TOWER KiwiSaver Scheme - KiwiSelect€¦ · million Kiwis can attest, joining KiwiSaver is the easy...

TOWER Managed Funds Limited is the Scheme provider for the TOWER KiwiSaver

Scheme. TOWER Managed Funds is owned by Fisher Funds Management Limited.

TOWER KiwiSaver SchemeInvestment Statement

This investment statement is dated and prepared as at 4 June 2013

Important information(The information in this section is required under the

Securities Act 1978.)

Investment decisions are very important. They

often have long-term consequences. Read

all documents carefully. Ask questions. Seek

advice before committing yourself.

In addition to the information in this document, important information can be found in the current registered prospectus for the investment. You are entitled to a copy of that prospectus on request.

The Financial Markets Authority regulates conduct in financial marketsThe Financial Markets Authority regulates conduct in New Zealand’s financial markets. The Financial Markets Authority’s main objective is to promote and facilitate the development of fair, efficient, and transparent financial markets. For more information about investing, go to http://www.fma.govt.nz

Financial advisers can help you make investment decisionsUsing a financial adviser cannot prevent you from losing money, but it should be able to help you make better investment decisions.

Financial advisers are regulated by the Financial Markets Authority to varying levels, depending on the type of adviser and the nature of the services they provide. Some financial advisers are only allowed to provide advice on a limited range of products.

When seeking or receiving financial advice, you should check-

� the type of adviser you are dealing with:

� the services the adviser can provide you with:

� the products the adviser can advise you on.

A financial adviser who provides you with personalised financial adviser services may be required to give you a disclosure statement covering these and other matters. You should ask your adviser about how he or she is paid and any conflicts of interest he or she may have. Financial advisers must have a complaints process in place and they, or the financial services provider they work for, must belong to a dispute resolution scheme if they provide services to retail clients. So if there is a dispute over an investment, you can ask someone independent to resolve it.

Most financial advisers, or the financial services provider they work for, must also be registered on the financial service providers register. You can search for information about registered financial service providers at http://www.fspr.govt.nz

You can also complain to the Financial Markets Authority if you have concerns about the behaviour of a financial adviser.

This is an investment statement for the purposes of the Securities Act 1978.

Choosing an investmentWhen deciding whether to invest consider carefully the answers to the following questions that can be found on the pages noted below:

What sort of investment is this? 22

Who is involved in providing it for me? 23

How much do I pay? 23

What are the charges? 25

What returns will I get? 27

What are my risks? 29

Can the investment be altered? 31

How do I cash in my investment? 32

Who do I contact with inquiries about my investment?

33

Is there anyone to whom I can complain if I have problems with the investment?

34

What other information can I obtain about this investment?

34

page

2

Welcome to the TOWER KiwiSaver SchemeThank you for taking the time to learn more about the TOWER

KiwiSaver Scheme (‘the Scheme’). Investment decisions should not be

taken lightly and we have designed this Investment Statement and our

other resource materials to make your decision as easy as possible.

KiwiSaver makes saving easySince its introduction in July 2007, KiwiSaver has become the

retirement savings vehicle of choice for New Zealanders. As over 2

million Kiwis can attest, joining KiwiSaver is the easy part. We think

the most important decision is actually your choice of KiwiSaver

scheme provider.

TOWER Managed Funds and Fisher Funds – 100% KiwiThe Scheme is managed by TOWER Managed Funds Limited, a

company purchased by Fisher Funds in April 2013. Fisher Funds is

a specialist New Zealand owned investment manager established

in 1998. Our objective is straightforward – to grow the value of your

savings to help you achieve your desired retirement lifestyle.

Our investment team is one of the largest and most experienced

in New Zealand with more than 190 years’ combined investment

experience. Today, with over 200,000 members Fisher Funds is

proudly the largest 100% New Zealand owned and operated

KiwiSaver scheme provider.

You’re in controlThe Scheme has been designed to help you and your family make the

most of KiwiSaver. It’s easy to join or transfer to, you can build your

own investment portfolio by choosing from our range of funds, plus

you have the flexibility to adjust your investment strategy as your age

or your risk profile changes.

We’re always here to help youWe are passionate about keeping you in touch with your KiwiSaver

savings. After all, it is your money and your future! You will hear from us

regularly so you always know where your money is invested, why and

how it is performing. If you have any questions, please call or email one

of our KiwiSaver experts who will be happy to help.

KiwiSaver is about your future. We would be honoured to share your

financial journey with you. We promise to make KiwiSaver easy from

the day you join until long after you retire.

Please read this Investment Statement carefully. If you would like more

information on the Scheme, please call one of our KiwiSaver scheme

experts on 0800 808 808, email us at [email protected] or visit

our website www.tower.co.nz/kiwisaver

Carmel Fisher | Managing Director

3

Contents

Section one - overview

What’s your plan? 5

Key Information Summary 6

What is KiwiSaver? 8

How KiwiSaver can grow your wealth 8

How KiwiSaver makes saving easy 9

Why Fisher Funds? 9

How KiwiSaver can help you buy a fi rst home 10

How your KiwiSaver savings are invested 11

Your investment options 12

Fund profi les 12

Which investment strategy is best for me? 14

Check your balance at any time 19

Changing your investments 19

Portability 19

Manage your money when you retire 19

KiwiSaver for children and grandchildren 19

Cash4Schools™ initiative 20

Transfer to the TOWER KiwiSaver Scheme 21Section two - detail

What sort of investment is this? 22

Who is involved in providing it for me? 23

How much do I pay? 23

What are the charges? 25

What returns will I get? 27

How will my investment be taxed? 28What are my risks? 29

Can the investment be altered? 31

How do I cash in my investment? 32

Who do I contact with inquiries about my investment?

33

Is there anyone to whom I can complain if I have problems with the investment?

34

What other information can I obtain about this investment?

34

Section three - forms

Application form 35

Direct debit authority form 39

Switch form (Cash Enhanced Fund) 43

Additional lump sum or transfer form 45

4

Retire in styleIf you retire at 65 without a savings plan in

place you could end up having to rely on the

government for 20 or more years. Did you know

that the average married couple currently get

around $550 a week from NZ Superannuation?*

That’s just over $28,700 a year for two people

to live on. Will relying on this alone provide the

retirement lifestyle you’re looking forward to?

Buy your own homeKiwiSaver can provide you with valuable help to buy

your first home. In addition to potentially being able

to withdraw your and your employer’s contributions,

you may also qualify for a subsidy of up to $5,000

from the government. Imagine owning your own

home, and your employer and the government

helping you to pay for it! If you have previously

owned a home and want a second chance,

this facility could also be available to you. Some

conditions apply – see page 10 for further details.

* As at May 2013. Source: Work and Income.

Secure your futureJoining KiwiSaver is a smart financial choice - it’s a

regular form of saving that the government and your

employer also contribute to (if you are employed

and contributing, and are otherwise eligible). With

regular contributions to your Scheme account you are

growing a retirement fund that can help secure the

lifestyle you would like to enjoy in your later years.

plan?Whatever your plan, the TOWER KiwiSaver Scheme can help you achieve it.

What’s your

5

Key terms Further informationFor more

information

What is KiwiSaver? KiwiSaver is a voluntary savings initiative that was set up by the government. It

is designed to help you grow a retirement fund that can help secure the lifestyle

you would like to enjoy in later years.

See pages

8 and 22

Who can join the Scheme? New membership in the Scheme is open to natural persons who are:

� normally living in New Zealand;

� New Zealand citizens (or are entitled to live in New Zealand indefinitely); and

� under the New Zealand Superannuation qualification age (currently 65 years

of age), unless they are transferring from another KiwiSaver scheme.

See page 22

What are the benefits? � The government provides a one-off $1,000 kick-start contribution when you

first join KiwiSaver.

� If you are over 18 and below the ‘KiwiSaver Qualifying Age’ (see When can I

withdraw my money from KiwiSaver? below), and contributing to a KiwiSaver

scheme account through your salary or wage, your employer will generally

also contribute a minimum of 3% (less tax) of your gross salary

or wage.

� If you are over 18 (and below the KiwiSaver Qualifying age) you may also

receive a member tax credit of up to $521 a year (50 cents for every $1 you

contribute up to a maximum of $1,043).

� You may be entitled to use your KiwiSaver savings to help you buy a first

home, and you may also be entitled to a first home purchase subsidy.

See pages

8 and 9

When can I withdraw my

money from KiwiSaver?

Generally, you will not be able to access your KiwiSaver savings until you reach

the KiwiSaver Qualifying Age. This is the New Zealand Superannuation age

(currently 65 years of age) or once you have been a member of a KiwiSaver

scheme or a complying superannuation fund for 5 years, whichever is later.

In limited circumstances you may be eligible for an early withdrawal of your

KiwiSaver savings (which may or may not include the government kick-start

contribution or member tax credits). These circumstances include:

� buying your first home;

� significant financial hardship;

� serious illness;

� permanent emigration (other than to Australia, currently expected to be from

on or about 1 July 2013);

� death (in which case your KiwiSaver savings will be paid to executors or

administrators of your estate); and

� where any Act or Court order requires a withdrawal to be made.

See pages

32 and 33

Who is the Scheme provider? TOWER Managed Funds Limited (TMF) is the Manager and provider of the

Scheme. TMF’s ultimate holding company is Fisher Funds Management

Limited (Fisher Funds). Fisher Funds is a 100% New Zealand owned and

operated company, managing more than $5 billion for more than 250,000 New

Zealanders each year.

See page 23

Key Information Summary

6

What funds can I invest in? The Scheme has a total of six Funds.

If you have been automatically enrolled in the Scheme by Inland Revenue, you

are a Default Member and your contributions will be invested exclusively in the

Cash Enhanced Fund. This Fund is not available to other Scheme members.

All Scheme members can select from six investment strategies (a carefully

designed investment mix to fit a specific investor profile) or you can build your

own investment strategy by choosing one or a mix of the five individual

Funds below:

� Preservation Fund;

� Conservative Fund;

� Balanced Fund;

� Growth Fund; and

� Equity Fund.

For help with choosing an investment strategy see “Your investment options”

on page 12.

See pages

12 to 17

How much do I have to pay? If you are an employee, you are currently required to contribute from your

after-tax salary or wages at the rate of 3%, 4% or 8%. You can change your

contribution rate, or make regular or lump sum contributions, at any time. You

can take a contributions holiday at certain times (subject to certain conditions).

If you are self-employed or not working, you can choose the amount that you

contribute. There is currently no minimum contribution requirement. You can

choose to make regular contributions or lump sum payments to your Scheme

account.

See pages

23 and 24

What are the risks? All investments involve a degree of risk. The potential return on an investment

is generally related to the risk of the investment. The key factor that determines

your returns is the investment performance of the Fund(s) you are invested

in. The performance of a Fund is determined by the Fund’s asset allocation.

Generally, Funds that are invested in a higher proportion of growth assets

will have the potential for higher returns in the long term but experience more

volatility. Funds that are invested in a higher proportion of income assets will

have lower potential returns but have less volatility and therefore have less risk

attached to them.

See pages

29 to 31

What are the charges? Each Fund is charged a management fee which is deducted from the assets of

the Fund and paid to us. A Trustee fee and an administration fee are deducted

from your Scheme account.

Each Fund may invest in other funds which may charge fees and incur

expenses.

We do not charge Scheme expenses to the Cash Enhanced Fund (or to

your Scheme account while you are invested in that Fund) except in limited

circumstances. The other five Funds are charged expenses in respect of

the Scheme.

See pages

25 to 27

Does anyone guarantee the

investment?

None of the Crown, TMF, Fisher Funds, the Trustee, or any other person or

company, guarantees or promises the repayment of, or returns on, investments

in the Scheme.

Does the Scheme use related

parties?

The Scheme may use related parties to provide services in respect of the

Funds. As at the date of this investment statement all of the Funds invest in

underlying funds managed by TOWER Asset Management Limited, a wholly

owned subsidiary of Fisher Funds. All arrangements are conducted on arms’

length commercial terms

Who can I contact for further

information?

You can check the balance of your account, obtain information and check your

membership details through www.supersite.co.nz.

If you have any questions about your account, you can contact your financial

advisor (if you have one), email us at [email protected], call us on 0800

808 808 or write to us at our address.

See pages

33 and 34

7

How KiwiSaver can grow your wealthWith KiwiSaver, your savings can grow faster than other savings or

investments because the government and your employer contribute

to your account. When you join KiwiSaver you will receive a $1,000

kick start payment from the government. You may be eligible for a

range of other benefits including:

� up to approximately $521 government member tax credit per

year (see page 24 “Member tax credits”);

� compulsory employer contributions of a minimum of 3% of your

salary or wages to your Scheme account (see page 23 “How

much do I pay?”);

� home purchase withdrawal and subsidy to help you buy a

first home (see page 10 “How KiwiSaver can help you buy a

first home”);

� tax on income at variable rates up to 28% depending on your

income (see page 28 “How will my investment be taxed?”).

What is the purpose of this document?This document provides information about KiwiSaver and explains

how the Scheme can help you achieve your goals. It begins by

explaining how KiwiSaver works and the options that you have.

The back of the document contains information that must be

made available to you by law.

If you are reading this investment statement, you are either

considering joining the Scheme, or, as part of the government’s

KiwiSaver enrolment process, you were allocated to the Scheme

from the date you started your new employment, or elected to

opt into KiwiSaver.

If you decide to join the Scheme, the application form is on page

35. We will confirm that we’ve received your application, and

once we receive either your first contribution or the kick-start

contribution from Inland Revenue we’ll send you confirmation of

your enrolment.

