Frequently Asked Questions

Why is AMP retiring as the manager of Superannuation Master Trust?

AMP Wealth Management New Zealand (AMP) is the manager of the Superannuation Master Trust (SMT). AMP has decided to retire as the manager and has entered into an agreement with Lifetime Asset Management Ltd (Lifetime) where Lifetime will take over the management of SMT, as AMP believes that Lifetime can serve the customers of SMT more effectively going forward. The agreement requires that AMP retires as manager of the SMT and AMP exercises its power under the SMT Trust Deed to appoint Lifetime as a new manager of the SMT. In exercising these powers, AMP has a duty to act in the best interests of customers.


 

Will my investments continue to be held securely?

The AMP Board has a direct responsibility, as overseen by The New Zealand Guardian Trust Company Limited (NZGT), as Supervisor, to make decisions in the best interests of our customers, and NZGT, as Supervisor of the SMT, is responsible for supervising the performance by the manager of its functions on behalf of SMT customers. Lifetime is also a licensed managed investment scheme (MIS) Manager and subject to the same duties as AMP. NZGT has been fully engaged during this process and has approved the change of manager. NZGT will continue to ensure that investments are held in a secure manner on behalf of SMT customers following the change of manager.


 

What do you mean by transaction costs?

Transaction costs occur when a fund manager buys or sells assets within the fund. These are not fees paid to the manager, but represents your share of the market costs (e.g. brokerage, stamp duty, taxes etc) to trade the assets within the fund you’re invested in. Your SMT funds are invested in the same underlying wholesale funds as other investors in other AMP retail schemes and, to ensure other investors are not disadvantaged through this trading, the transaction costs are applied only to the particular trades affecting SMT customers.

 

When the sale of the SMT assets is completed (withdrawal from the AMP wholesale funds and ANZ’s property funds), the transaction costs for selling the underlying investments will be reflected in the last unit price that AMP calculates for each of the SMT funds.

 

When Lifetime completes the purchase, the transaction costs associated with buying the new investments will be reflected in the first unit price Lifetime calculates for each of the SMT funds.

 

For more details on how the transaction cost is estimated to apply for each of the SMT funds, please refer to the table below that shows the estimated transaction costs for each fund. Transaction costs vary according to what fund you’re invested in because when a fund buys and sells assets in different markets, the trading costs and tax treatments across different countries do vary.

AMP Fund

Estimated transaction cost for sale of assets by AMP

Estimated transaction cost for purchase of assets by Lifetime

Estimated total transaction costs

AMP Australasian Shares Fund No. 2

0.04%

0.10%

0.14%

AMP Australasian Shares Fund

0.04%

0.10%

0.14%

AMP Cash Fund

0.00%

0.00%

0.00%

AMP NZ Fixed Interest Fund

0.05%

0.00%

0.05%

AMP Global Fixed Interest Fund

0.05%

0.12%

0.17%

ANZ International Property Fund

0.00%

0.00%

0.00%

AMP International Shares No. 2 Fund

0.02%

0.08%

0.10%

ANZ Australasian Property Fund

0.00%

0.10%

0.10%

AMP International Shares No. 3 Fund

0.02%

0.08%

0.10%

AMP Balanced Fund

0.04%

0.10%

0.14%

AMP Conservative Fund

0.04%

0.10%

0.14%

AMP Growth Fund

0.04%

0.10%

0.14%

AMP International Shares Fund

0.02%

0.08%

0.10%

AMP UK Cash Fund

0.00%

0.00%

0.00%

 

The percentages shown in the table above reflect the estimated cost of transactions and are a percentage of funds under management, e.g. $10,000 invested with a total estimated transaction cost of 0.14% equates to an estimated transaction cost of $14.00.

 

AMP believe customers will benefit from the overall reduction in fees as a result of the change of manager from AMP to Lifetime. The cost of transition will be offset by the reduced fees payable by customers going forward, given customers are expected to save an estimated average 0.47% in fees in the first year as a result of fee reductions. Therefore, we believe that the transaction costs should be borne by customers because customers are receiving the overall benefit of the change in manager in the form of lower overall fees in the first year.

 

For a small group of customers (those invested in the ANZ International Property Fund), AMP and/or Lifetime are paying the transaction costs incurred by these Funds. The reason is that these customers may otherwise be disproportionately negatively impacted by the change of manager if those transaction costs are not fully compensated for in the reduced management fees during the first year following the change in manager.


 

Do customers have to do anything?

No. AMP and Lifetime will manage this transition and communicate to you once the process is complete. The current SMT rules will remain unchanged.


 

Have we updated our disclosure documents?

