AMP Capital
Investment Funds
Investment Statement
Dated: 18 September 2015
Issued by AMP Investment Management (N.Z.) Limited
Important information
(The information in this section is required under the Securities
Act 1978 (“Securities Act”)).
When seeking or receiving financial advice, you
should check:
Investment decisions are very important. They often have long
term consequences. Read all documents carefully. Ask questions.
Seek advice before committing yourself.
>> the type of adviser you are dealing with;
Choosing an investment
A financial adviser who provides you with personalised financial
adviser services may be required to give you a disclosure
statement covering these and other matters. You should ask
your adviser about how he or she is paid and any conflicts of
interest he or she may have.
When deciding whether to invest, consider carefully the answers
to the following questions that can be found on the pages noted
below:
>> the services the adviser can provide you with;
>> the products the adviser can advise you on.
Financial advisers must have a complaints process in place and
they, or the financial services provider they work for, must belong
to a dispute resolution scheme if they provide services to retail
clients. So if there is a dispute over an investment, you can ask
someone independent to resolve it.
What sort of investment is this?
p29
Who is involved in providing it for me?
p29
How much do I pay?
p31
What are the charges?
p32
What returns will I get?
p34
What are my risks?
p39
Can the investment be altered?
p42
How do I cash in my investment?
p42
Who do I contact with inquiries about my investment?
p44
Is there anyone to whom I can complain if I have
problems with the investment?
p44
You can also complain to the Financial Markets Authority if you
have concerns about the behaviour of a financial adviser.
What other information can I obtain about this
investment?
p45
Important notice
In addition to the information in this document, important
information can be found in the current registered prospectus
for the investment. You are entitled to a copy of that prospectus
on request.
Most financial advisers, or the financial services provider
they work for, must also be registered on the financial service
providers register. You can search for information about
registered financial service providers at
http://www.fspr.govt.nz.
This is an Investment Statement prepared in accordance with
the Securities Act and the Securities Regulations 2009, relating
to an offer of units in the AMP Capital Investment Funds by AMP
Investment Management (N.Z.) Limited. It is prepared as at, and
is dated, 18 September 2015.
For more information about investing, go to
http://www.fma.govt.nz.
We intend transitioning the Funds to the new financial markets
regime introduced under the Financial Markets Conduct Act
2013 (FMCA) in the near future. As part of the transition to
the FMCA disclosure regime, this Investment Statement and
the Prospectus will be replaced by various Product Disclosure
Statements with other relevant information being available to
investors on the register entry that will be maintained in respect
of the offer of units in the Funds. In addition, the Trust Deeds for
the Funds will be replaced with a new Trust Deed that complies
with the requirements of the FMCA.
Financial advisers can help you make investment decisions
Using a financial adviser cannot prevent you from losing money,
but it should be able to help you make better investment
decisions.
In this Investment Statement, “you” or “your” refers to the
investor or Unit Holder and “we”, “us”, “our” or “the Manager”
refers to AMP Investment Management (N.Z.) Limited, the
Manager of the Funds.
Financial advisers are regulated by the Financial Markets
Authority to varying levels, depending on the type of adviser and
the nature of the services they provide. Some financial advisers
are only allowed to provide advice on a limited range of products.
For Investors in Administration and
Custodial Services
The Financial Markets Authority
regulates conduct in financial markets
The Financial Markets Authority regulates conduct in New
Zealand’s financial markets. The Financial Markets Authority’s
main objective is to promote and facilitate the development of
fair, efficient, and transparent financial markets.
AMP Capital offers the AMP Capital Investment Funds via
selected administration and custodial services.
When reading this Investment Statement, you should remember
that if your investments are made through an administration
and custodial service they will be held by a custodian on your
behalf.
AMP Capital Investment Funds
Investment Statement for the purposes of the Securities
Act 1978, prepared on 18 September 2015.
You should refer to the administration and custodial service
terms and the relevant marketing information about investing in
the AMP Capital Investment Funds through that service.
Please take the time to read this Investment Statement and the
other relevant documentation that you have been given before
making your investment decisions.
Why invest in managed funds?
Investing in managed funds can help you achieve your
savings goals and create greater wealth for the future.
Managed funds offer you:
The portfolio investment
entity regime
>> Diversification. Pooling together large amounts of
money enables fund managers to invest in a spread of
assets which allows diversification and reduces the risk
of your portfolio. It also provides access to markets and
securities that might otherwise be out of reach.
>> Professional and active management. Employing
the expertise and resources of an active manager is
particularly beneficial if you do not have the time or the
skill to manage your own investments.
>> Simplified investing. Fund managers take care of all the
paperwork involved in the buying, selling, reporting and
record keeping.
All of the Funds offered in this Investment Statement
are portfolio investment entities (“PIEs”). PIEs pay tax
on income attributed to you at your relevant prescribed
investor rate (“PIR”), which is capped at 28%. Investors in
a PIE with a marginal tax rate of 33% who elect a 28% PIR
may obtain a tax advantage. Refer to the Taxation section
for further details about PIRs.
PIEs are special tax investment entities which a managed
fund can elect to become. The AMP Capital Investment
Funds have elected to be PIEs. As a PIE, each Fund’s taxable
income is allocated to all investors in a Fund based on the
number of units held. The Fund pays tax on your share of
the taxable investment income at your PIR. The top PIR is
currently 28%.
In some cases, investors in PIE managed funds will have a
tax advantage over investors who invest directly and are
taxed at their marginal tax rate.
Why invest with AMP Capital?
AMP Capital is the investment manager of the Funds
(unless stated otherwise in respect of a Fund) and is a
Promoter of all of the Funds. AMP Capital is a leading
specialist investment manager, managing around
$19 billion* for New Zealand investors.
We believe better outcomes start with a deep
understanding of clients’ needs. Our culture of collaboration
drives our people to better understand markets, to share
insights and to innovate. Our process aims to deliver
outstanding investment outcomes, with a focus on
investment returns and risk management. Our investment
decisions are based on rigorous and repeatable research and
modelling, leveraging the depth of investment knowledge
across AMP Capital.
AMP Capital can, and does, contract out some or all of its
investment management tasks in respect of the Funds from
time to time. In addition, we have appointed, and may in
the future appoint other, external investment managers in
respect of the Funds.
1
We believe:
>> Markets are inefficient, and prices don’t always reflect
the true value of assets.
>> Experienced investment teams, supported by the
resources and systems that an organisation of AMP
Capital’s size and scale enables, are better positioned to
identify mispriced opportunities for clients.
>> The insights that investment professionals can share in
a multi-asset investment environment make for better
informed decisions, identification of opportunities and
risk management for each portfolio, than in a single asset
class environment.
>> Compelling investment opportunities are not always
accessible to the whole market, but are open to a large
investor like AMP Capital. We can offer these to clients –
including large corporate bond issues, infrastructure and
property opportunities.
Our investment philosophy
We believe investment success is all about people and
opportunities – experienced investors supported by the
scale and resources of a multi-asset house, collaborating
and leveraging insights to deliver better investment
outcomes.
* As at 31 August 2015.