Joining KiwiSaver is a smart fi nancial choice as it is a regular form of savingthat the government and your employer also contribute to.

voluntary savings initiative KiwiSaver is a

the lifestyle you would like to enjoyin your later years.

designed to enable you to grow a

retirement fund that can help secure

What is KiwiSaver?

8

How KiwiSaver makes saving easyYour contributions to the Scheme come from your salary or wages as part

of the PAYE system, or for non wage or salary earners, through regular

direct debit or lump sum payments (see page 23 “How much do I pay?”).

Members who contribute directly to a KiwiSaver scheme account through

their salary or wages are required to contribute at the current minimum

rate of 3% (see page 23 for more information). The table below shows

how much you could currently be contributing to your Scheme account

(depending on your gross salary or wages). If you are aged between

18 and the KiwiSaver Qualifying Age and qualify for both employer and

government contributions, you will notice that in addition to employee and

employer contributions, the government contributes a member tax credit

which is an additional benefit not available with other investments and

savings schemes.

If you have existing investment savings and you wish to consolidate them

into your Scheme account, please complete the Additional Lump Sum

form on page 45 and we’ll arrange the rest.

If you are self-employed or not currently working, and are over 18 but

under the KiwiSaver Qualifying Age you can also take advantage of the

member tax credit of up to approximately $521 a year (see page 24 for

conditions). You’ll need to contribute approximately $20 a week, $87 a

month or $1,043 a year to be eligible for the full member tax credit.

The table below shows the total amount that could be contributed to your

Scheme account over a year.

Salary/wage figures are per annum and before tax. Government member tax credits have been rounded.1 Contributions after the deduction of Employer’s Superannuation Contribution Tax (see page 29) assuming gross salary/wages plus employer KiwiSaver contributions in the current tax year are the same as the previous tax year and that the only employer superannuation contributions made are contributions to a KiwiSaver scheme account.

Salary/WagesEmployee

contribution at 3%pa

Employer contribution

at 3%pa1

Government Member

Tax Credit (annually) Total

$20,000 $600 $495 $300 $1,395

$30,000 $900 $742.50 $450 $2,092.50

$40,000 $1,200 $990 $521 $2,711

$50,000 $1,500 $1,237.50 $521 $3,258.50

$60,000 $1,800 $1,260 $521 $3,581

$100,000 $3,000 $2,010 $521 $5,531

Why Fisher Funds?Fisher Funds provides the investment management expertise for the Scheme.

We are a specialist investment managerWe channel all our efforts into achieving investment returns. Our key staff have an ownership interest in Fisher Funds – this means our interests are directly aligned with yours.

There’s no substitute for experienceOur investment team is one of the largest and most experienced in New Zealand with more than 190 years’ combined investment experience. There aren’t many investment conditions that we haven’t navigated our way through.

We’re Kiwis like youWe are a 100% New Zealand owned and operated company, managing more than $5 billion for more than 250,000 New Zealanders.

Friendly, helpful service every step of the wayWe focus on getting the basics right. When you invest with Fisher Funds and the Scheme, we will not lose you in a large, impersonal database or call centre. We believe that we are different because of the personalised service that we offer you. When you call us you will always talk to a real person and our whole team is accessible and directly available to you.

Candid communicationOur regular and candid communication ensures that you keep in touch with your Scheme savings and your future.

Our peopleProfiles of the key people involved in the governance of the Scheme can be found in the registered prospectus for the Scheme.

Profiles of the Fisher Funds investment team can be found at www.tower.co.nz/investments

9

Need help?There’s a lot of information in this document and it’s not unusual for people

to have questions at different stages. If you decide that you need an

explanation of anything that you read here, please talk to a financial adviser,

visit our website at www.tower.co.nz/kiwisaver, call 0800 808 808 or email

[email protected] and our KiwiSaver team will help you. Calls are

free and this service is available from 8.30am to 5.00pm weekdays.9

How KiwiSaver can help you buy a first homeFirst home withdrawalWith KiwiSaver you can apply to withdraw all, or part, of your and

your employer’s contributions to put towards buying your first

home. You can make a first home withdrawal if you:

� have been a KiwiSaver member for at least three years;

� have not made a withdrawal from a KiwiSaver scheme for the

purchase of a home before;

� are purchasing a property that is, or is intended to be, your

principal place of residence;

� are buying your first home (or have confirmation from Housing

New Zealand that you are in the same position as a first home

buyer in terms of income, assets and liabilities).

The first home withdrawal can only be paid to your solicitor’s

account once all conditions of the sale and purchase agreement

have been met. Acceptance of your application for a first home

withdrawal will be at the discretion of TOWER Managed Funds

Limited (TMF or the Manager ). If your application is accepted, you

will continue to be a member of the Scheme and will still be able to

make contributions. Government contributions (including member

tax credits and the $1,000 government kick start contribution)

cannot be withdrawn for the purchase of your home.

First home purchase subsidy A first home purchase subsidy (administered by Housing New

Zealand) of up to $5,000 may also be available if you meet all the

following criteria and conditions. You must:

� be a member of a KiwiSaver scheme, or a complying

superannuation fund;

� have contributed at least the minimum contribution rate of your

income to a KiwiSaver scheme or complying superannuation

fund for at least three years;

� be buying your first home (or have a confirmation from Housing

New Zealand that you are in the same position as a first home

buyer in terms of income, assets and liabilities);

� be planning to live in the house for at least six months;

� be 18 years old or over;

� have not received a home purchase subsidy before;

� have a combined yearly income of $100,000 or less (before tax)

for one or two buyers, or have a combined yearly income of

$140,000 or less (before tax) for three or more buyers; and

� be buying one or more of the following types of property and

land arrangements (for more information on these property types

go to www.hnzc.co.nz):

� Fee simple

� Stratum estate (freehold and leasehold)

� Cross-lease (freehold and leasehold)

� Leasehold

There are other eligibility criteria (which include regional house price

caps) which are set by Housing New Zealand. For complete and up

to date eligibility criteria, please go to www.hnzc.co.nz. Housing New

Zealand may change the eligibility criteria at any time.

Second chance homesYou may have previously owned a home but no longer do so. If that’s

the case you may have a second chance at home ownership with the

help of KiwiSaver. You may be eligible for the first home withdrawal

and the home purchase subsidy (as described above) – as long

as you:

� have not received either the first home withdrawal or the home

purchase subsidy before; and

� are in a similar position to first home buyers in terms of assets,

income and liabilities (because of adverse circumstances such

as, but not limited to, redundancy, illness or a relationship

break-up).

You will need to apply to Housing New Zealand for a determination

that you are in a similar position to a first home buyer. More detailed

eligibility criteria, based on assets, income and liabilities, can be

obtained by going to www.hnzc.co.nz. Housing New Zealand may

change the eligibility criteria at any time.

More information on first or second chance home withdrawals can be

obtained by contacting Housing New Zealand.

10

How your KiwiSaver savings are investedYour KiwiSaver savings will be invested in different asset classes such

as cash, fixed interest, commercial property, equities and alternative

investments, depending on the investment guidelines of the Fund/s you

invested in. Broadly speaking, the asset classes which the Funds invest

in can be categorised as being either ‘income’ or ‘growth’ assets.

Growth assets are those which tend to give higher returns over the

long term but experience more volatility (movements up or down in the

value of your investment) than income assets in the short term. The

mix of income and growth assets therefore determines the risk/return

profile of the Funds.

Note: ‘short term’ refers to up to three years, ‘medium term’ refers to

three to seven years and ‘long term’ refers to over seven years.

Income assetsIncome assets aim to provide investors with returns primarily sourced

from interest payments, but in some cases capital gains may be

received as well. Income assets are generally considered to be lower

risk than growth assets, however there is still potential for capital losses.

Income assets include:

Cash

Short-term, easily sold interest-bearing investments, eg. government

bills, bank bills, bank certificates of deposit and short-term debt

securities issued by corporate businesses or local authorities. Cash is

the lowest risk, most conservative asset class, but generally provides

lower returns than the other four classes.

Fixed interest

Medium-term to longer-term fixed interest-bearing investments, eg.

bonds issued by governments or their agencies and medium- term

and long-term debt securities issued by corporate businesses or local

authorities. Some capital gains may also be achieved if the fixed interest

securities increase in market value. There is also the potential for capital

losses to be incurred if the fixed interest securities decrease in market

value. Fixed interest is higher risk than cash because of the longer-term

commitment of funds, but higher returns than those from cash are

generally expected.

Fixed interest assets can be sourced locally or from overseas.

Growth assetsGrowth assets provide investors with returns primarily sourced from

capital gains (if any), but may also pay income from rentals or dividends

received. Growth assets are generally considered to be higher risk than

income assets with the potential for capital losses being greater than

with income assets.

Growth assets include:

Commercial property

Real estate used for business purposes and broadly classified as retail,

industrial, or office and general. Income is received from commercial

tenant rentals and capital gain may arise from increases in the market

value of the property. There is also the potential for capital losses if the

market value of the properties declines. Commercial property is higher

risk than cash or fixed interest, but is generally expected to provide

better longer-term returns.

Equities

Units of ownership (shares, or equity) in companies that are usually

traded on share markets both locally and overseas. Capital gains may

be generated through equities when they increase in market value. In

addition some income may also be received from dividend payments.

There is also the potential for capital losses if equities decrease in market

value. Equities have higher risk than cash, fixed interest or commercial

property, and can fluctuate significantly in market value, but are generally

expected to provide greater returns over the longer term.

Alternative investments

Alternative investments refer to a broad range of assets that do not fall

within the main asset classes referred to above. Alternative investments

can be based on publicly traded securities like shares and bonds (which

include hedge funds, absolute return funds and commodity investments)

or private securities (which can include venture capital and private

equity). Alternative investments are diverse, with generally higher risk and

greater potential return characteristics than the main asset classes.

DerivativesExposure to various asset classes can be gained directly (by buying

the asset), indirectly (by investing in other funds which hold the asset)

or artificially (by purchasing a derivative, which has a price that is

derived from the price of the underlying asset, such as a share, bond or

currency). Examples of derivatives include swaps, warrants, structured

notes, futures contracts, options, forward rate agreements and forward

foreign exchange contracts.

DiversificationA diversified investment portfolio is one that invests in two or more

different asset classes together. Diversification can also be geographic,

in that New Zealand assets are combined with overseas investments.

A diversified portfolio is described as conservative if it holds significantly

more income assets (cash, fixed interest) than growth assets

(commercial property, shares, alternative investments), and growth

if it contains significantly more growth assets than income assets.

Conservative portfolios aim for lower risk and return, whereas growth

portfolios aim for higher risk and return. The proportions in which the

various asset classes are held in combination will influence overall

investment returns. If one of the asset classes underperforms, the others

may compensate, helping to make the variations in total investment

returns less extreme over time.

11

Your investment optionsWe provide a choice of investment options for you.

If you are a Default Member If you have been automatically enrolled in the Scheme by Inland

Revenue you are a default member (Default Member) and your

contributions will be invested exclusively in the Cash Enhanced

Fund (the Default Fund). The Default Fund is not available to other

Scheme members. You can choose a Fund more appropriate to

your needs at any time.

Your options if you are not a Default Member If you are not a Default Member you can invest in any of the Funds

(other than the Cash Enhanced Fund which is only for Default

Members) in any proportion that you wish. If you join the Scheme

and do not choose a Fund or Funds, then your contributions will be

automatically invested in the Balanced Fund.

All members can build their own investment strategy by

choosing to invest in one or more of five Funds available in

the Scheme. The diagrams show details for each Fund including

their respective long term asset allocations as at the date of

this investment statement. Those asset allocations may change

over time. Please refer to www.tower.co.nz/kiwisaver for current

information.

Not sure what Fund(s) to choose? You can opt for one of our six investment strategies (a carefully

designed investment mix to suit a specific investor profile) by

completing a questionnaire on pages 14 and 15 where an

investment strategy will be suggested for you. These include:

� Preservation Strategy

(100% Preservation Fund)

� Conservative Strategy

(100% Conservative Fund)

� Conservative Balanced Strategy

(50% Conservative Fund, 50% Balanced Fund)

� Balanced Strategy

(100% Balanced Fund)

� Balanced Growth Strategy

(40% Balanced Fund, 60% Growth Fund)

� Growth Equity Strategy

(40% Growth Fund, 60% Equity Fund).

Whatever decision you make, you may change or switch Funds or

investment strategies at any time (see page 31 “Can the investment

be altered?”).

Cash Enhanced Fund (Default Fund - only available for Default Members)

Risk/return profile: Low-medium

Investment type: Conservative Diversified Fund

Investment objective:

To provide a return that exceeds the ANZ 90-Day Bank Bill Index over

the short to medium-term.

Investment policy:

To invest in other managed funds that provide exposure to primarily

income assets (cash and fixed interest), with a limited exposure to

property and trans tasman and international shares.

Who is the Fund suitable for?

The Cash Enhanced Fund has been designed to meet the

requirements of a default fund as defined by the government. It is

suitable for a short term or naturally cautious investor who is nearing

retirement age and intends making a withdrawal, or is saving to buy

a first home in the short term. It also suits an investor who is primarily

concerned with maintaining the capital value of their investment. In

exchange, they are prepared to accept the likelihood of lower returns.

Preservation FundRisk/return profile: Low

Investment type: Cash Fund


To provide a return that exceeds the ANZ 90-Day Bank Bill Index

on a rolling 12-month basis.

Investment policy:

To invest in other managed funds that provide exposure to primarily

cash and short-term New Zealand securities with a total duration

not exceeding 6 months, such as 90-day bank bills.


