Section 3Description of your investment option(s)

UniSteps

Description: With UniSteps, the mix of growth and income assets changes automatically as you get older. UniSteps uses three investment options – Growth, Balanced and Conservative (see next page) – to transition your savings from predominantly growth assets to predominantly income assets over time. Up until age 45, all of your savings are invested in Growth. From then, the percentage of growth assets is reduced gradually as you age by investing your savings in accordance with this table. The investment mix changes on 1 November each year, not on your birthday or the anniversary of the date you joined UniSaver.

Objective: To reduce your allocation to growth assets progressively over time using Growth, Balanced and Conservative as ‘building blocks’.

UniSteps reduces your allocation to growth assets progressively over time using Growth, Balanced and Conservative as 'building blocks'.

Age 49

Age 54

Age 59

Age 64

Age 49

Age 54

Age 59

Age 64

Age 49

Risk category

Age 54

Age 59

Age 64

Age 49

4

Age 54

4

Age 59

4

Age 64

3

Age 49

Minimum suggested investment timeframe (years)

Age 54

Age 59

Age 64

Age 49

9

Age 54

7

Age 59

6

Age 64

4

Other options

Growth

Balanced

Conservative

Cash

Growth

Description: Invests predominantly in growth assets with a smaller percentage in income assets.

Objective: To provide net returns(1) of 2.75% above inflation over rolling 10-year periods. There is a reasonably small risk(2) of a member losing more than 15% in any year, with a current likelihood of a negative return of 1 year in every 4.

Balanced

Description: Invests in a balanced portfolio with a slight emphasis on growth assets.

Objective: To provide net returns(1) of 2.25% above inflation over rolling 7-year periods. There is a reasonably small risk(2) of a member losing more than 10% in any year, with a current likelihood of a negative return of 1 year in every 4.

Conservative

Description: Invests predominantly in income assets with a smaller percentage in growth assets.

Objective: To provide net returns(1) of 1.0% above inflation over rolling 3-year periods. There is a reasonably small risk(2) of a member losing more than 5% in any year, with a current likelihood of a negative return of 1 year in every 4.

Cash

Description: Invests fully in New Zealand cash.

Objective: To provide a return broadly in line with that of the S&P/NZX Bank Bills 90-Day Index after tax. There is a low risk of experiencing a loss in any one year, however returns may not keep up with inflation.

Growth

Balanced

Conservative

Cash

Growth

Risk category

Balanced

Conservative

Cash

Growth

5

Balanced

4

Conservative

3

Cash

1

Growth

Minimum suggest investment timeframe (years)

Balanced

Conservative

Cash

Growth

10

Balanced

7

Conservative

3

Cash

no minimum

Target asset allocations may not add to 100% due to rounding.

  1. After tax and investment expenses.
  2. Approximately 1 in 20 years.

Responsible investment, including environmental, social, and governance considerations, is taken into account in the investment policies and procedures of the scheme as at the date of this product disclosure statement. You can obtain an explanation of the extent to which responsible investment is taken into account in those policies and procedures at the issuer’s Internet site at unisaver.co.nz/responsible-investment-approach.

We may change the Statement of investment policy and objectives (SIPO) for the scheme from time to time without notifying you. We will notify you of any material changes to the SIPO, and a summary of material changes will also be included in the scheme’s annual report. See the scheme’s register entry at www.disclose-register.companiesoffice.govt.nz [external link] or www.unisaver.co.nz for a copy of the current SIPO.

Further information about the assets in the funds can be found in the fund updates at www.unisaver.co.nz.