the aon kiwisaver survey · for over 20 years we have been compiling surveys of investment...

The Aon KiwiSaver Surveyas at 31 December 2014

Risk. Reinsurance. Human Resources.

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Aon KiwiSaver Survey

This quarterly survey is produced by Aon Hewitt New Zealand.

For over 20 years we have been compiling surveys of investment performance in New Zealand. With the introduction of KiwiSaver in 2007 we decided to broaden our surveys, which had

until now only covered wholesale funds, to also include KiwiSaver funds. We contacted all registered KiwiSaver providers and we believe we have put together one of the most

comprehensive KiwiSaver surveys currently in the market.

Our survey shows the returns for each fund over the last quarter, 12 months, 24 months, 36 months, 60 months, 72 months and 84 months. We have also included the asset allocation

details of each fund as at the survey date. This shows what proportion of each fund is invested in Shares, Property, Bonds and Cash.

Disclaimer

We asked each Provider to supply us with returns Gross of Tax and Net of Percentage-Based fees. This means that no allowance may have been made for other fees such as dollar-

based administration, audit, legal and trustee fees. We have not verified the information supplied by each Provider. This publication provides general information only and should not be

relied upon in making an investment decision. Investors should seek professional advice which takes into account their personal circumstances before making an investment decision.

No liability will be accepted for loss resulting from reliance on information contained in this report which proves to be inaccurate and/or incomplete. Disclosure of interest: Aon Hewitt acts

as the asset consultant for the Trustees of Aon KiwiSaver Scheme and several Employer KiwiSaver Schemes.

You should not use this survey to estimate your own return, which will be net of all fees, dependent on your PIR rate (10.5%, 17.5% or 28.0%) and affected by the timing and amounts of

your contributions. No part of this document may be reproduced without acknowledging Aon New Zealand as the source.

Aon Hewitt Investment Consulting

Other investment consulting services we provide include: ` • Establishing investment objectives for both our clients and investment managers

• Determining long-term investment strategies, in the form of benchmark portfolios and sector ranges, consistent with the investment objectives

• Determining the efficient frontier and risk/return profiles

• Asset/liability modelling

• Reviewing contractual agreements and legal documentation

• Assisting in the appointment of investment managers, by

• Establishing the selection criteria

• Identifying suitable investment managers

• Analysing investment managers' capabilities against the criteria

• Carrying out qualitative reviews

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FUM Last Last Last Last Last Last Last

Manager ($m) Qtr Rk Yr Rk 2 Yrs Rk 3 Yrs Rk 5 Yrs Rk 6 Yrs Rk 7 Yrs Rk

(%) (%) (%pa) (%pa) (%pa) (%pa) (%pa)

AMP Conservative Fund 210 1.7 17 7.7 12 6.4 13 6.9 12 6.3 12 6.3 12 6.1 6

AMP Default Fund 1,241 1.8 15 7.1 17 6.6 12 6.5 14 5.4 17 5.6 17 5.0 16

ANZ Conservative Fund 400 3.0 3 9.0 4 7.1 8 7.5 6 6.8 5 6.8 10 6.1 7

ANZ Default Conservative Fund 831 2.8 5 9.5 3 7.2 6 7.5 7 7.0 3 6.9 7 6.2 5

Aon KiwiSaver Russell Conservative 72 4.0 1 10.3 2 8.3 2 9.9 2 8.9 2 10.3 2 7.6 1

Aon KiwiSaver Russell 2015® Fund 5 4.0 2 10.4 1 9.1 1 10.7 1 9.0 1 10.8 1 6.9 2

ASB Conservative Fund 2,486 1.8 16 7.4 15 6.1 15 6.3 15 5.9 15 6.0 15 5.4 9

Company D 5 2.2 12 7.6 13 6.9 10 7.3 11 6.5 8 6.8 9

FirstChoice Active Conservative 2 1.5 18 7.4 16 7.7 4 7.9 4 6.3 10 7.1 6 5.3 13

FirstChoice Conservative 1 1.8 14 7.4 14 6.1 16 6.3 16 5.9 16 5.9 16 5.4 11

Fisher Funds TWO Cash Enhanced 554 2.4 8 8.3 9 6.3 14 6.7 13 5.9 14 6.2 13 5.3 12