The Preservation Fund is designed for a very short term or

extremely cautious investor who is nearing retirement age and

intends making a withdrawal, or is saving to buy a first home in the

next 12 months. It also suits an investor who is primarily concerned

with maintaining the capital value of their investment. In exchange,

they are prepared to accept the likelihood of lower returns.

25.0%

29.0%

26.0%

7.0%

6.0%

7.0%

New Zealand Cash 25.0% New Zealand Fixed Interest 29.0%International Fixed Interest 26.0%New Zealand Property 7.0%Trans-Tasman Shares 6.0%International Shares 7.0%

100.0%New Zealand Cash 100%

Fund profiles

12

7.5%

15.0%

22.5%

12.0%

20.0%

23.0%

5.0%6.0%

9.0%

12.5%

31.0%

36.5%

17.5%

25.0%

27.5%

11.5%

8.0%

10.5%

Conservative FundRisk/return profile: Low-medium

Investment type: Conservative Diversified Fund


To provide returns with medium-term capital appreciation but with

lower volatility than the Balanced Fund.

Investment policy:

To invest in other managed funds that provide exposure to

primarily income assets (cash and fixed interest), with a limited

exposure to property and trans tasman and international shares.


The Conservative Fund is designed for a short term or naturally

cautious investor who is nearing retirement age and intends

making a withdrawal, or is saving to buy a first home in the short

term. It also suits an investor who is primarily concerned with

maintaining the capital value of their investment. In exchange,

they are prepared to accept the likelihood of lower returns.

Growth FundRisk/return profile: Medium-high

Investment type: Growth Diversified Fund


To provide returns with higher long-term capital appreciation, but

with higher volatility than the Balanced Fund.

Investment policy:

To invest in other managed funds that provide exposure to a

range of trans tasman and international shares and fixed interest

as well as cash and property.


The Growth Fund is designed for a long-term investor who wants

good growth potential and is willing to accept a fair amount of

positive and negative fluctuations in the short term in anticipation

of achieving high returns in the long term. This type of investor

also has time to wait for the value of their investment to recover if

it goes down.

Balanced FundRisk/return profile: Medium

Investment type: Balanced Diversified Fund


To provide returns with medium to long-term capital appreciation,

but with lower volatility than the Growth Fund.

Investment policy:


range of trans tasman and international shares and fixed interest,

as well as cash and property.


The Balanced Fund is designed for an investor who wants to

achieve a balance between maintaining the capital value of their

investment and growing that investment over the medium to long

term. It also suits an investor who wants to split their investments

more evenly between growth and income assets (even in the

short term).

Equity FundRisk/return profile: High

Investment type: Equity Fund


To provide returns with higher long-term capital appreciation, but

with higher short-term volatility than the Growth Fund.

Investment policy:


range of trans tasman and international shares.


The Equity Fund is designed for a long-term investor who is willing

to accept positive and negative fluctuations in the short term

in anticipation of achieving higher returns in the long term. It is

designed for an investor who has time to wait for the value of their

investment to recover if it goes down and who wants to invest

solely in shares.

50.0%50.0%

New Zealand Cash 5.0%New Zealand Fixed Interest 6.0%International Fixed Interest 9.0%New Zealand Property 12.5%Trans-Tasman Shares 31.0%International Shares 36.5%

Trans-Tasman Shares 50.0%International Shares 50.0%



13

Which investment strategy is best for me? One of the most important decisions to make when joining

KiwiSaver is how you want your savings to be invested. You might

not have the skills or experience to manage investments (that’s

what we do for you) but it is in your best interests to tell us which

investment strategy you prefer so that we can manage your savings

appropriately.

We understand that every investor has different investment goals

(and timeframes in which to achieve these) and that investors have

varying appetites for risk. We have developed our Scheme to allow

you to select the investment strategy that you consider meets

your needs.

Important consideration when choosing your investment strategyBefore choosing your investment strategy (a carefully designed

investment mix to fit a specific investor profile), it is important that

you think about:

� Your investment timeframe (how long you will be saving before

you take out money for your first home or retirement); and

� Your risk tolerance (how comfortable you are with the value of

your savings fluctuating).

Investment Tip The longer your investment timeframe, the more you may

be comfortable with an investment strategy that consists of

more growth assets. We think growth assets are important,

as most KiwiSaver members have a long time to save for

their retirement. Historically, investing in growth assets has

produced better long term investment returns than other

asset classes, minimising the impact of inflation over time.

However, if you are nearing retirement or saving for your

first home, you may want to have a more conservative

investment approach. Income assets such as cash and

fixed interest typically produce more stable returns in the

short term.

Don’t fret! You’re not locked into an investment strategy for

life. If your situation or thinking changes you can change

your investment strategy at no cost.

This questionnaire is a guide only, containing information of a

general nature. It is not personalised financial advice and does

not take into account your particular situation or goals.

To help decide the investment strategy that you consider is

best for you, simply answer the questions below. If you require

any assistance, contact us on 0800 808 808.

Section 1: Your Investment Timeframe

Question 1: How many years will you be saving before you take out money for your first home or for your retirement?

Investment Timeframe: year/s

Section 2: Your Risk Tolerance Circle each answer and note the total score for this

section at the end.

Question 2: Which of the following best describes your attitude to investment risk?

I am a very low risk taker 1

I am a low risk taker 2

I am an average risk taker 3

I am a high risk taker 4

I am a very high risk taker 5

Question 3: Which of the following statements best describes your understanding of the financial markets and investments?

I am only familiar with bank term deposits and

savings accounts

1

I know a little about investments outside bank term

deposits and savings accounts but not enough to

make an informed decision on how to invest

2

I understand different types of investments have

different levels of risk and the degree of risk is

relevant to the possibility of fluctuation in value

3

I understand all types of investments (including

shares and property) and understand the various

influences on their returns

4

I am very experienced with all types of investments

and consider myself well educated when it comes to

risk versus reward and the opportunities available

5

Question 4: I am willing to accept more risk to possibly achieve higher returns.

Strongly disagree 1

Disagree 2

Neutral 3

Agree 4

Strongly agree 5

Score

Score

Score

14

Question 5: If the value of my investment fluctuated up or down more than 10% over a short time frame it would make me very nervous.

Strongly agree 1

Agree 2

Neutral 3

Disagree 4

Strongly disagree 5

Question 6: I am willing to experience the ups and downs (fluctuations) of the market for the potential of greater returns over the long term.

Strongly disagree 1

Disagree 2

Neutral 3

Agree 4

Strongly agree 5

Question 7: My main concern is protection of my capital. Keeping my money protected is more important than earning higher returns.

Strongly agree 1

Agree 2

Neutral 3

Disagree 4

Strongly disagree 5

Score

Question 8: If I consider current interest rates, the overall level of return that I reasonably expect to achieve from my investments over the period I wish to invest is:

Term deposit returns with minimal risk of losing any capital 1

4-6% 2

5-7% 3

7-9% 4

Over 9% 5

Question 9: After I have made a significant financial decision, I normally feel

Very concerned 1

Concerned 2

A little uneasy 3

Content I have made the right decision 4

Optimistic that the decision I have made will provide

substantial benefits

5

Add your scores together for questions 2 to 9 and see below for details.

Risk Tolerance Score:

Score

Score

Score

Score

How did you score? The table below uses your scores from the questionnaire. To determine your investment strategy, find your Investment Timeframe across

the top (using your score from Section 1) and your Risk Tolerance Score along the left side (using your score from Section 2). Where they

intersect is your suggested investment strategy. Descriptions of each investment strategy are listed on the next page. You should read the

descriptions to ensure you are comfortable with your investment strategy.

<1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15+

0 - 8

9 - 14

15 - 20

21 - 26

27 - 32

33 - 40

Your Investment Timeframe (years)

Your

Ris

k

Tole

ranc

e S

core

Preservation Conservative* Conservative Balanced Balanced Balanced Growth Growth Equity

* If you have been allocated to the TOWER KiwiSaver Scheme by Inland Revenue and suit a Conservative investment strategy, we

recommend that you remain in the Cash Enhanced Fund (default fund) in which you are currently invested.

The scores are designed to provide an indication only of what might be the most suitable investment strategy for you. Before making a choice, you should consider all factors relevant to your decision. You are not limited to these six options – you can build your own investment strategy by choosing a mix of Funds in any proportions you wish. Remember that you are responsible for choosing an investment strategy – neither TMF, Fisher Funds or the Trustee is responsible for the choice you make. 15

Investment Strategy

Indicative Asset Mix*

Suitable for investors... Fund(s) that make(s)

up this strategy

Preservation Very Low Risk /Return

100% income

The Preservation Strategy is designed for a

very short term or an extremely cautious

investor who:

� Is nearing retirement age and intends making

a withdrawal, or is saving to buy a first home in

the next 12 months; or

� Is primarily concerned with maintaining the

capital value of their investment. In exchange,

they are prepared to accept the likelihood of

lower returns.

100% Preservation Fund

ConservativeLow Risk / Return

70% income 30% growth

The Conservative Strategy is designed for a

short term or a naturally cautious investor who:

� Is nearing retirement age and intends making

a withdrawal, or is saving to buy a first home in

the short term; or

� Is primarily concerned with maintaining the

capital value of their investment. In exchange,

they are prepared to accept the likelihood of

lower returns.

While this investment strategy is designed to be

conservative, the value of your investment may

go down as well as up.

100% Conservative Fund

If you have been

allocated to the

TOWER KiwiSaver

Scheme by Inland

Revenue and suit

a conservative

investment strategy,

we recommend that

you remain in the

Cash Enhanced Fund

(default fund).

Conservative Balanced Low to Medium Risk / Return

57.5% income 42.5% growth

The Conservative Balanced Strategy is

designed for a short to medium term or a

cautious investor who:

� Is approaching retirement age and intends

making a withdrawal, or is saving to buy a first

home in the medium term; or

� Wants to keep their investment safe but is

also interested in returns; this type of investor

is cautious but realises that some risk may be

necessary.

50% Conservative Fund / 50% Balanced Fund

New Zealand Cash 100%



16

Investment Strategy

Indicative Asset Mix*

Suitable for investors... Fund(s) that make(s)

up this strategy

BalancedMedium Risk / Return


The Balanced Strategy is designed for an

investor who:

� Wants to achieve a balance between

maintaining the capital value of their

investment and growing that investment over

the medium to long term; or

� Wants to split their investments more evenly

between growth and income assets (even in

the short term).

100% Balanced Fund

Balanced GrowthMedium to High Risk / Return


The Balanced Growth Strategy is designed for

a long-term investor who:

� Wants good growth potential and is willing to

accept a fair amount of positive and negative

fluctuations but not as much as a portfolio

invested primarily in growth assets; and

� Has time to wait for the value of their

investment to recover if it goes down.

40% Balanced Fund / 60% Growth Fund

Growth EquityHigh Risk / Return

8% income

92% growth

The Growth Equity Strategy is designed for a

long term investor who:

� Is willing to accept positive and negative

fluctuations in the value of their investment

in the short term in anticipation of achieving

higher returns in the long run; and

� Has time to wait for the value of their

investment to recover if it goes down.

40% Growth Fund / 60% Equity Fund

We know that life is forever changing and that we must change with it. We recommend that you review your choice periodically, especially if there are significant changes to your financial situation. This may require you to complete this questionnaire again. You can change your investment option at any time.

* The pie-charts shown detail the respective long term target asset allocations of the investment funds and strategies as at the date of this investment statement. Those asset allocations may change over time.




17

Asset classes and allocationsThe Funds may gain exposure to the asset classes described

on page 11 directly (by buying the asset), indirectly (by investing

in other managed funds which hold the asset) or artificially (by

purchasing derivatives). As at the date of this investment statement,

the Funds only invest in the following assets:

� other funds which are managed by TOWER Asset Management

Limited (TAM), an entity associated with us;

� cash for liquidity purposes; and

� derivatives for the purposes of foreign currency hedging (where

applicable).

While the asset allocations of each Fund will, over the long term,

target the levels for the Funds as shown in the diagrams on pages

12 or 13, the actual asset allocations will vary from time to time.

Such variations may be due to market movements or due to us (or

the manager of the TAM funds) varying the allocations away from

the target levels for a variety of reasons, including managing risk,

increasing potential returns or managing cashflow requirements.

Any variation away from the target asset allocation levels must

remain within a permitted range. The current registered prospectus

describes the approved asset classes and permitted allocation

ranges for each Fund.

Alternative investmentsThe Cash Enhanced Fund, the Conservative Fund, the Balanced

Fund and the Growth Fund may also have exposure, either directly

or indirectly, to alternative investments from time to time. While

the target asset allocation level for alternative investments for

each of these Funds is currently 0%, the Cash Enhanced Fund,

the Conservative Fund and the Balanced Fund may each invest

up to 10% of their value and the Growth Fund may invest up to

15% of its value in alternative assets. Alternative investments are

discussed further on page 11.

Hedging of foreign currencyThe Cash Enhanced, Conservative, Balanced, Growth and Equity

Funds all invest in asset classes that are denominated in foreign

currencies. To reduce the risk of adverse currency fluctuations,

foreign currency hedging (taking an offsetting position) is

undertaken. International fixed interest assets (bonds) are usually

fully offset against New Zealand dollars on a net of tax basis.

International shares may be offset to a degree against New Zealand

dollars, however we or the manager of the relevant TAM fund may

vary the actual hedging levels at times with the aim of increasing

potential returns. Actual hedging levels may also vary due to the

changing values of the international assets. Currency hedging may

be undertaken by the Fund or the TAM funds.