AMP Capital Investment Funds
AMP Capital Investment Funds
Diversified Funds
AMP Capital Responsible Investment Leaders Conservative Fund
PAGE 3
AMP Capital Responsible Investment Leaders Growth Fund
PAGE 4
AMP Capital Responsible Investment Leaders Balanced Fund
PAGE 5
AMP Capital Global Multi-Asset Fund
PAGE 6
AMP Capital Income Generator Fund
PAGE 7
Cash and Fixed Interest
AMP Capital NZ Cash Fund
PAGE 8
AMP Capital NZ Fixed Interest Fund
PAGE 9
AMP Capital NZ Short Duration Fund
PAGE 10
AMP Capital Hedged Global Fixed Interest Fund
PAGE 11
AMP Capital Global Short Duration Fund
PAGE 12
New Zealand and Australian Shares
2
AMP Capital NZ Shares Fund
PAGE 13
AMP Capital Strategic NZ Shares Fund
PAGE 14
AMP Capital Australian Shares Fund
PAGE 15
AMP Capital Responsible Investment Leaders NZ Shares Fund
PAGE 16
Global Shares
AMP Capital Global Shares Fund
PAGE 17
AMP Capital Core Global Shares Fund
PAGE 18
AMP Capital Core Hedged Global Shares Fund
PAGE 19
AMP Capital Emerging Markets Shares Fund
PAGE 20
AMP Capital Responsible Investment Leaders Global Shares Fund
PAGE 21
Property, Infrastructure and Commodities
AMP Capital Global Property Securities Fund
PAGE 22
AMP Capital NZ Property Fund
PAGE 23
AMP Capital Listed Property Securities Fund
PAGE 25
AMP Capital Global Listed Infrastructure Fund
PAGE 26
AMP Capital Commodities Fund
PAGE 27
Returns data
In 2010, we updated our model for calculating the benchmark returns for the AMP Capital Investment Funds (including, in
respect of the Responsible Investment Leaders Conservative Fund and the Responsible Investment Leaders Growth Fund, by
making these calculations using daily, rather than weekly, pricing data). The updated model was applied retrospectively to
the calculation of benchmark returns for past periods. Accordingly, the benchmark returns for the Funds disclosed in this
Investment Statement may differ slightly from those disclosed in previous Investment Statements (with the result that the
extent to which the actual gross returns are lower or higher than the corresponding benchmark returns may differ from that
previously disclosed).
DIVERSIFIED FUNDS
AMP Capital Responsible Investment Leaders
Conservative Fund
Established 16 May 1995
Performance objective
Investment strategy
To outperform, over the medium term, the weighted
average return of the market indices used to measure
performance of the underlying funds/assets in which the
Fund invests.
The Responsible Investment Leaders Conservative Fund
aims to provide you with above-cash returns over time with
capital preservation whilst investing in line with responsible
investment parameters (see page 28 for more detail on
responsible investment). To do this, it uses appropriate
diversification across asset types, with a distinct bias to
income assets (e.g. bonds).
Key features
>> A diverse range of predominantly income assets including
fixed interest securities and cash, plus some growth
assets including shares, property and commodities,
across New Zealand and global markets.
Investment guidelines
The benchmark asset mix noted below is the expected
average asset mix of the Responsible Investment Leaders
Conservative Fund over the long term. In the short term
and medium term, AMP Capital will actively manage the
Fund within the given ranges:
Benchmark
(%)
New Zealand Cash
>> One of the most experienced investment management
teams for New Zealand investments.
25
New Zealand Fixed Interest
25
>> Active management of asset allocations to suit changing
investment environments and conditions.
Global Fixed Interest
25
Total Income Assets
75
Australasian Shares
5
Global Shares
10
Commodities
3
Property**
7
Total Growth Assets
25
Total
100
>> This Fund will invest primarily in other funds, including
funds managed by us or our associates, but may invest
in directly held assets. See pages 92 to 94 of the AIF
Prospectus for a table showing the funds managed by us
or our associated persons in which more than 10% of the
value of the Fund has been invested.
Annual returns to 31 March*
9.01%
8.90%
4.49%
3.65%
8.83%
8.21%
2013
6.13%
6.10%
2012
2011
6.08%
0%
2%
4%
Gross Return
55-95
5-45
Currency management
2015
2014
Range
(%)
6.85%
6%
8%
10%
Benchmark
AMP Capital targets a position of the Fund’s exposure to
foreign currency (excluding Australian dollar) shares being
50% hedged to the New Zealand dollar (on a net after tax
basis, based on the current maximum PIR). For Australian
dollar shares, AMP Capital targets a position of the Fund’s
exposure being 50% gross hedged to the New Zealand
dollar. For all other asset classes, AMP Capital targets 100%
currency hedging of foreign currency exposure to the New
Zealand dollar. AMP Capital has the discretion to alter these
target positions should this be deemed appropriate.
The return received by you if you invest in this Fund
will be less than the Gross Return outlined above once
Management Fees, performance fees (if any), expenses and
taxes are deducted.
Use of derivatives
The Fund may use derivatives to manage risk and facilitate
rebalancing and asset allocation.
* The performance information set out above shows the performance of the Fund before it commenced investing in accordance with
responsible investment parameters on 16 April 2015.
** Includes both New Zealand and global property.
AMP Capital Investment Funds
3
DIVERSIFIED FUNDS
AMP Capital Responsible Investment Leaders
Growth Fund
Established 16 May 1995
Use of derivatives
Investment strategy
The Fund may use derivatives to manage risk and facilitate
rebalancing and asset allocation.
The Responsible Investment Leaders Growth Fund aims
to provide you with high real returns over time and has
correspondingly high risk whilst investing in line with
responsible investment parameters (see page 28 for more
detail on responsible investment). It uses diversification
across asset types, with a distinct bias to growth assets (e.g.
shares).
To outperform, over the medium term, the weighted
average return of the market indices used to measure
performance of the underlying funds/assets in which the
Fund invests.
Key features
Investment guidelines
>> A diverse range of predominantly growth assets,
including shares, property and commodities, plus some
income assets including fixed interest securities and cash,
across New Zealand and global markets.
The benchmark asset mix noted below is the expected
average asset mix of the Responsible Investment Leaders
Growth Fund over the long term. In the short term and
medium term, AMP Capital will actively manage the Fund
within the given ranges
>> One of the most experienced investment management
teams for New Zealand investments.
4
Performance objective
>> Active management of asset allocations to suit changing
investment environments and conditions.
>> This Fund will invest primarily in other funds, including
funds managed by us or our associates, but may invest
in directly held assets. See pages 92 to 94 of the AIF
Prospectus for a table showing the funds managed by us
or our associated persons in which more than 10% of the
value of the Fund has been invested.
Annual returns to 31 March*
14.57%
13.15%
2015
10.74%
10.31%
2014
0.81%
2.29%
2012
9.48%
8.93%
2011
0%
5%
10%
Gross Return
15%
New Zealand Cash
Range
(%)
5
New Zealand Fixed Interest
2.5
Global Fixed Interest
2.5
Total Income Assets
10
Australasian Shares
22.5
Global Shares
52.5
Commodities
5
Property**
10
Total Growth Assets
90
Total
100
0-30
70-100
Currency management
16.27%
15.54%
2013
Benchmark
(%)
20%
Benchmark
The return received by you if you invest in this Fund
will be less than the Gross Return outlined above once
Management Fees, performance fees (if any), expenses and
taxes are deducted.