Fisher Funds TWO Conservative 95 2.5 6 8.5 6 6.9 9 7.5 8 6.7 7 7.3 5 5.4 8

Grosvenor Conservative 99 2.3 10 8.0 10 5.2 17 5.7 17 5.9 13 6.2 14 5.2 15

Grosvenor Default 3 2.3 11

Mercer Conservative 880 2.3 9 8.5 7 7.9 3 7.9 3 6.8 6 8.0 3 6.2 3

Mercer Super Trust Conservative 3 2.0 13 7.7 11 7.5 5 7.5 9 6.3 11 7.7 4 5.3 14

OneAnswer Conservative Fund 314 3.0 4 9.0 5 7.1 7 7.6 5 6.9 4 6.9 8 6.2 4

Westpac Conservative Fund 1,494 2.4 7 8.5 8 6.7 11 7.4 10 6.5 9 6.6 11 5.4 10

Minimum 1.5 7.1 5.2 5.7 5.4 5.6 5.0

Median 2.3 8.3 6.9 7.5 6.5 6.8 5.4

Maximum 4.0 10.4 9.1 10.7 9.0 10.8 7.6

Conservative Fund Results

Returns are Gross of Tax & Net of Percentage-Based Fees as at 31 December 2014

Asset Allocation for Fund Managers

Aust Equities Int Equities Aust Prop Global Prop

Multi-Strat NZ Bonds Int Bonds Cash

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Conservative Fund Returns (%pa) Gross of Tax and Net of Percentage-Based Fees over the Last Seven Years

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(%) (%) (%pa) (%pa) (%pa) (%pa) (%pa)

AMP Moderate Fund 238 1.7 9 8.3 9 7.9 9 8.4 8 6.8 8 7.0 8 5.5 7

ANZ Conservative Balanced Fund 445 3.5 5 10.3 6 9.5 5 10.0 4 8.2 4 8.4 4 6.5 3

ANZ Default Conservative Balanced Fund 14 3.5 4 10.6 4 9.3 6 9.5 5 7.9 5 8.0 5 6.2 4

Aon KiwiSaver Russell Lifepoints®

2025 12 3.9 3 10.8 3 11.7 2 12.8 1 9.6 1 11.8 1 6.1 5

Aon KiwiSaver Russell Moderate Fund 13 4.0 2 10.8 2 10.8 3 11.9 2 9.5 2 11.4 2 7.0 1

ASB Moderate Fund 752 2.3 8 9.2 8 8.4 8 8.7 7 7.3 6 7.7 6 5.5 6

FirstChoice Moderate Fund 1 2.4 7 9.2 7 8.5 7 8.7 6 7.3 7 7.7 7 5.4 8

Milford KiwiSaver Conservative Fund 12 4.9 1 16.4 1 14.6 1

OneAnswer Conservative Balanced Fund 104 3.5 6 10.3 5 9.5 4 10.1 3 8.3 3 8.5 3 6.6 2

Minimum 1.7 8.3 7.9 8.4 6.8 7.0 5.4

Median 3.5 10.3 9.5 9.7 8.1 8.2 6.2

Maximum 4.9 16.4 14.6 12.8 9.6 11.8 7.0

Moderate Fund Results


Moderate Fund Returns (%pa) Gross of Tax and Net of Percentage-Based Fees over the Last Seven Years




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(%) (%) (%pa) (%pa) (%pa) (%pa) (%pa)

AMP Balanced Fund 550 1.6 27 9.3 27 10.0 25 10.8 23 7.7 22 8.4 25 5.1 22

AMP ANZ Balanced Plus Fund 122 4.6 1 12.5 4 13.7 6 14.2 5 10.3 3 11.3 5 7.0 2

AMP Moderate Balanced Fund 348 1.7 26 8.9 28 9.0 27 9.6 27 7.2 26 7.7 26 5.0 23

AMP Fisher Balanced Fund 21 3.7 12 11.0 13 10.3 24 11.0 22 8.1 19 8.9 20 5.7 12

AMP Nikko AM Balanced Fund 17 3.0 14 10.9 15 11.7 13 12.0 13 8.5 13 9.5 14 5.2 18

