KiwiSaver schemes (unless restricted) will be required to report
annually on each fund within a scheme, including:
fund performance and returns
fees and costs
asset allocation and portfolio holdings
liquidity and liabilities, and
key personnel, policies, and conflicts of interest.
The Regulations prescribe a simple, standardised form to enable
potential (and current) investors easily to compare schemes or
different funds within a scheme so that they can make an informed
The disclosure statements must be posted on the scheme
provider's website and each must contain a hyperlink to a
downloadable data file in relation to the relevant fund. The
intention is that the data file can be reused.
The data file will contain information additional to the
disclosure statements (such as liquidity and debt ratios for the
scheme or fund) and is required to be set out in a specified table
Copies of both the data file and the disclosure statements are
required to be posted online and provided to the Financial Markets
for quarterly disclosure statements, within 15 working days
after the end of each quarter of the tax year, and
for annual disclosure statements, within 60 working days after
the end of the tax year.
Copies of the relevant documents need to be available from the
scheme provider in hard copy on request and free of charge.
Disclosure and data file requirements
The Regulations require the following disclosures:
the total value of the fund and number of members as at the
date of the disclosure statement
graphs showing the investment return after fees and taxes for
each tax year and the average annual return since the fund started
or over the last ten tax years (whichever is shorter)
the make-up of total fund fees (including the percentages of
members' investments that related to the annual management fee,
performance-based fees and other fees/costs)
the membership fees (fixed dollar charges) charged to
a link to where information can be found about fees for
member-specific actions or decisions
the impact of fees on a member's returns, using as an
example a member with $10,000 in the fund at the start of the year
and no further contributions
a pie chart showing the investment mix of the fund
a table showing the target investment mix of assets
a list of the top ten investments of the fund, including the
type of investment, the country in which it is made, and (if
applicable) the credit rating of the investment
a list of the five directors or employees with the most
influence on the investment decisions of the fund (and information
on their roles), and
for quarterly statements only, information about conflicts of
interest and changes since the last disclosure statement:
in the nature and scale of the fund's related party
to the fund's trade allocation, execution and proxy voting
to the fund's valuation methods.
All returns in the disclosure statements are to be expressed
after tax at the highest prescribed investor rate (currently
The Regulations contain an exemption from the prohibition in the
Securities Regulations 2009 against stating in an
"advertisement" the net assets of a scheme where those
amounts have not been taken from the most recent audited financial
Scheme providers are also exempted from the requirement to have
an advertising certificate signed in respect of each disclosure
statement and data file and – where the investment statement
pre-dates 1 July 2013 – from the need to refer in an
investment statement to the disclosure statements and data files as
information that is available to investors on request. Investment
statements issued on or after that date will be required to contain
Short time for scheme providers to prepare
The first quarterly disclosure statements and data files are
required by 21 October 2013 (relating to the 12 month period ending
30 September 2013).
The first annual disclosure statements and data files are
required by 27 June 2014 (relating to the 12 month period ending 31
What should scheme providers do now?
Scheme providers are advised to review their systems and
processes now to ensure that they can easily extract the required
information from the system following the completion of the next
Our thanks to Emma Harding for writing this Brief
The information in this article is for informative purposes
only and should not be relied on as legal advice. Please contact
Chapman Tripp for advice tailored to your situation.
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