18

Check your balance at any timeYou have access to www.supersite.co.nz, our website for

members of the Scheme. The site is free for you to use and as a

member it also gives you 24-hour, password-protected access

to your personal investment information. You can change your

personal details, keep track of your savings progress and change

the Funds you invest in.

In addition to the information available on supersite, we will also

send you an annual report, annual member statement and tax

certificate each year.

Changing your investmentsYou can change or switch Fund(s) at any time (see page 31 “Can

the investment be altered?”). You can also change where your

future contributions are allocated. It is recommended that you

discuss any changes with your financial adviser. If you don’t have

a financial adviser contact us for assistance on 0800 808 808.

PortabilityThe Scheme is portable, which means that you can continue your

savings when you change employers.

Manage your money when you retireWhen you become eligible to make a retirement withdrawal

from KiwiSaver, you can choose to take out lump sums, set up

a regular payment to your bank account or leave your money

in the Scheme until you need it, subject to minimum withdrawal

amounts and minimum account balance requirements.

KiwiSaver for children and grandchildren The Scheme may also suit children or grandchildren who are under

the age of 18. With easy set-up options and no minimum payments

required (until they begin paid employment), it’s an easy way to

start their savings. If you wish to enrol children you can do so online

at www.tower.co.nz/kiwisaver or contact us for an application form

at [email protected] or 0800 808 808. Persons under

16 may only be enrolled by all parents/guardians (acting jointly).

Persons aged 16 or 17 must co-sign with a parent or guardian.

Join nowJoining the Scheme is easy. All you need to do is read this investment statement, fi ll in the forms at the back and send them to us. We’ll do the rest. If you have been allocated to the Scheme as part of the government’s automatic KiwiSaver enrolment process, you do not need to do anything.

19

Choose a KiwiSaver scheme that benefi ts your schoolCash4Schools™ is a fantastic initiative that’s helping Kiwi schools

reach their full potential.

Nominate a school when you sign up or transfer to the Scheme,

and we will make a donation to that school. The donations don’t

stop there, because we will continue to support that school

with an ongoing annual donation based on the balance of your

Scheme account! These donations are paid for by us and are at

no cost to you.

You can switch your nomination between primary and high

schools and even tertiary institutions as time goes on, or choose

to retain it at one school indefinitely. For terms and conditions

please see our website at www.cash4schools.co.nz

There are two ways to sign up for the Scheme and nominate your

school:

1. Simply nominate your school by inserting the school name

in full in the “School nomination (Cash4Schools™)” section of

the application form.

2. Sign up online through www.tower.co.nz/kiwisaver. Enter

the name of your school in full, under the section headed

“Adviser Details”.

You will automatically download the Scheme Investment

Statement as part of the process.

If you’re already a Scheme member and you have not already

nominated a school, you can now do so by visiting

www.cash4schools.co.nz and clicking on ‘Nominate

Your School’.

20

Transfer to the TOWER KiwiSaver SchemeTransferring to the Scheme from another KiwiSaver scheme is easy. Just read this investment statement and complete the application form on page 35 and we will do the rest.

What will we do?Within a week of processing your application we will send you

confirmation of your transfer to the Scheme. We will provide you with

information on how to access your Scheme account balance details

online. Our commitment to help you meet your investment needs and

our Cash4Schools™ initiative provide compelling reasons to transfer.

Investment decisions are very importantThey often have long term consequences. Read all documents

carefully. Ask questions. Seek advice before committing yourself.

21

What sort of investment is this?This investment statement offers membership in the TOWER KiwiSaver Scheme, a registered KiwiSaver scheme under the KiwiSaver Act 2006 (‘the Act’).

Investment in the Scheme is the simple way to save for your

retirement.

Who can join the Scheme?New membership of a KiwiSaver scheme is open to natural

persons who are:

� normally living in New Zealand;

� New Zealand citizens (or are entitled to be in New Zealand

indefinitely);

� under the New Zealand Superannuation qualification age

(currently 65 years of age), unless they are transferring from

another KiwiSaver scheme.

The Scheme is portableThe Scheme is portable, which means that you can maintain and

continue your savings when you change employers.

How are your KiwiSaver savings invested?When you invest in the Scheme, your investment is placed in your

own account, and the monies in that account are then pooled with

the investments of other members of the Scheme into a selection

of funds. The Funds available are pools of member investments

held within the Scheme and are outlined on pages 12 and 13. You

can specify which Fund or Funds your contributions will be invested

in or select from several predetermined investment strategies.

Your investment in the Scheme is represented by units in the

Fund(s) that you are invested in. Your contributions to the Scheme

buy a number of units in a Fund based on the price of the units,

and those units are then allocated to your account. As the value

of the assets of a Fund increases or decreases, so too will the unit

price of that Fund. The performance of your Fund is measured by

the rise or fall of the unit price.

Segregation of FundsThe Funds are segregated, meaning the assets of each Fund are

the exclusive property of that Fund, and all liabilities incurred in

relation to that Fund are the exclusive liabilities of that Fund, with

the exception of any tax liabilities or credits relating to a member’s

interests, which may be netted off. The Funds offered by the

Scheme are determined by us.

In certain circumstances members will be automatically allocated to the Scheme by Inland Revenue

Default MembersThis investment statement includes the options available to Default

Members, being those people that Inland Revenue has allocated

to the Default Fund of the Scheme and who have not subsequently

chosen a Fund.

If you do not select a Fund, as a Default Member your contributions

are held in a separate account in your name and are automatically

invested in the Cash Enhanced Fund, (the Default Fund of the

Scheme) (see pages 12 and 13). Your account is allocated units

which represent your proportionate share of the Cash Enhanced

Fund’s assets.

You may switch from the Default Fund to any of the other Funds

available to Scheme members at any time (see page 31 “Can the

investment be altered?”) by completing the form on page 43 of this

investment statement. If you switch from the Default Fund to another

Fund(s), you must withdraw all of your balance from the Default Fund

at that time and you cannot reinvest in the Default Fund.

22

Who is involved in providing it for me?The name of the scheme is the TOWER KiwiSaver Scheme. The

Scheme was established by a trust deed dated 26 March 2007,

(‘Trust Deed’). The Scheme is a registered KiwiSaver scheme and a

default KiwiSaver scheme, both as defined by the Act. The Scheme

has accepted members since 1 July 2007.

Manager and IssuerTOWER Managed Funds Limited (‘TMF’ or the ‘Manager) is the

Manager and Issuer of the Scheme. TMF is also appointed as a

default provider through an instrument of appointment under the

Act. TMF was incorporated in 1989. Its ultimate holding company

is Fisher Funds Management Limited (‘Fisher Funds’).

The directors of TMF at the date of this investment statement are:

� Carmel Fisher (Auckland)

� Mark Brighouse (Auckland)

� Glenn Ashwell (Auckland)

TMF and its directors can be contacted at its registered office:

� Level 1, Crown Centre, 67 – 73 Hurstmere Road, Takapuna,

Auckland 0740

TrusteeTrustees Executors Limited is the Trustee of the Scheme (the

‘Trustee’). Trustees Executors Limited can be contacted at:

� Level 12, 45 Queen Street, P O Box 4197, Shortland Street,

Auckland 1140

Administration ManagerMercer (N.Z.) Limited is the Administration Manager of the Scheme

(the ‘Administration Manager’). Mercer (N.Z.) Limited can be

contacted at:

� Level 18, 151 Queen Street, Auckland Central 1010

Director and contact details, as referred to above, can change

from time to time. Please contact us on 0800 808 808 for current

information.

None of the Crown, TMF, TAM, Fisher Funds, the Trustee, or any

other person or company, guarantees or promises the repayment

of, or returns on, investments in the Scheme.

Responsible investment relates to an investment policy which

combines intentions to maximise both financial returns and

social good. We do not provide Funds which include such a

policy. Responsible investment, including environmental, social,

and governance considerations, is not taken into account in the

investment policies and procedures of the Scheme as at the date

of this investment statement.

How much do I pay?EmployeesAs an employee you are currently required to contribute from your

after-tax salary or wages at the rate of 3%, 4%, or 8% of your

gross salary or wages unless you opt out of KiwiSaver or take a

contributions holiday. Employees can choose a rate by advising

their employer. If you have been automatically enrolled into the

Scheme by Inland Revenue you can opt out. You can do this at any

time from the 13th day after the date on which you started your

new job until the end of the 55th day after starting your new job. If

you choose to do this, Inland Revenue will return your contributions

to you along with accumulated interest, and return any employer

contributions made on your behalf to your employer.

You can change your contribution rate at any time, to any one of

the rates above, by advising your employer that you wish to do

so. You can change your contribution rate only once every three

months, unless your employer agrees to a shorter time frame. Any

change in contribution rate will take effect from the next payment of

salary or wages after you have advised your employer.

If you do not make a choice, your contribution rate will be the

minimum contribution rate required by the Act (currently 3%). If you

are transferring from another KiwiSaver scheme without changing

jobs you will retain your current contribution rate unless you choose

otherwise. However, if you change jobs you will contribute at the

current minimum contribution rate at that time unless you notify

your new employer otherwise.

Employer ContributionsIf you are 18 years of age or over but below your KiwiSaver

Qualifying Age and you are contributing to your Scheme account

from your salary or wages, your employer is currently required to

make a minimum contribution to your Scheme account of 3% of

your gross salary or wages.

Your employer contributions may be split between the KiwiSaver

scheme you are a member of and another superannuation scheme

you are a member of, subject to certain criteria.1

Any employer contributions will be held in a separate employer

account in your name, and are subject to Employer’s

Superannuation Contribution Tax (‘ESCT’) before they are paid to

the Scheme – see page 29.

1 If you joined a superannuation scheme offered by your employer prior to 1 April 2008, that was registered before 17 May 2007 (or could join such a scheme under a collective agreement that was in force before 17 May 2007), any contributions required to be paid by your employer to that scheme may count towards the compulsory employer contributions required for the Scheme to the extent they vest within the first five years of being paid.

23

If you are paid through the PAYE system, your contributions are

deducted from your salary or wages to coincide with your pay

period and paid to Inland Revenue by your employer. If your

employer fails to make payments they will be liable for penalties

under the Act. Contributions are initially paid to Inland Revenue

and earn interest at an interest rate set by Inland Revenue.

Contributions, together with accumulated interest, will be sent to us

by Inland Revenue for crediting to your Scheme account.

You may apply for a contributions holiday if you wish. For details

on when this can be arranged, please see page 31 “Can the

investment be altered?”. Your employer may reduce, suspend or

terminate their contributions if you take a contributions holiday.

You can also make extra contributions to your Scheme account as

often as you wish, helping your savings to grow faster.

Any additional payments can be made to us or to Inland Revenue.

Payments can be made to us from your bank account, by direct

credit or by cheque (see page 45 Additional Lump Sum form).

Any cheque payments together with supporting documentation

(see page 45 Additional Lump Sum form) can be made to TOWER

Managed Funds Limited at 50 Customhouse Quay, PO Box 1849,

Wellington 6140. Payments can be made to Inland Revenue by

internet banking, at Westpac or by cheque (see www.kiwisaver.

govt.nz for further details).

Self employedIf you are not paid through the PAYE system (eg: if you are self-

employed or not employed) you can choose the amount you

contribute. There is currently no minimum contribution requirement.

You can choose to make regular contributions or lump sum

payments.

If you choose to make regular contributions, you will need to

complete the Direct Debit form on page 39. You can stop regular

contributions or change your regular contribution amount at any

time by writing to us.

You can make lump sum payments to us or through Inland

Revenue. If you intend to make a payment directly us, you will need

to complete the Additional Lump Sum form on page 45. Payments

can be made to Inland Revenue by internet banking at Westpac,

or by cheque. Further details on how to make payments to Inland

Revenue are available at www.kiwisaver.govt.nz.

The government will provide a member tax credit (subject to

conditions) of 50 cents for every $1 you contribute, up to a

maximum member tax credit of approximately $521 per annum.

In the first year of membership in a KiwiSaver scheme, this is

calculated proportionately from the date when your first contribution

is received to 30 June following that contribution.

ChildrenIf you are enrolling children you must choose the contribution

amount. There is currently no minimum contribution requirement,

however, if or when they are employed and are paid through the

PAYE system they will be subject to the employee contribution

requirements as stated in the “Employees” section on page 23

(however no employer contribution is required until they reach the

age of 18). Regular or lump sum contributions on behalf of minors

can be made in the same manner for self employed persons as

described above. The government does not provide the member

tax credit for KiwiSaver scheme members under the age of 18.1

All membersIf the Scheme is your first KiwiSaver scheme, the government will

also make a $1,000 kick-start contribution to your account when

you join.

There is currently no minimum contribution amount for additional

contributions by members. We may introduce or change minimums

at any time and will notify members if we do so.

You may be a member of only one KiwiSaver scheme at a time. By

applying to join the Scheme you agree to transfer the balance of

any other KiwiSaver scheme you are already a member of to the

Scheme and we will arrange this on your behalf.

Member tax creditsAs at the date of this investment statement, the government will

provide all Scheme members aged between 18 years and the

KiwiSaver Qualifying Age (usually 65), and who mainly reside in

New Zealand, with a member tax credit of 50 cents for every $1

the member contributes, up to a maximum member tax credit of

approximately $521 per annum. We will collect this from Inland

Revenue once annually (or part way through the year if you cease

your Scheme membership and are entitled to a credit). If, in

addition to contributing to the Scheme, you have contributions

credited to a complying superannuation fund, the credit will be

paid to the scheme that requests the member tax credit first. The

amount of the tax credit may change in the future.

The member tax credit will be allocated to your Scheme account

proportionately across the Fund(s) you are invested in.