Yes, the Statement of Objectives and Policy (SIPO) has been updated and is available on the Disclose register or Click to View


 

What is the new Superannuation Master Trust fund name going to be for my funds(s) following the change in manager?

The current and new names for all of the SMT funds as well as the new underlying investment manager(s) are shown below:

 

Current SMT fund name 

Post-transition SMT fund name 

Post-transition underlying investment manager(s)

AMP Balanced Fund^ 

Lifetime Balanced Fund 

Fisher Funds

Macquarie

Simplicity

Mercer

Kernel

AMP Growth Fund^ 

Lifetime Growth Fund 

AMP Conservative Fund^ 

Lifetime Conservative Fund 

AMP Cash Fund 

Lifetime Cash Fund 

Fisher Funds

AMP NZ Fixed Interest Fund 

Lifetime NZ Bond Fund 

Fisher Funds

AMP Global Fixed Interest Fund 

Lifetime Overseas Bond Fund 

Macquarie

ANZ International Property Fund 

Lifetime International Property Fund 

State Street

ANZ Australasian Property Fund 

Lifetime Australasian Property Fund 

Vanguard, Kernel

AMP International Shares Fund, 

AMP International Shares Fund No. 2 & 

AMP International Shares Fund No. 3 

Lifetime Overseas Shares Fund, 

Lifetime International Shares Fund No. 2 & 

Lifetime International Shares Fund No. 3 

Mercer

AMP Australasian Shares Fund & 

AMP Australasian Shares Fund No. 2 

Lifetime Australasian Shares Fund & 

Lifetime Australasian Shares Fund No. 2 

Simplicity

Macquarie

AMP UK Cash Fund 

Lifetime UK Cash Fund 

Westpac

 

 ^These funds in the SMT will have asset allocation changes once they transition to Lifetime. For more details, please refer to the SMT Statement of Investment Policy and Objectives (SIPO), Click to View.


 

Proposed underlying investment managers following the transition to Lifetime

Lifetime has selected a range of underlying investment managers in its investment suite, where all equity (except Australian), global bonds and property asset classes will be index-managed – only Australian equities, cash and NZ fixed interest asset classes will use actively managed funds. The underlying fund managers in Lifetime’s investment suite that Lifetime proposes to appoint as underlying fund managers for the SMT funds are set out in the table above and include:

    • Fisher Funds
    • Macquarie
    • Simplicity
    • Mercer
    • Kernel
    • Vanguard
    • State Street
    • Westpac

 

For the full detail on the funds and change in underlying investment managers for each SMT fund, please refer to the Statement of Objectives and Policy (SIPO) which has been updated and is available on the Disclose register or Click to View.  You can view the latest SIPO at www.amp.co.nz/forms or please talk to your Advisor if you have any questions.


 

Macquarie Investments

SMT customers may recall that in 2021, AMP transitioned SMT and other schemes to a new investment structure. This change resulted in AMP replacing AMP Capital (now owned by Macquarie) as the underlying investment manager for AMP-branded funds within SMT.

 

Lifetime is proposing to invest into two Macquarie funds as part of their investment mix. AMP does not believe customers in SMT will be detrimentally impacted by this, as the Macquarie funds being proposed by Lifetime broadly align to AMP’s investment philosophy in relation to sustainable investing, and keeping investment costs low to maximise value for customers.


 

Diversified fund strategic asset allocations

Further to the information provided in your letter, the table below summarises the differences in the income and growth allocations for the three diversified funds offered within SMT. For more details, please refer to the SMT Statement of Investment Policy and Objectives (SIPO), a copy of which can be found at www.amp.co.nz/forms

Summary

Balanced Fund 

Growth Fund 

Conservative Fund 

 

AMP 

Lifetime 

AMP 

Lifetime 

AMP 

Lifetime 

Income Assets

43%

40%

23%

20%

76%

80%

Growth Assets 

57%

60%

77%

80%

24%

20%

 

How can I get financial advice to ensure this is the best decision for me?

Should you have any further questions or wish to obtain financial advice in relation to your SMT investment, please talk to your Adviser, email us at investments@amp.co.nz or give us a call on 0800 808 801


 

Can I withdraw my funds now before the change in manager?

Should you decide that you no longer wish to invest in SMT, and you are eligible to withdraw your investment under the scheme rules, you need to ensure AMP receives a completed transfer or withdrawal request form before 17 February 2023. If your form is received after this date or not able to be approved before 23 February, it will not be able to be processed by AMP because there is a pause on withdrawals from 23 February until the end of the transition. If this happens, your transfer or withdrawal request will be processed by Lifetime after the management of the SMT has transitioned to Lifetime, and you will receive the proceeds of your withdrawal request, or confirmation that your transfer request has been actioned, from Lifetime. Please note any locked in funds cannot be withdrawn.

