|
|||||||||||||||||||||||||||||||||||||
Your employer can contribute more than the minimum, however, it will be subject to the Employer Superannuation Contribution Tax (ECST).
The earliest date on which funds can be accessed is the age of eligibility for New Zealand Superannuation (currently 65), except in special circumstances.
|
| ü | A $1,000 kickstart from the Government just for joining KiwiSaver |
| ü | Matching contributions from the Government of up to $20 per week ($1,040 per year) if you are over 18 |
| ü | Compulsory employer contributions - 2% from 1 April 2009 if you are over 18 |
Not bad, huh?
So don't delay, every week that goes by you may be missing out on another $20 and we are sure you don't want to be missing out any longer!
Fisher Funds sees KiwiSaver as a positive initiative. If you can afford to save an amount equal to 2% of your gross income, KiwiSaver is a very attractive retirement savings scheme. The tax and savings benefits from your employer and the Government are only available by joining KiwiSaver.
If you have not purchased a first home the government subsidy of up to $5,000 may also be worthwhile (conditions will apply) and you can withdraw your KiwiSaver savings (except for the Government's $1,000 kick-start and the tax credit amount) to help make up your deposit.
KiwiSaver is portable – you can change providers if you are not happy or want a different risk profile - and the fees charged by scheme providers must not be unreasonable and have to be approved by the Government Actuary (part of the Ministry of Economic Development).
If you have high interest debt – credit cards, hire purchase, personal loans, etc you may wish to pay these high interest debts off before joining KiwiSaver.
To determine the impact of KiwiSaver on your pay packet, complete the simple calculation below.
KiwiSaver Calculator
We believe the best way to grow the real value of your investment is to invest in growth assets.
Growing the real value of your investment is vitally important in any long term savings plan. Simply putting your money in the bank on term deposit is safe but will see the purchasing power of your investment reduce every year as up to 38% of the interest earned can be lost in tax.
Even a 2% improvement in average return per year makes a significant difference in the value of your savings at retirement. The graph below clearly illustrates how much of a difference a 2% improvement makes.
Historically shares have provided the best long term growth.
Fortunately, under NZ tax regulations, capital gains from the sale of shares in New Zealand companies and Australian resident companies included in the Australian All Ordinaries Index are not taxed, which helps to increase your return relative to income-focused investments.
The graph below illustrates the difference in the retirement value of a KiwiSaver investment based on returns that are 4.5% p.a. and 6.5% p.a. respectively. Historically the return on growth assets, such as shares, has been more than the return on more conservative investments such as bonds.
Results are simulated in this chart. This analysis assumes an investor starts saving at age 23 with an annual salary of $35,000. Their salary rises steadily at 3.5% p.a. until age 65 when they retire. Of this salary they contribute an after tax 4% to their KiwSaver Scheme and their employer contributes 2%. Two investment return assumptions are presented. One is an assumed return of 4.5% after tax and fees each year. The other is an assumed return of an additional 2% making a total return of 6.5% after tax and fees each year. All portfolio amounts are shown in today’s dollar terms.
Results are simulated in this chart. This analysis assumes an investor starts saving at age 23 with an annual salary of $35,000. Their salary rises steadily at 3.5% p.a. until age 65 when they retire. Of this salary they contribute an after tax 4% to their KiwSaver Scheme and their employer contributes 2%. Two investment return assumptions are presented. One is an assumed return of 4.5% after tax and fees each year. The other is an assumed return of an additional 2% making a total return of 6.5% after tax and fees each year. All portfolio amounts are shown in today’s dollar terms.
By presenting portfolio amounts in today’s dollar terms, we have stripped out the impact of inflation from the results, so as to compare purchasing power at retirement with today’s oprices for goods and services. Inflation is assumed to average 2%.
The assumed returns are illustrative only and do not reflect the actual or prospective performance of the Scheme or of any investment fund. The returns to members of the Scheme are subject to investment and other risks (including loss of income and principal invested) and no amount of returns is promised or guaranteed. Returns will vary depending on the investment performance of your chosen investment fund or funds.
Why choose Fisher Funds as your KiwiSaver provider?
Great question!
One of the great things about KiwiSaver is that you can choose your own provider. We firmly believe people should make an active choice and if you are looking for a KiwiSaver provider that has:
A strong track record
A straightforward and time tested investment strategy, and
A reputation for open and honest communication
Then you should seriously consider Fisher Funds.
Here are a few simple reasons why:
Great question!
One of the great things about KiwiSaver is that you can choose your own provider. We firmly believe people should make an active choice and if you are looking for a KiwiSaver provider that has:
A strong track record
A straightforward and time tested investment strategy, and
A reputation for open and honest communication
Then you should seriously consider Fisher Funds.
Here are a few simple reasons why:
- We are a specialist investment manager, channelling all our efforts into achieving investment returns. Our key staff own Fisher Funds – this means that our interests are directly aligned with yours.
- We have a straightforward approach. We simply invest in good quality, proven investments. When we tell you about our investments and why we've made them, you'll see that thye just make sense.
- We try to know more about our companies than any other investor. We visit them often, know them well, and in many cases, have owned them for a very long time.
