AS KIWI AS…

Saving for retirement the Kiwi way

Mercer KiwiSaver scheme Annual Report 2017

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MESSAGE FROM MARTIN

This year has certainly been eventful in New Zealand and globally.
Now is a great time to reflect on a few of the milestones we achieved together.

Scheme Snapshot

as at 31 March 2017

  • 96,807

    members

  • $16,253

    average member balance

  • $399

    average member tax credit

  • $1.57 B

    invested

  • 23%

    made an active investment choice

  • 75%

    contributed during the year

Contributions

Contributions are what helps you grow your retirement savings and contributions to your account can come from you, your employer and from the Government.

HOW CONTRIBUTIONS WORK

  • You can choose to contribute 3%, 4% or 8% from your before-tax salary or wages.
  • You can also make voluntary additional contributions directly to the Mercer KiwiSaver scheme from your online banking. This is great if you are self-employed or are on a contributions holiday and want to maximise your member tax credits. This is also an option for children in the scheme.

  • Employers must contribute a minimum of 3% of your before-tax salary or wages, but may also contribute at other rates. An employer contributes only when you are contributing from your pay and you are aged between 18 and 65.
  • The Government may contribute to your account through member tax credits, if you’re eligible.

 

Information on contributions

Information on contributions
and scheme participants

All of the membership and other information in this section is shown as at 31 March 2017.

The total amount of members’ accumulation, at the start of the year, relating to 99,303 members was $1,397,937,118.

The total amount of members’ accumulation, at the end of the year, relating to 96,807 members was $1,573,494,335.

Number of contributing members at the start of the year was 58,585 and at the end of the year 56,296.

Number of non-contributing members at the start of the year was 40,718 and at the end of the year 40,511.

  • Membership Details

    MEMBERSHIP DETAILS Total number of members
    Total Membership at 1 April 2016 99,303
    Plus New Members 7,821
    Members transferring from other schemes 119
    Less Retirement 685
    Death 198
    Transfers to other KiwiSaver schemes 8,913
    Transfers to Australian Super schemes 3
    Other exits 637
    Total Membership at 31 March 2017 96,807
  • Withdrawals

    Withdrawals Number of members Total amount
    Retirement 1,717 $21,407,921.39
    Transfers to other KiwiSaver schemes 8,913 $104,061,536.08
    Other Benefits 546 $679,869.64
    Death and serious illness 212 $3,457,128.12
    Significant financial hardship 412 $2,000,164.50
    First home withdrawal 975 $20,139,476.08
    Permanent emigration 96 $1,411,587.92
    Transfers to Australian superannuation schemes 3 $57,087.20
    Total withdrawals as at 31 March 2017
    12,874 $153,214,770.93
  • Contributions

    TYPE Number of members Total amount
    Member contributions 72,645 $125,682,455
    Member voluntary additional contributions $38,763,048
    – General member voluntary additional contributions 4,463 $12,108,535
    – Transfer- in contributions 404 $12,160,704
    Employer or other sponsor contributions $103,148,599
    – Employer contributions 72,412 $76,546,255
    – Member tax credits 66,627 $26,602,344
    Total contributions as at 31 March 2017 $253,100,293
  • Unit Prices

    *Opening price as at 1 April 2016, is the closing price on 31 March 2016.
    UNIT PRICES At 1 April 2016* At 31 March 2017
      28% PIR 17.5% PIR 10.5% PIR 28% PIR 17.5% PIR 10.5% PIR
    Mercer Shares 1.0362 1.0334 1.0392 1.1658 1.1695 1.1801
    Mercer High Growth 1.1979 1.2412 1.5931 1.331 1.3884 1.7871
    Mercer Growth 1.0327 1.0359 1.0422 1.131 1.141 1.152
    Mercer Balanced 1.2833 1.328 1.5024 1.377 1.4321 1.6248
    Mercer Moderate 1.0361 1.0378 1.0433 1.0892 1.095 1.1039
    Mercer Conservative 1.4109 1.459 1.4001 1.4674 1.5217 1.4628
    Mercer Cash 1.2726 1.3176 1.1991 1.2931 1.3418 1.223

SOCIALLY RESPONSIBLE INVESTMENT UPDATE

At Mercer, our mission is to make a difference in people’s lives. We strive to “Make Tomorrow, Today” by helping our clients and customers advance their health, wealth and careers. We believe a sustainable investment approach is more likely to create and preserve long-term investment capital.

As part of this, Mercer has updated our Responsible Investment Policy, which covers Sustainable Investment, Ethical Investment and Corporate Governance. This policy is available for downloading here.

We have worked extensively with our Responsible Investment Team, Clients and Board to broaden the ethical exclusions component of the policy.

 

What has changed? Read the policy

WHAT HAS CHANGED?

A robust framework has been developed which will see Mercer divest from companies we believe could cause substantial and irreparable harm to society and the environment. This will include companies manufacturing tobacco products, in addition to the existing exclusions for controversial weapons.

We consider a range of criteria when making this assessment, including whether the risk/return implications of excluding such companies is expected to be significant.

CHANGES RELATING TO THE SCHEME

Trust Deed

There were no amendments to the trust deed during the year.

Statement of Investment Policy and Objectives
of the scheme

A section on risks was removed as key risks have been summarised in a separate document
called Risk Summary available at the Companies Office website and benchmark indices were updated to reflect index name changes.

Terms of Offer of Interests in the Scheme

There have been no changes to the terms of offer of interests in the scheme during the year.

Related Party Transactions

There were no changes to the nature or scale of the related party transactions. All related party transactions were conducted on normal commercial terms and conditions during the accounting period and were on arm’s-length terms.

CHANGES TO PERSONS INVOLVED IN THE SCHEME

There were no changes to the manager, the supervisor, administration manager, investment manager, securities registrar, custodian or auditor of the scheme.

There were no changes to the key personnel or the directors of the manager.

There was a change to the directors of the supervisor. Peter Metz ‘stepped down’ (resigned) as director on 6 May 2016 and Paul Hocking ‘stepped down’ (resigned) as a director on 7 December 2016.

PERFORMANCE

Whether you’re an aggressive investor with an appetite for risk, the type who likes to play it safe or somewhere in between, we’ve got an investment option for you.

 

See how your investment option has performed Find monthly reports here Watch the latest investment Insights Video

1 YEAR RETURNS AS AT 31 MARCH 2017 (AFTER TAX AND FEES)

FURTHER INFORMATION

There are lots of useful sources of further information to help you plan for your future and save for retirement. Here is a list of things you may want to check out.

 

 

HOW TO FIND FURTHER INFORMATION

 

Information relating to the Mercer KiwiSaver scheme, for the offer register and the scheme register can be found here.

The scheme register includes financial statements, trust deed and statement of policy and objectives.

The offer register includes information relating to the membership and funds. It also includes fund updates and other material information.

Information relating to the scheme, such as fund updates, annual report, current product disclosure statement and other useful information is available here.

You can also call us on 0508 637 237 to request this information. All the information can be obtained from us without charge.

Connect

We’ll do everything we can to resolve your query or complaint quickly.

Help is just a click or a call away, we would love to hear from you.

0508 637 237

We are here between 9am and 7pm, Monday to Friday,
or leave us a message and we’ll call you back

Submit your query from your online account here

Mercer KiwiSaver scheme
PO Box 1849
Wellington

@Mercer_NZ

Complaints and queries

If you do have a complaint please call us on 0508 637 237.
Our administration team or the Complaints Officer will investigate it and respond to you as soon as possible.

CONTACT DETAILS AND COMPLAINTS