ANZ Balanced Fund 917 3.9 10 11.3 9 11.8 11 12.4 11 9.4 10 9.8 13 6.7 7

ANZ Balanced Growth Fund 748 4.3 3 12.3 6 14.2 3 14.8 3 10.5 2 11.2 6 6.8 6

ANZ Default Balanced Fund 40 3.9 8 11.7 7 11.5 15 11.5 16 8.8 11 9.0 18 6.0 9

ANZ Default Balanced Growth Fund 45 4.3 4 12.6 2 13.7 5 13.6 8 9.7 7 10.1 10 5.8 10

Aon KiwiSaver ANZ Balanced 19 3.5 13 10.9 16 11.2 19 12.7 9 9.5 8 11.4 3 7.2 1

Aon KiwiSaver Nikko Balanced 5 2.3 25 10.1 23 10.9 22 11.3 18 7.9 20 8.9 19 5.4 15

Aon KiwiSaver Russell Lifepoints® 2035 10 3.9 11 11.2 10 14.0 4 14.7 4 10.2 5 12.7 1 5.6 13

Aon KiwiSaver Russell Balanced 41 3.9 9 11.2 11 13.3 7 14.0 6 10.0 6 12.4 2 6.1 8

ASB Balanced Fund 571 2.3 23 10.2 21 11.3 18 11.3 20 8.4 14 9.2 17 5.3 16

Company C 53 1.6 28 10.9 14 11.0 21 10.4 24 7.6 25 8.4 24

Company D 23 2.3 24 9.5 25 11.4 16 12.2 12 8.7 12 9.9 12

FirstChoice Active Balanced Fund 9 2.4 20 10.6 17 11.9 10 11.6 14 7.7 23 8.9 21 4.8 24

FirstChoice Balanced Fund 2 2.4 21 10.2 20 11.3 17 11.3 19 8.4 15 9.2 16 5.2 17

Fisher Funds TWO Balanced 432 3.0 16 10.4 18 9.9 26 10.3 26 7.7 24 8.4 23 5.1 21

Grosvenor Balanced 269 2.5 17 9.4 26 8.2 28 8.2 28 6.1 27 6.9 27 4.8 25

Grosvenor SRI Balanced 14 1.4 29

Mercer Balanced 71 2.4 19 10.1 22 11.7 14 11.5 17 8.4 16 10.3 8 5.2 19

Mercer Super Trust Moderate 49 2.3 22 9.7 24 10.6 23 10.4 25 7.8 21 9.3 15 5.5 14

Mercer Super Trust Active Balanced 61 2.4 18 10.3 19 11.8 12 11.5 15 8.4 18 10.1 9 5.2 20

Milford KiwiSaver Balanced Fund 59 4.0 7 14.0 1 15.1 1 16.3 1

OneAnswer Balanced Fund 314 4.0 6 11.5 8 12.0 9 12.5 10 9.5 9 9.9 11 6.8 4

OneAnswer Balanced Growth Fund 287 4.4 2 12.5 3 14.4 2 14.9 2 10.6 1 11.4 4 6.9 3

Staples Rodway Balanced Fund 21 4.2 5 12.4 5 13.2 8 14.0 7 10.2 4 10.9 7 6.8 5

Westpac Balanced Fund 734 3.0 15 11.0 12 11.1 20 11.2 21 8.4 17 8.8 22 5.7 11

Minimum 1.4 8.9 8.2 8.2 6.1 6.9 4.8

Median 3.0 10.9 11.6 11.6 8.4 9.5 5.6

Maximum 4.6 14.0 15.1 16.3 10.6 12.7 7.2

Balanced Fund Results





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Balanced Fund Returns (%pa) Gross of Tax and Net of Percentage-Based Fees over the Last Seven Years

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(%) (%) (%pa) (%pa) (%pa) (%pa) (%pa)