1 People under 16 may only be enrolled by all parents/guardians acting jointly. People aged 16 or 17 must co sign with a parent or guardian in order to enrol.

24

What are the charges?As a member of the Scheme, certain fees and expenses are payable by you in connection with your investment in the Scheme.

As at the date of this investment statement, the fees that are

applicable to the Scheme are detailed in the table below. Details of

expenses and other charges are described after the table.

Table of fees Trustee fee* Administration fee Management

fee*

Contribution

fees

Switching

fees

Withdrawal

fees

Default Members

Cash Enhanced Fund Up to 0.03% p.a.

Up to $2.75 per month.

(As at 30 April 2013, the actual fee was $2.37 per month)

0.48% p.a. nil nil nil

Non-Default Members

Preservation Fund Up to 0.03% p.a.Up to $2.75 per month.

(As at 30 April 2013 the actual fee was $2.37 per month)

0.48% p.a. nil nil nil

Conservative Fund Up to 0.03% p.a. Up to 0.85% p.a. nil nil nil

Balanced Fund Up to 0.03% p.a. Up to 0.95% p.a. nil nil nil

Growth Fund Up to 0.03% p.a. Up to 1.05% p.a. nil nil nil

Equity Fund Up to 0.03% p.a. Up to 1.10% p.a. nil nil nil

* Trustee and management fees are stated as a percentage of funds under management.

Management fee

A management fee of 0.48% per annum of the gross asset value

of the Fund is deducted from the assets of the Fund and paid to

us each month. From this fee, we pay all the costs of investment

management.

Other fees

As at the date of this investment statement there are no

contribution fees, switching fees or withdrawal fees payable.

Expenses

No expenses of the Scheme will be charged to the Fund or to your

Scheme account, except for fees in respect of certain exceptional

services (eg: a meeting of members or obtaining a court

direction in respect of the Scheme) prescribed in the instrument

of appointment appointing us as a default provider. Under the

instrument of appointment, any such fees must be charged on a

time and attendance basis in accordance with usual charge-out

rates for work of this nature.

Cash Enhanced Fund - Default Members Investors in the Cash Enhanced Fund will be subject to the

following fees and expenses:

Trustee fee

A trustee fee of up to 0.03% per annum of the total value of your

account balance is deducted from your Scheme account quarterly

and paid to the Trustee.

Administration fee

An administration fee of up to $2.75 per month (as at 30 April

2013 the actual fee was $2.37 per month) is deducted from your

Scheme account each month. This fee is paid to us, and we use

some of this to pay a fee to the Administration Manager for the

administration services they provide.

The administration fee is calculated on the total membership of the

Scheme at a rate of $2.75 for the first 25,000 members and $2.25

for all members thereafter. The rate is applied equally across the

total Scheme membership.

25

Investment in other managed funds

The Fund may invest in other funds which may charge fees and

incur expenses. As at the date of this investment statement, the

Fund is only invested in TAM funds. No fees are currently charged

to the Cash Enhanced Fund in respect of any TAM underlying fund,

other than the TOWER Property Fund. In the case of the TOWER

Property Fund, the Cash Enhanced Fund is charged an agency fee

by the trustee of that fund, Trustees Executors Limited, of 0.15%

per annum of the value of the Cash Enhanced Fund’s investment in

the TOWER Property Fund.

The TAM funds may incur trustee, custodian and administration

expenses, but as at the date of this investment statement these

expenses are rebated back to the Fund by the manager of the TAM

funds. The TAM funds may also incur professional, transaction

and other expenses incurred in the operation of the funds. These

expenses are paid out of the assets of the TAM funds and

reflected in the unit prices of those funds. The amount of these

expenses cannot be determined until they are incurred and will vary

from time to time. The returns of the Fund will be indirectly affected

by those expenses.

The TAM funds that the Fund invests into, as well as the Fund itself,

may also invest in funds managed by third parties not associated

with us. These funds may charge fees, including entry fees, exit

fees, performance fees and management fees, and incur expenses.

The returns of the Funds are indirectly affected by those fees and

expenses.

Changes to fees

Fees payable by you as a Default Member may only be increased

with the prior written approval of the relevant Government

Minister(s).

Preservation Fund, Conservative Fund, Balanced Fund, Growth Fund and Equity FundMembers who are invested in the Preservation Fund, the

Conservative Fund, the Balanced Fund, the Growth Fund or the

Equity Fund are subject to the following fees and expenses:

Trustee fee

A trustee fee of up to 0.03% per annum of the total value of your

Scheme account balance is deducted from your account quarterly

and paid to the Trustee.

Administration fee

An administration fee of up to $2.75 per month (as at 30 April 2013

the actual fee was $2.37 per month) is deducted from your account

each month.

This fee is paid to us, and we use some of this to pay a fee to the

Administration Manager for the administration services provided by

them.

The administration fee is calculated based on the total membership

of the Scheme at a rate of $2.75 for the first 25,000 members and

$2.25 for all members thereafter. The rate is applied equally across

the total Scheme membership base.

Management fee

Management fees (up to the percentages shown in the table on the

previous page) are deducted from the gross asset value of each

Fund and paid to us each month. From this fee, we pay all the

costs of investment management and brokerage to your financial

adviser (if applicable).

Other fees

As at the date of this investment statement there are no

contribution fees, switching fees or withdrawal fees payable from

your Scheme account.

Expenses

We and the Trustee are entitled to pay or reimburse themselves

(or in our case only, any other person) for any costs, charges and

expenses (together, ‘expenses’) properly incurred in respect of the

Scheme. These expenses include, but are not limited to, charges

associated with custody, unit pricing, operations and audit services.

These expenses are apportioned between the Funds or members’

accounts to which they relate at our discretion. The amount of

these expenses cannot be determined until they are incurred and

will vary from time to time. Details of the actual expenses incurred

are available in the annual Scheme financial statements.

Investment in other managed funds

Each Fund may invest in other funds which may charge fees and

incur expenses.

As at the date of this investment statement, the Funds are only

invested in TAM funds. No fees are currently charged to the Funds

in respect of any TAM underlying fund, other than the TOWER

Property Fund. In the case of the TOWER Property Fund, each

Fund invested in the TOWER Property Fund is charged an agency

fee by the trustee of that fund, Trustees Executors Limited, of

0.15% per annum of the value of the Fund’s investment in the

TOWER Property Fund.

The TAM funds will incur fees, costs and expenses in their

operation. These expenses are paid out of the assets of the TAM

funds and reflected in the unit prices of those funds. The amount of

these expenses cannot be determined until they are incurred and

will vary from time to time. The returns of the Funds are indirectly

affected by those expenses.

26

As at the date of this Investment Statement, by way of example

and without limitation, these expenses are expected to be made

up of trustee fees, custody fees, registry expenses, and other costs

and expenses incurred in the operation of the TAM funds, some

of which may be payable to the investment manager, trustee, or

custodian of the TAM funds. The approximate amount of these

expenses, calculated as an average of each Fund’s total net asset

value at 31 March 2013 (calculated on the basis of each Fund’s

proportionate share of the individual TAM fund(s) at 31 March 2013)

are detailed in the table below. These expenses and the proportion

invested in the TAM funds may change from time to time. TAM is

the investment and administration manager of the TAM funds.

Investment fundApproximate level of

expenses in TAM funds

Preservation Fund 0.062%

Conservative Fund 0.118%

Balanced Fund 0.119%

Growth Fund 0.160%

Equity Fund 0.177%

The Funds, and the TAM funds they invest into, may also choose to

invest in other funds managed by third parties not associated with

us. Those funds may charge fees, including entry fees, exit fees,

performance fees and management fees, and incur expenses.

The returns of the Funds are indirectly affected by those fees and

expenses in addition to the expenses described above.

Changes to fees

The Trustee may alter the trustee fee (with our approval) and we may

alter the administration and management fees, and introduce other

fees (in each case with notice to the Trustee), at any time subject to

the restrictions prescribed by the Act. All fees charged to you must

be reasonable.

GSTAll fees and expenses are stated on a Goods and Services Tax

(‘GST’) exclusive basis unless otherwise stated. Where a fee or

expense attracts GST, then the GST component will be payable in

addition to the fee or expense stated. Some fees and expenses are

exempt from GST, either wholly or in part. The fees and expenses

that are exempt, and the extent to which they are exempt, may

change in the future.

What returns will I get?Unit pricesYour contributions to the Scheme are invested in your chosen

Fund(s), your share of which is calculated in units. The unit price is

the price you pay (or receive) when your contributions are invested in

(or withdrawn from) units in a Fund.

Returns are reflected in the increases and decreases of the unit price

of the Funds. Any returns will be adjusted for any fees and expenses

payable from your account. Any tax payable will be funded by the

automatic cashing up of units in the Funds and any tax rebates

received will result in the issue of new units.

Your returns will be in the form of a payment made on any withdrawal

by you from the Scheme. For information about withdrawing from the

Scheme, see page 32 “How do I cash in my investment?”.

Key factorsThe amount of any return is not quantifiable as at the date of this

investment statement, as investment returns are by their nature

variable. The key factors that determine the returns to you are

increases and decreases in the value of the assets in your Fund(s),

any income those assets earn, the movements in the markets

relevant to your Fund(s), the fees and expenses charged and your

tax liability. The total of the returns that may be allocated to you is

therefore unknown as at the date of this investment statement.

Other factors that impact returns are investment duration, market

conditions on withdrawal, whether regular contributions have been

maintained, tax impacts, fees and entitlement to any government

member tax credit.

WithdrawalsWithdrawals will be processed using the unit price of your Fund(s) at

the time of the withdrawal. All withdrawals will be calculated on the

value of the units held in your Fund(s), after allowance for tax (if any).

TMF is legally liable for paying any returns to you from the Scheme.

We may not withhold allocations of returns. However there is

provision in the Trust Deed for us to suspend or defer withdrawals

in each Fund if we believe the payment of the withdrawal requests

would be materially prejudicial to the Scheme or the interests of

members. The suspension and deferral periods are at our discretion.

Your returns may be affected by our power to suspend or defer

withdrawals from your Fund(s).

None of the Crown, TMF, TAM, Fisher Funds, the Trustee, or any

other person or company guarantees or promises the repayment of,

or returns on, any amount invested in the Scheme.

27

How will my investment be taxed?Tax - introductionThe information in this section, is only a general guide on New

Zealand tax issues in respect of the Scheme. The comments are

based on current legislation . Tax law is complex. You should

seek tax advice prior to investing in the Scheme. In this section,

‘individual’ means a natural person not acting as a trustee or a

proxy, ‘resident’ means a tax resident of New Zealand, ‘income

year’ means the year running to the member’s balance date, which

for most people is 31 March, and ‘tax year’ means the period from

1 April to 31 March. Persons who are or become tax resident in

another country will need to also consider the tax implications in

those other countries.

Taxation of multi-rate Portfolio Investment Entities (‘PIEs’)As a PIE, the Scheme:

� Attributes to you a proportionate share of the Scheme’s income

and tax credits;

� Calculates tax on your proportionate share of income based on

your Prescribed Investor Rate (PIR). You must notify us of your

PIR which will range from 10.5% to 28%, depending on your

income;

� Pays this tax (‘PIE tax’); and

� Adjusts either your investment in the Scheme or the amount paid

to you, to reflect the PIE tax.

You will be attributed your share of income (for which PIE tax has

been paid) and usually will not need to file a tax return as it will be

excluded income. Please refer below for exceptions.

Assuming you provide the correct PIR, no further tax is payable

when you withdraw funds from the Scheme.

You must provide us with your IRD number and your PIR on your

application form and must advise us when your PIR changes.

However, if Inland Revenue considers that you have provided an

incorrect PIR, it can require us to apply a different PIR for you. We

may refuse to accept an application if you have not provided your

IRD number and PIR. Where an application has been accepted and

you have not given us your PIR and IRD number a default 28% PIR

applies.

If you provide us the wrong PIR, then you will be liable for any tax

shortfall (plus any interest and penalties) and may need to file a tax

return. If your notified PIR is too high then your investment will be

overtaxed and you will not be able to recover the excess.

PIRs and Individual MembersIndividuals who are tax resident determine their PIR based on

their taxable income and their total income (ie. taxable income +

attributed PIE income - attributed PIE loss) in the prior two income

years. To work out your PIR use the following table:

If your

taxable

income

was...

And your taxable

income plus your

PIE income/loss

was...

In the 2

income years

before the

relevant tax

years for...

Your

PIR is

$0 - $14,000 $0 - $48,000 Either year 10.50%

$0 - $14,000 $48,001 - $70,000 Either year 17.50%

$14,001 -

$48,000$0 - $70,000 Either year 17.50%

$48,001

or moreAny Each year 28%

Any$70,001

or moreEach year 28%

If you need any help working out your PIR call us on 0800 808 808,

or go to Inland Revenue’s website www.ird.govt.nz. We will give

you information about your attributed income at the end of the tax

year or after a full withdrawal from the Scheme. This information will

help you determine whether or not you need to change your PIR for

the next tax year.

PIRs and Non-resident MembersIf you stop being a tax resident, your PIR will be 28%. We will give

you information about your attributed income and any attributed

tax credits at the end of the tax year or after you make a full

withdrawal from the Scheme. Although a non-resident will not need

to file a New Zealand tax return, you may need this information

for tax purposes in other countries. If you are non-resident for tax

purposes you should seek advice for your individual circumstances.

