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| Welcome from the Chairman. |
The national Alert Level 4 lockdown in August was challenging for many and we want to especially acknowledge those members and their families who may still be stuck at home. We all hope for a sense of normality sometime soon, and a sunny summer ahead!
Despite the national lockdown in August, the New Zealand equity market returned 5.0% for the month and 4.9% over the September quarter. You can read more about recent financial market performance in this newsletter.
By now you should have received a copy of your personalised statement and annual report for the year ended 30 June 2021. This document includes a projected account balance (based on a number of assumptions that are published in the annual report), to help you see if you are on track to achieve the retirement lifestyle you want, or need to make any changes to reach your savings goals.
On behalf of the Trustee Directors, we wish you all a great summer and holiday season. |
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Bruce Kerr,
Chairman |
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| Scheme snapshot. |
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$384.1 million in accumulated retirement savings as at 31 October 2021 |
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4,227 members and 127 pensioners as at 31 October 2021 |
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175 new In-Tandem members between 1 July 2021 and 31 October 2021 |
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| Reduced investment fees for most investment funds.
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| The Scheme Trustee is in the process of changing the investment mix that will lead to lower fees in four investment funds. The removal of Alternative Assets from the majority of the Scheme’s investment funds will see that allocation spread amongst other growth asset classes including Australasian equities, International equities, and Real Assets. Scheme performance should not be materially impacted by the changes to the Strategic Asset Allocation (SAA) and the long-term performance objectives for each Fund remain unchanged. Here is a comparison of investment fees: |
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| Scheme Funds |
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Previous Fees |
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Fees after removal
of Alternatives |
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Difference |
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Cash Fund |
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0.14% |
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0.14% |
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0.00% |
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Defensive Fund |
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0.30% |
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0.29% |
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-0.01% |
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Moderate Balanced Fund |
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0.49% |
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0.42% |
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-0.07% |
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Growth Fund |
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0.59% |
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0.49%
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-0.10% |
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High Growth Fund |
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0.70% |
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0.57% |
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-0.13% |
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| Defined Benefit Fund |
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0.59% |
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0.49% |
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-0.10% |
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| The Product Disclosure Statement and the Statement of Investment Policy and Objectives have been updated to reflect the updated Strategic Asset Allocation (SAA) settings. |
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| Accessing your online account. |
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| Our new In-Tandem website that was launched earlier this year offers a new dashboard that shows your account balance, account summary, an option to download your annual confirmations, and recent account activity all in one place. Each section of the dashboard allows you to click through to find more details about each of the elements. You can also check and update your personal details, make changes to your investment options, and use a risk profiler to find out what level of investment risk you may be comfortable with and consider that with your current investment allocation. |
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| Investment market performance. |
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Quarter ended 30 September 2021
While the world grapples with the COVID-19 delta variant, there have been signs of life returning to some form of normal, with many developed countries starting to relax travel restrictions and social distancing measures. At quarter-end, over 6 billion vaccine doses have been administered, up from 3.1 billion j|ust three months ago. However, higher vaccination rates remain skewed toward more developed nations.
The broader New Zealand equity market returned an impressive 4.9% over the September quarter, with August the standout month featuring a 5.0% gain. This comfortably outperformed international shares, recouping some of the prior two quarters’ under-performance. Within global equities, US equities returned 0.6%, while Australian equites returned 1.7%;
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European equities fell 0.2% while Emerging markets was the weakest performer, falling 8.1% as a regulatory crackdown in China impacted multiple sectors including technology, real estate, and education.
China, the second largest economy in the world, has been facing several challenges with growth as it is tackles a power crisis stemming from coal shortages (coal makes up nearly 60% of China’s energy use) leading to curbs on power usage and a slowdown in its manufacturing sector, while the debt crunch at its largest real estate developer (and the world’s most indebted real estate developer), Evergrande, has now spilled over to the property sector.
Source: BT Funds Management
Date: 27 October 2021
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| How has your fund performed?
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| Investment performance as at
30 September 2021 after fees and tax. |
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3 months |
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1 year |
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3 years
(pa) |
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5 years
(pa) |
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| Cash Fund |
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0.1% |
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0.5% |
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1.0% |
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1.3% |
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| Defensive Fund |
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0.1% |
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2.3% |
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2.7% |
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2.7% |
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| Moderate Balanced Fund |
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0.2% |
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7.2% |
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5.1% |
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5.4% |
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| Growth Fund |
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0.2% |
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10.9% |
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6.5% |
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7.2% |
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| High Growth Fund |
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0.5% |
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16.8% |
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8.7% |
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10.0% |
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Returns are based on unit prices (determined by Mercer) for the respective funds.
Source: BT Funds Management |
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| What is your asset allocation? |
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| Your online account and member statement display what investment option(s) you have chosen, but do you know the underlying balance of growth assets verses income assets of your investments? The charts below show how the allocation of growth assets increases progressively from cash to high growth. The Product Disclosure Statement is the best source of information regarding your investments, and includes recommended timeframes for each investment option. |
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Online investing platforms transform attitudes
to investing. |
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| The Financial Markets Authority (FMA) great debate in early August 2021 focused on DIY investing. It is estimated that more than 250,000 New Zealanders are using online investing portals such as Sharesies, Hatch, and InvestNow, three-quarters of them aged 25-44. Eight out of 10 New Zealand investors have a more favourable view of investing and financial markets after using online investing platforms, according to research released by the FMA. The research shows that investing becomes “social”, with new investors more likely to be influenced by online forums and an emotional connection with a company’s brand than their financial reports and disclosures. The theme of the latest World Investor Week focused on ‘Investing FOMO? Take a Mo’ which encouraged DIY investors to carefully consider investing decisions by using the ‘Five D’s of DIY Investing’ and not be primarily influenced by the fear of missing out. |
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| Take time to korero. |
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| With everything that’s happening at the moment, how can we keep upbeat and feel good – including financially well? Sorted.org.nz recently published an article titled “For wellbeing, a short chat can go a long way” during the Mental Health Awareness Week. It’s well worth a read especially during this disruptive time due to the impact of the global pandemic and local lockdowns. |
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| Sorted turns 20! |
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| Since its inception in 2001, Sorted.org.nz has helped millions of Kiwis make sense of their money. They provide information and tools for budgeting, saving, investing, and retirement. Sorted.org.nz is one form of free financial advice available to you. |
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| Useful links and contacts.
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This document has been prepared by Mercer (N.Z.) Limited on behalf of the Trustee of the Westpac New Zealand Staff Superannuation Scheme. The information in this document is intended for general guidance only and is not personalised to you. It does not take into account your particular financial situation or goals. It is not financial advice or a recommendation.
We recommend that you read the product disclosure statement and take financial advice from a financial adviser before making any investment decisions. In addition, past performance cannot be relied upon as a guide to future performance.
This email was generated automatically, please do not reply to it as this email address is not monitored. This email, including any attachments, may contain confidential information and is intended for use by the named addressee only. If you are not the intended recipient of this email, you must not read, disclose, distribute, copy, store, print or use in any way the information this email or any attachment contains.
Click here to unsubscribe if you do not wish to receive further email communication about the Scheme.
© 2021 Mercer (N.Z.) Limited. |
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Westpac NZ will never ask you for your login details, such as usernames, passwords, or other security related information by email. If you believe you have received a Westpac NZ-related phishing email, report it by forwarding the email to address: phishing@Westpac.co.nz |
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