About the Scheme
What is the Automatic Fund?
The Automatic Fund is a life cycle investment option, which as you grow older will automatically and smoothly change your target investments to a more conservative investment mix.
The Automatic Fund has been designed solely for the purpose of retirement savings and is exclusive to members of the SuperEasy KiwiSaver Superannuation Scheme and SuperEasy employer scheme.
The investment objectives of the Automatic Fund are to achieve the optimum long term outcome by accepting a higher investment risk and return volatility in the early stages of a member’s working life as a trade for higher returns. When a member is younger, the Automatic Fund provides greater exposure to investments with the potential for growth such as overseas and New Zealand equities.
The Automatic Fund has target asset allocations which are set by the Scheme’s Trustee from time to time and which depend on the member’s age, with the initial allocation based on the age of the member when they enter the fund. Each month the members’ savings will be reviewed against the targets that are set out in the table below:
Within each of these asset classes, the current target asset allocation of the Automatic Fund has a range of investments including overseas equities (hedged and un-hedged), Trans-Tasman equities, property, overseas and New Zealand fixed interest securities and cash. The target asset allocation of the Automatic Fund are set out in the table below:
|Asset Class||Product||Age 20||Age 40||Age 60||Age 80|
|NZ equities||Harbour NZ Index Shares Fund||20.0%||17.5%||12.5%||5.0%|
|Int. equities||ANZ Wholesale International Share Fund Number 5||48.7%||29.2%||15.1%||5.0%|
|ANZ Wholesale International Share Fund Number 5 (Hedged)||16.3%||15.8%||12.4%||5.0%|
|Global listed property||Harbour Real Estate Investment Fund||10.0%||12.5%||15.0%||10.0%|
|Total Growth Assets||95.0%||75.0%||55.0%||25.0%|
|NZ fixed interest||ANZ NZ Fixed Interest Strategy *||1.0%||8.0%||20.0%||30.0%|
|Int. fixed interest||ANZ International Fixed Interest Strategy **||2.0%||12.0%||20.0%||15.0%|
|Cash||ANZ Wholesale Cash Fund||2.0%||5.0%||5.0%||30.0%|
|Total Income Assets||5.0%||25.0%||45.0%||75.0%|
* The ANZ NZ Fixed Interest Strategy invests 50% into the ANZ Wholesale Sovereign Bond Fund and 50% into the ANZ Wholesale High Grade Bond Fund.
** ANZ International Fixed Interest Strategy invests 50% into the ANZ Wholesale International Sovereign Fund and 50% into the ANZ Wholesale International Credit Fund.
The Automatic Fund will automatically reduce investment risk as you get older and removes the need to continually reassess your investment strategy. Each month as you get older the Automatic Fund is designed to smoothly reduce your investment risk by reducing your target proportion of investments in growth assets (eg shares) and increasing your target proportion of investments in income assets (eg fixed interest investments). This reduces the need to recover from any short-term losses and provides you with greater stability as you approach or are in retirement.
Harbour Asset Management Limited and ANZ New Zealand Investments Ltd jointly currently manage the underlying assets in the Automatic Fund.
Harbour Asset Management Limited
As at 30 April 2021 Harbour Asset Management Limited has over $6 billion of funds under management.
ANZ New Zealand Investments Limited
ANZ New Zealand Investments Limited (ANZ Investments) is one of New Zealand's largest fund managers and manages more than $35 billion in investments as at 30 June 2021. ANZ Investments form part of ANZ Group and their investment business has operated in New Zealand since 1989.
If you would like more information on any aspect of this fund, this is available in the SuperEasy KiwiSaver Superannuation Scheme Product Disclosure Statement, Statement of Investment and Policy Objectives, and the Scheme's register entry, all available at www.disclose-register.companiesoffice.govt.nz.