28

PIE tax treatment and timingThe Scheme pays PIE tax as follows:

� on any partial withdrawal from the Scheme during the year

(excluding, in most cases, fee deductions) a portion of the total

tax payable (or refundable) will be calculated at the time and your

account balance will be altered accordingly;

� on a full withdrawal from the Scheme during the year, any tax

payable (or refundable) will be calculated and paid to (or refunded

by) Inland Revenue. Your account balance will be altered

accordingly and the balance paid out to you;

� as at 31 March of each year, the remaining tax payable (or

refundable) will be calculated and is paid to (or refunded

by) Inland Revenue. Your account balance will be altered

accordingly. If at any time, your balance is equal to or less than

the tax that is payable on income earned since the start of the

tax year, we will cancel the remaining value of the investment

and pay the tax to Inland Revenue. Shortly after the end of the

tax year or after a full withdrawal from the Scheme, we will give

you information on your investment, including the amount of

income attributed to you and the amount of any PIE tax on your

investment for the year.

Employer’s Superannuation Contribution Tax (‘ESCT’)Employer contributions to the Scheme are subject to employer’s

superannuation contribution tax (‘ESCT’) at the following ESCT

rates:

� 10.5% if the total of your taxable earnings and the before-tax

employer superannuation contributions made for your benefit

(which include KiwiSaver scheme contributions) was $16,800 or

less in the previous tax year;

� 17.5% if the total of those earnings plus employer contributions

was between $16,801 and $57,600 in the previous tax year;

� 30% if the total of those earnings plus employer contributions

was between $57,601 and $84,000 in the previous tax year; and

� 33% in all other cases.

If your current employer did not employ you for the full previous

income year, the above rates will be based on estimates of

your expected taxable earnings and employer superannuation

contributions for the current income year.

What are my risks?There is some degree of risk involved with all investments. The

potential return on an investment is generally related to the risk of

the investment.

Investments in the Scheme are not guaranteed. The value of

your investment can go up and down. There is a risk that you will

not recover the full amount you have invested or not receive any

returns on your investment. This may occur where the value of the

investments made for any of the Funds of the Scheme falls by such

an amount that the value of your units is less than you paid for them.

Investment risk encompasses the chance that investment returns

may be negative as well as positive. This positive and negative

movement is called volatility. As a general rule, cash and fixed

interest investments tend to be less volatile than commercial

property, shares and alternative investments.

This means that, generally speaking, the higher the exposure

to commercial property, shares and alternative investments,

the greater the potential to experience negative returns in the

short term. You also stand a greater risk of not getting all of your

investment value back if negative movement occurs in the short

term and you cash in your investment.

However, higher risk funds also have the potential for higher returns

over the medium and longer term. You need to decide how much

risk you are comfortable with. In order to receive a potentially higher

return, you may have to accept a higher degree of volatility. Each

Fund description within this investment statement includes a risk

profile for the Fund.

Principal risksThe principal risks of investing in the Scheme include:

� not achieving the returns expected, or experiencing periods of

negative returns;

� receiving back less than the amount originally invested; and

� not being able to withdraw from the Scheme when desired.

The likelihood of these risks occurring is influenced by factors

which affect investments generally. Some of these key factors are

set out below.

If any of these risks eventuate, it is reasonably foreseeable that

on withdrawal you may receive in total less than the amount you

invested.

29

Key factors � investment specific – while all investments carry risk, the level

of risk varies depending on the Fund(s) you are invested in and

the types of investments those Fund(s) invest in. Different types

of investments perform differently through market cycles and

each type of asset carries a different type of risk. For example,

if there is a specific event which affects the share price of a

particular company or the price of a particular fixed interest

investment that any of the Fund(s) invest in, there could be a

negative impact on the performance of the Fund(s). Short term

fluctuations in the value of a Fund are common, particularly for

Funds that invest predominantly in growth assets;

� market factors – investment markets are affected by a host of

factors, many of which are outside our control. These include

economic conditions (including market sentiment, inflation,

interest rates and employment), political events, environmental

and technological issues. The performance of investment

markets is a key factor in determining returns from the Funds;

� currency fluctuations – where Funds are invested in

international assets, fluctuations in the exchange rate could

impact on the value of the Funds (because the value of the

Funds is calculated by reference to a New Zealand dollar

equivalent amount). We may manage currency exposures to

offset the impact of currency fluctuations (and therefore maximise

the New Zealand dollar returns of a Fund). This is known as

‘hedging’ (see page 18);

� interest rates – fixed rate investments may become more

or less valuable depending upon changes in interest rates. If

market interest rates rise, the fixed rate investment becomes less

valuable, and vice versa when market interest rates fall. Interest

rate changes also affect the value of other securities such as

shares, and property investments. Interest rates are influenced

by a number of national and international economic factors,

including exchange rates, consumer spending, employment

levels, other inflationary pressures and, in New Zealand, the

Official Cash Rate set by the Reserve Bank;

� liquidity – low liquidity means there is a risk that a Fund may

be unable to sell its assets, which would affect the ability

of the Scheme to make payments in time (such as meeting

withdrawal requests). Some assets are more difficult to sell than

others, particularly if market conditions deteriorate. Generally,

investments in property have a greater liquidity risk than

investments in shares;

� inflation impacting on real returns;

� operational risk: an operational or systems failure, loss of

key personnel, fraud, business disruption or other unforeseen

external events may affect the Fund (or the markets generally);

� legislative and regulatory – returns may be affected by any

adverse legislative or regulatory changes in both New Zealand

and offshore, which could have an impact on any investment.

Changes to the KiwiSaver legislation could have a significant

impact on the Scheme and your investments in the Funds.

Some Funds invest in industries which are more regulated than

others (such as infrastructure assets) which may impact your

investment;

� taxation – changes in taxation rates or tax rules in New Zealand

or any overseas jurisdiction;

� PIE Status – loss of PIE status for failing to meet the

requirements of the Tax Act would result in the Funds being

taxed at 28% rather the individual PIRs of members;

� investment style – our investment style, strategy and decisions

may result in your returns being different from competing

investments;

� investment objectives – the investment objectives of the Funds

may change and the Funds may not achieve their investment

objectives. The investment objectives should not be interpreted

as a guarantee or assurance of returns. A failure to meet

investment objectives would affect each Fund;

� counterparty risk – this risk is that a party to a contract

(including a derivative contract) could default or fail to honour

their contractual obligations (including on insolvency). If this

occurs, you may not recover the full amount of your investment

in a Fund;

� derivative risk - the Funds and the TAM underlying funds in

which the Funds invest may use derivatives. A derivative is

typically a financial contract whose value depends on the future

value of its underlying assets such as shares, bonds, currency

or cash. Examples of derivatives include swaps, warrants,

structured notes, futures contracts, options, forward rate

agreements and forward foreign exchange contracts. Derivatives

may be used as an alternative to investing in the physical asset

or as a risk management tool, providing a similar exposure to

the investment without buying or selling the asset underlying

the derivative. Where derivatives are used as an alternative to

investing in physical assets, the derivative may be affected by

the key factors outlined above. Where derivatives are used in

managing risks, the derivative may not remove all exposure to

risks that the financial instrument is used to manage.

30

Other risksOther risks applying to the Scheme include:

� any of the various parties involved in the operation of the

Scheme, including the Trustee, us and the Administration

Manager, may fail to properly perform their obligations in respect

of the Scheme, which may adversely affect members;

� we may direct the Trustee to borrow, including against the assets

of a Fund. This may exaggerate the effect of any increase or

decrease in the value of the assets of the Fund and increase the

risk of insolvency. As at the date of this investment statement,

there is no borrowing and no intention of borrowing by the

Scheme or any of the Funds. The Funds may invest in other

funds (including the TAM funds) which may borrow from time

to time;

� if there is insufficient demand for the Scheme or for any other

reason, we may resolve to wind up the Scheme, in which case

the Trustee shall wind up the Scheme in accordance with the

Trust Deed. If there is insufficient demand for a Fund or for any

other reason, we may terminate the relevant Fund in accordance

with the Trust Deed.

Personal liabilityOther than any obligation to pay tax you will not be required to pay

more than your contributions, subject to the minimum contributions

outlined on page 23 “How much do I pay?”, which may change

from time to time.

Insolvency of the TOWER KiwiSaver SchemeIn the event that the Scheme or any of the Funds become

insolvent, there is no obligation for you to pay any money to any

person as a result of the insolvency.

If the Scheme is put into liquidation or wound up, members will

rank behind all secured (including bank borrowing) and unsecured

creditors (including the Trustee and us) as well as tax liabilities,

the costs of liquidation or winding up and any outstanding fees.

After payment of all creditors, members will rank equally and

their proportionate share of the balance of the Scheme will be

transferred to another KiwiSaver scheme as provided for under the

Act. There is a risk that you may not recover the full amount paid to

the Scheme by you or on your behalf.

Can the investment be altered?Changes may be made to your investment.

Changing FundsYou may switch between any Funds available to Scheme members

at any time, with the exception of the Cash Enhanced Fund, which

is only available to members allocated to the Scheme by Inland

Revenue, as the default Fund. There is no fee for arranging a

switch, although we have the ability to charge a fee.

When arranging a switch from the Cash Enhanced Fund, you are

required to switch the full balance of your investment in that Fund

plus all future contributions, to your chosen Fund(s). Once Default

Members have switched from the Cash Enhanced Fund, they are

no longer Default Members and cannot switch back to that Fund.

There is no fee for arranging a switch, although we have the ability

to charge

a fee.

TransfersYou may transfer the entire value of your investment in the Scheme

to another KiwiSaver scheme at any time. You can be a member of

only one KiwiSaver scheme at a time.

Changes to your contributionsAfter you have been a member of one or more KiwiSaver schemes

for 12 months (or earlier in the case of financial hardship), you may

apply to Inland Revenue for a contributions holiday for up to five

years and may reapply for a further five years if required. There are

no fees for electing to take a contributions holiday and you may

resume contributions at any time by advising your employer.

After you reach your KiwiSaver Qualifying Age (see next page)

you can (but are not required to) give your employer a ‘non

deduction notice’ requiring it to stop deducting KiwiSaver scheme

contributions from your pay. The notice will apply to your next

salary or wage payment and then until you revoke it.

Regular contribution amounts can be altered provided that

the alteration fits within the requirements of the Act. If you are

employed, you can change your contribution rate between 3%,

4%, or 8% of your gross salary or wages, by giving notice to your

employer (see page 23 “How much do I pay?”). You can change

your contribution rate only once every three months, unless your

employer agrees to a shorter time frame.

31

Changes to feesWe may only increase the fees of the Cash Enhanced Fund with

prior written approval of the relevant approving Minister(s). The fees

of the other Funds may be altered by us at any time in consultation

with the Trustee.

Changes to the Trust DeedThe Trust Deed of the Scheme can be altered by us and the

Trustee provided that the amendment complies with applicable

law. This includes amendments that are minor, non-prejudicial, or

required to comply with statutory or regulatory requirements.

The Act also requires us to amend the Trust Deed to ensure its

terms are consistent with the instrument of appointment while the

Scheme is a default KiwiSaver scheme. These amendments can be

made despite anything to the contrary in the Trust Deed, applicable

law or any agreement. Please note that the provisions of the

instrument of appointment prevail over the terms of the Trust Deed.

Changes to Funds We can introduce new Funds and alter existing Funds (including

changing the investment strategies or objectives of particular

Funds) at any time without notice to you.

We may close or wind up any or all of the Funds, or the Scheme

itself. The Scheme can also be wound up if required under the Act.

Legislative changesThe Act and other legislation may be amended from time to time

by the government, and any such amendment may impact the

amount you are required to contribute to the Scheme and/or other

terms affecting the Scheme.

How do I cash in my investment?Retirement BenefitsContributions are locked in until you reach the qualifying age for

New Zealand Superannuation (currently 65 years of age) or you

have been a member of any KiwiSaver scheme and/or complying

superannuation fund for five years, whichever is the later. This

is your KiwiSaver Qualifying Age. At that time, subject to any

minimum withdrawal amounts (as determined and notified by us),

you may:

� choose to withdraw part or all of your investment as a lump sum

(partial withdrawals are subject to a current minimum of $500 per

withdrawal);

� elect to make regular withdrawals (currently a minimum of $250

per fortnight and $500 per month applies);

� maintain your membership in the Scheme, or transfer to an

alternative TMF or Fisher Funds product.

All withdrawal requests must be made in writing by using the

required form and will be paid into your nominated bank account.

You cannot make a partial withdrawal if it would result in your

account balance falling below $1,000. If you do, we are entitled

to treat your withdrawal request as a request to withdraw all of

your account balance. We may change this amount and introduce

other restrictions from time to time.

The withdrawal form can be obtained from us. Verification of your

identity will be required prior to making any payment.

Early withdrawals In addition, there are certain circumstances where you may

be able to cash in all or a portion of your investment in the

Scheme (which may or may not include the government kick-

start contribution and member tax credits) prior to reaching your

KiwiSaver Qualifying Age. Currently these are:

� for the purchase of a first home (subject to meeting qualifying

criteria – see page 10 “How a KiwiSaver scheme can help you to

buy a first home”);

� upon your death, on application by your personal

representative(s);

� where you suffer or are likely to suffer from significant financial

hardship, or are suffering from a serious illness (as defined in the

KiwiSaver Act), and satisfactory evidence has been provided to

and accepted by the Trustee;

� your permanent emigration from New Zealand to anywhere

other than Australia (but not within 12 months of your permanent

emigration from New Zealand and subject to satisfactory

evidence being provided to and accepted by us); and

� where any Act or court order requires a withdrawal to be made.

