Fund Information

When you joined your employer plan, you chose to invest in one of five multi-asset-class funds, or the SIL Employer Scheme Cash Fund (a single-asset-class fund). Your employer’s contributions will usually be invested in the same fund, or funds, you have chosen unless specified in the Supplement. You can also choose the Lifetimes option.

Here’s an overview of the funds:

SIL Employer Growth Fund

The SIL Employer Growth Fund invests mainly in growth assets (equities, listed property and listed infrastructure), with a smaller exposure to income assets (cash and cash equivalents and fixed interest). The fund may also invest in alternative assets.

Target investment mix summary

*4% Cash and cash equivalents

*16% New Zealand and international fixed interest

*9% Listed property

*68% Australasian and international equities

*3% Other (listed infrastructure)

SIL Employer Balanced Growth Fund

The SIL Employer Balanced Growth Fund invests mainly in growth assets (equities, listed property and listed infrastructure), with some exposure to income assets (cash and cash equivalents and fixed interest). The fund may also invest in alternative assets.

Target investment mix summary

*6% Cash and cash equivalents

*29% New Zealand and international fixed interest

*7.5% Listed property

*55% Australasian and international equities

*2.5% Other (listed infrastructure)

SIL Employer Balanced Fund

The SIL Employer Balanced Fund invests in similar amounts of income assets (cash and cash equivalents and fixed interest) and growth assets (equities, listed property and listed infrastructure). The fund may also invest in alternative assets.

Target investment mix summary

*10% Cash and cash equivalents

*40% New Zealand and international fixed interest

*6% Listed property

*42% Australasian and international equities

*2% Other (listed infrastructure)

SIL Employer Conservative Balanced Fund

The SIL Employer Conservative Balanced Fund invests mainly in income assets (cash and cash equivalents and fixed interest), with some exposure to growth assets (equities, listed property and listed infrastructure). The fund may also invest in alternative assets.

Target investment mix summary

*15% Cash and cash equivalents

*50% New Zealand and international fixed interest

*4.5% Listed property

*29% Australasian and international equities

*1.5% Other (listed infrastructure) 

SIL Employer Conservative Fund

The SIL Employer Conservative Fund invests mainly in income assets (cash and cash equivalents and fixed interest), with a smaller exposure to growth assets (equities, listed property and listed infrastructure). The fund may also invest in alternative assets.

Target investment mix summary

*20% Cash and cash equivalents

*60% New Zealand and international fixed interest

*2.25% Listed property

*17% Australasian and international equities

*0.75% Other (listed infrastructure)

SIL Employer Cash Fund

The SIL Employer Cash Fund invests mainly in cash and cash equivalents. Investments may include cash and cash equivalents issued by New Zealand-registered banks, the New Zealand Government, corporations or local authorities, or non-New Zealand governments.

Target investment mix summary

*Cash and cash equivalents

The Lifetimes option

With the Lifetimes option, your savings are moved through our funds based on your age.

As you get close to retirement age, you’ll be invested in lower risk funds (like the Conservative Fund and then the Cash Fund), with the aim of reducing the likelihood of your investment losing value. This means that you are also likely to receive lower returns.

How it works

The Lifetimes option is not a separate fund. When you select the Lifetimes option, we’ll move your savings through different funds based on your age.

Until age 35, you’ll be invested in our Growth Fund (where your savings will be invested mostly in growth assets such as equities and listed property).

As you get older and reach the different age ranges, we’ll move your savings through our other funds. From age 61, you’ll be invested in our Conservative Fund (where your savings will be invested mostly in income assets such as cash and cash equivalents and fixed interest), and from age 65 you’ll be invested in our Cash Fund.

You can switch in or out of the Lifetimes option at any time.

Who is it designed for

We designed the Lifetimes option for members who are saving for retirement and who plan to either withdraw all of their savings when they reach 65 or otherwise keep their retirement savings invested in cash.

The idea behind it

When you’re young, you have a longer time until retirement age. You’ll be invested in a higher risk fund (like the Growth Fund) with the aim of receiving higher returns. Investing in a higher risk fund may mean that you incur greater losses – and more often – than if you invest in a lower risk fund. But over the long term, the good years should more than balance out the bad years.

As you get closer to retirement age, you’ll be invested in lower risk funds (like our Conservative Fund and then our Cash Fund), with the aim of reducing the likelihood of your investment losing value. This means that you are also likely to receive lower returns.

Is the Lifetimes option right for you?

The Lifetimes option is designed around fixed aged ranges. It doesn’t take your personal circumstances – or any other factors such as market conditions – into account, so it might not be right for you.

The Lifetimes option might be too conservative for you. You might be more willing to stay invested in a higher risk fund for longer with the aim of receiving higher returns. Or you may want to invest in a fund with a higher proportion of growth assets in retirement if you are planning to withdraw your savings at a later age.

We recommend you seek financial advice from a financial adviser if you need help deciding whether the Lifetimes option is right for you.

*Growth assets

*Income assets

0-35 years old

SIL Employer Growth Fund

36-45 years old

SIL Employer Balanced Growth Fund

46-55 years old

SIL Employer Balanced Fund

56-60 years old

SIL Employer Conservative Balanced Fund

61-64 years old

SIL Employer Conservative Fund

65+ years old

SIL Employer Cash Fund

More details on how the funds invest can be found in the statement of investment policy and objectives, which is available on the scheme register at companiesoffice.govt.nz/disclose (click on ‘Search schemes’ and search SIL Mutual Scheme).

If you’re a member of the SIL Employer Scheme through the ING Superannuation Plan, click here for your fund options.