kiwiSTART^® Select

kiwiSTART Defined and kiwiSTART Select are Craigs Investment Partners' KiwiSaver compliant superannuation schemes. This means the schemes meet the Government’s criteria to be registered as a KiwiSaver scheme.

Click here for more information on KiwiSaver.

kiwiSTART is available as a workplace retirement savings scheme. Anyone under the age of eligibility for New Zealand Superannuation (currently 65), who is living in New Zealand (with some exceptions) and who is either a New Zealand citizen or entitled to live in New Zealand indefinitely is eligible to open a kiwiSTART account.

The minimum contribution rate for employees is currently set at 2% of before tax salary or wages (that means total salary, including bonuses, commission, extra salary and overtime). Alternatively you can choose to save 4% or 8%. kiwiSTART members can make one-off lump sum payments any time, directly through Craigs Investment Partners or through the IRD.

The minimum employee contribution rate will rise from 2% to 3% with effect from 1 April 2013. This would also be the default contribution rate. Find out more.

Yes, the maximum level of regular contribution via PAYE is 8% of your pre-tax earnings. In order to make additional contributions, members can pay these directly to your kiwiSTART account via Craigs Investment Partners.

We strongly recommend that you seek investment advice prior to any decision to contribute more than 2% of your earnings.

Once you have been a member of kiwiSTART for 12 months, you can stop making contributions for a period of between 3 months and 5 years. This is also known as a contributions holiday. The IRD will write to members nearing the end of their contributions holiday enquiring as to whether contributions are to re-commence. Further contributions holidays may be taken consecutively.

You can choose from our range of risk based Investment Options (which correspond to our Defined Portfolios Unit Trusts) that best suit your risk profile. In addition, you can create your own portfolio by selecting your investments from a list of nominated Australasian and Global securities. Before making an investment decision, we recommend you discuss your options with your Investment Adviser.

Further details can be found in our kiwiSTART Select and kiwiSTART Defined Investment Statements.

Returns from kiwiSTART will usually not be accessible to you until you reach the age of 65 or have been a member of a KiwiSaver scheme for 5 years (whichever is later). The key factors that may determine your returns include:

• the value of your kiwiSTART account as at the date a permitted withdrawal is made;
• how much of your member employer kiwiSTART account is vested in you (if applicable);
• fees; and
• tax.

The value of your kiwiSTART account may be affected by:

• changes in the investment markets;
• movements in interest rates;
• currency exchange rates; and
• political and other economic events.

No amount of returns is promised or guaranteed.

Once your kiwiSTART account is established, you will receive a statement every 6 months (March and September) from Craigs Investment Partners including details of your contributions and an up-to-date portfolio valuation. Alternatively, you can view your kiwiSTART account via our website.

The Government has offered a number of benefits including:

• A one-off, $1,000 lump sum contribution (kick-start) into your scheme member’s account when you join your first KiwiSaver scheme*
• A tax credit of up to $521.43 p.a.*
• First home purchase assistance*

* Subject to satisfying certain eligibility criteria.

All employee KiwiSaver contributions are forwarded to the KiwiSaver Scheme Provider via the IRD. Members can view their contributions received by the IRD at www.kiwisaver.govt.nz.

If you change jobs your KiwiSaver contributions will continue via your new employer. Your employee contribution rate will default to the 2% rate unless you notify your new employer that you wish to contribute at the 4% or 8% rate. If you become self-employed or leave paid employment, you can make contributions directly through Craigs Investment Partners Limited.

As kiwiSTART has been set up under the KiwiSaver Act to help you save for your retirement, you cannot withdraw funds from your kiwiSTART accounts until you become eligible to make a withdrawal.

Your kiwiSTART funds (including the $1000 kick-start and any member tax credits) will be available to you when you reach the age of entitlement to New Zealand Superannuation (currently 65), or when you have been a member of a KiwiSaver scheme for five years, whichever is the later. 

Earlier access may be provided in the event of:

• Death
• Serious illness
• Emigration (excludes tax credits. Member tax credits are automatically repaid to the Government)
• Significant financial hardship (excludes tax credits and Government kick-start payment)
• First home purchase (excludes tax credits and Government kick-start payment)

Further details can be found in our kiwiSTART Select and kiwiSTART Defined Investment Statements.

Fees consist of the following:

Administration Fee

An administration fee of up to $60 per annum will be deducted from your kiwiSTART Account.

