- QuayStreet KiwiSaver Scheme FAQs -

To be eligible to join the Scheme you must be:

• Transferring from an existing KiwiSaver scheme; or
• A non-KiwiSaver investor who is:
• a New Zealand citizen or entitled to permanent residence in New Zealand; and
• living in, or normally living in, New Zealand (subject to certain exceptions for state services workers).

There is no Crown guarantee in respect of any KiwiSaver scheme or the investment product of a KiwiSaver scheme.

If you are employed you can contribute 3%, 4%, 6%, 8% or 10% of your before tax salary or wages. The rate is nominated by you. The default rate is 3% if you do not choose a rate. You can change the rate at which you contribute to the Scheme. You can also take a ‘savings suspension’. 

If you are self-employed (and don’t pay PAYE), aged over 65, or a non-worker you can decide how much you contribute into KiwiSaver.

In most cases your employer will be required to contribute as well (minimum 3% of your gross salary or wages).

If you are contributing to KiwiSaver, you may also be eligible to receive a Government contribution of up to $521.43 a year if you are:

• 18 years and over, and under age 65, or
• Over 65 years, joined KiwiSaver prior to 1 July 2019 and yet to complete five years’ KiwiSaver membership (provided you have not opted out of the five year membership requirement).

If you are Employed

If you are 18 or over and under age 65, you will automatically be enrolled in KiwiSaver when you start a new job. Your employer will deduct contributions from your pay, unless you decide to opt out. You can do this within a certain timeframe and your contributions will be refunded.

If you are already in a job, you can join through your employer by asking for a KiwiSaver employee information pack (KS3) and completing a KiwiSaver deduction form (KS2). You can also join directly with the KiwiSaver provider of your choice by reading their Product Disclosure Statement and completing the application form. When you have been a member for 12 months or more you can take a break from making KiwiSaver contributions (a saving suspension). Your saving suspension can last between 3 months and 5 years. There is no limit to the number of times you can take a saving suspension.

If you are Self-employed/ Non-employed

As someone who is self-employed you can make payments directly to your KiwiSaver provider.

You can decide when and how much you want to contribute. If you meet the eligibility criteria you may want to contribute at least $1,042.86 each year (1 July to 30 June) to ensure you take advantage of the maximum government contributions. This is currently up to $521.43 per year. To read more about government contributions please read the Other Material Information.

As a self-employed person you are not eligible for the employer contribution (since you are your own employer).

Non-employed

You can join KiwiSaver even if you are not employed. To ensure you receive the maximum government contributions you will need to contribute a minimum of $1042.86 each year. The Government will then contribute up to 50 cents for every dollar you contribute (up to $521.43) per year if you meet the eligibility criteria.

Under 18

Under 18s can be enrolled into KiwiSaver as a way to start saving for their future.

As a minor and non-working, there are no requirements around an initial contribution or minimum annual contribution. However, a working minor must make KiwiSaver employee contributions. Employers are not required to make compulsory employer contributions on behalf of workers under the age of 18. You can make voluntary contributions to your children's KiwiSaver accounts at any time. Minors are not eligible for government contributions.

As legal guardian, you will be able to make instructions for your child’s KiwiSaver until they turn 18 years of age.

The QuayStreet KiwiSaver Scheme is a KiwiSaver scheme registered under the Financial Markets Conduct Act 2013.

The Scheme is designed to help you save for your retirement. The Scheme is a trust governed by a trust deed between us and The New Zealand Guardian Trust Company Limited (as Supervisor).

The Scheme has 10 funds which invest in turn into the corresponding QuayStreet Funds. The QuayStreet Funds are managed by Smartshares Limited.

Your contributions to the Scheme and contributions made by your employer and the Government are credited to a Scheme account in your name. Your contributions are pooled with the contributions of other members and invested in the Fund(s) selected by you and held through the Scheme.

The value of your Scheme investment at any time will reflect the value of the underlying assets in the QuayStreet Fund(s) which you have selected (less fees and taxes) and is represented by the value of your Scheme account.

The Scheme operates as a single fund, so all of the assets of the Scheme are attributable to meet liabilities of the Scheme.

The key benefits of investing in QuayStreet KiwiSaver are:

• Flexible choice of 10 Funds - The QuayStreet Funds have been designed to enable you to choose a Fund that best suits your investment objectives your timeframe and your risk/return appetite. As your circumstances change you can adjust your Fund selection to suit your needs.
• Sector-specific Funds
• Experienced team of Investment Managers
• Access to view your holdings and reports online via our Client Portal.

You may apply to us to make a one-off withdrawal from the Scheme to help pay for the purchase of your first home or to help pay the initial deposit. There are a number of eligibility requirements, including:

• You have been a KiwiSaver member or a member of a complying superannuation fund for a combined period of at least three years;
• the home you are purchasing is, or is intended to be, the home you and your family will mainly reside in; and
• you have not previously owned property (as defined under the KiwiSaver rules).