- We choose our share investments company by company and only invest after we have completed a thorough analysis of each business, its competitors and its management. We believe that this thorough research approach minimises the risk of nasty surprises.
- Our approach has been time-tested over twenty years. We recognise that past performance is no guarantee of future results, however our investment style has been successful in good times and bad. Our KiwiSaver Growth Fund is the best performing KiwiSaver Growth Fund to 31/5/10 over one and two years (as reported by Morningstar).
- Open and honest communication = transparency. Since Fisher Funds establishment in 1998 we have found that investors appreciate knowing where their money is invested and why. We send a monthly newsletter keeping you up to date on where your savings are invested, the performance of each Fund and developments in KiwiSaver. Our website is updated regularly with latest unit pricing and material announcements and you can also access your KiwiSaver account online 24/7.
- Investment custody = security. All investments are held in the name of the Scheme by TEA custodians Limited (a subsidiary of Trustees Executors Limited, NZ's oldest trustee company). Trustees Executors Limited supervises over $29 billion of investor's assets.
Our mission is to make KiwiSaver easy for you from the day you join until long after you retire!
Our KiwiSaver investment approach - giving you flexibility
Fisher Funds has generated attractive long term returns over many years. We have done this by having a well thought out, disciplined investment approach.
The Scheme offers both a Conservative Fund and a Growth Fund, giving you flexibility as your investment needs change. You may choose either Fund or a combination of the two in any ratio you choose.
The Growth Fund seeks to grow the real value of your KiwiSaver savings by principally investing in the shares of growing New Zealand, Australian and International companies. This is the Fund that really differentiates our Scheme from other KiwiSaver providers. If you are seeking to achieve higher returns over the long term this is the core Fund to invest some or all of your KiwiSaver savings in.
The Conservative Fund has an emphasis on capital preservation, seeking secure investments to achieve returns better than bank term deposits over the long term. The Conservative Fund may invest in all or any of a range of different asset classes principally comprising cash, fixed interest, shares, infrastructure securities and property securities both in New Zealand and internationally.
Growth Fund investments
We favour small, growing companies
The Growth Fund focuses its investments in the shares of smaller, growing New Zealand, Australian and other International companies that have the potential for substantial business growth. Smaller companies tend to be overlooked and under-researched by other investors, giving us the opportunity to find some real gems. We also prefer smaller companies because they are usually easier to understand, compared with large multi-faceted corporations.
It is not our intention to buy shares in new or unproven companies, nor do we look for bargain stocks. We look for quality. Once we buy shares in a company, we generally hold them for the long term, unless the fundamental reason for buying no longer exists. After all, if you find a great business, why would you not want to hold on to that business forever?
History has shown that companies who consistently grow their profits will increase the value of their business and hence their share price over time. This is at the core of how Fisher Funds achieves attractive long term returns.
We strive to know more about our Portfolio companies than anyone else
We are close to all our Portfolio companies, visit them regularly and get to know the management teams well. We never invest in a company without first meeting the management and we pride ourselves on the relationships that we have established with the management teams of many successful businesses.
Our favourite companies will be our largest investments
We are stock pickers who invest in companies on the basis of their individual merits. The company that we like the most will have the largest position in the Fund. Our portfolios are concentrated, typically having between 10 and 20 stocks in each of New Zealand and Australia at one time and 30 to 40 internationally. We do not want too many holdings, diluting our efforts and knowledge, but we want enough to reduce the risk if something goes wrong. We believe there will always be companies that will do well, irrespective of the economy or market environment. We are constantly searching for these businesses.
We have the ability to invest in both listed and unlisted companies. However you can generally expect that at least 90% (by value) of the Growth Fund portfolio will be investments in listed companies. Although we like the idea of buying an unlisted company at a relatively low price, we are mindful that the listed environment gives us greater protection and ensures that we get regular information about each company.
Our investments favour smaller, growing companies. However if a company grows to become a large company, it is our intention that the Scheme will maintain its holding as long as it remains an attractive investment. If we find a company that otherwise meets all our criteria, we will not exclude it from the Portfolio based on size.
Conservative Fund investments
The Conservative Fund’s goal is to achieve returns better than bank term deposits over the long term. Its focus is on preserving your capital and protecting the purchasing power of your investments against inflation. The Conservative Fund may invest in cash, fixed interest, shares, infrastructure securities and property securities locally or internationally. The amount invested in each asset class will change when we think one asset class might be better than another. However, generally you can expect around 80% (by value) of the Conservative Fund portfolio to be invested in “income” assets such as cash and fixed interest, with around 20% invested in growth assets such as shares, infrastructure and property.
Which Fund is best for me?
Fisher Funds understands that every investor has different investment goals (and timeframes in which to achieve these) and varying appetites for risk. We have developed our Scheme to allow you to select or tailor a KiwiSaver investment strategy that meets your needs.
Before choosing your investment strategy, it is important that you think about your investment timeframe (how long you have to save until your retirement) and your investment goals (are you saving to buy your first home or growing your savings for retirement?).
We think growth assets such as shares are important, as most KiwiSaver members have a long time to save for their retirement. Historically, investing in growth assets has produced better long term returns than investing in other asset classes, minimising the impact of inflation over time on your savings.