AMP Aggressive Fund 195 1.3 22 10.5 17 13.1 16 14.0 11 8.5 16 9.7 17 3.4 17

AMP Growth Fund 431 1.4 21 10.0 20 12.0 19 12.7 18 8.2 18 9.1 18 4.0 16

ANZ Growth Fund 1,315 4.6 2 13.2 4 16.5 3 17.1 3 11.6 3 12.5 5 6.7 4

ANZ Default Growth Fund 40 4.6 3 13.6 2 16.1 5 15.6 6 10.6 6 11.1 8 5.6 6

Aon KiwiSaver Russell Lifepoints® 2045 9 3.8 6 11.5 10 16.1 4 16.4 4 10.7 4 13.4 2 4.8 9

Aon KiwiSaver Russell Growth Fund 20 3.9 5 11.5 11 15.3 7 15.7 5 10.6 5 13.1 3 5.6 7

ASB Growth Fund 562 2.3 18 10.9 16 13.9 11 13.5 13 9.2 10 10.3 12 4.8 10

Company D 5 2.2 19 10.0 19 13.6 12 14.4 9 9.2 12 10.7 9

FirstChoice Active Growth Fund 10 2.3 16 11.4 12 14.7 9 14.1 10 8.4 17 9.8 16 4.6 12

FirstChoice Growth Fund 2 2.3 17 10.9 15 13.9 10 13.5 12 9.2 11 10.3 11 4.7 11

Fisher Funds TWO Growth 158 3.5 7 11.6 9 12.5 17 13.0 15 8.6 15 10.0 15 4.2 15

Grosvenor Balanced Growth 125 2.4 14 9.9 21 10.0 21 10.2 22

Grosvenor Geared Growth 4 2.9 9 12.3 6 13.4 13 12.9 16 6.7 19

Grosvenor High Growth 121 2.3 15 10.3 18 12.5 18 12.3 19 6.2 20 7.5 19 2.7 18

Grosvenor SRI Growth 12 1.7 20 9.5 22 7.7 22 10.6 21

Mercer High Growth 64 2.7 10 12.0 8 15.2 8 14.7 8 9.7 7 11.7 6 4.5 13

Mercer Super Trust Growth 11 2.5 13 11.0 14 13.2 15 12.8 17 8.9 13 10.6 10 4.8 8

Mercer Super Trust High Growth 7 2.7 11 12.0 7 15.3 6 14.7 7 9.6 8 11.5 7 4.5 14

Milford KiwiSaver Active Growth Fund 320 4.2 4 14.7 1 17.4 1 20.4 1 13.9 1 15.2 1 13.2 1

OneAnswer Growth Fund 208 4.7 1 13.3 3 16.6 2 17.1 2 11.7 2 12.7 4 6.9 3

Staples Rodway Growth Fund 10 2.6 12 11.1 13 11.6 20 12.1 20 8.8 14 10.0 14 8.1 2

Westpac Growth Fund 452 3.4 8 12.4 5 13.4 14 13.3 14 9.4 9 10.0 13 5.7 5

Minimum 1.3 9.5 7.7 10.2 6.2 7.5 2.7

Median 2.6 11.5 13.8 13.8 9.2 10.6 4.8

Maximum 4.7 14.7 17.4 20.4 13.9 15.2 13.2

Growth Fund Results

Returns are Gross of Tax & Net of Percentage-Based Fees as at 31 December 2014Asset Allocation for Fund Managers



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Growth Fund Returns (%pa) Gross of Tax and Net of Percentage-Based Fees over the Last Seven Years

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Top Quartile of Returns

Bottom Quartile of Returns

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Returns are Gross of Tax & Net of Percentage-Based Fees as at 31 December 2014 Returns are Gross of Tax & Net of Percentage-Based Fees as at 31 December 2014

FUM Last Last Last Last Last Last Last FUM Last Last Last Last Last Last Last

Fund ($m) Qtr Rk Yr Rk 2 Yrs Rk 3 Yrs Rk 5 Yrs Rk 6 Yrs Rk 7 Yrs Rk Fund ($m) Qtr Rk Yr Rk 2 Yrs Rk 3 Yrs Rk 5 Yrs Rk 6 Yrs Rk 7 Yrs Rk