32

At the date of this investment statement, legislation has been

passed which, once in effect, will mean that if you permanently

emigrate to Australia, you will not be able to withdraw your

investment in the Scheme in cash. Instead, you will be able to

transfer your Scheme balance only to certain qualifying Australian

superannuation schemes (however the transfer amount will

comprise your entire Scheme balance including member tax

credits) or leave your money in the Scheme. As at the date of

this investment statement, it is expected that this law change will

come into effect on or about 1 July 2013. For further information

on this please call us on 0800 808 808.

What will I receive if I make an early withdrawal?

Your and your

employer’s

contributions

Member

tax

credits

Government

kick-start

contribution

First home

buyer (including

second chance)

Yes No No

Death Yes Yes Yes

Significant

financial

hardship

Yes1 No No

Serious illness Yes Yes Yes

Permanent

emigration

Yes No2 Yes

In all cases, you will not be entitled to member tax credits

received for any period of time where you did not reside mainly

in New Zealand. You will need to supply us with a statutory

declaration at the time of withdrawal stating any periods for which

you did not reside mainly in New Zealand.

1The amount of the withdrawal is at the discretion of the Trustee and may not be the full value of your own and your employer’s contributions2 Refunded to Inland Revenue

PaymentWithdrawal benefits (adjusted for any tax payable or refundable

in the case of full withdrawals) will be paid out of your Fund(s) as

a lump sum. In the case of a partial withdrawal where you have

more than one Fund, the withdrawal amount will be deducted

from your Funds in the proportion of your nominated investment

strategy (eg. if you contribute 60% to one Fund and 40% to

another, 60% of your withdrawal value will be taken from the first

Fund and the remaining 40% from the other Fund).

Under normal circumstances withdrawal payments will be made

within 15 days of your request. The actual timing of withdrawal

payments is affected by many variables and is therefore not able

to be defined.

Deferral of paymentsPayment of withdrawal requests can be suspended or deferred

where we believe withdrawals would be materially prejudicial to

the Scheme or the interests of members (see page 27 “What

returns will I get?”).

Transfer to another KiwiSaver schemeYou may choose to transfer your interests in the Scheme (net of

taxes and fees) to another KiwiSaver scheme, or your interests

in the Scheme may be transferred to another KiwiSaver scheme

if required under the Act, or if the Scheme is no longer a default

KiwiSaver scheme. We are authorised to deduct the amount of

any tax attributed to you from your account balance to the extent

necessary to make payment of tax.

Your Scheme balance as securityYou may not charge or borrow against the security of your

Scheme balance, or otherwise sell, assign or alienate your interest

in the Scheme except when that assignment, sale or charge is

required by the provisions of any enactment (including a court

order under the Property (Relationships) Act 1976).

Who do I contact with inquiries about my investment?You can register online, check the balance of your account, obtain

information and check your membership details through www.

supersite.co.nz. If you have any questions about your account, you

can email us at [email protected], call us on 0800 808 808

or write to:

� The Operations Manager

TOWER Managed Funds Limited

50 Customhouse Quay

PO Box 1849

Wellington 6140

33

Is there anyone to whom I can complain if I have problems with the investment?If you have any problems or complaints about the Scheme, you can

direct them to:

� The Operations Manager


50 Customhouse Quay

PO Box 1849

Wellington 6140

Phone: 0800 808 808

Facsimile: 04 914 0434

Email: [email protected]

You can also contact the Trustee at:

� Trustees Executors Limited

Level 12, 45 Queen Street

PO Box 4197, Shortland Street, Auckland 1140

Phone: 09 308 7100

TMF and the Trustee are both members of an approved dispute

resolution scheme operated by Financial Services Complaints

Limited (‘FSCL’). If you have complained to us or the Trustee and

have reached the end of our or their internal complaints process

without resolution to your satisfaction, FSCL may be able to

consider your complaint.

You can contact FSCL at:

� 13th Floor, 45 Johnson Street

PO Box 5697 Lambton Quay

Wellington 6145

Phone: 0800 347 257


Complaints about your investment in the Scheme can also

be made in certain circumstances to the Financial Markets

Authority at:

� Level 5, Ernst & Young Building

2 Takutai Square

Britomart

PO Box 106 672

Auckland 1143

Phone: 0800 434 566

What other information can I obtain about this investment?You can obtain more information about the Scheme from the

current registered prospectus and financial statements, the

most recent annual report and the Trust Deed. Copies of these

documents are available for inspection at our offices free of charge,

or at the Trustee’s office. A small fee may be charged for copies

of the Trust Deed. You can request a copy of these documents by

contacting:

� TOWER Managed Funds Limited

50 Customhouse Quay

PO Box 1849

Wellington 6140

Phone: 0800 808 808


These documents (other than the annual report) are also filed with

the Ministry of Business, Innovation and Employment and are

available for public inspection on the Companies Office website at

www.business.govt.nz/companies

How can I check my details and benefits?You will receive a statement of your account balance annually

which will provide details of the number of units held in your Fund(s)

and the current value of those units. You can also view these details

online at www.supersite.co.nz. You will also receive an annual

report and tax certificate. Latest unit prices, Fund information,

performance figures and investment statements, can be viewed

online at www.tower.co.nz/kiwisaver

34

TOWER KiwiSaver Scheme Application form

Member details (If enrolling a minor please provide their details here)

You do not need to complete this form if you have been automatically enrolled by Inland Revenue.

Please mail this Application Form, identity documents and (if applicable) your cheque, Direct Debit Authority and any other relevant information, to: TOWER Managed Funds Limited, Freepost 521, PO Box 1849, Wellington 6140.

Title First name/s

Date of birth IRD number

/ /

Prescribed Investor Rate (PIR) - please tick one - see page 28 to determine your rate; if a PIR is not selected, 28% will apply.

10.5% 17.5% 28%

Please list any other names you have been, or are you currently known by, eg. maiden name, former married name, alias?

Surname

Male Female

Postcode

Postal address (if different from above)

Postcode

Home phone

( )

Business phone

( )

Mobile

( )

Email address (By providing your email address you consent to receive newsletters and any other correspondence by email)

Contribution DetailsIf you are employed If you are employed your regular contributions will be made by your employer (whom you authorise to deduct those amounts from your pay). If you wish to invest an additional amount directly please refer to page 24.

3% 4% 8%Employee elected contribution rate (as a percentage of gross wages or salary)You must let your employer know the contribution rate you have elected.

Employer detailsCompany name

Postal address

If you are not employed If you are not employed (self-employed, unemployed, under 18 and not working, retired, etc) you will invest directly with the Scheme. Please complete the amount of your initial investment.

If you wish to make regular contributions, please complete the Direct Debit Form, on page 39.

Initial investment

$

Physical address (not a PO Box number)

Postcode

Country

Country

Business phone

( )

City

City

Please note that your application cannot be processed if the names below do not match the identity documents provided.

June 2013 35

Investment optionsYou can select from six investment strategies (a carefully designed investment mix to suit a specific investor profile) or you can create your own investment strategy by choosing either a specific Fund or a mix of our five individual Funds in the proportions you wish. For help with choosing an investment strategy see “Your investment options” on page 12).

You can change your contribution proportions at any time at no cost either online at www.supersite.co.nz or by contacting us.

If you have not been allocated to the Scheme through the default process and you do not make a choice, your contributions will be invested in the Balanced Fund. We recommend that you obtain advice from a financial adviser before making a decision to invest or change your investment.

Transfers from other superannuation schemes Are you transferring from another KiwiSaver scheme?

I apply to transfer my benefit from the above scheme to the TOWER KiwiSaver Scheme. I authorise the Manager or the trustee of the transferring scheme to provide to TOWER Managed Funds Limited or the Trustee of the Scheme any of my personal information as necessary to complete the transfer of my benefits.

If you wish to transfer funds from a registered New Zealand or Australian superannuation scheme, please contact us on 0800 808 808.

Yes No

Name of scheme provider (if known)

Receiving information about your investmentBy signing this Application Form you agree to receive all forms of communication from us by email. This will include where possible newsletters, annual personalised statements, annual PIE tax statements, the Scheme’s annual report and news of investor events. You also consent to receiving a web link URL for access to electronic copies of the Scheme’s annual reports.

I would prefer to receive all communications by mail.

School nomination (TOWER Cash4SchoolsTM)

Name of School (in full)

School address or location ie. Wellington

To select an investment strategy please tick the relevant box below:

Funds %

Preservation Fund

Conservative Fund

Balanced Fund

Growth Fund

Equity Fund

The total must equal 100% 100%

To build your own investment strategy simply complete the table below:

Preservation strategy (100% Preservation Fund)

Conservative strategy (100% Conservative Fund)

Conservative Balanced strategy (50% Conservative Fund, 50% Balanced Fund)

Balanced strategy (100% Balanced Fund)

Balanced Growth strategy (40% Balanced Fund, 60% Growth Fund)

Growth Equity strategy (40% Growth Fund, 60% Equity Fund)

or

By signing this Application Form you acknowledge that:

(i) choosing an investment strategy is solely your responsibility and neither TOWER Managed Funds, Fisher Funds or the Trustee of the Scheme is to be regarded as representing or implying that any particular investment strategy is appropriate for your personal circumstances;

(ii) the Investment Statement does not give financial advice and if you are unsure about choosing an investment strategy you can seek advice from a financial adviser;

(iii) your choice of an investment strategy will be a binding direction from you to the Trustee of the Scheme for the purposes of the Trustee Act 1956; and

(iv) you may change your investment strategy at any time.

36

Identity documentsPlease provide one of the following identity options which must be certified, (see below for more information):

Identity Documents (must be certifi ed*)

OPTION 1 OPTION 2

� Passport; or

� New Zealand drivers licence; or

� New Zealand firearms licence

� Birth certificate; or

� Citizenship certificate

Together with one of the following:

� HANZ 18+ Card; or

� Tertiary student photo ID; or

� Current international driving permit

Proof of residential address (does not need to be certifi ed)

� Bank Statement dated within the last three months; or

� Any New Zealand Government Department statement dated within the last three months; or

� New Zealand utility company statement ie: electricity, gas, phone, SKY dated within the last three months.

*Certifying your identity documents All copies of identity documents must be completely legible with clear photos. They must also be certified by an Approved Person as being a true reproduction of the original document. A TOWER Managed Funds or Fisher Funds representative or an Authorised Distributor can copy and certify documents for you. Alternatively you can ask a Justice of the Peace, New Zealand registered lawyer, accountant, teacher or doctor, Police Officer, Notary Public or Member of Parliament who is not related to you, is not your spouse or partner, and does not live at the same address. The Approved Person must view the original document (not a fax, photocopy or scan) before writing their name, occupation, date and signature and a statement as follows: “I certify this to be a true copy of the original document and confi rm that it represents the identity of (full name)”. Certification is valid for three months.

Date

/ /

Signature of applicant (if 16 or older)

June 2013

Proof of bank account (does not need to be certifi ed)If you are setting up a regular investment by direct debit authority, please provide one of the following as proof of the nominated bank account:

� Bank statement dated within the last three months; or

� A bank generated deposit slip

Privacy ActThe information that you provide us in this application and which you may provide us in the future may be used by TOWER Managed Funds Limited, Fisher Funds Management Limited, the Trustee and any of their respective related entities of either, your financial adviser or the distribution entity through which you joined the Scheme (if applicable) and by other service providers to the Scheme to provide services in relation to your investment and to promote to you other products and services. You have the right to access the information held by us and you may also request that it be corrected.

DeclarationI have read a copy of the Investment Statement and agree to be bound by the terms and conditions of the Trust Deed. I understand that the Scheme is a vehicle for long term investment and that the value of my investment is liable to fluctuations and may rise and fall from time to time. I understand the manner in which the fees will be deducted from my investment. I acknowledge that neither the Trustee nor the Manager will be liable to me for any loss as a consequence of the investment direction given on this form or any later investment direction given in accordance with the Trust Deed (and that none of the Manager, the Trustee, the Crown or any other person guarantees the performance of the investment fund(s) I select). The Investment Statement has been given, and the offer of securities has been made, to me in New Zealand. I meet the eligibility criteria for joining the Scheme as set out on page 22 of the Investment Statement.

Identity documents when investing for minors � Please provide a birth certificate on behalf of the minor which

includes name/s of parent/s. If the child is transferring from another KiwiSaver Scheme a passport is acceptable.

� Each person signing as a parent or legal guardian must provide their personal identity documents as listed in the table above.

� Legal guardians who are not listed on the minor’s birth certificate must provide proof of guardianship.

Identity documents when investing for another personEach person signing as an attorney must provide:

� Their personal identity documentation as listed above;

� Power of Attorney and a Certificate of non-revocation.

37

Legal guardian of a minor (required if the applicant is aged under 18)

Title First name/s

Address (if different from that of minor)

PostcodeCountryCity

Surname Date of birth

/ /

Date

/ /

Signature of legal guardian

What is your relationship to the minor, ie. father/mother/guardian

I confirm that I am a legal guardian of the applicant and that I accept the Declaration, on behalf of the applicant.

Second legal guardian of a minor (required if the applicant is aged under 16 and has more than one

legal guardian)

Title First name/s

Address (if different from that of minor)

PostcodeCountryCity


/ /

Date

/ /

Signature of legal guardian

What is your relationship to the minor, ie. father/mother/guardian

I confirm that I am a legal guardian of the applicant and that I accept the Declaration, on behalf of the applicant.

Attorney (if applicable)

Title First name/s

Address (if different from that of the applicant)

PostcodeCountryCity


/ /

Date

/ /

Signature of Attorney

Adviser detailsName of Adviser Adviser Code/FSP Number

Company (if applicable)

If the applicant is 16 or 17, the applicant and one legal guardian must co-sign. If the applicant is under 16 both the legal guardians must sign on behalf of the applicant. Legal guardians must provide identification in accordance with the requirements on page 37.

