TECHNOLOGY CHANGES

We explain the recent technology changes and how they affect you.

KEY FEATURES OF THE NEW PLATFORM

INV OPTIONS SPOONS

MORE INVESTMENT OPTIONS

Our current technology means we are unable to add more securities to our list of approx. 160 Investment Options. When the new technology launches, we will be able to add more securities, such as managed funds and listed equities to our Investment Options, giving you greater choice when building or changing your investment portfolio (not applicable to QuayStreet KiwiSaver).


moredays calendar

MORE TRADING DAYS

We currently trade five times per month, but will increase to twice per week on every Tuesday and Thursday (excluding public holidays). We plan to increase this even more as the amount of trades increases. This means your trade instructions and reinvestments will happen sooner.


cash acc piggy bank

CASH ACCOUNT FOR EVERY PORTFOLIO

Every portfolio will have a cash account that will earn interest and be used to record and carry out your transactions, such as receiving dividends. There is more information about this in the FAQ section below.


improved client portal using computer

IMPROVED CLIENT PORTAL

The new platform means we can introduce changes such as better portfolio information and the ability to include innovative new services in the coming months.


REPORTING BETTER

BETTER PORTFOLIO REPORTING

Your reports will be clearer and easier to understand. The same information will be present, but in a format that helps you track your portfolio much better.

Your cash management account

As each portfolio will have its own cash account, we suggest directing your contributions straight into your portfolio instead. You may find this means you no longer require your Cash Management Account.

No. We will not close it but you may find that it becomes unnecessary if you were only using it to manage your KiwiSaver, Superannuation, mySTART or superSTART contributions. It will make your reporting simpler and easier to understand if you make contributions directly into your portfolio and consider closing your Cash Management Account.

We will move any Direct Debits that you have set up. You will have to change the automatic payments that you have set up with your bank.

Below are some links to the major banks' instructions on how to update automatic payments:

If you find that your Cash Management Account does become unnecessary, you can close it by getting in touch with your adviser who can help .

Client Portal registration

You will be automatically registered for the Client Portal, meaning all you need to do is set a password when we issue your username.

That is no problem. You can use the Forgotten username links on the login page, which will trigger a reminder of your username then you can reset your password.

We will be sending username reminders to those of you that have not logged in to the Client Portal for a while. We want as many clients as possible to be using our Client Portal as we have some exciting changes coming up.

You will start to notice some changes to the look of the Client Portal in 2019, but any reports you generate from within the Client Portal will look much better and easier to understand from the end of 2018.

We plan to keep making incremental improvements to the Client Portal in the coming year, some of which you will be able to see and others that will improve how everything works behind the scenes.

mySTART - New Craigs bank account

Our bank account details will change if you are a mySTART client.

We will take care of this for all Direct Debits, but if you have any Automatic Payments you will need to update the details at your bank.

If you are a mySTART client, you will need to do this at your bank, either online or you will need to speak to someone to update the bank account number your payments are going into.

Below are some links to the major banks' instructions on how to update automatic payments:

We are able to update these for you, so you don't need to do anything. These payments will automatically go into the new bank account when the changes have happened.

We will be sending several reminders to those of you whose contributions are still being paid into the old Craigs bank account. If we notice that you still haven't changed over, then your adviser will be in touch.

mySTART for Juniors

We have changed the name of mySTART for Juniors to mySTART. Clients under the age of 18 will still benefit from paying no administration fee.

This just means that anywhere you previously saw the name mySTART for Juniors you will now see mySTART, such as on your reports or on the Client Portal and Mobile App. The administration fee will still be waived for minors.

New cash account within every portfolio

mySTART, Craigs KiwiSaver and Craigs superannuation portfolio accounts all now have a cash account component. The cash account will be used to record contributions, any income distribution and any payments out of your portfolio such as tax, fees or withdrawals.

In order to ensure payments are possible from the portfolio’s cash account, we require a percentage of the portfolio value to be held as cash, this is referred to as the minimum cash percentage. This minimum percentage will not be invested or re-invested, only cash that is above this percentage is considered as cash available to invest.

The target amount of the cash account is 0.5% of the portfolio’s value.

Cash-Account-Pie

Cash is built up by Craigs withholding a small percentage from your contributions before they are invested or by any distributions received into the portfolio.

When your contributions are invested, a small portion may be retained in the cash account to cover future monthly fees and expenses.

If there is insufficient cash held in the cash account, Craigs will sell some securities to top up your cash balance and recover any outstanding fees.

Currently we have set the target cash level to 0.5% for mySTART, Craigs KiwiSaver, and Craigs superannuation portfolios. The maximum cash level that can be held is set to 1.5% so if you have more cash than the maximum, we will invest the extra cash as per your investment direction.

Understanding-Cash

Nothing – we will take care of this.

No – you can have it set to a zero minimum target. However, when fees and expenses are deducted, we will have to sell down securities to cover the charges. Trading costs will also be incurred each time we sell securities.

Fees and expenses

As each portfolio will now have an incorporated interest bearing cash account fees, taxes and other expenses will be recovered from here, rather than security sell downs - as is the current process. This results in lots of unnecessary trading on each of your portfolios, making reports look confusing.

The new platform enables us to calculate management fees on a daily basis, using each day’s closing market value. Management fees will be recovered at the end of each month, via the portfolio cash account.

We have made the changes to stop unnecessary trading on your portfolios to recover your fees. Instead fees and other expenses will come from the minimum cash percentage held within your portfolio cash account.

The amount you pay in fees will be the same, it will just be recovered in smaller sums, more frequently.

Fees are calculated and accrued daily based on the value of your portfolio’s holding. At the end of each month this amount is shown as an outstanding charge against your portfolio.

Fees, expenses and taxes are recovered from your cash account. Fees are recovered monthly, while taxes and expenses are recovered as they fall due.

Dividends and other distributions will be received by your portfolio cash account. These funds will be mixed in with any other cash held (e.g. from contributions, security sales or other income) and invested as per your investment direction whenever the balance of the portfolio cash account is greater than the minimum cash percentage. This is instead of being re-invested into the security that paid the dividend so you can choose what to do with the cash.

Changes to Scheme tax calculations

The way we calculate tax for our KiwiSaver, Superannuation and superSTART services will be changing.

We currently aggregate all transactional and income events for the Scheme you are in, then determine the tax using this aggregated data. With the new technology, we will calculate tax for each client portfolio individually and then aggregate these to calculate the tax.

This will mean far simpler tax calculations for each of our different Schemes.

IF YOU STILL HAVE QUESTIONS

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Phone

0800 878 278

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