Management Fee

A per annum fee of up to 1.25% of the value of your kiwiSTART Accounts is charged to cover the cost of maintaining your Accounts, processing contributions and withdrawals, receiving and actioning correspondence and preparing account statements.  This fee includes the trustee’s fee, the manager’s fee and the custodian’s fee and is deducted from your kiwiSTART Accounts.  The level of the custodial services fee will vary according to your portfolio selection:

• Fixed Interest Fund or Conservative Fund 0.75% p.a.
• Balanced Fund 1.00% p.a.
• Balanced SRI Fund, Growth Fund, Equity Fund, New Zealand Equity Fund, Australian Equity Fund

Where your kiwiSTART Scheme invests in a unit trust which is managed by Craigs Investment Partners Investment Management Limited and of which The New Zealand Guardian Trust Company Limited is the trustee (as is the case with the Defined Portfolios Unit Trusts), the custodial services fee is not deducted from your kiwiSTART Accounts in relation to those investments. Instead, your kiwiSTART Scheme will be charged a management fee within the unit trust for management and trustee services which will have a corresponding effect on the value of the relevant investments in your kiwiSTART Accounts.

Where a fee is charged within the unit trust, the applicable fees are:

• Fixed Interest Fund or Conservative Fund 0.75% p.a.
• Balanced Fund 1.00% p.a.
• Balanced SRI Fund, Growth Fund, Equity Fund, New Zealand Equity Fund or Australian Equity Fund 1.25% p.a.

In each case the fee is based on the value of each fund within the kiwiSTART Scheme.  Where, with the approval of the manager, you choose a selection of funds, the management fee will be charged within the unit trust, pro-rated to the amounts invested in each fund.

Please refer to the kiwiSTART Select and kiwiSTART Defined Investment Statements for further information.

Switching Fee

A fee may be charged if you switch investments or amend your investment direction more than once during a kiwiSTART Scheme year (1 April - 31 March). Currently no fee is charged.

Other

The Trustee is also entitled to be reimbursed for all administration and management costs, which will be deducted from your kiwiSTART Account. By joining the Scheme you accept and authorise these types of deductions. There is no limit to the level of such reimbursement.

The Trustee reserves the right to change the above fees and to charge other types of fees from time to time. Further details on all fees are available in the kiwiSTART Select and kiwiSTART Defined Investment Statements.

kiwiSTART is designed to supplement your New Zealand Superannuation - to give you a better standard of living in retirement. New Zealand Superannuation is a universal benefit available to all New Zealanders once they reach the age of eligibility for New Zealand Superannuation (currently 65). kiwiSTART membership does not affect your eligibility for New Zealand Superannuation.

The full value of your kiwiSTART account will be paid to your estate. In this instance, no tax is payable on the value of your account.

kiwiSTART is:

• Under-pinned by trust deeds
• Regulated by the Financial Markets Authority
• Monitored by an independent trustee. The New Zealand Guardian Trust Company Limited has been appointed as Trustee of the schemes
• The Trustee has appointed Craigs Investment Partners Superannuation Management Limited as the administration and investment manager
• Subject to regular scrutiny to ensure that trust rules are strictly followed

For more information read our kiwiSTART Select or kiwiSTART Defined Investment Statements.

kiwiSTART Select and kiwiSTART Defined are both KiwiSaver-compliant personal superannuation schemes provided by Craigs Investment Partners. kiwiSTART Defined is constructed as a Portfolio Investment Entity (PIE) offering a range of risk based Investment Options which correspond to our Defined Portfolios Unit Trusts, and is a more tax efficient option for those with a marginal tax rate of 10.5% or 17.5%. kiwiSTART Select offers you the opportunity to create your own portfolio from a list of nominated securities, or choose from our range of risk based Investment Options which correspond to our Defined Portfolios Unit Trusts, to suit your risk profile. kiwiSTART Select is not a PIE. Under current taxation law the earnings of kiwiSTART Select are taxable to the Trustee at 28% and its benefits are paid tax-free to members.

Both solutions are based on our successful mySTART investing service.

For more information read our kiwiSTART Select or kiwiSTART Defined Investment Statements.

Balanced SRI Fund explanatory statement

The Balanced SRI Fund is one of eight Defined Portfolio Unit Trusts.

The objective of the Balanced SRI Fund is to grow the value of unitholders’ capital, relative to inflation, over the medium to long term. The fund will generally hold a diversified portfolio of growth and income assets.

The Balanced SRI Fund is a unit trust which has been developed and is managed by Craigs Investment Partners Investment Management Limited (CIPIML) a wholly owned subsidiary of Craigs Investment Partners Limited.

