CRAIGS SUPERANNUATION FAQS

Our flexible superannuation solution provides a wide range of Investment Options, including the ability to tailor your portfolio by selecting your own shares, funds and other securities. Craigs Superannuation is able to receive funds generated from UK pension schemes because it is a Recognised Overseas Pension Scheme (‘ROPS’).

What is Craigs Superannuation?

This is a managed investment scheme. Your money will be pooled with other investors’ money and invested in various investments. Craigs Investment Partners Superannuation Management Limited (‘CIPSML’, ‘we’ or ‘us’) will invest your money and charge you a fee. The returns you receive are dependent on the performance of the investments you have selected. The value of those investments may go up or down. The types of investments and the fees you will be charged are outlined in the Product Disclosure Statement.

Why Craigs Superannuation?

The key benefits of investing in Craigs Superannuation are:

  • The ability to transfer your UK Pensions into the Scheme and retain exposure to international assets.
  • The ability to self-select your investment portfolio, allowing you to choose from a wide range of investments from around the world to that suit your risk profile and investment objectives.
  • The broad range of securities available for you to select as part of your portfolio.
  • Holding partial shares or below minimum holdings through pooling of members’ investments allows greater portfolio diversity.
  • You benefit from the research and analysis of the Craigs private wealth research team and the Craigs Investment Committee.
  • Access to a qualified Investment Adviser.

Craigs Superannuation is a superannuation scheme registered under the Financial Markets Conduct Act 2013 that is designed to help you save for your retirement.

The Scheme is able to accept transfers from UK pension schemes and is a ROPS*.

* Her Majesty’s Revenue and Customs (HMRC) does not and has never certified, approved or recommended any overseas pension scheme that contends or believes it has QROPS status.

Craigs Superannuation provides you with the flexibility to build a portfolio of investments from the list of Investment Options that suits your risk profile and investment objectives.

A Craigs Investment Adviser is available to help you transfer and select your investment portfolio at no additional cost. By joining the Scheme, you will also gain access to Craigs’ comprehensive research.

You can change the composition of your portfolio as your circumstances change by contacting your Craigs Investment Adviser or by completing the Investment Direction & Switch Form.

Your contributions into the Scheme (and those that are made for your benefit) are credited to a Scheme account in your name. Your contributions are pooled with other members’ contributions and invested into the securities selected by you and held through the Scheme. By pooling your investment with other members, you access more investments and achieve greater diversity.

The value of your portfolio will reflect the market value of your chosen Investment Options on the given date (less fees and taxes).

Craigs Superannuation is a trust, governed by a trust deed between us and The New Zealand Guardian Trust Company Limited, the Scheme Supervisor.

Your portfolio is not segregated and liabilities of the Scheme can affect all portfolios.

How do I join Craigs Superannuation?

To be eligible to join the Scheme you must be:

  • A New Zealand citizen or entitled to remain in New Zealand; and
  • living in, or normally living in New Zealand.

You may make regular and/or lump sum contributions to the Scheme. The minimum regular contribution you may make is $100 per month. The minimum lump sum contribution you may make is $1,000.

After 12 months membership you need to maintain a minimum balance of $1,200.

The Scheme is able to accept transfers from UK pension schemes. If you do transfer your UK pension to the Scheme, your savings will be governed by the terms and conditions of the Scheme, and the terms and conditions of your UK pension scheme will no longer apply. Any transfers from a UK pension scheme or other ROPS will be treated as UK derived contributions in the Scheme and subject to ROPS rules.

UK pension transfers could attract an Overseas Transfer Charge of 25% of the ‘transferred value’ of your UK derived funds if you are not a New Zealand tax resident when you transfer your UK pension to the Scheme. This overseas transfer charge may also apply if your tax residency changes while you are a member of the Scheme within five full UK tax years from the date of your original UK pension transfer. The transfer charge may also apply if specified information has not been provided to the UK scheme administrator.

