Welcome From Martin

I’d like to start by thanking all of our customers for partnering with Mercer.

It is again a pleasure to be introducing the Mercer KiwiSaver
scheme Annual Report.

We recognise that many of you are now reading reports online
and using mobile devices, so this year we have developed a
digital version which we hope enhances your experience.

So much has happened during the year so I hope you take time
to hear from Mercer’s team and read about your KiwiSaver investment.

Martin Lewington
Mercer CEO and Director of
Mercer (N.Z.) Limited

 

Watch CEO Video

Welcome From Martin

Meet the Team

Meet the Team
Get to know the people involved in providing and managing your scheme.
  • Ross ButlerRoss Butler
  • Peter CameronPeter Cameron
  • Martin LewingtonMartin Lewington
  • Benjamin WalshBenjamin Walsh
  • David AndersonDavid Anderson

Be connected.

"I encourage everyone to check their contact details with Mercer. With so much now being done digitally and via email, don’t forget to provide your email address. Mercer will only contact you if it is important and you can always select not to receive some of the communications from us."

Ross ButlerRoss Butler

Chairman and Independent Director since 1 January 2013

Maximise return on your investment.

"No other investment returns 50%, but your KiwiSaver contributions do. By contributing $1 the Government gives you 50 cents. When you contribute $1,042 or more you will receive $521. Your contributions don’t have to come from your pay, you can also top up your KiwiSaver account at any time."

Peter CameronPeter Cameron

Director since 1 May 2009

Invest right today to make a better tomorrow.

"Mercer now offers seven investment options, but so many of our customers are still investing in the default Conservative option chosen for them by the Government. You should only be in this option if it is right for you, so visit www.mercerkiwisaverscheme.co.nz to work out your appetite for risk or consider where you are in your life stage. Then make a choice."

Martin LewingtonMartin Lewington

Director since 30 January 2009

Be better with our Beta site.

"Planning for retirement isn’t always easy as our future is uncertain. If you are a new member, your circumstances have changed, you have reached a special milestone or you simply want to know how much you may have in retirement, then we can help! Our new Beta site, which we will continue to improve, uses your personal circumstances at the time to help you work out how much you’ll have and how long your savings will last in retirement. If you haven’t checked it out already I would really encourage you to sign into your account when you get a chance."

Benjamin WalshBenjamin Walsh

Director since 1 June 2015

Don't pay more tax than you have to.

"Have you checked your tax rate this year, also known as the Prescribed Investor Rate or PIR? If you were automatically enrolled in the Mercer KiwiSaver scheme, your tax rate was automatically set at the highest rate. You can check and update your tax rate online at www.mercerkiwisaverscheme.co.nz."

Having been a Director since 4 May 2011, David resigned on 30 June 2015 to take up another Mercer role as Regional President, Growth Markets based in the US. We wish David all the very best!

David AndersonDavid Anderson

Year in Review

Find out what we’ve been doing to make a better tomorrow, today.

Year in Review

Scheme Snapshot

  • 94,671

    members

  • $11,439

    average member balance

  • 7

    investment options to choose from

  • $1.1 BILLION

    invested

  • $361

    average member tax credit

  • 73

    employers chose Mercer KiwiSaver scheme as their preferred workplace savings scheme

Scheme Snapshot

Year in Review

  • FEES REDUCED BY 14%

    From July 2014, we’ve reduced your KiwiSaver administration fee. It is now $30 a year. We only charge fees to administer and invest your KiwiSaver savings.
  • DIGITAL MERCER MAGAZINE

    Our digital publication designed to help you make the most of your Mercer KiwiSaver membership was emailed in December. Click here to download your copy. We are also working on the 2015 edition, so check the email address we hold for you.
  • ONLINE ENROLMENT FORM

    Those looking to join or transfer to the Mercer KiwiSaver scheme can now do it online. No more paper forms or certifying the documents!
  • MORE INVESTMENT OPTIONS

    In February 2015, we increased the number of investment options from four to seven. So you have three new options to choose from – Mercer Moderate, Mercer Growth and Mercer Shares.
  • RETIRE WITH MORE

    Since launching the “Retire with more” calculator in April this year, over 1,000 customers have found out whether they’ll be retiring with more. Have you? Visit www.retirewithmore.co.nz.
  • BETA SITE

    Our newest and latest development –
    the Beta site is now available exclusively to Mercer’s customers. Sign in to your account www.mercerkiwisaverscheme.co.nz.