AMP Capital targets a position of the Fund’s exposure to
foreign currency (excluding Australian dollar) shares being
50% hedged to the New Zealand dollar (on a net after tax
basis, based on the current maximum PIR). For Australian
dollar shares, AMP Capital targets a position of the Fund’s
exposure being 50% gross hedged to the New Zealand
dollar. For all other asset classes, AMP Capital targets 100%
currency hedging of foreign currency exposure to the New
Zealand dollar. AMP Capital has the discretion to alter these
target positions should this be deemed appropriate.
* The performance information set out above shows the performance of the Fund before it commenced investing in accordance with
responsible investment parameters on 16 April 2015.
** Includes both New Zealand and global property.
DIVERSIFIED FUNDS
AMP Capital Responsible Investment Leaders
Balanced Fund
Established 17 October 2008
Use of derivatives
Investment strategy
The Fund may use derivatives to manage risk and facilitate
rebalancing and asset allocation.
The Responsible Investment Leaders Balanced Fund aims
to provide you with modest real returns over time with
medium risk while investing in line with responsible
investment parameters (see page 28 for more detail on
responsible investment). To do this, it uses appropriate
diversification across asset types, with a mix of income
assets (e.g. bonds) and growth assets (e.g. shares).
Performance objective
To outperform, over the medium term, the weighted
average return of the market indices used to measure
performance of the underlying funds/assets in which the
Fund invests.
Key features
Investment guidelines
>> A diverse range of growth and income assets including
shares, property, commodities, fixed interest securities
and cash, across New Zealand and global markets.
The benchmark asset mix noted below is the expected
average asset mix of the Fund over the long term. In the
short term and medium term, AMP Capital will actively
manage the Fund within the given ranges. There may be
times when an asset class is not represented (or is not
within the specified range) due to compliance around the
responsible investment charter for the Fund.
>> One of the most experienced investment management
teams for New Zealand investments.
>> Active management of asset allocations to suit changing
investment environments and conditions.
>> A robust investment process that combines a
sustainability focus with stringent financial analysis.
>> This Fund will invest primarily in other funds, including
funds managed by us or our associates, but may invest
in directly held assets. See pages 92 to 94 of the AIF
Prospectus for a table showing the funds managed by us
or our associated persons in which more than 10% of the
value of the Fund has been invested.
Annual returns to 31 March
13.34%
13.06%
2015
2014
8.78%
10.95%
14.96%
2013
12.92%
4.88%
5.87%
2012
8.25%
7.82%
2011
0%
2%
4%
6%
8%
Gross Return
10%
12%
14%
16%
Benchmark
The return received by you if you invest in this Fund will be
less than the Gross Return outlined once Management Fees,
performance fees (if any), expenses and taxes are deducted.
Benchmark
(%)
New Zealand Cash
10
New Zealand Fixed Interest
15
Global Fixed Interest
15
Total Income Assets
40
Australasian Shares
15
Global Shares
31
Commodities
4
Property*
10
Total Growth Assets
60
Total
100
Range
(%)
20-60
40-80
Currency management
AMP Capital targets a position of the Fund’s exposure to
foreign currency (excluding Australian dollar) shares being
50% hedged to the New Zealand dollar (on a net after tax
basis, based on the current maximum PIR). For Australian
dollar shares, AMP Capital targets a position of the Fund’s
exposure being 50% gross hedged to the New Zealand
dollar. For all other asset classes, AMP Capital targets 100%
currency hedging of foreign currency exposure to the New
Zealand dollar. AMP Capital has the discretion to alter these
target positions should this be deemed appropriate.
* Includes both New Zealand and global property.
AMP Capital Investment Funds
5
DIVERSIFIED FUNDS
AMP Capital Global Multi-Asset Fund
Established 22 October 2013
Investment strategy
The Global Multi-Asset Fund aims to generate a positive
return above inflation and actively responds to changing
market conditions with a flexible approach to investing. It
also aims to reduce risk through focused risk management
strategies to minimise the volatility in investment returns.
Key features
>> Invests in the Australian AMP Capital Multi-Asset Fund
and the Schroder Real Return Fund, a fund managed by
Schroder Investment Management Australia Limited.
>> Active management within the Australian AMP Capital
Multi-Asset Fund and Schroder Real Return Fund
providing flexibility to change the asset class mix at any
time, within broad asset ranges, to take the advantage of
market opportunities.
Range
(%)
5
0-10
Australian AMP Capital Multi-Asset Fund
47.5
0-90
Schroder Real Return Fund
47.5
0-90
Total
100
Cash
As at the date of this Investment Statement the asset
allocation ranges of the Australian AMP Capital Multi-Asset
Fund and the Schroder Real Return Fund are as shown
below:
Australian AMP Capital Multi-Asset Fund
Asset class
Range (%)
Growth assets
0-90
Developed market equities – global
0-60
Developed market equities – Australian
0-40
Emerging market equities
0-30
Global REITs
0-30
Sub investment grade credit
0-40
>> Active risk management within the Australian AMP
Capital Multi-Asset Fund and Schroder Real Return
Fund to manage portfolio volatility and target explicit
downside risks.
Diversified alternatives
0-20
Absolute return – growth
0-20
Direct infrastructure
0-10
Direct property
0-10
>> Active currency hedging in the Australian AMP Capital
Multi-Asset Fund and Schroder Real Return Fund as well
as full hedging of Australian dollar exposure within the
Fund back to New Zealand dollars.
Private equity
0-10
Returns to 31 March *
>> Ability to rebalance between the Australian AMP Capital
Multi-Asset Fund and Schroder Real Return Fund to suit
changing environments and conditions.
6
Benchmark
(%)
2015
13.57%
6.05%
0.43%
2014
1.98%
Defensive assets
10-100
Cash
0-100
Government bonds
0-70
Inflation indexed bonds
0-70
Investment grade credit
0-70
Absolute return – defensive
0-40
Non AUD$ currency exposure
0-30
Schroder Real Return Fund
Asset class
Growth assets
Range (%)
0-75
Includes Australian equities, Global Equities
0%
2%
4%
6%
8%
Gross Return
10%
12%
14%
16%
Benchmark
The return received by you if you invest in this Fund
will be less than the Gross Return outlined above once
Management Fees, performance fees (if any), expenses and
taxes are deducted.
Diversifying Assets
0-75
Includes Australian High Yield, Global High Yield
Defensive assets
0-100
Includes Australian & Global Investment Grade,
Fixed Income Derivatives, Mortgages & sub-debt
and Cash
Performance objective
Currency management
To provide a Gross Return of greater than 5.25% per annum
over the New Zealand Consumer Price Index (CPI) (trimmed
mean) over a rolling five year period.
Active currency hedging back to Australian dollars is
undertaken within the Australian AMP Capital Multi-Asset
Fund and Schroder Real Return Fund. The Australian dollar
exposure of the Fund (the combined market value of the
Australian AMP Capital Multi-Asset Fund and the Schroder
Real Return Fund) will be hedged back to New Zealand
dollars.
