AML - anti-money laundering
1 July saw the start of a new anti-money laundering legislation. The main impact is that we have to obtain documents that verify the identity and address of each member of the SuperLife superannuation and KiwiSaver schemes. Also, the documents have to be certified as being true copies by an appropriate person. Included with this News is a pamphlet that provides details of what each member will have to do.
The law requires us to receive this information before we can pay you a benefit. Members can choose to provide it now or at any time before a benefit is payable. We recommend that it is provided as soon as is practical, to ensure that the payment of a benefit is not delayed.
Also, in future, if you change your name (e.g. through marriage) or change your address, we need to obtain documents verifying the new name and/or address.
Australian superannuation transfers
1 July was also the day we can start processing the transfers of a member's superannuation balance to the SuperLife KiwiSaver scheme. If you have an Australian superannuation balance and wish to start the process, phone us for a transfer form or download it here.
Investment markets
The 12 months to 31 March 2013 saw a period of resurgent interest in the world sharemarkets, which led to double digit returns for most of our equity and property sectors. By contrast, that confidence was replaced by uncertainty in the 30 June quarter. Much of the uncertainty stemmed from the US and whether they "would or would not" cut back on the latest programme of QE (quantitative easing).
As a result of this uncertainty, we saw:
- bond yields rise and therefore the value of existing bonds reduce. This leads to low and, over some weeks, negative returns;
- share markets fall leading to negative returns
- the NZ dollar weaken, except against the Australian dollar
The overall impact was that most investors with an investment strategy with a long-term focus received negative earnings for the quarter. For example, the return of the balanced Managed60 option was -1.9%. The -1.9% should be put in the context of the last 12 months which returned 11.8% after tax and fees.
Negative returns over the short term are expected from time to time and the June quarter was one such quarter. To understand how negative returns arise from bonds, see the article understanding negative retuns from bonds.
KiwiSaver turns 6
KiwiSaver turned 6 on 1 July 2013. Members who joined in July 2007 will have received the initial kick-start from the government and, if eligible, 6 years of MTCs. In total, following the payment of the July 2013 MTCs, members will have received up to $6,217 from the government.
If you are not in KiwiSaver and wish to consider joining, phone us on 0800 27 87 37 or download an investment statement from our website.
2013 investment seminars
The remaining seminars for 2013 are in Auckland, Timaru, Christchurch and Nelson in October. You can register here or email us at info@SuperLife.co.nz. If you have been to one of our seminars (or even if you have not) and want to know more about investing for your retirement, our booklet Thinking about your retirement may help. It is one of the many guides available on the SuperLife website. While it may not be a best seller, it will be a good read over the colder nights of this winter!
All returns quoted are after-tax at the top tax rate and after investment fees. An individual's returns may vary from the above due to cash flows and different tax rates. Past performance does not indicate likely future performance.
