Current earnings rate 

Declared monthly earning rates

For every month between July and May (usually in the middle of the following month), the Trustee determines a monthly earning rate for each investment option, based on the Fund's investment returns net of tax and investment fees and approximate investment consulting (and any investment advisory) fees. As at the end of each Fund year (30 June), final earning rates are calculated for June, based on the Fund's financial statements, information from investment managers, taxation and the rates already applied for the previous 11 months.

The following table shows the monthly earning rates allocated to members' accounts during the current Fund year, the latest interim earning rate (see “Leaving the Fund” below) and the cumulative Fund year-to-date earning rate as at the date shown.

Effective Date Type of earning rate Cash Conservative Balanced Growth
Cumulative YTD Returns to 12 July 2024 4.26% 5.23% 
6.50% 7.54%
Jul-24 Interim 0.13% 0.89% 1.67% 2.31%
Jun-24 Final Monthly 0.29% 0.26% 0.15% -0.03%
May-24 Final Monthly 0.36% 0.76% 0.91% 0.95%
Apr-24 Final Monthly 0.37% -0.92% -1.79% -2.58%
Mar-24 Final Monthly 0.30% 1.34% 2.10% 2.89%
Feb-24 Final Monthly 0.33% 0.23% 0.52% 0.91%
Jan-24 Final Monthly 0.38% 0.05% 0.27% 0.70%
Dec-23 Final Monthly 0.32% 2.40% 3.42%
4.25%
Nov-23 Final Monthly 0.34% 2.89% 4.24% 5.36%
Oct-23 Final Monthly 0.39% -0.83% -1.66% -2.53%
Sep-23 Final Monthly 0.30% -1.96% -3.37% -4.63%
August-23 Final Monthly 0.36% -0.55% -0.96% -1.36%
July-23 Final Monthly 0.31% 0.65% 1.08% 1.53%

The daily crediting rate (see below) from 13 July 2024 is 3.96% p.a for all four investment options.

Effective Date Type of earning rate Cash Conservative Balanced Growth
Final Annual Net Return to 30 June 2023 3.82% 3.85% 5.52% 8.19%


Leaving the Fund

Interim earning rate

When you leave the Fund, interim earning rates will be allocated to your accounts for the period from the latest month for which the declared monthly earning rate(s) have been declared.

Every week interim earning rates are calculated using the returns earned by four unitised funds with asset allocations very similar to those of the Fund's investment options. Those unitised funds are used because the unit prices are readily available and are calculated on an after-tax basis. They are referred to as 'proxy funds':

Fund investment option Proxy fund*
Cash Mercer Super Trust Cash Fund
Conservative Mercer Super Trust Conservative Fund
Balanced Mercer Super Trust Balanced Fund
Growth Mercer Super Trust High Growth Fund

 

*Minor adjustments are made to reflect the lower investment fees applicable to the Fund's investment options.

A reduction will be made to your accounts if the weekly earning rate(s) is (or are) negative.

For the period from the end of the latest week for which the weekly rates have been calculated, to the date you leave service (or in the case of a locked-in balance, transfer to a KiwiSaver scheme) earnings will be applied to your balance using a daily crediting rate equal in before-tax terms to the Official Cash Rate. If your benefit is paid after you leave service, the same rate will apply for the period to the date your benefit is actually paid.
 

Switching investment options

Investment switches may be made monthly. Your new investment strategy will take effect from the first day of the month following the month in which your application to change investment options is received.

If you change your options online, your election must be received by the last day of the current month. If you complete a paper form, your completed form must be received by NZAS HR at least five working days prior to the first day of the month you wish the change to take effect.

You will receive confirmation from the Fund Administrator approximately two weeks following the date of your online switch or receipt of your form and the change will then be reflected on the Fund's website once the monthly earnings rates are finalised. Your new investment option will apply to your total account balances and all future contributions.

For example, if on 18 October the Fund receives a request from a member to switch from the Cash option to the Growth option, the switch will be effective from 1 November. However, the change will not be reflected on the Fund's website until the monthly earnings rate for the Cash option is declared for October, which should be around 24 November.  
 

How do I switch investment options?

  • Sign into this website, select the Investments tab and follow the prompts. Alternatively complete form NZAS14C, which is available from the Documents & forms page of this website or from NZAS HR.

    Remember that:
  • your choice of investment option is your sole responsibility;
  • the Trustee (by offering or implementing that election) is not to be regarded as representing, or implying, that any particular investment option is appropriate for you; and
  • your choice of an investment option will be a binding direction to the Trustee.


Is there anything else I need to know?

The Trustee reserves the right to alter the earnings rate policy in the event of significant market movements; for example, if any of the large global share markets or the Australian or New Zealand share markets fell by more than 10% in a single day or if any or all of those share markets were forced to close for an entire day or more because of any other unexpected event.

This information has been prepared by Mercer (N.Z.) Limited for general information only. The information does not take into account your personal objectives, financial situation or needs. Therefore, you should not act on this information if you have not considered the appropriateness of this information to your personal objectives, financial situation and needs. You should consult a financial advice provider before making any investment decision.

18 July 2024