Investment guidelines
The guidelines for the Global Multi-Asset Fund are shown
below:
* The performance return for 2014 is calculated from the date of the first investment in the Fund on 11 December 2013 to 31 March 2014
DIVERSIFIED FUNDS
AMP Capital Income Generator Fund
Established 1 April 2014
Use of derivatives
Investment strategy
The Fund may use derivatives to manage risk and facilitate
rebalancing and asset allocation.
The Income Generator Fund aims to provide you with a
gross fixed monthly income in excess of bank deposit
rates along with a positive return on capital over the long
term. To achieve this, the Fund invests in a diversified mix
of growth and defensive assets, with a focus on reliable
income generation. The Fund pays a fixed monthly
distribution amount to Unit Holders.* The fixed monthly
distribution amount is based on our expectations of the
amount of gross income likely to be received by the Fund,
and the amount of tax that may be payable on behalf
on Unit Holders in respect of the PIE allocated taxable
income, over the relevant period. For the period from 1 April
2015 to 31 March 2016 the Manager will aim to invest in
assets which will generate a gross Fund income of greater
than 5.2% per annum. Accordingly, for the period from
1 April 2015 to 31 March 2016, the Fund will pay a fixed
distribution of 0.33 cents per Unit per month (being an
annualised rate of 3.96 cents per Unit per annum). We will
review the monthly distribution amount, and may re-set it,
on or about 1 April in each year for the following 12 month
period.
Performance objective
To maximise the amount of the monthly distribution
payments to you by outperforming, over the medium term,
the weighted average return of the market indices used to
measure performance of the underlying funds/assets in
which the Fund invests.
Investment guidelines
The benchmark asset mix noted below is the expected
average asset mix of the Income Generator Fund over
the long term. In the short term and medium term, AMP
Capital will actively manage the Fund within the given
ranges:
Benchmark
(%)
Range
(%)
New Zealand Cash
10
0–20
New Zealand Inflation Linked
Bonds
5
0–15
New Zealand Fixed Income
20
10–30
Global Corporate Bonds
25
15–35
Total Defensive Assets
60
45–75
New Zealand Shares
25
15–35
>> The Fund pays a fixed monthly amount which is re-set on
or about 1 April each year.
Australian Shares
5
0–15
Global Listed Infrastructure
5
0–15
>> The Fund aims to provide a positive return on capital over
the long term.
Global Real Estate Investment
Trusts
5
0–15
>> The Fund’s asset allocation is tilted within the permitted
ranges to maintain a high gross yield.
Total Growth Assets
40
25–55
Total
100
Key features
>> The Fund invests in a diversified mix of growth and
defensive assets, with an objective of reliable income
generation.
Returns to 31 March
2015
Currency management
7.83%
0%
2%
4%
6%
8%
Gross Return Benchmark
The assets included in the Global Listed Infrastructure and
Global Real Estate Investment Trusts categories are fully
hedged back to New Zealand dollars. The assets included in
the Global Corporate Bonds category are fully hedged back
to New Zealand dollars. The Australian dollar assets are not
currently hedged.
9.75%
10%
12%
* The performance return for 2015 is calculated from the date of the first investment in the Fund on 30 June 2014 to 31 March 2015.
AMP Capital Investment Funds
7
CASH AND FIXED INTEREST
AMP Capital NZ Cash Fund
Established 16 May 1995
Performance objective
Investment strategy
To provide a Gross Return above the return of the NZX 90
Day Bank Bill Index on a rolling 12 month basis.
The NZ Cash Fund is an actively managed portfolio of
bank bills, floating rate notes and short term deposits and
securities, with a maximum weighted average duration not
exceeding six months.
Key features
>> We use both interest rate and credit strategies with the
aim to deliver a return above the NZX 90 Day Bank Bill
Index.
>> The investment team considers economic fundamentals,
market sentiment, fund flows and relative value between
the cash rate and other securities along the yield curve in
determining the selection of suitable securities.
Annual returns to 31 March
4.00%
3.58%
2015
8
2014
2.70%
2013
3.42%
2.69%
2012
2.76%
2011
3.54%
3.64%
4.29%
3.11%
0%
1%
2%
Gross Return
3%
Benchmark
4%
5%
The return received by you if you invest in this Fund
will be less than the Gross Return outlined above once
Management Fees, performance fees (if any), expenses and
taxes are deducted.
Investment guidelines
The NZ Cash Fund predominantly invests in New Zealand
bank and corporate securities/deposits including bank bills,
floating rate notes and periodically utilises derivatives. The
Fund will not invest into collateralised debt obligations,
collateralised loan obligations or credit default swaps. The
investment guidelines are as follows:
Range
(%)
New Zealand Government or government
guaranteed securities, bank risk or debt
securities and registered bank deposits/cash
50–100
Corporate securities
0–50
Floating rate notes
0–25
CASH AND FIXED INTEREST
AMP Capital NZ Fixed Interest Fund
Established 16 May 1995
Performance objective
Investment strategy
To provide a Gross Return above the return of the S&P/NZX
NZ Government Bond Index on a rolling three year basis.
The NZ Fixed Interest Fund is an actively managed portfolio
of predominantly New Zealand fixed interest investments
designed for those investors who wish to invest in a
diversified portfolio of fixed interest securities/instruments.
The portfolio is structured to add value through interest
rate, yield curve and credit positions.
Key features
Investment guidelines
The NZ Fixed Interest Fund predominately invests in
corporate and government securities and will frequently
utilise derivatives to manage risk. The Fund will not
invest into collateralised debt obligations, collateralised
loan obligations or credit default swaps. The investment
guidelines for the Fund are shown below:
>> Exposure to a well diversified portfolio of longer term
fixed interest securities.
>> Proven investment management expertise from access to
the resources of a specialised fixed interest team across
New Zealand and Australia.
Annual returns to 31 March
10.37%
9.38%
2015
2014
-1.71%
-0.18%
2013
6.44%
11.05%
-4%
10.15%
6.97%
6.92%
-2%
0%
2%
4%
6%
Gross Return Benchmark
On call cash, short term securities and term
deposits.
Corporate, New Zealand Government, and other
non-government securities
0–50
50–100
Local Government Funding Authority
0–50
Interest rate swaps (by notional face value)
0-100
Foreign currency issues*
0-20
Cross currency swaps (by notional face value)
0-20
7.70%
2012
2011
Range
(%)
8%
10%
Currency management
AMP Capital is responsible for hedging any foreign currency
exposures back to New Zealand dollars.
12%
The return received by you if you invest in this Fund
will be less than the Gross Return outlined above once
Management Fees, performance fees (if any), expenses and
taxes are deducted.
* Investment in foreign currency issues is restricted to: foreign currency issues of New Zealand entities; foreign currency issues
of the Australian parents of New Zealand entities; and Australian dollar issues of all other Australian entities. Any foreign
currency securities will be fully hedged back to New Zealand dollars.
AMP Capital Investment Funds
9
CASH AND FIXED INTEREST
AMP Capital NZ Short Duration Fund
Established 29 June 2007
Performance objective
Investment strategy
The objective of the NZ Short Duration Fund is to provide a
Gross Return above the return of the NZX Short End Swap
Index on a rolling three year basis.