(%) (%) (%pa) (%pa) (%pa) (%pa) (%pa) (%) (%) (%pa) (%pa) (%pa) (%pa) (%pa)

Aon KiwiSaver Milford 91.4 4.1 4 13.9 4 16.5 9 19.5 3 13.0 2 Grosvenor Capital Guaranteed 39.9 0.8 5

FirstChoice Active High Growth Fund 1.5 1.5 10 10.3 8 18.8 5 16.4 8 8.6 8 9.4 8 Grosvenor Enhanced Income 18.3 0.9 4 3.5 4 3.2 3 3.3 4 3.4 4 3.4 4 4.3 4

FirstChoice Global Sustainability 2.6 6.1 1 16.2 3 21.6 1 19.3 4 10.9 5 12.1 4 Grosvenor Options Fund 74.7 -0.7 6

Fisher Funds TWO Equity 50.3 4.3 3 13.2 6 14.8 10 13.7 10 8.1 9 9.8 7 2.2 6 Mercer Super Trust Fixed Interest 1.0 1.8 3 7.9 2 5.0 2 5.6 1 6.0 2 7.8 1 7.0 1

Grosvenor International Shares 6.0 1.6 9 9.6 10 17.3 8 14.1 9 OneAnswer NZ Fixed Interest 5.3 2.8 2 7.7 3 2.6 4 3.7 3 6.2 1 5.7 2 5.8 3

Grosvenor Trans-Tasman Shares 4.3 -3.9 12 1.4 12 -2.0 12 4.6 12 OneAnswer Int Fixed Interest 2.4 3.3 1 10.2 1 5.0 1 5.5 2 5.9 3 5.4 3 6.8 2

Mercer Super Trust Global 2.2 1.9 8 11.7 7 18.5 6 16.7 7 10.3 6 11.8 5 3.2 5

Mercer Super Trust Shares 2.1 2.6 7 13.6 5 19.1 4 18.2 5 11.2 4 12.9 3 4.6 4

Mercer Super Trust TransTasman 2.6 4.0 5 17.4 2 19.8 2 21.0 2 12.7 3 14.4 1 7.1 1 Please remember that these sector funds may invest their money in

OneAnswer Australasian Shares 19.7 5.4 2 21.4 1 19.8 3 21.1 1 13.1 1 14.3 2 6.8 2 very different ways and it is important when choosing an investment

OneAnswer International Shares 28.1 2.6 6 9.8 9 17.8 7 17.0 6 9.9 7 9.9 6 4.9 3 to understand exactly what you are investing in.

OneAnswer Sustainable Growth 3.0 0.9 11 8.5 11 14.6 11 12.4 11 6.4 10 6.7 9

Returns are Gross of Tax & Net of Percentage-Based Fees as at 31 December 2014 Returns are Gross of Tax & Net of Percentage-Based Fees as at 31 December 2014

FUM Last Last Last Last Last Last Last FUM Last Last Last Last Last Last Last

Fund ($m) Qtr Rk Yr Rk 2 Yrs Rk 3 Yrs Rk 5 Yrs Rk 6 Yrs Rk 7 Yrs Rk Fund ($m) Qtr Rk Yr Rk 2 Yrs Rk 3 Yrs Rk 5 Yrs Rk 6 Yrs Rk 7 Yrs Rk

(%) (%) (%pa) (%pa) (%pa) (%pa) (%pa) (%) (%) (%pa) (%pa) (%pa) (%pa) (%pa)

Mercer Super Trust Real Assets 1.3 4.7 3 12.6 3 13.3 3 11.9 3 9.2 3 12.2 3 3.1 3 AMP Cash Fund 65.3 1.0 4 3.6 2 3.4 1 3.4 1 3.5 1 3.6 1 4.4 1

OneAnswer Australasian Property 10.5 9.3 2 23.5 2 17.1 1 19.4 1 13.9 2 14.1 2 7.2 1 ANZ Cash Fund 199.0 1.0 2 3.6 4 3.2 9 3.1 8 3.0 8 2.9 8