Key Events

  • Second <br/>7 Year-Term

    Second
    7 Year-Term

    July 2014
    Mercer commences a second 7 year-term as a KiwiSaver default provider

    Administration fee reduced from $2.85 to $2.50 per month.


    „
    „
  • Canstar <br/>Awards

    Canstar
    Awards

    September 2014
    Awarded 5 Stars for providing outstanding value to the members invested in the cash option
  • Award-Winning <br/>Campaign

    Award-Winning
    Campaign

    October 2014
    Workplace Savings NZ Communication Awards: Winner of the “Best Other Workplace Savings or KiwiSaver Communication” category for the Top Up to Cash In campaign
  • Award <br/>Finalist

    Award
    Finalist

    November 2014
    FundSource Manager of the Year Awards: KiwiSaver Manager of the Year – Finalist
  • Finalist and <br/>Platinum <br/>Rating

    Finalist and
    Platinum
    Rating

    December 2014
    „ WriteMark Plain English Awards: Winner of the “Best Annual Report” category


    Platinum rating – SuperRatings
  • Three New <br/>Investment <br/>Options

    Three New
    Investment
    Options

    February 2015
    3 new investment options are introduced – Mercer Balanced, Mercer Growth and Mercer Shares
  • Worlds's Best <br/>Pension Fund

    Worlds's Best
    Pension Fund

    April 2015
    Global Finance Magazine names Mercer the world’s best pension fund administrator for the 5th year in a row
  • Licensed <br/>Manager

    Licensed
    Manager

    June 2015
    „ Mercer becomes a licensed manager under the new Financial Markets Conduct Act


    We welcome the Mercer Super Trust KiwiSaver scheme members in to the Mercer KiwiSaver scheme

Membership

All of the membership and other information in this section is shown as at 31 March 2015.
The total amount of members’ accumulation relating to 94,671 members was $1,082,943,437.

  • Membership Details

    NUMBER OF MEMBERS AT THE START OF THE YEAR 94,617
    PLUS
    New Members 11,252
    New Members transferring from other KiwiSaver schemes 267
    New Members transferring from other registered superannuation schemes 14
    New Members transferring in from Australian Superannuation schemes 6
    LESS
    Members transferring to other KiwiSaver schemes (10,150)
    Permanent exits (1,335)
    TOTAL MEMBERSHIP AT THE END OF THE YEAR 94,671
    COMPRISING
    CONTRIBUTING MEMBERS AT THE START OF THE YEAR 57,936
    Member entries 16, 532
    Total temporary and permanent exits (17,227)
    CONTRIBUTING MEMBERS AT THE END OF THE YEAR 57,241
    Members on contribution holidays 3,544
    Other non-contributory members 33,886
    MEMBERSHIP AT THE END OF THE YEAR 94,671
  • Withdrawals

      NUMBER OF MEMBERS TOTAL AMOUNT
    First home withdrawal 539 $7,937,854
    Death 100 $1,254,372
    Late opt outs/enrolments in error 550 $887,706
    Permanent emigration 65 $499,699
    Significant financial hardship 249 $1,060,000
    Serious illness 75 $736,169
    Retirement withdrawals 1,038 $12,494,242
    Transfers to other KiwiSaver schemes 10,150 $77,636,462
    Transfers to Australian superannuation schemes 1 $36,670
  • Contributions

    TYPE NUMBER OF MEMBERS TOTAL AMOUNT
    Member contributions 76,936 $114,010,980
    Employer contributions 72,896 $67,061,007
    Kick-start contributions 11,054 $11,054,440
    Member tax credits 67,341 $24,763,276
    Transfers from other Registered schemes 368 $7,222,294
    Transfers from Australian superannuations schemes 77 $1,267,425
  • Fees

    TYPE 2015
    INVESTMENT MANAGEMENT FEES  
    Investment management fees paid to Mercer $2,782,385
    Investment management fees paid to Mercer through MITNZ (through unit price) $2,439,840
    INVESTMENT MANAGEMENT FEES TOTAL $5,222,225
    MEMBER FEES TOTAL $2,953,619
    TRUSTEE FEES TOTAL $244,476
    MANAGER FEES (EXPENSE RECOVERIES) TOTAL $73,046
    TOTAL FEES $8,493,366
Fees

Performance

How has your investment option performed during the year to 31 March 2015?

Your Investment

X

You can find monthly investment returns, as well as daily historic unit prices for the investment options by signing into mercerkiwisaverscheme.co.nz

Performance

Performance

The charts show the net returns after fund fees (excluding member fees) and after tax.