The NZ Short Duration Fund aims to provide you with a
consistently good income using a combination of interest
rate and investment grade credit strategies. It targets a
shorter average duration (and maturity) than traditional
fixed income funds and its risk/return profile should place
it between a cash portfolio and a standard fixed income
portfolio.
Key features
>> The combination of the short duration benchmark and
the use of fixed interest risk management tools means
the Fund’s capital value is not as sensitive to changes
in market interest rates as traditional longer term fixed
income portfolios.
The NZ Short Duration Fund aims to give you exposure to
fixed interest securities, including corporate bank, local
authority and SOE bonds, mortgage and asset-backed
securities, infrastructure debt, government bonds, credit
default swaps, interest rate swaps, cash and cash-like
securities. The guidelines for the Fund are shown below:
Range
(%)
New Zealand issued securities, including
corporate bonds, SOE, local authority and
government bonds
0-100
Mortgage and other asset backed bonds
0-25
>> Proven investment management expertise from access to
the resources of a specialised fixed interest team across
New Zealand and Australia.
Foreign currency issues**
0-30
Credit default swaps (by notional face value)
0-30
Interest rate swaps (by notional face value)
0-100
Annual returns to 31 March*
Cross currency swaps (by notional face value)
0-30
On call New Zealand cash, short term securities
and term deposits
0-100
Local Government Funding Authority
0-50
>> This Fund specifically targets credit risk and interest rate
risk as a source of return.
10
Investment guidelines
2015
6.56%
5.21%
2014
3.72%
1.78%
2013
2012
5.20%
2.45%
2011
5.64%
3.11%
0%
1%
2%
3%
Gross Return
The investment guidelines for this Fund were changed with
effect from 1 December 2011. Under the new investment
guidelines, the Fund targets a shorter average duration (and
maturity) than traditional fixed income funds.
5.48%
3.35%
4%
5%
Benchmark
6%
7%
The return received by you if you invest in this Fund
will be less than the Gross Return outlined above once
Management Fees, performance fees (if any), expenses and
taxes are deducted.
* The performance information set out in the graph above includes the performance of the Fund before the investment guidelines were
changed with effect from 1 December 2011.
** Investment in foreign currency issues is restricted to: foreign currency issues of New Zealand entities; foreign currency issues of the
Australian parents of New Zealand entities; and Australian dollar issues of all other Australian entities. Any foreign currency securities
will be fully hedged back to New Zealand dollars.
CASH AND FIXED INTEREST
AMP Capital Hedged Global Fixed Interest Fund
Established 7 November 1994
Performance objective
Investment strategy
To provide a Gross Return which outperforms the return of
the Barclays Capital Global Aggregate Index over a rolling
three year basis, fully hedged to the New Zealand dollar.
The Hedged Global Fixed Interest Fund gives you access to a
multi-manager approach to investing in a diversified range
of international government securities, government-related
securities, corporate securities, asset-backed securities and
hybrid securities in both developed and emerging markets
around the globe.
Investment guidelines
The guidelines for the Hedged Global Fixed Interest Fund
are shown below:
Benchmark
(%)
Key features
>> Exposure to a range of high quality fixed interest
investment managers, selected by AMP Capital’s
specialist multi-manager team.
>> Specialist coverage of the three major components of
global bond markets - government bonds, corporate
credit and securitised debt.
>> Targets full currency hedging to net asset value.
Annual returns to 31 March*
10.79%
11.43%
2015
7.48%
2012
2011
5.60%
0%
2%
4%
6%
Gross Return
Cash
0
0
5
Wholesale Unit Trust
Global Bond Fund 2 –
Global Government
63
58
68
Wholesale Unit Trust
Global Bond Fund 4 –
Global Credit
22
17
27
Wholesale Unit Trust
Global Bond Fund 5 –
Global Securitised
15
10
20
11
AMP Capital targets 100% currency hedging of the Fund’s
net asset value back to the New Zealand dollar. This
hedging is performed by the appointed fixed interest
investment managers that may also take active currency
positions in the underlying funds.
6.98%
7.75%
2013
Minimum Maximum
Currency management
4.20%
3.70%
2014
Range (%)
9.53%
7.25%
8%
Benchmark
10%
12%
14%
The return received by you if you invest in this Fund
will be less than the Gross Return outlined above once
Management Fees, performance fees (if any), expenses and
taxes are deducted.
* The performance information set out in the graph above shows the performance of the Fund before the restructure and changes to the
Fund’s investment guidelines in June 2014.
AMP Capital Investment Funds
CASH AND FIXED INTEREST
AMP Capital Global Short Duration Fund
Established 4 October 2011
Performance objective
Investment strategy
To provide a Gross Return above the return of the
NZX 90 Day Bank Bill Index on a rolling three year basis.
The Global Short Duration Fund aims to provide you with
access to a well-diversified portfolio of high quality global
fixed income securities. The Fund invests in securities with
a shorter average duration than traditional fixed income
funds, and takes advantage of global opportunities focusing
on active positions on secular trends as opposed to short
term aberrations in interest rates.
Investment guidelines
The guidelines for the Global Short Duration Fund are
shown below:
Benchmark
(%)
Key features
Cash
>> Adds value through multiple sources to achieve
consistency of returns.
International fixed
interest securities
>> The investment philosophy has an emphasis on
minimising downside risk.
Minimum Maximum
0
0
10
100
90
100
Currency management
>> Focuses on high quality assets.
>> Proven investment management expertise and resources
are accessed through a specialised fixed interest team.
12
Range (%)
>> PIMCO Australia Pty Limited, a global investment
management firm, has been appointed as the current
investment manager of the Fund.
AMP Capital targets 100% currency hedging of the Fund’s
net asset value back to the New Zealand dollar. Hedging
is performed by the appointed fixed interest investment
manager that may also take active currency positions.
Annual returns to 31 March*
2015
5.88%
3.58%
2014
2.70%
2013
4.41%
4.96%
2.36%
2012
2011
0%
1%
2%
3%
Gross Return
4%
Benchmark
5%
6%
7%
The return received by you if you invest in this Fund
will be less than the Gross Return outlined above once
Management Fees, performance fees (if any), expenses and
taxes are deducted.
* The performance return for 2013 is calculated from the date of the first investment in the Fund on 13 May 2012 to 31 March 2013.
NEW ZEALAND AND AUSTRALIAN SHARES
AMP Capital NZ Shares Fund
Established 16 May 1995
Performance objective
Investment strategy
To provide a Gross Return above the return of the
S&P/NZX 50 Index (on a gross basis and including
imputation credits) over a rolling three year period.
The NZ Shares Fund is a diversified portfolio of
predominantly New Zealand shares constructed with the
aim of outperforming the S&P/NZX 50 Index (on a gross
basis and including imputation credits).
The investment approach is research driven and involves
determining financial forecasts for companies in the
relevant investment universe. Where those forecasts differ
from the forecasts implied by the current price of the
shares, positions relative to the index are taken.
