Section 3Description of your investment option(s)
Growth |
Risk indicator |
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Description: Invests in a diversified portfolio of predominantly growth assets with a smaller percentage in income assets. Objective: To provide a long-term (10 years plus) return¹ of 3.5% p.a. above inflation. There is a reasonably small risk² of a member losing more than 12.0% in any year, with a current likelihood of a negative return of 1 year in every 4. Minimum suggest investment timeframe - 10 years |
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Growth (Lower Carbon) |
Risk indicator |
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Description: Invests predominantly in global shares with specific exclusions related to fossil fuels, plus a smaller percentage invested in global fixed interest. This option has a lower carbon exposure than Growth.* Objective: To provide a long-term (10 years plus) return¹ of 3.25% p.a. above inflation. There is a reasonably small risk² of a member losing more than 11.5% in any year, with a current likelihood of a negative return of 1 year in every 4. Minimum suggest investment timeframe - 10 years |
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Balanced |
Risk indicator |
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Description: Invests in a diversified portfolio balanced between growth and income assets. Objective: To provide a long-term (10 years plus) return¹ of 3.0% p.a. above inflation. There is a reasonably small risk² of a member losing more than 8.0% in any year, with a current likelihood of a negative return of 1 year in every 4. Minimum suggest investment timeframe - 7 years |
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Conservative |
Risk indicator |
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Description: Invests in a diversified portfolio of predominantly income assets with a smaller percentage in growth assets. Objective: To provide a long-term (10 years plus) return¹ of 2.0% p.a. above inflation. There is a reasonably small risk² of a member losing more than 2.5% in any year, with a current likelihood of a negative return of 1 year in every 6. Minimum suggest investment timeframe - 3 years |
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Cash |
Risk indicator |
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Description: Invests fully in New Zealand cash. Objective: To provide a return broadly in line with that of the Bloomberg NZBond Bank Bill Index after tax. There is a low risk of experiencing a loss in any one year. However, returns may not keep up with inflation. Minimum suggest investment timeframe - no minimum |
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- After tax and investment expenses.
- Approximately 1 in 20 years.
*See footnote 5 on page 3.
Target asset allocations
Asset class |
Growth % |
Growth (Lower Carbon) % |
Balanced % |
Conservative % |
Cash % |
|---|---|---|---|---|---|
|
New Zealand cash |
2.0 |
0.0 |
2.0 |
20.0 |
100.0 |
|
New Zealand fixed interest |
4.0 |
0.0 |
10.0 |
15.0 |
0.0 |
|
Global fixed interest ($NZ hedged) |
10.0 |
20.0 |
30.5 |
45.0 |
0.0 |
|
Global high yield ($NZ hedged) |
6.5 |
0.0 |
4.5 |
0.0 |
0.0 |
|
Total income assets |
22.5 |
20.0 |
47.0 |
80.0 |
100.0 |
|
Global listed property ($NZ hedged) |
4.5 |
0.0 |
3.0 |
1.0 |
0.0 |
|
Global listed infrastructure ($NZ hedged) |
6.5 |
0.0 |
4.5 |
2.0 |
0.0 |
|
Global equities ($NZ hedged) |
25.75 |
0.0 |
17.5 |
6.5 |
0.0 |
|
Global equities (unhedged) |
25.75 |
80.0 |
17.5 |
6.5 |
0.0 |
|
Australasian equities |
15.0 |
0.0 |
10.5 |
4.0 |
0.0 |
|
Total growth assets |
77.5 |
80.0 |
53.0 |
20.0 |
0.0 |
|
Total |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
UniSteps
Description: UniSteps uses three investment options – Growth, Balanced and Conservative – to transition your savings from predominantly growth assets to predominantly income assets over time. Up until age 45, all of your savings are invested in Growth. From then, the percentage of growth assets is reduced gradually as you age by investing your savings in accordance with this table. The investment mix changes on 1 November each year, not on your birthday or the anniversary of the date you joined UniSaver.
Objective: To reduce your allocation to growth assets progressively over time using Growth, Balanced and Conservative as ‘building blocks’.
Target asset allocations
Asset class |
Age 49 |
Age 54 |
Age 59 |
Age 64 |
|---|---|---|---|---|
|
New Zealand cash |
2.0 |
2.0 |
7.6 |
13.9 |
|
New Zealand fixed interest |
6.9 |
9.8 |
11.6 |
13.3 |
|
Global fixed interest ($NZ hedged) |
19.8 |
29.7 |
35.0 |
40.1 |
|
Global high yield ($NZ hedged) |
5.5 |
4.6 |
3.1 |
1.5 |
|
Total income assets |
34.3 |
46.0 |
57.2 |
68.8 |
|
Global listed property ($NZ hedged) |
3.8 |
3.1 |
2.4 |
1.7 |
|
Global listed infrastructure ($NZ hedged) |
5.5 |
4.6 |
3.7 |
2.9 |
|
Global equities ($NZ hedged) |
21.8 |
17.85 |
14.1 |
10.25 |
|
Global equities (unhedged) |
21.8 |
17.85 |
14.1 |
10.25 |
|
Australasian equities |
12.8 |
10.7 |
8.5 |
6.2 |
|
Total growth assets |
65.7 |
54.0 |
42.8 |
31.2 |
|
Total |
100.0 |
100.0 |
100.0 |
100.0 |
Responsible investment, including environmental, social and governance factors, is considered in the investment policies and procedures of the scheme as at the date of this PDS. For further information, see unisaver.co.nz/responsible-investment-approach. See the SIPO for detail on the exclusion criteria that underpin the Growth (Lower Carbon) investment option.
We may change the SIPO for the scheme from time to time without notifying you. However, we will notify you of any material changes in the SIPO, and a summary of material changes will be included in the scheme’s annual report.
See the scheme’s register entry at disclose-register.companiesoffice.govt.nz [external link] or 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 unisaver.co.nz.