Philosophy

The guiding philosophy of the Balanced SRI Fund is to endeavour to hold a diversified portfolio of investments that the manager considers to be environmentally and socially responsible, whilst still applying Craigs Investment Partners’ traditional portfolio investment criteria.

Currently, the manager does not actively screen for investments for the Balanced SRI Fund that have positive or negative governance practices. However, this consideration is taken into account in the overall assessment of the financial viability of an investment.

In selecting individual shares, funds and other investments for the Balanced SRI Fund to invest into, the manager will use a combination of positive and negative screening criteria. The criteria adopted will change over time as standards relating to corporate reporting and accountability and codes of conduct advance.

Negative screens

The manager will use its best endeavours to ensure that the Balanced SRI Fund will NOT be invested in companies engaging in the following activities:

• Tobacco
• Alcohol
• Gambling
• Armaments
• Pornography
• Nuclear weapons and the nuclear power industry

The manager will also use its best endeavours, using publicly available information (including annual reports issued by investment companies), social responsibility indices compiled by independent market observers (e.g. FTSE4Good industry series), along with any additional information from our in-house research resources, to ensure that no investment within the fund is engaged in poor labour practices, cruelty to animals or excessive environmental pollution. No formal definition, criteria or weightings are used in assessing these elements and each investment is screened separately.

Positive screens

Companies that will be considered are those that in the view of the manager:

• Make a positive social contribution
• Seek to minimise adverse environmental effects from their operations
• Have strong governance practices, ethical standards and track records
• Embrace triple bottom line reporting

The manager will use its best endeavours, using publicly available information (including annual reports issued by investment companies), along with any additional information from our in-house research resources, to ensure that investments within the fund do meet these criteria. There are no pre-determined relative weightings to these criteria. Available investments within this fund must meet Craigs Investment Partners Limited’s existing investment selection criteria.

In a practical sense, for international equity investments, managed fund and index funds, the manager will primarily focus on:

• Companies that are members of recognised SRI indices such as the FTSE4GOOD index or the KLD Social Index
• Managed funds that invest on an SRI basis, employing positive and/or negative screens
• Exchange-traded funds based on an SRI index

In the event that a stock included within the fund is found to be in breach of the fund’s investment criteria, that holding will be divested as soon as practicable, and for the best price practically achievable.

The perception of the ethics of a company or industry can change from investor to investor, as well as over time. The manager aims to keep abreast of new technology and trends, as well as changes in public opinion, and will adapt as required. The manager retains the right to invest in companies that, at first glance, may not appear to fit the above criteria, if it deems that the negative effects of the company are outweighed by the positive.

Craigs Investment Partners' research team constantly monitors companies within the Balanced SRI Fund and recommends adjusting holdings on a needs basis. The Balanced SRI Fund is formally reviewed every 6 months.

For more information read our Defined Portfolio Investment Statement.

Responsible Investment

Responsible investment, including environmental, social, and governance considerations, is taken into account in the investment policies and procedures of our Schemes and is included in our Investment Statements.

Responsible investment is taken into account in the investment policies and procedures of our Schemes in respect of the Balanced SRI (Socially Responsible Investment) Fund, a Defined Portfolios Unit Trust, to the extent set out in the policies and procedures described above. The Balanced SRI Fund invests in companies that the manager of the Defined Portfolios Unit Trusts, Craigs Investment Partners Investment Management Limited (the Defined Portfolio Unit Trust Manager), believes make a positive social or environmental contribution, or that are endeavouring to operate in an environmentally and socially sustainable way, whilst still applying the Defined Portfolio Unit Trust Manager’s traditional portfolio investment criteria. The Defined Portfolio Unit Trust Manager uses both positive and negative screening in selecting investments for the Balanced SRI Fund. As at the date of this Investment Statement, the Defined Portfolio Unit Trust Manager does not actively screen for investments for the Balanced SRI Fund that have positive or negative governance practices. However, this consideration is taken into account in the overall assessment of the financial viability of an investment.

As at the date of our latest Investment Statements, responsible investment considerations, including environmental, social and governance considerations, are not taken into account for the investment policies and procedures for the remaining Defined Portfolios Unit Trusts, being the Fixed Interest Fund, the Conservative Fund, the Balanced Fund, the Growth Fund, the Equity Fund, the New Zealand Equity Fund, and the Australian Equity Fund, or the Self-selected Portfolio investment options.

Visit our Tax Resources to find out more about PIR.