OneAnswer International Property 6.7 12.2 1 28.4 1 16.5 2 18.7 2 15.6 1 17.1 1 5.4 2 ANZ Default Cash Fund 1.9 1.0 3 3.5 5 3.2 8 3.1 6 3.1 7 3.1 6 3.9 6

Aon KiwiSaver ANZ Cash Fund 3.4 0.8 13 2.9 13 2.6 13 2.6 13 2.7 13 2.7 13 3.4 11

Aon KiwiSaver Nikko Cash Fund 1.4 0.9 7 3.3 12 3.2 10 3.3 2 3.3 4 3.4 4 4.1 4

ASB - NZ Cash Fund 304.8 0.9 6 3.5 7 3.2 7 3.0 12 2.8 12 2.8 11 3.6 8

FirstChoice NZ Cash Fund 0.3 1.0 1 3.6 3 3.2 5 3.0 10 2.8 11 2.8 10 3.6 9

Fisher Funds TWO Preservation 23.5 0.9 9 3.5 6 3.3 3 3.3 4 3.2 5 3.2 5 3.9 5

Mercer Cash 9.6 0.9 8 3.4 9 3.2 4 3.1 5 3.5 2 3.5 2 4.2 2

Mercer Super Trust Cash 2.1 0.9 10 3.4 10 3.2 6 3.1 7 3.4 3 3.5 3 4.2 3

Please remember that these sector funds may invest their money in OneAnswer Cash Fund 22.3 0.9 5 3.5 8 3.1 12 3.0 11 2.8 10 2.8 12 3.5 10

very different ways and it is important when choosing an investment Staples Rodway Conservative 21.2 0.9 12 3.8 1 3.4 2 3.3 3 3.1 6 2.9 9 3.7 7

to understand exactly what you are investing in. Westpac Cash Fund 232.8 0.9 11 3.4 11 3.1 11 3.0 9 2.9 9 3.0 7 3.4 12

Property

Equities Fixed Interest / Other

Cash

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My fund hasn't performed very well. What should I do?

Past performance is no guarantee of future performance.

It is important that you understand what you are actually investing in because while there are many different funds available they won't all be suitable for you.

We believe it is important to show you each fund's asset allocation, so that you know how much is invested in equities, property, bonds and cash.

The performance of your fund will depend critically on how much it invests in each of these asset classes.

Some funds may be invested in only a few shares, some funds may be invested in hundreds of shares.

If you are concerned, then consult an independent investment advisor to help work out what is best for you.

The chart below shows the range of annualised returns over all the funds in our survey in the last 6 years. From the chart we can see that all of the funds earned money over the

previous 7 years.

Thirteen funds earned between 2% pa and 4% pa and one fund earned between 12% pa and 14% pa.

The returns in your survey are different than the returns my KiwiSaver Provider is reporting. What's going on?

We asked Providers to give us returns that are gross of tax and net of percentage-based fees. This means that, generally, all expenses should have been excluded from the reported returns.

We did this to make as fair a comparison as possible between unitised schemes and non-unitised schemes (mainly company superannuation schemes).

You should not use this survey to estimate your own return, which will be net of all fees, dependent on your PIR rate (10.5%, 17.5% or 28.0%) and affected by the timing

and amounts of your contributions.

Why aren't my Provider's returns in the survey?

There are many reasons, not just poor performance, why a Provider may have chosen not to include their returns.

For example, several KiwiSaver schemes have only a few members and aren't open to the general public.

If your Provider isn't in the survey, then encourage them to submit their returns for future surveys.

What do the coloured bands on the graphs represent?

The top quartile, or top 25% of funds surveyed, will be plotted in green on the graphs. The bottom quartile, or bottom 25% of funds surveyed, will be plotted in blue on the graphs.

I'm thinking of joining KiwiSaver but there are so many Providers and so many funds, where do I start?

You should consult an independent investment advisor to help work out what is best for you.