Any first home withdrawal must be paid into your solicitor’s trust account and must be paid prior to settlement. In some circumstances you may still be able to make a withdrawal if you have owned a home before. You must retain a minimum balance of $1,000 in your KiwiSaver account and any amount transferred from an Australian complying superannuation scheme.

You may also be entitled to a First Home Grant. See kaingaora.govt.nz for more information.

You may apply for a withdrawal on the grounds of serious illness if:

• You have an illness, injury or disability that results in you being totally and permanently unable to work in the job that you are suited by reason of experience, education or training; or
• you have an illness, injury or disability that poses a serious risk of you dying soon.

We will require medical evidence (including a declaration from your registered medical practitioner) before submitting a serious illness withdrawal request to the Supervisor for their review and determination.

You may apply for a withdrawal on the grounds of life-shortening congenital conditions if you are suffering from a condition that has existed from the date of your birth and:

• You have a known congenital condition which is likely to shorten your life below the age of 65 (these congenital conditions are identified through regulations); or
• There is medical evidence to verify that your congenital condition is expected to reduce life expectancy below NZ retirement age

We will require a medical certificate from a registered medical practitioner that verifies the condition before submitting a life-shortening congenital condition withdrawal request to the Supervisor for their review and determination. We will also require a statutory declaration acknowledging that your funds are to be released as if you had reached New Zealand Superannuation qualification age and that after withdrawal, you are no longer eligible to receive the Government contribution or compulsory employer contributions.

You may apply for a withdrawal on the grounds of significant financial hardship. The sorts of circumstances where that may be available include:

• If you are unable to meet minimum living expenses; or
• if you are unable to meet mortgage repayments on your principal family residence resulting in the mortgagee seeking to enforce the mortgage on the residence; or
• meeting the costs of modifying your home to meet your, or your dependent family member’s special needs arising from a disability; or
• meeting the cost of your, or your dependent family member’s, medical treatment for an illness or injury; or
• meeting the cost of your, or your dependent family member’s, palliative care; or
• meeting the cost of a funeral for a dependent family member.

We will require evidence of your financial position together with a statutory declaration of your assets and liabilities and income and expenditure before submitting a significant financial hardship withdrawal request to the Supervisor for their review and determination. The Supervisor may limit a withdrawal to an amount that, in the Supervisor’s opinion, is required to alleviate your hardship.

TO AUSTRALIA

You can transfer your Scheme balance to an Australian complying superannuation scheme following your permanent emigration to Australia.

We will require evidence that you have permanently emigrated, including a statutory declaration. You can transfer everything including your contributions, your employer’s contributions, the $1,000 kick-start (if you were eligible), Government contributions and any transferred superannuation funds (if applicable).

TO ANYWHERE ELSE

After one year you may apply for a withdrawal on grounds of permanent emigration.

We will require evidence that you have permanently emigrated, including a statutory declaration. You can transfer everything including your contributions, your employer’s contributions and the $1,000 kick-start (if you were eligible). Government contributions are refunded to the IRD.

If you permanently emigrate to New Zealand from Australia, you may transfer your Australian complying superannuation scheme savings to the Scheme.

You may make a withdrawal of an amount equal to the amount transferred (excluding any gains or losses on that amount) from your Australian superannuation scheme when you attain the age of 60 and satisfy the ‘retirement’ definition in the Australian legislation.

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.

You are eligible to withdraw all your KiwiSaver funds when you reach the age of New Zealand superannuation eligibility (currently 65). If you joined KiwiSaver before 1 July 2019 and were aged between 60 – 64 you would have been locked into your KiwiSaver for 5 years. You can now:

• choose to opt out of the 5-year lock in by notifying us and withdraw your funds any time after you turn 65. If you choose to opt out of the 5-year lock in, you will no longer be eligible to receive Government contributions and compulsory employer contributions, or.
• keep your funds in your KiwiSaver for the full 5-year term and withdraw them after that.

You may be able to make an early withdrawal of part (or all) of your savings under the KiwiSaver rules. There are rules around when each of these withdrawals can be made and how much of your account can be withdrawn. These are summarised below.

If you wish to withdraw funds from the Scheme please complete the appropriate withdrawal form available on our website quaystreet.com/documents-forms.

A withdrawal request will generally be actioned once reviewed by us and the Supervisor and confirmed as a valid request.

We can change the existing fees and introduce new fees, however fees and expenses must not be unreasonable. The Manager must publish a Fund Update for each fund showing the fees actually charged during the most recent year. Fund updates, including past updates, are available at quaystreet.com/fund-updates.

