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 and listed property), 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

Income assets

*4% Cash and cash equivalents

*16% Fixed interest

Growth assets

*12% Listed property

*68% Equities

SIL Employer Balanced Growth Fund

The SIL Employer Balanced Growth Fund invests mainly in growth assets (equities and listed property), 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

Income assets

*6% Cash and cash equivalents

*29% Fixed interest

Growth assets

*10% Listed property

*55% Equities

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 and listed property). The fund may also invest in alternative assets.

Target investment mix summary

Income assets

*10% Cash and cash equivalents

*40% Fixed interest

Growth assets

*8% Listed property

*42% Equities

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 and listed property). The fund may also invest in alternative assets.

Target investment mix summary

Income assets

*15% Cash and cash equivalents

*50% Fixed interest

Growth assets

*6% Listed property

*29% Equities

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 and listed property). The fund may also invest in alternative assets.

Target investment mix summary

Income assets

*20% Cash and cash equivalents

*60% Fixed interest

Growth assets

*3% Listed property

*17% Equities

SIL Employer Cash Fund

The SIL Employer Cash Fund invests in one or more interest-bearing deposits with a New Zealand-registered bank.

Target investment mix summary

*Cash and cash equivalents

The Lifetimes option

Selecting the Lifetimes option is a way of matching your investment strategy to your age. At any one time, your savings are invested in one of the funds, based on your age. As you get older and reach the next age range, your savings are moved to a different fund.

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

The key benefit

With the Lifetimes option, you’re always invested in a fund that has levels of risk and expected returns that are considered appropriate for an average person of your age.

The idea behind it

If you’re young, you have a reasonably long time until retirement age. You can invest in riskier assets in the hope of receiving higher returns – and the good years should more than balance out the bad years.

This changes as you approach retirement when it’s sensible to accept lower returns but take less risk, because you have a shorter time until retirement and less time to recover any losses.

Where your savings go

When you’re young, your savings are invested mostly in growth assets such as equities and listed property. As you get older, your savings move more into income assets such as cash and cash equivalents and fixed interest.

The Lifetimes option might not be right for everyone

The Lifetimes option doesn’t take your personal circumstances into account, so it might not be right for you. For example, you might have a different appetite for risk than the average person of your age.

*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

We recommend you seek financial advice from a financial adviser.

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.