Investment options

We offer five investment options. With Super Steps, the mix of investments changes automatically based on your age. Each of the other four options (Growth, Balanced, Stable and Cash Plus) has a different, largely fixed split between growth and income assets.

Super Steps

This is a ‘set and forget’ option. With Super Steps, the mix of growth and income assets changes automatically as you get older. Up until age 45, your savings are invested in 80% growth assets. From then, the percentage of growth assets is reduced gradually to 20% at age 64. Here’s how it works.

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Super Steps uses three options – Growth, Balanced and Stable (see below) – to transition your savings from predominantly growth assets to predominantly income assets over time. The investment mix changes on 1 April each year, not on your birthday or the anniversary of the date you joined the scheme.

You cannot mix between Super Steps and the other four options. However, you can opt out of Super Steps whenever you choose.

Super Steps is the default investment option. We will invest your contributions in Super Steps if you don’t tell us how you would like your savings invested when you join the scheme.

Other investment options

If you prefer, you can build your own mix of growth and income assets by choosing one or a combination of four investment options. Each is made up of growth and income assets mixed in different amounts.

You can choose a different strategy for your existing account balances and for future contributions.

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Here's a more detailed comparison of the four options.

Growth Balanced
Growth has an 80:20 split between growth assets (such as shares) and income assets (such as fixed interest and cash). Growth aims to provide higher-level returns with a relatively higher level of risk than the other options. It is expected to provide a long-term return after tax and investment expenses of 2.5% p.a. above the inflation rate, with the likelihood of a negative return 1 year in every 3 and a small probability of any annual loss exceeding 15%. Balanced has a 50:50 split between growth assets (such as shares) and income assets (such as fixed interest and cash). Balanced aims to provide medium-level returns with a moderate level of risk. It is expected to provide a long-term return after tax and investment expenses of 2% p.a. above the inflation rate, with the likelihood of a negative return 1 year in every 4 and a small probability of any annual loss exceeding 10%.;

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Stable Cash Plus
Stable has a 20:80 split between growth assets (such as shares) and income assets (such as fixed interest and cash). This option aims to provide stable returns with a low level of risk. Stable is expected to provide a long-term return after tax and investment expenses of 1% p.a. above the inflation rate, with the likelihood of a negative return 1 year in every 5 and a small probability of any annual loss exceeding 5%. Cash Plus invests 100% in short-term fixed interest and cash assets. Cash Plus aims to maintain invested capital and provide stable returns, with negligible likelihood of experiencing any loss in any year. It is expected to provide a return after tax and investment expenses that broadly matches the after-tax return of the S&P/NZX NZ 90-day Bank Bill Index.;

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