It’s important to note that investment returns shown don’t tell you how the investment options will perform in the future. Your individual returns within an investment portfolio will depend on timing of contribution payments and actual fees charged, allowing for any fee rebates. The returns shown are therefore indicative of investment results but may differ from the actual after fees and tax returns achieved by you.

PERFORMANCE FOR THE 3 NEW OPTIONS

Three new investment options – Mercer Moderate, Mercer Growth and Mercer Shares were launched in February 2015, which means that the returns for the full year will not be available until 2016.

Your Investment

X

You can find monthly investment returns, as well as daily historic unit prices for the investment options by signing into mercerkiwisaverscheme.co.nz

MERCER CASH

1, 3, 5 AND 7 YEAR RETURNS AS AT 31 MARCH 2015 (AT 28% PIR).

1 YEAR RETURNS AS AT 31 MARCH 2015 (AFTER TAX AND FEES).

MERCER KIWISAVER CONSERVATIVE

1, 3, 5 AND 7 YEAR RETURNS AS AT 31 MARCH 2015 (AT 28% PIR).

1 YEAR RETURNS AS AT 31 MARCH 2015 (AFTER TAX AND FEES).

MERCER BALANCED

1, 3, 5 AND 7 YEAR RETURNS AS AT 31 MARCH 2015 (AT 28% PIR).

1 YEAR RETURNS AS AT 31 MARCH 2015 (AFTER TAX AND FEES).

MERCER HIGH GROWTH

1, 3, 5 AND 7 YEAR RETURNS AS AT 31 MARCH 2015 (AT 28% PIR).

1 YEAR RETURNS AS AT 31 MARCH 2015 (AFTER TAX AND FEES).

Performance

Investment Management

Your KiwiSaver savings are invested through Mercer Investment Trusts New Zealand (MITNZ), a series of wholesale investment trusts. Mercer Investments (New Zealand) Limited, a wholly owned subsidiary of Mercer, is the Trustee of the MITNZ and Mercer is the manager of the trusts. The MITNZ invest through a broad range of underlying investment managers as described below.

UNDERLYING INVESTMENT MANAGERS *
  • Cash
    AMP Capital Investors
  • Trans-Tasman Shares
    Devon Funds Management
    Harbour Asset Management
    Milford Asset Management***
  • Real Assets
    First State Investments
    Fisher Funds Management
    Global Commodities
    Goodman Funds Management
    Henderson Global Investors
    Industry Funds Management
    Investa Property Group
    LendLease Investment Management
    New Forests Asset Management
    Principal Global Investors
    RARE Infrastructure
    Charter Hall
    Kohlberg Kravis Roberts
  • Fixed Interest
    ANZ Investments
    AllianceBernstein
    H20 Asset Management
    Challenger Financial Services Group
    Ardea
    QIC
    AXA Investment Management
    Colonial First State
    Wellington Managemen
    BlackRock Investment Management
    Investec Asset Management
  • International Shares
    Acadian
    Arrowstreet
    Ballie Gifford
    Blackrock
    Fidelity (Pyramis)
    Global Thematic
    Hexavest
    Schroder Investment Management
    Allianz
    Investec
    Macquarie
    AQR
  • Alternative Assets
    Mercer Alternatives**

* Managers shown are as at 31 March 2015. Managers may change from time to time.
** This fund is a multi-manager fund typically holding approximately 10 managers. It is managed by the Mercer Alternatives team in London.
*** Subsequently terminated as a manager

Investment Management

Connect

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

Connect

Complaints and Queries

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

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.

You can also send your complaint to the Trustee at:

Trustees Executors Limited
Attention Business Manager
PO Box 4197
Auckland City, 1140

If you have been through the complaints resolution process and are not satisfied, you may refer the matter to an independent dispute resolution scheme. Mercer is a member of the Insurance and Financial Services Ombudsman Scheme (IFSO Scheme) and Trustees Executors Limited is a member of Financial Services Complaints Limited (FSCL). The Complaints Officer will advise you which of these schemes you may apply to, as it depends on the nature of your complaint.

Contact IFSO
info@ifso.co.nz
0800 888 202
Office of the IFSO, PO Box 10 845, Wellington, 6143

Contact FSCL
info@fscl.org.nz
0800 347 257
Financial Services Complaints Limitedm PO Box 5967, Wellington, 6145

Further details can be found on www.mercerkiwisaverscheme.co.nz