From 1 April 2020 members who areaged60orovercanoptoutofthefiveyearminimum membership requirement if it applies to them. Members who elect to opt out will forgo their entitlement to the Government contribution and compulsory employer contributions.

1 October 2019

» The annual fund charge for the Cash Enhanced Fund reduced from 0.56% to 0.52%.

1 April 2020

» A new early withdrawal category was introduced, allowing people with a life-shortening congenital condition to apply to withdraw their savings before the age of 65. Members who make a life-shortening congenital condition withdrawal will forgo their entitlement to the Government contribution and compulsory employer contributions.

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THE STATEMENT OF INVESTMENT POLICY AND OBJECTIVES (SIPO)On 1 July 2019 we updated the SIPOs of the Cash Enhanced Fund, Conservative Fund, Balanced Fund and Growth Fund to change the benchmark for New Zealand Fixed Interest from the S&P/NZX New Zealand Government Bond Index to the Bloomberg New Zealand BondComposite0+YearIndex.

The SIPOs of the Funds are available at ff2kiwisaver.co.nz/resource-centre.

RELATED PARTY TRANSACTIONSThere were no material changes to the nature or scale of related party transactions for the Scheme. All related party transactions during the year to 31 March 2020 were on an arm’s length basis and enacted on normal commercial terms.

OTHER INFORMATION FOR PARTICULAR TYPES OF MANAGED FUNDSWITHDRAWALSThe table below details the number of members of the Scheme during the year ended 31 March 2020 that have made a withdrawal of the type listed.

Number of Members

Retirement 1,538

First home purchase 1,005

Significantfinancialhardship 285

Death 152

Permanent emigration 87

Serious illness 89

Transfers to other KiwiSaver schemes 5,592

Transfers to Australian superannuation schemes

20

Other withdrawals 383

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MANAGER’S STATEMENTFisherFundsasManageroftheSchemeconfirmsthatforthe year ended 31 March 2020:

» AllthebenefitsrequiredtobepaidfromtheScheme in accordance with the terms of the Governing Document and the KiwiSaver scheme rules have been paid; and

» The market value of the Scheme property at the balance date equalled (or exceeded) the total value ofbenefitsthatwouldhavebeenpayablehadallmembers of the Scheme ceased to be members at that date and, where necessary, had provision been madeforthecontinuedpaymentofallbenefitsbeingpaidtomembersandotherbeneficiariesasatthe balance date.

CHANGES TO PERSONS INVOLVED IN THE SCHEME

DIRECTORS OF THE MANAGERFisher Funds Management Limited

1. CathLomaxstartedasChiefClientOfficeron26August 2019

2. Vedran Babic resigned from his position as Chief OperatingOfficeron21January2020

UNIT PRICES

Fund name1 April 2019 Unit Price $

31 March 2020 Unit Price $

Preservation Fund 2,945.6153 2,984.3496

Cash Enhanced Fund 1.8202 1.8530

Conservative Fund 1.9036 1.9280

Balanced Fund 5,384.9746 5,359.4541

Growth Fund 1.9258 1.8791

Equity Fund 5,003.1721 4,834.2654

Members should refer to ff2kiwisaver.co.nz for the current unit price for each Fund.

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3. Michael Raynes resigned from his position as Head of Distribution on 31 January 2020

4. Sharon Mackay started as Head of Third Party Distribution on 16 March 2020

DIRECTORS OF THE SUPERVISORTrustees Executors Limited

1. Ryan Elliot Bessemer was appointed as a Director on 2 October 2019

2. Victoria Grace was appointed as a Director on 2 October 2019

3. Graeme Kirkpatrick was appointed as a Director on 2 October 2019

4. Laurence Stanley Kubiak was appointed as a Director on 25 October 2019

5. Mark Charles Darrow resigned as a Director on 2 October 2019

6. Sarah Mary Roberts resigned as a Director on 2 October 2019

7. Matthew James Sale resigned as a Director on 17 December 2019

HOW TO FIND FURTHER INFORMATIONFurther information about the Scheme and the Funds can be found on the Disclose Register at companiesoffice.govt.nz/disclose.

There are two parts to the Disclose Register:

1. The scheme register includes information such as theGoverningDocument,financialstatementsandthe statement of investment policy and objectives.

2. The offer register includes information such as the product disclosure statement, quarterly fund updates, historic fund returns and other material information.

This information is also available on our website ff2kiwisaver.co.nz or you can call us on 0800 20 40 60 to request this information. The information can be obtained from us without charge.

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CONTACT DETAILS AND COMPLAINTSIf you have any questions about your investment in the Scheme, please contact:

The Manager

Fisher Funds Management Limited Level 1, Crown Centre67-73 Hurstmere Road Private Bag 93502, Takapuna Auckland 0740Freephone: 0800 20 40 60Email: kiwisavertwo@fisherfunds.co.nz Website: ff2kiwisaver.co.nz

You may also contact the Supervisor at:

The Manager, Corporate Trustee ServicesTrustees Executors LimitedLevel 7, 51 Shortland StreetPO Box 4197Shortland Street Auckland 1140 Telephone: 09 308 7100

The address of the securities registrar is:

Trustees Executors Limited Level 6, 10 Customhouse QuayPO Box 10519Wellington 6143Telephone: 04 495 0995

Ifyouarenotsatisfiedwiththeserviceyouhavereceivedfrom Fisher Funds, please contact us. We have an internal complaints process and undertake to investigate your concernspromptlyandfairly.Youmaycontactustomakeacomplaint by telephone, email or in writing as follows:

Client Administration Team Manager

Fisher Funds Management Limited Level 1, Crown Centre67-73 Hurstmere Road Private Bag 93502, Takapuna Auckland 0740Freephone: 0800 20 40 60Email: complaints@fisherfunds.co.nz

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YoumayalsocontacttheSupervisorattheiraddressontheprevious page.

Fisher Funds and the Supervisor are both members of an independent dispute resolution scheme operated by Financial Services Complaints Limited (FSCL). Each of us has 40 working days to resolve your complaint. If you are notsatisfiedbytheresponse,youmayreferthemattertoFSCL by emailing info@fscl.org.nz or calling FSCL on 0800 347 257. Alternatively you may write to FSCL at:

Financial Services Complaints Limited 4th Floor, 101 Lambton QuayPO Box 5967Wellington 6140

Full details of how to access the FSCL scheme can be obtained from its website fscl.org.nz. There is no cost to you to use the services of FSCL.

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FF2-904 - 07/20

EXPECT GREATER LIFETIME SAVINGS