Investment guidelines
The guidelines for the NZ Shares Fund are shown below:
Range
(%)
Cash
New Zealand shares
0–10
60–100
The Fund may also invest in Australian shares. This
flexibility affords a wider investment universe and allows
the portfolio to benefit from insights the research team
derives on Australian stocks.
Currency management
The Fund is well diversified and is constructed to have
moderate tracking error relative to the S&P/NZX 50 Index
(on a gross basis and including imputation credits).
There is discretion to hedge against any Australian dollar
exposure but historically the Fund has not been hedged
back to the New Zealand dollar.
Australian shares
0–30
Salt Funds Management Limited, an external active fund
manager, is the investment manager of the Fund.
13
Key features
>> Exposure to a diversified portfolio of New Zealand shares
with the scope to hold Australian shares.
>> The Fund will generally be overexposed to companies
which have sustainable competitive advantage, good
growth outlooks, the ability to grow earnings faster than
revenue and which can grow without a strong reliance on
raising additional capital.
Annual returns to 31 March
2015
15.17%
19.36%
15.03%
17.46%
2014
26.12%
2013
27.75%
4.33%
3.61%
2012
2011
6.58%
0%
5%
8.91%
10%
15%
20%
Gross Return Benchmark
25%
30%
The return received by you if you invest in this Fund
will be less than the Gross Return outlined above once
Management Fees, performance fees (if any), expenses and
taxes are deducted.
AMP Capital Investment Funds
NEW ZEALAND AND AUSTRALIAN SHARES
AMP Capital Strategic NZ Shares Fund
Established 1 February 2001
Performance objective
Investment strategy
To provide a Gross Return above the return of the S&P/
NZX 50 Portfolio Index (on a gross basis and including
imputation credits) over a rolling three year period.
The Strategic NZ Shares Fund is a diversified portfolio of
predominantly New Zealand shares constructed with the
aim of outperforming the S&P/NZX 50 Portfolio Index (on a
gross basis and inclusive of imputation credits).
The investment approach is research driven and involves
determining financial forecasts for companies in the
relevant investment universe. Where those forecasts differ
from the forecasts implied by the current price of the
shares, positions relative to the index are taken.
The Fund may also invest in Australian shares. This
flexibility affords a wider investment universe and allows
the portfolio to benefit from insights the research team
derives on Australian stocks.
The Fund is well diversified and is constructed to have
moderate tracking error relative to the S&P/NZX 50 Portfolio
Index (on a gross basis and including imputation credits).
Salt Funds Management Limited, an external active fund
manager, is the investment manager of the Fund.
14
Key features
>> Exposure to a diversified portfolio of New Zealand shares
with the scope to hold Australian shares.
>> This Fund will generally be overexposed to companies
which have sustainable competitive advantage, good
growth outlooks, the ability to grow earnings faster than
revenues and which can grow without a strong reliance
on raising additional capital.
Annual returns to 31 March
2015
18.70%
14.99%
2014
21.76%
17.42%
28.29%
30.26%
2013
0.67%
1.14%
2012
6.23%
5.40%
2011
0%
5%
10%
15%
Gross Return
20%
Benchmark
25%
30%
35%
The return received by you if you invest in this Fund
will be less than the Gross Return outlined above once
Management Fees, performance fees (if any), expenses and
taxes are deducted.
Investment guidelines
The guidelines for the Strategic NZ Shares Fund are shown
below:
Range
(%)
Cash
New Zealand shares
Australian shares
0–20
50–100
0–50
Currency management
There is discretion to hedge against the Australian dollar
exposure but historically the Fund has not been hedged
back to the New Zealand dollar.
NEW ZEALAND AND AUSTRALIAN SHARES
AMP Capital Australian Shares Fund
Established 1 July 1996
Annual returns to 31 March
Investment strategy
The Australian Shares Fund provides you with access to
shares listed (or about to be listed) on the ASX.
2015
Key features
2013
>> This Fund invests in the AMP Capital Equity Fund, a unit
trust managed by AMP Capital Australia. It provides
exposure to a diversified portfolio of Australian shares
across a range of industries and sectors, with a focus on
the largest 200 companies.
2012
8.85%
-1.78%
12.67%
2014
-2.59%
>> AMP Capital Australia’s investment style involves:
−− identifying companies which it believes are
undervalued in relation to their projected earning
potential, based on the investment philosophy that
earnings drive share prices; and
−− implementation of a research driven process that
assesses key criteria and combines it with active
management.
>> This approach allows AMP Capital Australia to take
advantage of growth and mispriced market opportunities
as they arise, and to identify companies that they believe
represent an attractive market opportunity.
18.41%
18.07%
-11.73%
-12.59%
7.18%
2011
-15%
-10%
-5%
0%
Gross Return
>> Access to an investment process designed to maintain a
portfolio relevant to the current market environment.
>> Access to the investment expertise demonstrated by AMP
Capital Australia’s track record of managing Australian
share investment portfolios as well as the broader
investment management resources of AMP Capital
Australia.
*
8.41%
10%
15%
20%
Benchmark
The return received by you if you invest in this Fund
will be less than the Gross Return outlined above once
Management Fees, performance fees (if any), expenses and
taxes are deducted.
Performance objective
To provide a Gross Return above the return of the
S&P/ASX 200 Accumulation Index on a rolling 3 year basis.
15
Investment guidelines
The guidelines for the Australian Shares Fund are shown
below:
>> An investment in a portfolio of securities listed (or about
to be listed) on the ASX.
>> Diversification across industries and sectors.
5%
Range
(%)
Cash
AMP Capital Equity Fund*
0–10
90-100
Currency management
AMP Capital has the discretion to hedge against the
Australian dollar exposure but historically the Fund has not
been hedged back to the New Zealand dollar.
The investment guidelines for the AMP Capital Equity Fund allow for a holding of up to 20% cash.
AMP Capital Investment Funds
NEW ZEALAND AND AUSTRALIAN SHARES
AMP Capital Responsible Investment Leaders
NZ Shares Fund
Established 6 November 2012
Annual returns to 31 March*
Investment strategy
The Responsible Investment Leaders NZ Shares Fund is a
variant of the AMP Capital NZ Shares Fund and invests in a
diversified portfolio of predominantly New Zealand shares
constructed with the aim of outperforming the S&P/NZX
50 Index (on a gross basis and including imputation credits).
The investment process for the Fund, however, places
material emphasis on financial and economic sustainability
and the efficacy of corporate governance at both the board
and management levels.
In addition, the Manager recognises that certain investors
desire further assessments to be made with respect to
environmental, social and ethical factors, and labour
standards. Such assessments may therefore be included in
the stock selection and portfolio construction processes of
the Fund (see page 28 for more detail on our approach to
responsible investment).
16
19.38%
2015
15.17%
16.99%
17.46%
2014
9.13%
11.14%
2013
0%
5%
10%
Gross Return Benchmark
15%
20%
The return received by you if you invest in this Fund
will be less than the Gross Return outlined above once
Management Fees, performance fees (if any), expenses and
taxes are deducted.
Performance objective
The portfolio may also invest in Australian shares. This
flexibility affords a wider investment universe and allows
the portfolio to benefit from insights derived on Australian
stocks.
