Annual Report 2019

The Retire Fund

Scheme snapshotas at 31 March 2019

Contributions

Member and Employer contributions

$1,400,815

Withdrawals

Total benefit payments

$2,462,822

Fund size

Value of investments

$20,172,909

Income

Investment income before expenses

$1,511,718

Average age

Average age of all members

64

Members

Total members

273

Gross return

Conservative Pool

3.3%

Gross return

Balanced Pool

8.7%

iv The Retire Fund

vAnnual Report 2019

ContentsMessage from the Board 1

Details of Scheme 2

Information on contributions &scheme participants 2

Changes relating to the Scheme 3

Other information for particular types of managed funds 3

Changes to persons involved in the scheme 4

How to find further information 4

Contact details and complaints 5

1Annual Report 2019

The New Zealand Anglican Church Pension Board (the Board) is pleased to present the Annual Report of The Retire Fund for the year ended 31 March 2019.

We are delighted to report that it was another solid year for the investments of the Fund. The Fund’s growth assets (shares, private equity and forests) provided very good returns, while the returns from income assets (bonds, mortgages and cash) were more modest, as expected.

The Balanced Pool is invested in a mixture of growth and income assets. The Conservative Pool invests only in income assets. At year end 89.5% of members’ funds were invested in the Balanced Pool.

Returns before tax and expenses for the year, and the last five years’ average, were:

Pool 1 year 5 years

Conservative 3.3% 4.8%

Balanced 8.7% 8.2%

Although the Fund is closed to new members, we are seeing many members continuing to contribute, either by regular or occasional lump sum payments. There are 18 organisations also contributing on behalf of their members.

For those in the Fund, it remains a useful savings vehicle, both leading up to age 65 and afterwards. An important feature is that members aged 65 and over can both continue to add to their funds and take regular or one-off partial drawdowns from their funds.

Membership decreased by 16, with the reasons for exit being leaving the service of their employer, having reached the age of 65, or death.

Thank you for your continued support of The Retire Fund.

Yours in Christ,

The Very Reverend Lawrence KimberleyChairperson

Brendan O'DonovanLicensed Independent Trustee

Message from the BoardDear Friends

2 The Retire Fund

Annual reportFor the period 1 April 2018 to 31 March 2019.

Details of SchemeThe scheme name is The Retire Fund (the Fund). The participating party section of the Fund is a restricted workplace savings scheme; and the private member section of the Fund is a legacy scheme. The Manager is The New Zealand Anglican Church Pension Board. As the Fund is a restricted scheme, its Supervisor is the Financial Markets Authority. The Fund is not open to new members. Consequently, there is no Product Disclosure Statement. The fund updates for the Conservative Pool and Balanced Pool for the year ended 31 March 2019 were issued on 28 June 2019.

The financial statements of the Fund as at 31 March 2019, and the auditor’s report on those financial statements, have been lodged with the Registrar. They are available electronically by visiting disclose-register.companiesoffice.govt.nz, selecting Search schemes and entering the Fund’s name.

Information on contributions and scheme participantsNumerical changes in membershipThe Fund’s membership decreased by 16 members from 289 to 273 during the Fund year.

Members at 1 April 2018 289

Retirements -7

Resignations -5

Deaths -4

Members as at 31 March 2019 273

Membership 1 April 2018 31 March 2019

Contributing members 126 124

Non-contributing members 163 149

Total members 289 273

Member Accumulations 1 April 2018 31 March 2019

Total accumulated funds $19,998,326 $20,122,984

Number of members 289 273

ContributionsDuring the year ended 31 March 2019, the total amount of contributions received by the Fund was $1,400,815.

Number of members $

Member contributions 60 183,348

Employer contributions 77 215,700

Member voluntary additional contributions 50 1,002,584

3Annual Report 2019

Changes relating to the Scheme Trust DeedThere were no changes to the Trust Deed during the year ending 31 March 2019.

SIPOThe Fund’s Statement of Investment Policy and Objectives (SIPO) was amended on 20 June 2018 and effective from 1 July 2018. The Fund invests in the NZACPB Investment Trust. The amendment increased the maximum percentage of the NZACPB Investment Trust’s funds that can be invested in mortgages from 10% to 12.5%.

Related Party TransactionsThere were no Related Party Transactions during the year ending 31 March 2019.