More information is available in Other Material Information and on the offer register business.govt.nz/disclose

If you have transferred your UK Pension and decided to emigrate from New Zealand within five years, you could be subject to an Overseas Transfer Charge of 25%. Talk to your Advisor or go to business.govt.nz/disclose to view the scheme’s Other Material Information document for more information.

Our investing approach

We have a wide range of Investment Options available in local and international listed and unlisted markets including:

  • equity
  • fixed interest
  • investment trusts
  • NZ managed funds (including QuayStreet funds*)
  • index funds
  • listed property trust investments, and
  • cash.

The Craigs Private Wealth Research team is responsible for researching and recommending securities to the Investment Committee who formally review and update the Investment Options list each quarter (or more regularly where appropriate). For an explanation of the ratings used, visit the understanding our recommendations page or view our Investment Options.

The list of securities available through the Craigs KiwiSaver Scheme is formally reviewed and updated each quarter, although changes can be made at any time. If a security is removed from the list, this will be communicated to members who hold the security.

The latest list of investment options is available from your Craigs Investment Adviser, on our Investment Options website page or from the offer register at business.govt.nz/disclose.

What can I invest in?

We have a wide range of securities for you to choose from including equities (e.g. shares), fixed interest (e.g. bonds), investment trust, Exchange Trade Funds (ETFs) and NZ managed funds such as the QuayStreet funds. We also offer index funds and listed property trust investments. All are available in local and international listed and unlisted markets, together with cash. Please refer to the Investment Options.

The current list of Investment Options is available from your Craigs Investment Adviser, on our Investment Options PDF or from the offer register at business.govt.nz/disclose.

You can switch all or part of your investment into another security or securities by completing the Investment Direction & Switch Form available from your Craigs Investment Adviser or craigsip.com/document-library.

We have discretion to reject switches, for example if the Scheme is being used to actively trade securities.

Brokerage expenses of up to 1.25% of the amount of the relevant transaction may be incurred when a switch is being executed.

You can change your investment direction for future contributions at any time by contacting your Craigs Investment Adviser or completing an Investment Direction & Switch Form.

What are the risks of investing?

To help you clarify your own attitude to risk, you can seek financial advice or read our Understanding your attitude to risk page.

Our Investment Options include a risk indicator for each security and an explanation of the risk indicator is included in the back of the Investment Options PDF.

If a security is a NZ managed fund or a NZ ETF and has its own fund update produced by the Manager of that fund, the latest risk indicator for that fund is included in the fund update for that fund.

The current Investment Options are available from your Investment Adviser, our Investment Options PDF or from the offer register at business.govt.nz/disclose.

General Investment Risks

Some of the general investment risks that may cause a security’s value or the value of your portfolio to move up and down are:

Superannuation general risk table

Other Specific Risks

Below are specific risks that are not reflected in the risk indicator.

Superannuation other specific risks table

There are also general business risks relating to our operations that may result in loss (e.g. extended loss of access to IT Systems).

More information relating to risk associated with the Scheme is available within the Other Material Information document and on the offer register; business.govt.nz/disclose.

Can I withdraw my investments?

Superannuation Scheme funds are generally not accessible until you reach a certain ‘retirement’ age.

Withdrawal from UK derived contributions

Withdrawal benefits in respect of UK derived contributions will be based on the current UK ROPS rules. These are as follows:

Superannuation uk derived withdrawals

The UK ROPS rules may change from time to time.

We recommend you obtain tax advice before making a withdrawal if you have any UK derived contributions.

Withdrawals from non-UK derived contributions

Withdrawals in respect of non-UK derived contributions can only be made when permitted under the superannuation scheme rules in the Financial Markets Conduct Regulations 2014 (the ‘Superannuation Scheme Rules’) as follows:

The table below shows the amounts you can withdraw and when:

Superannuation non uk derived withdrawals

Where a withdrawal is permitted, you can withdraw your contributions monthly or in lump sum amounts. The current minimum monthly withdrawal permitted is $1,000.

If you die while you are a member of the Scheme, your interest in the Scheme will be paid to your estate or, if your balance does not exceed the prescribed amount (currently $15,000) and other conditions are met, we may pay your balance to an eligible claimant under the Administration Act 1969.