QuayStreet KiwiSaver Scheme is a Portfolio Investment Entity. The amount of tax you pay is based on your Prescribed Investor Rate (PIR).

If you are unsure of your PIR, we recommend you seek professional advice or contact the Inland Revenue Department. It is your responsibility to tell us your PIR when you invest or if your PIR changes. If you do not tell us, a default rate may be applied. If the rate applied to your PIE Income is lower than your correct PIR you will be required to pay any tax shortfall as part of the income tax year-end process. If the rate applied to your PIE income is higher than your PIR any tax over-withheld will be used to reduce any income tax liability you may have for the tax year and any remaining amount will be refunded to you by Inland Revenue.

The Manager may be instructed by the Inland Revenue to update your PIR if they believe it is incorrect. We are required to apply this updated PIR, however, you can provide us with a different PIR if you believe this is incorrect.

We can change the existing fees and introduce new fees, however fees and expenses must not be unreasonable. The Manager must publish a Fund Update for each fund showing the fees actually charged during the most recent year.

The ‘Total Annual Fund Charges’ are set out as a percentage of the net asset value of the Fund.

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

• Fees and expenses of underlying QuayStreet Funds – each underlying QuayStreet Fund has an annual management fee applied at a fixed rate. There are also expenses charged within the QuayStreet Funds which are an estimated amount for costs and expenses incurred in operating and managing the underlying QuayStreet Funds. The estimates have been based on the total amount of costs recovered during the Funds’ previous financial year. The actual expenses will vary from time to time. The management fee and expenses are deducted from the applicable underlying QuayStreet Fund and reflected in the unit prices applicable to investments in those underlying Funds.
• Performance fee – this is applicable to the QuayStreet Altum Fund only and is an estimate based on the average performance fee charged over the last five years to 31 March 2022 . There was no performance fee charged for the year ending 31 March 2022.

The Scheme does not charge members a separate management fee. This ensures there is no double charging of management fees for members of the Scheme.

Fees payable to the Supervisor are paid by the Manager of the Scheme out of the management fee charged within the QuayStreet Funds.

Total Annual Fund Charge includes:

- Management Fees
- Underlying Fees and Expenses
- Performance Fees

Management Fees are calculated in each underlying QuayStreet Fund. The scheme does not charge members a separate management fee, this ensures there is no double charging of management fees for members of the scheme.

Underlying Fees and Expenses are calculated each day, by multiplying the market value of the units held in the QuayStreet Funds by the applicable management fee rate (refer the PDS for the fee rates, up to a maximum of 1.25%). The formula is:

a x b

where: a is the daily value of your holding
b is the underlying annual fund charge.

The underlying annual fund charge is prepared calculated for each QuayStreet Fund by the manager. Details of the underlying security fees are included in the Investment Options brochure.

Performance Fees are calculated for the QuayStreet Altum Fund. Details of the calculation are included in the PDS.

Estimates of certain underlying fund charges

The annual fund charges include the actual management fee, supervisor fee and expenses for each fund, as well as actual expenses and estimates of the other fees (including any performance fees). Estimates are based on historic fees and expenses data for the underlying funds. Where no historic data is available we estimate the expected fees and expenses levels using similar underlying funds. In the case of performance fees we use the estimates calculated by the relevant underlying manager. When we make estimates using historic data, we assume that ongoing charges will be at levels equivalent to the charges contained in the historic data.

Other charges includes:

- Scheme administration fee
- Scheme expenses (including audit and legal costs)

The scheme administration fee is $30.00 per annum, as described in the PDS.

Scheme expenses included audit and legal expenses. These expenses are paid by the manager and then recovered from the scheme.

Feedback from both our members and industry specialists provided guidance on ways to make our reports easier to understand.

The updated report template was included in the 31 March 2023 report packs.

The following changes have been made to the Portfolio Summary page of your report:

Tax Information

Summary tax information for the reporting period and the rolling 12-month period has been added to the Portfolio Summary page. Further details of tax paid remains present in your Transaction Statement.

Dollar Value Change

Your report for the period 1 April to 31 March, or from the date you became a member if that was during that period, will now show the dollar value change during that period. If there has been no dollar value change during that period, there will be a statement to that effect.

The following layout changes have been made to the Fees and Expenses page of your report:

Total Fund Charges

The layout of this table has been revised to make the Total Fund Charges components easier to identify. The components themselves and the underlying calculations of the information has not changed.

Other Charges

This table has been revised to include the Administration Fee and Scheme Expenses only.

Total Fees Charged (new)

A new table has been added to provide a summary of the total fees charged (Total Fund Charges + Other Charges) during the reporting period. This information is calculated using the information shown in the Total Fund Charges and Other Charges tables presented above it.