To provide a Gross Return above the return of the S&P/NZX
50 Index (on a gross basis and including imputation credits)
over a rolling three year period.
The portfolio is well diversified and constructed to have
moderate tracking error relative to the S&P/NZX 50 Index
(on a gross basis and including imputation credits).
Investment guidelines
Salt Funds Management Limited, an external active fund
manager, is the investment manager of the Fund.
The guidelines for the Responsible Investment Leaders NZ
Shares Fund are shown below:
Range
(%)
Key features
Cash
>> Exposure to a diversified portfolio of New Zealand shares
with the scope to hold Australian shares.
New Zealand shares
>> The portfolio is generally overexposed to companies
which have sustainable competitive advantage, good
growth outlooks, the ability to grow earnings faster than
revenue and which can grow without a strong reliance on
raising additional capital.
Australian shares
0–10
60–100
0–30
Currency management
There is discretion to hedge against any Australian dollar
exposure.
>> The Fund is managed against specific ‘Responsible
Investment’ criteria which prohibit investments in certain
companies or activities (e.g. gambling, armaments,
tobacco, pornography), and encourages investment in
companies with strong environmental, social and ethical
characteristics.
* The performance return for 2013 is calculated from the date of the first investment in the Fund on 13 December 2012 to 31 March
2013.
GLOBAL SHARES
AMP Capital Global Shares Fund
Established 7 November 1994
Performance objective
Investment strategy
To provide a Gross Return above the return of the Morgan
Stanley Capital International (MSCI) All Country World Index
with net dividends reinvested (50% hedged to the New
Zealand dollar on a net after tax basis, based on the current
maximum PIR) on a rolling three year basis.
The Global Shares Fund gives you access to international
shares and specialist investment managers from around the
world using a multi-manager approach.
Key features
Investment guidelines
>> A multi-manager share investment fund that invests in
equities across the world’s share markets.
The guidelines for the Global Shares Fund are shown below:
>> Exposure to a range of investment managers, selected by
AMP Capital Australia’s specialist multi-manager team.
>> Diversification by region, manager and investment style,
with the aim of delivering more stable returns.
>> Exposure to a fully diversified suite of developed market
large cap equities and emerging market equities.
>> Where the Fund gains exposure to global shares through
investment in New Zealand PIE funds which hold assets
directly, this can be beneficial from a tax perspective.
>> Partially hedged to the New Zealand dollar.
Annual returns to 31 March*
2015
18.44%
18.43%
2014
19.78%
19.07%
Cash
0-5
AMP Capital Core Global Shares Fund
55 - 65
Wholesale Unit Trust MSCI Global Index Shares
Fund
23 - 33
Future Directions Emerging Markets Share Fund
7 - 17
Currency management
This fund targets a position of being 50% hedged to the
New Zealand dollar (on a net after tax basis, based on
the current maximum PIR). The hedges are based on the
currency components of the underlying index. Currency
hedges are normally rebalanced monthly but may be
adjusted intra-month for significant cashflows.
14.65%
13.85%
2013
2012
Range
-1.61%
-0.18%
10.81%
9.31%
2011
-5%
0%
5%
10%
Gross Return
15%
20%
25%
Benchmark
The return received by you if you invest in this Fund
will be less than the Gross Return outlined above once
Management Fees, performance fees (if any), expenses and
taxes are deducted.
* The performance information set out in the graph above shows the performance of the Fund before the Fund was restructured
and its investment guidelines were changed during April and May 2014.
AMP Capital Investment Funds
17
GLOBAL SHARES
AMP Capital Core Global Shares Fund
Established 30 September 2007
Performance objective
Investment strategy
To provide a Gross Return above the return of the Morgan
Stanley Capital International (MSCI) World Index with net
dividends reinvested on a rolling three year basis.
The Core Global Shares Fund gives you access to
international shares and specialist investment managers
from around the world using a multi-manager approach.
Key features
>> A multi-manager share investment fund that invests in
equities across the world’s core developed markets.
>> Exposure to a range of investment managers, selected by
AMP Capital Australia’s specialist multi-manager team.
>> Diversification by region, manager and investment style,
with the aim of delivering more stable returns.
>> Style rotation capabilities, which enable the portfolio to
respond quickly to changes in market conditions.
>> A global approach, which better positions the portfolio to
capture global market themes.
18
>> The Fund gains the majority of its exposure to global
shares through investment in New Zealand PIE funds.
Where these New Zealand PIE funds hold assets directly,
this can be beneficial from a tax perspective.
Investment guidelines
The guidelines for the Core Global Shares Fund are shown
below:
Range
(%)
Cash
Wholesale Unit Trust funds *
0–10
90–100
* The Wholesale Unit Trust funds are New Zealand PIE funds
managed by the Manager.
Currency management
This Fund’s foreign currency exposures are not hedged back
to New Zealand dollars.
Annual returns to 31 March*
23.24%
2015
2014
14.99%
10.47%
9.37%
2013
-7.65%
2012
22.69%
18.43%
-6.40%
6.16%
5.54%
2011
-10%
-5%
0%
5%
Gross Return
10%
15%
20%
25%
Benchmark
The return received by you if you invest in this Fund
will be less than the Gross Return outlined above once
Management Fees, performance fees (if any), expenses and
taxes are deducted.
* The performance information set out in the graph above shows the performance of the Fund before the Fund was restructured
and its investment guidelines were changed during April and May 2014.
GLOBAL SHARES
AMP Capital Core Hedged Global Shares Fund
Established 30 September 2007
Performance objective
Investment strategy
To provide a Gross Return above the return of the Morgan
Stanley Capital International (MSCI) World Index with net
dividends reinvested (fully hedged to the New Zealand
dollar on a net after tax basis, based on the current
maximum PIR) on a rolling three year basis.
The Core Hedged Global Shares Fund gives you access to
international shares and specialist investment managers
from around the world using a multi-manager approach.
Key features
Investment guidelines
>> A multi-manager share investment fund that invests in
equities across the world’s core developed markets.
The guidelines for the Core Hedged Global Shares Fund are
shown below:
>> Exposure to a range of investment managers, selected
by AMP Capital Australia using their specialist multimanager team.
Range
(%)
>> Diversification by region, manager and investment style,
with the aim of delivering more stable returns.
>> Style rotation capabilities, which enable the portfolio to
respond quickly to changes in the market conditions.
>> A global approach, which better positions the portfolio to
capture global market themes.
>> The Fund gains exposure to global shares through
investment in the Core Global Shares Fund. The Core
Global Shares Fund invests in New Zealand PIE funds.
Where the New Zealand PIE funds hold assets directly,
this can be beneficial from a tax perspective.
Cash
Core Global Shares Fund
0–10
90–100
Currency management
This Fund targets a position of being fully hedged to the
New Zealand dollar (on a net after tax basis, based on
the current maximum PIR). The hedges are based on the
currency components of the underlying index. Currency
hedges are normally rebalanced monthly but may be
adjusted intra-month for significant cashflows.
>> Fully hedged to the New Zealand dollar.