Frequently Asked Questions

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Distribution of KiwiSaver Returns over the last 7 Years

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AMP KiwiSaver Scheme

ANZ KiwiSaver Scheme The 2014 Budget made no changes to KiwiSaver. The last time KiwiSaver was changed was in 2011,

ANZ Default KiwiSaver Scheme when the 2011 Budget changed KiwiSaver with the aim of reducing the cost to the Government of the

Aon KiwiSaver Scheme then-current incentives. By maintaining the kick-start and only halving the member tax credits,

ASB KiwiSaver Scheme KiwiSaver still remains an attractive proposition for members.

FirstChoice KiwiSaver Scheme However, the changes to Employer's Superannuation Contribution Tax (ESCT) reduced the amount

Fisher Funds TWO KiwiSaver Scheme going to members' accounts and created more work for employers contributing to KiwiSaver schemes

Grosvenor KiwiSaver Scheme and superannuation schemes. These changes are covered in more detail below.

Mercer KiwiSaver Scheme

Milford KiwiSaver Plan

OneAnswer KiwiSaver Scheme ESCT rate changed

Staples Rodway KiwiSaver Scheme Up to 31 March 2011 Employer contributions to KiwiSaver schemes were tax free up to 2% of salary

Westpac KiwiSaver Scheme or wages. As part of the 2011 budget changes enacted, this exemption ceased from 1 April 2012

and employer contributions are now taxed at each employee's marginal tax rate, as follows:

ESCT threshold amount* Tax rate

$0 - $16,800 10.5%

$16,801 - $57,600 17.5%

$57,601 - $84,000 30.0%

$84,001 and over 33.0%

Company C These are private company KiwiSaver schemes *The ESCT threshold amount is the total of the employee's income plus

Company D that are not open to the general public the superannuation and KiwiSaver contributions made by the employer.

Member Tax Credits reduced

The amount of the Member Tax Credits (MTCs) reduced by half, meaning that members who contribute

at least $1,042.86 to their KiwiSaver scheme or complying superannuation fund each year will receive

MTCs of $512.43. MTCs are based on contributions made each year from 1 July to 30 June and the

reduction took effect in the 2011-2012 year.

Note:

Conservative Funds should have between 0% and 30% in growth assets, such as Equities and Property. KiwiSaver contribution rates increased

Moderate Funds should have between 31% and 45% in growth assets, such as Equities and Property. The minimum employee contribution rate to KiwiSaver schemes and complying superannuation funds

Balanced Funds should have between 46% and 70% in growth assets, such as Equities and Property. increased to 3% on 1 April 2013. This is now also the default contribution rate although members can

Growth Funds should have more than 71% in growth assets, such as Equities and Property. still elect to contribute at 4% or 8%. The employer contribution rate was also increased to 3% at the

same time.

List of Scheme Providers in Survey Latest KiwiSaver Changes

KiwiSaver and Superannuation Changes

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Greg Lee

Actuary & Principal

+64 9 362 9825

[email protected]

Contact information About Aon Hewitt

Part of Aon plc, Aon Hewitt is the global leader in human resource consulting and outsourcing solutions. Our services focus on helping organisations mitigate risk in their workforce and realise the untapped potential of their employees. We also help individuals maximise their wealth to enable people to live the life they want.

In New Zealand, our team of experts partner with your organisation to develop and deliver people strategies that achieve positive business outcomes in the areas of:

• KiwiSaver and superannuation administration

• Actuarial and Investment consulting

• Talent, leadership and employee engagement

• Remuneration and incentives

• Total rewards

• Health and benefits

• Global benefits

• Aon KiwiSaver Scheme

• Aon Master Trust

With more than 30,000 professionals in 90 countries, Aon Hewitt makes the world a better place to work for clients and their employees. Aon Hewitt is the global talent, retirement and health solutions business of Aon plc.

For more information on Aon Hewitt, please visit aonhewitt.co.nz.

Copyright 2015 Aon New Zealand The information used to compile this survey has been provided by the investment managers or is from publically available sources. The information is provided for general information purposes only. It is given without knowledge of your individual circumstances and should not be used as a substitute for you seeking your own independent professional advice. No liability will be accepted for loss resulting from reliance on information contained in this report which proves to be inaccurate and/or incomplete.

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