Other information for particular types of managed fundsDuring the year 66 members made a withdrawal that was permitted under the Financial Markets Conduct Act and the Trust Deed. These withdrawals include partial drawdowns and full payments made to a member, and different types of withdrawals to the same member.

Withdrawal type Number of members

Retirement 51

Resignation 13

Death 4

After allowing for administration costs and tax, based on the member’s Prescribed Investor Rate (PIR), the earning rates declared for each quarterly period to the year ended 31 March 2019 were:

Quarter ending Investment Pool 10.5% PIR 17.5% PIR 28% PIR

30 June 2018Conservative Pool 0.03% 0.02% 0.02%

Balanced Pool 3.29% 3.32% 3.38%

30 September 2018Conservative Pool 0.27% 0.24% 0.21%

Balanced Pool 2.56% 2.55% 2.53%

31 December 2018Conservative Pool 0.35% 0.33% 0.25%

Balanced Pool -4.16% -4.22% -4.30%

31 March 2019 Conservative Pool 1.58% 1.55% 1.30%

Balanced Pool 5.29% 5.16% 4.96%

Where earnings needed to be allocated between quarters (e.g. a total withdrawal of a retirement benefit) then an interim rate was applied. The Trustee’s policy is that the interim rate for each investment pool is the average return of the previous 20 quarters, unless otherwise determined by the Trustee. The interim rates for each quarter were as follows:

4 The Retire Fund

Quarter ending Investment Pool 10.5% PIR 17.5% PIR 28% PIR

30 June 2018Conservative Pool 0.80% 0.74% 0.65%

Balanced Pool 1.61% 1.56% 1.48%

30 September 2018Conservative Pool 0.78% 0.72% 0.63%

Balanced Pool 1.68% 1.64% 1.57%

31 December 2018Conservative Pool 0.00% 0.00% 0.00%

Balanced Pool -4.50% -4.50% -4.50%

31 March 2019 Conservative Pool 0.76% 0.70% 0.61%

Balanced Pool 1.41% 1.38% 1.32%

Manager’s StatementThe Board, as Manager of the Fund, states that:

» all contributions required to be made to the Fund in accordance with the terms of the Trust Deed have been made;

» all benefits required to be paid from the Fund in accordance with the terms of the Trust Deed have been paid; and

» the market value of the property of the Fund as at 31 March 2019 exceeded the total value of benefits that would have been payable had all members of the Fund 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 2019.

Changes to persons involved in the schemeIn May 2018 Merv Gaskin retired from the Board and was replaced by Kerry Burridge.

In January 2019 Tracey Chong commenced as the Board’s Finance Manager. She replaced Lisa Dobbie.

How to find further informationYou can obtain a copy of the Trust Deed, the Fund’s latest audited financial statements or the Statement of Investment Policy and Objectives, electronically (and free of charge), by visiting companiesoffice.govt.nz/disclose, selecting Search schemes and entering the Fund’s name.

You can obtain a copy of those documents (or an estimate of your benefits) free of charge by writing to the Manager as follows:

Funds Administrator The New Zealand Anglican Church Pension Board PO Box 12 287 Wellington 6144

5Annual Report 2019

Contact details and complaints

If you have an enquiry, you can contact the Manager as follows:

Write to: Funds Administrator The New Zealand Anglican Church Pension Board PO Box 12 287 Wellington 6144

Phone: 04 473 9369

Email: office@acpb.org.nz

If you have a complaint about the operation of the Fund, please contact us (as above). If we cannot resolve your concerns then you can make a formal written complaint.

Write to: Chairperson of the Board (Confidential) The New Zealand Anglican Church Pension Board PO Box 12 287 Wellington 6144

If you are not satisfied with our response to your complaint you can refer your concerns to the independent approved dispute resolution scheme:

Write to: Financial Services Complaints Limited PO Box 5967 Lambton Quay Wellington 6145

Phone: 0800 347 257

Web: www.fscl.org.nz

Email: info@fscl.org.nz Neither we nor Financial Services Complaints Limited will charge you a fee to investigate or resolve a complaint.

You can also contact the Supervisor with an enquiry or complaint:

Write to: Financial Markets Authority PO Box 106 672 Auckland 1143

Phone: 0800 434 566

Please note there is no statutory ombudsman for this Fund.

6 The Retire Fund

Issued by The New Zealand Anglican Church Pension Board.A Product Disclosure Statement is available from the website.

04 473 9369www.acpb.org.nz