We will require a certified copy of the death certificate, or probate, or where there is no Will, a Letter of Administration.

If you wish to withdraw funds from the Scheme you must give written notice using our withdrawal request forms. A withdrawal request cannot be withdrawn once given.

For more information on withdrawals go to the offer register; business.govt.nz/disclose

What are the fees?

You will be charged fees for investing in Craigs Superannuation. Fees are deducted from your investment and will reduce your returns. Some Investment Options such as NZ managed funds and ETFs, may also charge fees.

The fees you pay will be charged in two ways:

  • regular charges (for example, annual fund charges). Small differences in these fees can have a big impact on your investment over the long term;
  • one-off fees (for example, brokerage).

Information on the fees for Craigs Superannuation can be found in the Investment Options PDF. The fees actually charged during the most recent year will be provided in your personalised quarterly report.

The Scheme has a tiered management fee structure. This means the management fees charged to your Scheme account are determined by the asset class of the securities you hold and the market value of your investment in those particular asset classes.

The total management fee will not exceed 1.25% of the market value of your total investment into the Scheme. Fees will be recovered from your cash holdings, or by selling your securities within your portfolio proportionately.

Super management fee

For those securities that are funds, the management fees are not the same as the annual fund charges. An explanation of what annual fund charges comprise is set out above.

The total annual fund charges for each security are set out in the Investment Options supplement. These are stated as a percentage of the net asset value of the security.

The ‘Total Annual Fund Charge’ is made up of the following:

  • Management fees – Management fees are calculated based on the number of days the security has been held throughout the relevant year. The management fee covers the cost of managing the Scheme, including managing the investments, processing contributions, withdrawals and corporate actions, dealing with correspondence and preparing statements. We currently meet the fees payable to the administration manager, custodian and supervisor out of the management fees. Fees will be recovered at the end of each quarter from your cash holdings, or by selling down securities within your portfolio proportionately.
  • Fees and expenses of underlying funds – in relation to a security that is a fund, that fund may also have fees and expenses which are charged by the manager and supervisor of that fund. These fees and expenses will be reflected in the fund’s unit price and may therefore indirectly affect your returns.
  • Performance fee – the total annual fund charge will include the performance fees for any related underlying fund. Performance fees for other underlying funds are not included as part of the total annual fund charge. The Investment Options PDF identifies which securities charge performance fees.

Certain fees, charges or expenses are subject to GST at the prevailing rate.

Performance fees may be charged within certain securities. The performance fee will typically be reflected in the securities price and may therefore indirectly affect your returns. For further information, please refer to the Investment Options.

Super other fees

Sarah invests $10,000 in a number of the investment options from the Investment Options document. She is charged brokerage of $125.00 when her funds are invested (1.25% of $10,000).

This brings the starting value of her investment to $9,875.00.

She is also charged the management fee, which works out to about $123.44 (1.25% of $9,875.00). These fees might be more or less if her account balance has increased or decreased over the year and are dependent on the type of investments she has selected.

Over the next year, Sarah pays other charges of $48.00.

Estimated total fees for the first year:

Brokerage: $125.00

Management Fees: $123.44

Other charges: $48.00

If Sarah’s investment options include any funds, those funds may be subject to further fees (including performance fees) and expenses.

This example may not be representative of the actual fees you may be charged and reflects a sample portfolio of investment options at the maximum management fee rate.

We can change the existing fees and introduce new fees by giving two months’ notice to all affected members.

Craigs Superannuation is not a Portfolio Investment Entity (PIE) so is taxed as a widely-held superannuation fund at a flat rate of 28% on taxable income.

Tax can have significant consequences for your investments and it is important, if you have any queries relating to the tax consequences of your investments, that you seek professional advice.

For further information on the tax consequences of investing in the Scheme and the potential tax implications of transferring foreign superannuation entitlements to the Scheme, please refer to our Other Material Information or the offer register business.govt.nz/disclose or the CIP website craigsip.com/documents

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