If you are nearing retirement or saving for your first home, you may want to have a more conservative investment approach. Income assets such as cash and fixed interest typically produce more stable returns in the short term.
The diagram below has been designed to help you decide the best Fund/option for you.
This section is a guide only. If you have specific retirement needs, or are unsure about which Fund or strategy to choose, please see a financial adviser.
Current Unit Price (as at 01 September 2010)
Growth Fund: $1.0431
Conservative Fund: $1.0160
Growth Fund: $1.0431
Conservative Fund: $1.0160
Fund Size (as at 31 July 2010)
Growth Fund - $149.2
Conservative Fund - $3.1M
Fund Inception
Growth Fund - 1 October 2007
Conservative Fund - 12 June 2009
How have the funds performed as at 31 July 2010
How have the funds performed as at 31 July 2010
| Fund Pre-tax Returns |  One Month |
Three Months |
Six Months |
Twelve Months |
Two Years* |
Since Launch* |
| Growth KiwiSaver | 1.5% | - 5.8% | - 2.9% | + 9.9% | + 6.4% | + 0.5% |
|
Conservative KiwiSaver |
- 0.6% | - 0.1% | - 0.7% | + 1.1% | n/a | + 0.9% |
* Annualised return before tax and after fees
The above returns are based on the percentage change in the unit price of the fund for the period specified, they are not the returns individual investors will receive as this will depend on the prices at which units are purchased on the date of each individual contribution. Changes in the unit prices reflect changes in the market value of the assets of the fund. The above returns exclude government contributions and no allowance has been made for monthly administration fees. Returns displayed are after management fees but before tax.
Growth Fund Performance as at 31 July 2010
Graph illustrates cumulative increase in unit price (after fees and tax)
In short, very well.
KiwiSaver is a long term savings plan. Our investment approach is focused on generating meaningful investment returns over the long term.
When comparing returns it is important that you compare “apples with apples” i.e. schemes with similar investment strategies.
Morningstar has just released its quarterly KiwiSaver Performance Survey to 30/06/10 which can be viewed by clicking here. As you’ll see we rate amongst the top performing growth or aggressive schemes with the best returns over the two years to 30/6/10 for the KiwiSaver growth and aggressive categories.
A couple of Morningstar’s comments are worth highlighting and we have included them below:
"Looking out over two years is of course a better indicator of a fund manager's performance record. Over this period, AMP, Aon Russell, AXA and Mercer did well in the Conservative and Moderate categories. In the more growth (equities-heavy) categories Fisher Funds, ING and Mercer were the KiwiSaver options with the best results.
The next quarterly report will be the three-year anniversary of KiwiSaver. It's still early days, but given the upheaval in markets over this period, this will be a very interesting time to look at medium-term results."
Source: Morningstar Performance Survey to 30/06/10 dated 26/07/2010
To keep track of performance on a more regular basis the Sunday Star Times now has a weekly KiwiSaver facts and performance update in the Business section. Information is supplied by Morningstar.
You can either:
a. Complete our online application form, or
b. Contact our team on 0800 FFKIWI (0800 335494) or complete the form below to receive a KiwiSaver information pack:
b. Contact our team on 0800 FFKIWI (0800 335494) or complete the form below to receive a KiwiSaver information pack:
* indicates required fields
Complete and sign the Application Form (on pages 35-36 of the Investment Statement).
To view a sample completed Application Form click here.
Before sending in your Application Form, please be sure to do the following:
1. Read the How to Join section on pages 33-34 of the Investment Statement
2. Sign the Application Form
3. Include a copy of your identification as required
4. Keep a copy of your Application Form
1. Read the How to Join section on pages 33-34 of the Investment Statement
2. Sign the Application Form
3. Include a copy of your identification as required
4. Keep a copy of your Application Form
Return the original Application Form by post to:
Fisher Funds Management Limited
C/- Trustee Executors Superannuation Limited
PO Box 409
Wellington, 6140
Fisher Funds Management Limited
C/- Trustee Executors Superannuation Limited
PO Box 409
Wellington, 6140
If you are an employee, please ensure that you inform your employer that you have selected Fisher Funds as your KiwiSaver scheme provider, how much you want to contribute (i.e. 2%, 4% or 8%) and when you want your contributions to start. As you have dealt directly with Fisher Funds you do not need to complete the IRD’s KS2 form.
Please contact us on 0800 FFKIWI (0800 335 494) if you require any assistance completing the Application Form.
What happens next?
Once we have received your Application Form, we will send you written confirmation of your membership. You will also receive our monthly investor newsletter by email.
You and your employer will also receive written confirmation from the IRD that you have joined our scheme. Please be aware that there may be delays with the IRD process.
You can keep track of your balance and transactions via our online access facility which updates daily. The unit price for the Fisher Funds KiwiSaver Scheme is also updated on our website daily. You will also receive quarterly transaction statements and an Annual Report from the trustees of the Fisher Funds KiwiSaver Scheme.
All pages on this site © Fisher Funds Management Limited :: Developed: 3webfeet Limited