 

The SMT Withdrawal form and SMT Transfer Application form can be found at www.amp.co.nz/forms.


 

What will happen to my fees?

Current AMP Administration fee:

 

If you joined SMT before 1 August 2004:

 

If you joined before 1 August 2004, you are likely to be on a Scaled Plan administration fee. Administration fees are calculated using a tiered averaged scale according to your balance:

 

Balance:

Current AMP Administration Fee

Balance up to $100,000

1.40%

Balance from $100,001 to $250,000

1.20%

Balance from $250,001 to $500,000

0.91%

Balance from $500,001 to $1,000,000

0.75%

Balance from $1,000,001 to $5,000,000

0.70%

Balance greater than $5,000,000

0.65%

 

If you joined SMT after 1 August 2004, or have opted to choose a non-tiered fee option your administration fee is:

 

Status

Current AMP Administration Fee

Unlocked

1.40%

Locked

1.19%

 

Lifetime Administration Fee following transition:

 

From

Lifetime Administration Fee

March 2023 – May 2023

1.08%

June 2023 to September 2023

1.05%

October 2023 to December 2023

1.03%

Jan 2024 and ongoing

0.98%

 

If your current AMP administration fee is lower than Lifetime’s administration fee following transition, Lifetime will rebate you the difference.

 

Management fee:

Following the change of manager, management fees will also change as follows for each fund:

SMT Fund

AMP Management Fee

Lifetime Management Fee

AMP Australasian Shares Fund

0.37%

0.18%

AMP Australasian Shares Fund No. 2

0.37%

0.18%

AMP Balanced Fund

0.40%

0.21%

AMP Cash Fund

0.21%

0.15%

AMP Conservative Fund

0.36%

0.24%

AMP Global Fixed Interest Fund

0.40%

0.28%

AMP Growth Fund

0.40%

0.24%

AMP International Shares Fund

0.35%

0.23%

AMP International Shares No. 2 Fund

0.35%

0.23%

AMP International Shares No. 3 Fund

0.35%

0.23%

AMP NZ Fixed Interest Fund

0.40%

0.21%

AMP UK Cash Fund

0.30%

0.38%

ANZ Australasian Property Fund

0.40%

0.32%

ANZ International Property Fund

0.40%

0.58%

 

All other fees (for example adviser and contribution fees) will remain the same following the change of manager to Lifetime. Lifetime have committed that overall fees will not be higher for any customer as a result of this change in manager. Where there are any situations where the aggregate of administration and management fees for any particular customer is higher, Lifetime will pay a rebate to customers to ensure they are not paying higher fees under their management.


Please note in future, fees may be subject to change and could increase but only after 90 days notice to members, and only if the costs of operating the scheme are increased under circumstances that are out of the control of the manager. This could include changes in compliance and regulatory costs.


 

How can I stay with AMP?

Should you decide that you no longer wish to invest in SMT, but instead wish to invest in another AMP product, then AMP will need to receive a transfer request form from you before 17 February 2023 and it will need to be approved by 23 February for AMP to be able to action your request. Please note any locked in funds can only be transferred to another superannuation scheme. If you are a Qualifying Recognised Overseas Pension Scheme (QROPs) member, then your transfer can be only to AMP’s New Zealand Retirement Trust and the current QROPS rules will apply to your investment. The SMT Transfer Application form can be found at www.amp.co.nz/forms 


 

I want to stay with AMP and I have QROPS money what are my options?

Should you decide that you no longer wish to invest in SMT, but wish to continue to have AMP manage your QROPS money, then please contact your Adviser directly as AMP will need to receive a transfer request form from your Adviser before 17 February and it will need to be approved by 23 February for AMP to be able to action your request. If you are a QROPS member and under your agreed retirement age, and you would like to remain with AMP, your transfer can be only to AMP’s New Zealand Retirement Trust and the current QROPS rules will apply to your investment. The SMT Transfer Application form can be found at www.amp.co.nz/forms.

 

If you choose to remain in SMT, Lifetime will continue to manage all QROPS requirements (including HMRC reporting).


 

Will I be able to receive correspondence regarding my investment via email going forward if there’s online access?

Yes, if you provide Lifetime with your email address, Lifetime will be able to correspond with you via email.

 

As part of Lifetime taking over as manager of the SMT, the operating system used to support member servicing is being upgraded to a modern IT system managed by Link Group Market Services (Link). Link are a leading global administrator of financial data within the superannuation industry.

 

It is intended that customers will be able to access their current account data and investment performance via an internet portal available 24/7 from the end of March 2023.