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| Hi <first name> |
| Welcome to the first edition of SuperNews for 2024. |
| In this edition, we will share an important update
on the Scheme, including a name change and new
benefits that are available to members from
1 March 2024. Additionally, we will provide a detailed
market update and returns information. There is
also a reminder for members to update their contact
details for any future communications in case their
preferences have changed recently. |
| We would like to acknowledge our dedicated
members at Fire and Emergency New Zealand,
who have worked tirelessly responding to the recent
fire at Port Hills. Thank you for your unwavering
commitment towards communities around
New Zealand. |
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| At a glance |
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Enhancements to
FireSuper from
1 March 2024 |
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| Enhancements to FireSuper from 1 March 2024 |
| As communicated to all members on 4 March, amendments designed to
modernise the Trust Deed have now been finalised and the new Trust Deed
came into effect from 1 March 2024. |
| Here is a summary of the changes: |
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Name change: The Scheme is now officially known as “FireSuper”
(previously “New Zealand Fire Service Superannuation Scheme”). |
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New benefits: We have introduced new early access facilities to provide
members with improved flexibility in certain circumstances. The first three are
KiwiSaver-consistent early access facilities, each of which is subject to terms and
conditions like those applying to a KiwiSaver scheme: |
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First Home Purchase: Members can now apply to withdraw their FireSuper
funds to buy their first home. |
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Significant Financial Hardship: Members can now access their FireSuper
funds in cases of significant financial hardship. |
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Life-Shortening Congenital Conditions: Members can now apply to access
their FireSuper funds if they suffer from a life-shortening condition which is
congenital (meaning one they were born with). |
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Specified Financial Hardship: Members can also now apply to access up
to half their Regular Section balance from FireSuper if they suffer property
destruction or damage, or incur costs, due to a natural disaster or pandemic
illness resulting in a state of emergency. |
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| You can learn more about these new rules and other amendments to the Trust
Deed in FireSuper's latest Product Disclosure Statement (PDS) and Other Material
Information document (OMI), available both on the FireSuper website and the Disclose website. If you have any questions about the changes to FireSuper, please
email the Secretary at nzfire.super@mercer.com or call the Helpline on 0800 MY
SUPER (0800 69 78737). We're here to help! |
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| Market update |
| Global markets have exceeded expectations in 2023, thanks
in large part to the mega-cap technology stocks known as
the Magnificent Seven (Apple, Microsoft, Amazon, Alphabet,
Facebook, Tesla and Nvidia). Investor sentiment has shifted
from “a recession is coming” to “a soft landing is around the
corner.” Our market psychology index indicates high investor
optimism, even though market gains have been concentrated.
Too much optimism can make the markets more vulnerable
to overcorrections. Our outlook for 2024 is more cautious due
to restrictive monetary policy, slowing growth, and geopolitical
tensions. |
| The New Zealand outlook is mixed. Monetary policy is tight
and is likely to remain that way for some time. However,
aggregate demand should be supported through 2024 by a
notable pickup in population growth. The recent change in
government from the October election results will likely see
fiscal policy become less supportive over the second half
of 2024, but there is still uncertainty given the National/ACT
coalition of political parties did not get a majority. New Zealand
bonds look slightly cheap. |
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| Source: Russell Investments | Date: 19 February 2024 |
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| FireSuper returns |
| (Cumulative year-to-date interim returns) |
| The chart below shows the earning rates for each investment option over the fiscal
year-to-date period (from 1 April 2023 through to 31 January 2024), and returns
over the long-term; 1, 3, 5 and 10 years. The returns are net of fees and tax. The
Life Cycle option uses the Growth, Balanced and Conservative options as building
blocks and progressively reduces members’ risk/return profile over time. |
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| You can find the latest earning rates and general information about how financial
markets are performing on the FireSuper website. |
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| The Life Cycle option |
| Life Cycle is an investment option that automatically
adjusts (downwards) the allocation to growth assets
as members get closer to retirement age. This option
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, you are fully invested in the Growth
option (with target exposures of 85% to growth assets,
and 15% to fixed interest and cash). Over the next 20
years, your risk/return profile is progressively reduced
to the point of being fully invested in the Conservative
option (with target exposures of 20% to shares, and
80% to fixed interest and cash) from age 64. |
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Benefits of the Life Cycle option: |
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Simplified investment approach: It simplifies the investment process for
members by eliminating the need to actively manage their portfolio and make
frequent investment decisions. |
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Diversification: It typically includes a mix of different asset classes, such as
stocks, bonds and cash, which helps to spread the investment risk. Diversification
can help reduce the impact of market volatility on the portfolio and potentially
enhance returns over the long-term. |
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Age-appropriate asset allocation: It adjusts the asset allocation mix as the
investor gets closer to their target retirement date. |
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Risk management: It takes into account the member’s risk tolerance (based
on age and how close they are to retirement) and adjusts the asset allocation
accordingly. |
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Automatic rebalancing: It automatically rebalances the portfolio at regular
intervals to maintain the target asset allocation. This ensures that the portfolio
stays aligned with the member’s risk profile and investment objectives, even as
market conditions change. |
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Long-term focus: It is designed for long-term investing, particularly for retirement
savings. By following a disciplined investment approach and staying invested over
the long-term, members may have the opportunity to benefit from the power of
compounding interest and potentially achieve their financial goals. |
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It's important to note that while the Life Cycle option offers many benefits, it may
not be suitable for all members. It's always recommended to consult with a financial
adviser to determine the most appropriate investment strategy based on individual
circumstances and goals. To help you clarify your own attitude to risk, you can work
out your risk profile at www.sorted.org.nz/tools/investor-kickstarter. |
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If you’d like to switch to the Life Cycle option, log in to www.firesuper.org.nz, click
‘Investments’, and ‘Edit’. Your first switch in FireSuper’s financial year (1 April – 31
March) is free, with any subsequent switches incurring a fee. You can learn more in
the ‘Life Cycle Investment Option’ fact sheet or by calling the Helpline on 0800 MY SUPER (0800 69 78737) for more information. |
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| Want to stay updated? |
| As we enter a new year, it’s a great opportunity to review
and customise how you receive essential FireSuper
information and updates. |
| Email remains the most reliable and efficient channel for
staying informed. It is important to note that not all updates
from FireSuper use a post channel. Take this opportunity
to review your communication preferences for various
communications, ensuring you receive important updates
directly to your email inbox. |
| If you want to make any changes to your preferences, simply
log in to your account, click on your picture/avatar at the top
right, select ‘Personal Details’, ensure your email address is
entered, scroll down to ‘Communication Preferences’, then
select the ‘view/update’ button. |
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This email was sent from a mailbox that is not monitored so please do not reply to this email address. This email including any
attachments may be confidential and are intended for use by the intended recipient only. If you are not the intended recipient of this
email, you must not read, disclose, distribute, copy, store, print or use the information or attachment(s) contained in this email. If you are
not the intended recipient, please call us on 0800 MY SUPER (0800 69 78737) and delete or destroy all copies of the message and any
attachment(s).
Furthermore, the information contained in this publication is intended for general guidance only and is not personalised to you. It does
not take into account your particular financial situation or goals, and it is not financial advice or a recommendation. We recommend that
you read the Product Disclosure Statement (PDS) and take financial advice before making any investment decisions. In addition, past
performance cannot be relied upon as a guide to future performance and returns.
This document has been prepared by Mercer (N.Z.) Limited (Mercer) on behalf of the Trustee. |
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