38

If you are employed and wish to make additional contributions to the TOWER KiwiSaver Scheme, in addition to your contribution from your salary or wages, or if you are self-employed or not employed but wish to make regular contributions to the Scheme, or if you wish to make regular contributions to the Scheme on behalf of a minor, please complete this form.

Please post this form to: TOWER Managed Funds Limited, Freepost 521, PO Box 1849, Wellington 6140, Telephone: 0800 808 808, Facsimile: 04 914 0434 Email: [email protected] For more information visit tower.co.nz/kiwisaver

For bank use onlyApproved

1869

06/10

Date received Received by Checked by Bank stamp

Not to operate as an assignment or agreement

Direct Debit Authority Form

To the bank manager Please print full postal address clearly for use in a window envelope

Bank name

Start date

/ / $

Payment amount

Weekly Fortnightly Monthly

Account number where payments are to be made from

BankPlease attach an encoded deposit slip for your bank account.

Branch number Account number Suffix

AuthorisationI/We authorise you, until further notice in writing, to debit my/our account with all amounts which TOWER Managed Funds Limited, the Registered Initiator of the above authorisation code (hereafter referred to as the Initiator), may initiate by direct debit. I/We acknowledge and accept that the bank accepts this authority only upon the conditions listed below.

Details to appear on my / our bank statementPayer particulars Payer code

Payer reference

Authorised signature

/ /

Date

K I W I S A V E R

Branch

Postal address

PostcodeTown / CitySuburb

Personal detailsFirst name(s)

Surname Name of account holder

Weekly and fortnightly direct debits must occur on a Tuesday.Monthly direct debits must occur on the 1st or 20th of the month.

IRD number

Authorisation code

0 3 1 8 6 9 8

June 2013 39

Conditions of this Authority to accept Direct Debits1 The Initiator

(a) Has agreed to give advance notice of the net amount of each direct debit and the due date of debiting at least 10 calendar days before (but not more than two calendar months before) the date the direct debit will be initiated.

This notice will be provided either:

(i) in writing; or

(ii) by electronic mail where the Customer has provided prior written consent to the Initiator. The advance notice will include the following message: “Unless advice to the contrary is received from you by (*date), the amount of $... will be directly debited to your Bank account on (initiating date). ” * This date will be at least (2) two days prior to the initiating date to allow for amendment of direct debits.

(b) May, upon the relationship which gave rise to this Authority being terminated, give notice to the Bank that no further direct debits are to be initiated under the Authority. Upon receipt of such notice the Bank may terminate this Authority as to future payments by notice in writing to me/us.

2. The Customer may:

(a) At any time, terminate this Authority as to future payments by giving written notice of termination to the Bank and to the Initiator.

(b) Stop payment of any direct debit to be initiated under this Authority by the Initiator by giving written notice to the Bank prior to the direct debit being paid by the Bank.

(c) Where a variation to the amount agreed between the Initiator and the Customer from time to time to be direct debited has been made without notice being given in terms of 1(a) above, request the Bank to reverse or alter any such direct debit initiated by the Initiator by debiting the amount of the reversal or alteration of the direct debit back to the Initiator through the Initiator’s Bank, provided such request is made not more than 120 days from the date when the direct debit was debited to my/our account.

3. The Customer acknowledges that:

(a) This Authority will remain in full force and effect in respect of all direct debits passed to my/our account in good faith not withstanding my/our death, bankruptcy or other revocation of this Authority until actual notice of such event is received by the Bank.

(b) In any event this Authority is subject to any arrangement now or hereafter existing between me/us and the Bank in relation to my/our account.

(c) Any dispute as to the correctness or validity of an amount debited to my/our account shall not be the concern of the Bank except in so far as the direct debit has not been paid in accordance with this Authority. Any other disputes lie between me/us and the Initiator.

(d) Where the Bank has used reasonable care and skill in acting in accordance with this Authority, the Bank accepts no responsibility or liability in respect of:

- the accuracy of information about direct debits on Bank statements

- any variations between notices given by the Initiator and the amounts of direct debits.

(e) The Bank is not responsible for or under any liability in respect of the Initiator’s failure to give written advance notice correctly nor for the nonreceipt or late receipt of notice by me/us for any reason whatsoever. In any such situation the dispute lies between me/us and the Initiator.

4. The Bank may:

(a) In its absolute discretion conclusively determine the order of priority of payment by it of any monies pursuant to this or any other authority, cheque or draft properly executed by me/us and given to or drawn on the Bank.

(b) At any time terminate this Authority as to future payments by notice in writing to me/us.

(c) Charge its current fees for this service in force from time to time.

40

If you are employed and wish to make additional contributions to the TOWER KiwiSaver Scheme, in addition to your contribution from your salary or wages, or if you are self-employed or not employed but wish to make regular contributions to the Scheme, or if you wish to make regular contributions to the Scheme on behalf of a minor, please complete this form.

Please post this form to: TOWER Managed Funds Limited, Freepost 521, PO Box 1849, Wellington 6140, Telephone: 0800 808 808, Facsimile: 04 914 0434 Email: [email protected] For more information visit tower.co.nz/kiwisaver

For bank use onlyApproved

1869

06/10

Date received Received by Checked by Bank stamp


Direct Debit Authority Form

To the bank manager Please print full postal address clearly for use in a window envelope

Bank name

Start date

/ / $

Payment amount

Weekly Fortnightly Monthly

Account number where payments are to be made from

BankPlease attach an encoded deposit slip for your bank account.

Branch number Account number Suffix

AuthorisationI/We authorise you, until further notice in writing, to debit my/our account with all amounts which TOWER Managed Funds Limited, the Registered Initiator of the above authorisation code (hereafter referred to as the Initiator), may initiate by direct debit. I/We acknowledge and accept that the bank accepts this authority only upon the conditions listed below.

Details to appear on my / our bank statementPayer particulars Payer code

Payer reference

Authorised signature

/ /

Date

K I W I S A V E R

Branch

Postal address

PostcodeTown / CitySuburb

Personal detailsFirst name(s)

Surname Name of account holder

Weekly and fortnightly direct debits must occur on a Tuesday.Monthly direct debits must occur on the 1st or 20th of the month.

IRD number

Authorisation code

0 3 1 8 6 9 8

June 2013 41

Conditions of this Authority to accept Direct Debits1 The Initiator

(a) Has agreed to give advance notice of the net amount of each direct debit and the due date of debiting at least 10 calendar days before (but not more than two calendar months before) the date the direct debit will be initiated.

This notice will be provided either:

(i) in writing; or

(ii) by electronic mail where the Customer has provided prior written consent to the Initiator. The advance notice will include the following message: “Unless advice to the contrary is received from you by (*date), the amount of $... will be directly debited to your Bank account on (initiating date). ” * This date will be at least (2) two days prior to the initiating date to allow for amendment of direct debits.

(b) May, upon the relationship which gave rise to this Authority being terminated, give notice to the Bank that no further direct debits are to be initiated under the Authority. Upon receipt of such notice the Bank may terminate this Authority as to future payments by notice in writing to me/us.

2. The Customer may:

(a) At any time, terminate this Authority as to future payments by giving written notice of termination to the Bank and to the Initiator.

(b) Stop payment of any direct debit to be initiated under this Authority by the Initiator by giving written notice to the Bank prior to the direct debit being paid by the Bank.

(c) Where a variation to the amount agreed between the Initiator and the Customer from time to time to be direct debited has been made without notice being given in terms of 1(a) above, request the Bank to reverse or alter any such direct debit initiated by the Initiator by debiting the amount of the reversal or alteration of the direct debit back to the Initiator through the Initiator’s Bank, provided such request is made not more than 120 days from the date when the direct debit was debited to my/our account.

3. The Customer acknowledges that:

(a) This Authority will remain in full force and effect in respect of all direct debits passed to my/our account in good faith not withstanding my/our death, bankruptcy or other revocation of this Authority until actual notice of such event is received by the Bank.

(b) In any event this Authority is subject to any arrangement now or hereafter existing between me/us and the Bank in relation to my/our account.

(c) Any dispute as to the correctness or validity of an amount debited to my/our account shall not be the concern of the Bank except in so far as the direct debit has not been paid in accordance with this Authority. Any other disputes lie between me/us and the Initiator.

(d) Where the Bank has used reasonable care and skill in acting in accordance with this Authority, the Bank accepts no responsibility or liability in respect of:

- the accuracy of information about direct debits on Bank statements

- any variations between notices given by the Initiator and the amounts of direct debits.

(e) The Bank is not responsible for or under any liability in respect of the Initiator’s failure to give written advance notice correctly nor for the nonreceipt or late receipt of notice by me/us for any reason whatsoever. In any such situation the dispute lies between me/us and the Initiator.

4. The Bank may:

(a) In its absolute discretion conclusively determine the order of priority of payment by it of any monies pursuant to this or any other authority, cheque or draft properly executed by me/us and given to or drawn on the Bank.

(b) At any time terminate this Authority as to future payments by notice in writing to me/us.

(c) Charge its current fees for this service in force from time to time.

42


Switch Form (Cash Enhanced Fund)

This form is for default members (as explained on page 22 under ‘What sort of investment is this?’).

Please post this form to: TOWER Managed Funds Limited, Freepost 521, PO Box 1849, Wellington 6140, Telephone: 0800 808 808, Facsimile: 04 914 0434, Email: [email protected]. For more information visit tower.co.nz/kiwisaver

Your detailsTitle First name/s


/ /

Prescribed Investor Rate (please tick one). To work out your PIR see page 28 or call 0800 808 808.

10.5% 17.5% 28%

Employer

Surname

Male Female

Member number

Home phone

( )

Mobile

( )

Fax

( )

Email address

Street number

PostcodeTown / City Suburb

Street name

Switch of contributionsYou may invest in any one or more of the following investment funds. Both your current TOWER KiwiSaver Scheme account balance and your future contributions will be invested as per this instruction. Please show the percentages in whole numbers and ensure that this totals 100%. Please switch all contributions from my investment in the Cash Enhanced Fund as follows:

June 2013

To select an investment strategy please tick the relevant box below:

Funds %

Preservation Fund

Conservative Fund

Balanced Fund

Growth Fund

Equity Fund

The total must equal 100% 100%

To build your own investment strategy simply complete the table below:

Preservation strategy (100% Preservation Fund)

Conservative strategy (100% Conservative Fund)

Conservative Balanced strategy (50% Conservative Fund, 50% Balanced Fund)

Balanced strategy (100% Balanced Fund)

Balanced Growth strategy (40% Balanced Fund, 60% Growth Fund)

Growth Equity strategy (40% Growth Fund, 60% Equity Fund)

or

43

Date

/ /

Signature of member

Adviser detailsName of Adviser Adviser code/number

AuthorisationI hereby authorise TOWER Managed Funds Limited to redirect contributions and transfer my savings in accordance with my instructions on this form.

44

Once payment has been made, please post this form to: TOWER Managed Funds Limited, Freepost 521, PO Box 1849, Wellington 6140, Telephone: 0800 808 808, Facsimile: 04 914 0434, Email: [email protected]

For more information visit tower.co.nz/kiwisaver

Your detailsTitle First name/s

Home phone

( )

Mobile

( )

Fax

( )

Email address


/ /

Prescribed Investor Rate (please tick one). To work out your PIR, or for more information, visit www.tower.co.nz/pircalculator, or call 0800 808 808. 10.5% 17.5% 28%

Street number

PostcodeTown / City

Employer

Suburb

Surname

Male Female

Member number

Street name

Please credit $ in accordance with my current TOWER KiwiSaver Scheme investment profile

Lump sum payment

Payment method (tick one)

Direct debit

Cheque

Please include your reference details with your payment. Information to be included is your surname, initials and your IRD number. Failure to supply correct details will result in a delay in crediting your payment to your TOWER KiwiSaver Scheme account.

0 3 0 1 0 4 0 1 8 8 3 8 6 0 0

Payment was direct credited to the following bank account: TOWER KIWISAVER SCHEME MAIN BANK

Cheque attached is made payable to TOWER KiwiSaver Scheme Main Bank, and has been crossed ‘not transferable’. Send this form (together with your cheque if applicable) to:

TOWER Managed Funds LimitedFreepost 521PO Box 1849Wellington 6140

Additional Lump Sum / Transfer Form

June 2013

Direct credit

45

Transfer detailsIf you wish to add to your TOWER KiwiSaver Scheme account by transferring from another investment, please fill in the transfer details below.

Date

/ /

Signature of member

Transfer all funds other (amount to transfer) $

Fund manager Product name Account plan / number

Funds transfer authorisationI hereby authorise TOWER Managed Funds Limited to contact my existing product provider and arrange for the transfer of funds as specified above. Please pay these funds directly into my TOWER KiwiSaver Scheme account.

0 3 0 1 0 4 0 1 8 8 3 8 6 0 0

Please provide the following reference details when making the payment:

Section to be completed by TMF Please arrange for the transfer amount to be direct credited to the following bank account: TOWER KIWISAVER SCHEME MAIN BANK

Employer Member number

46

Contact us

Phone: 0800 808 808

Or you can write to us at:


50 Customhouse Quay

PO Box 1849, Wellington 6140

Facsimile: 04 914 0434


www.tower.co.nz/kiwisaver

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TOWER KiwiSaver Scheme - KiwiSelect€¦ · million Kiwis can attest, joining KiwiSaver is the easy...

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Transcript of TOWER KiwiSaver Scheme - KiwiSelect€¦ · million Kiwis can attest, joining KiwiSaver is the easy...