Annual returns 31 March*
15.05%
15.13%
2015
25.73%
22.77%
2014
18.52%
17.94%
2013
4.37%
5.48%
2012
13.37%
12.59%
2011
0%
5%
10%
15%
Gross Return
20%
25%
30%
Benchmark
The return received by you if you invest in this Fund
will be less than the Gross Return outlined above once
Management Fees, performance fees (if any), expenses and
taxes are deducted.
* The performance information set out in the graph above shows the performance of the Fund before the Fund was restructured
and its investment guidelines were changed during April and May 2014.
AMP Capital Investment Funds
19
GLOBAL SHARES
AMP Capital Emerging Markets Shares Fund
Established 30 September 2007
Investment strategy
The Emerging Markets Shares Fund provides you with the
opportunity to access emerging market share investments
via a multi-manager vehicle.
Key features
>> A multi-manager share investment fund that invests in
equities in emerging markets.
>> This Fund invests into the Future Directions Emerging
Markets Share Fund which is managed by AMP Capital
Australia.
>> Exposure to a range of best-in-class investment
managers, selected by AMP Capital Australia’s specialist
multi-manager team.
>> Diversification by region, manager and investment style,
with the aim of delivering more stable returns.
20
>> Managers which are sensitive to emerging market
themes, and rotate their portfolios to take advantage of
changing conditions.
>> A global approach, which provides access to a greater
universe of specialist emerging markets managers.
Annual returns to 31 March
18.44%
2015
16.22%
-3.08%
-4.80%
2014
2013
2012
1.69%
5.31%
-10.48%
-11.37%
12.78%
13.22%
2011
-15%
-10%
-5%
0%
Gross Return
5%
10%
15%
20%
Benchmark
The return received by you if you invest in this Fund
will be less than the Gross Return outlined above once
Management Fees, performance fees (if any), expenses and
taxes are deducted.
Performance objective
To provide a Gross Return above the Morgan Stanley Capital
International (MSCI) Emerging Market Index with net
dividends reinvested on a rolling three to five year basis.
Investment guidelines
The guidelines for the Emerging Markets Shares Fund are
shown below:
Range
(%)
Cash
Future Directions Emerging Markets Share
Fund
0–10
90–100
Currency management
This Fund’s foreign currency exposures are not hedged back
to New Zealand dollars.
GLOBAL SHARES
AMP Capital Responsible Investment Leaders
Global Shares Fund
Established 29 June 2007
Performance objective
Investment strategy
To outperform the Morgan Stanley Capital International
(MSCI) All Country World Index with net dividends
reinvested (50% hedged to the New Zealand dollar on a net
after tax basis based on the current maximum PIR) on a
rolling five year basis.
Taking environmental, social and ethical considerations,
labour standards and corporate governance factors into
account when investing, the Fund’s overall objective is
to generate competitive returns within a sustainable
and responsible framework using a multi-manager
approach (see page 29 for more details on our approach to
responsible investment).
Investment guidelines
The guidelines for the Responsible Investment Leaders
Global Shares Fund are shown below:
Key features
>> An international shares multi-manager strategy that
blends manager styles, with the objective of providing
you with competitive returns across a range of markets.
>> This Fund currently invests in the Responsible Investment
Leaders International Share Fund, a fund managed by
AMP Capital Australia.
>> A robust investment process that combines a
sustainability focus with stringent financial analysis.
Cash
Responsible Investment Leaders
International Share Fund
0–10
90–100
Currency management
This Fund targets a position of being 50% hedged to the
New Zealand dollar (on a net after tax basis, based on
the current maximum PIR). The hedges are based on the
currency components of the underlying index. Currency
hedges are normally rebalanced monthly but may be
adjusted intra-month for significant cashflows.
>> Access to specialist managers and sustainability
consultants within Australia and internationally.
>> Partially hedged to the New Zealand dollar.
Annual returns to 31 March
18.06%
18.43%
2015
2014
16.83%
20.21%
13.54%
12.38%
2013
2012
Range
(%)
-1.54%
-1.02%
10.82%
9.32%
2011
-5%
0%
5%
10%
Gross Return
15%
20%
25%
Benchmark
The return received by you if you invest in this Fund
will be less than the Gross Return outlined above once
Management Fees, performance fees (if any), expenses and
taxes are deducted.
AMP Capital Investment Funds
21
PROPERTY, INFRASTRUCTURE AND COMMODITIES
AMP Capital Global Property Securities Fund
Established 30 September 2007
Performance objective
Investment strategy
To provide a Gross Return above the FTSE EPRA/NAREIT
Developed Rental total return index with net dividends
reinvested, fully hedged to the New Zealand Dollar, on a
rolling three year basis.
The Global Property Securities Fund provides access to
listed property investment opportunities from around the
developed world that may otherwise be difficult to obtain.
The Fund aims to generate medium to high returns over the
long term by investing in global listed property securities,
Real Estate Investment Trusts (REITs) and property securities
companies in North America, Europe, Asia and Australia.
Investment guidelines
The guidelines for the Global Property Securities Fund are
shown below:
Range
(%)
Key features
>> A global portfolio of listed property securities listed on
stock exchanges in North America, Europe, Asia and
Australia.
22
Cash
Global property securities
0–10
90–100
>> AMP Capital Australia is the international investment
manager of the Fund.
Currency management
>> Greater diversification by accessing a range of property
companies and sectors not available in the New Zealand
listed property market.
This Fund targets a position of being fully hedged to the
New Zealand dollar. The Fund will, to the extent it is
able, apply the FDR foreign currency hedges method for
tax purposes (for further information please refer to the
Taxation section). The hedges are based on the currency
components of the underlying assets. Currency hedges are
normally rebalanced monthly but may be adjusted intramonth to reflect any significant cashflows.
>> Investment specialists on the ground to capitalise on
local knowledge and identify the best opportunities in
each region.
>> A focus on property securities whose primary source of
revenue is rental income.
>> Fully hedged to the New Zealand dollar.
>> Securities are held directly by the Fund and this can be
beneficial from a tax perspective.
Annual returns to 31 March*
27.32%
2015
27.19%
11.51%
7.68%
2014
23.20%
23.54%
2013
8.28%
9.17%
2012
22.26%
23.00%
2011
0%
5%
10%
15%
Gross Return
20%
25%
30%
Benchmark
The return received by you if you invest in this Fund will be
less than the Gross Return outlined once Management Fees,
performance fees (if any), expenses and taxes are deducted.
* The Gross Return and benchmark for 2011 were incorrectly disclosed in the Investment Statement dated 2 April 2013. The Gross
Return was incorrectly stated as 11.16% where the actual Gross Return was 22.6%. The benchmark for 2011 was incorrectly stated as
9.38% where the actual benchmark was 23.0%.
PROPERTY, INFRASTRUCTURE AND COMMODITIES
AMP Capital NZ Property Fund
Established 16 May 1995
Performance objective
Investment strategy
To provide a passively managed low tracking error portfolio
managed against companies listed on the S&P/NZX All Real
Estate (Industry Group) Gross with Imputation Index and
S&P/ASX 200 A-REIT Accumulation Index fully hedged to
New Zealand dollars.
The NZ Property Fund aims to provide you with an
opportunity to participate in a passively managed low
tracking error portfolio tracking the S&P/NZX All Real Estate
(Industry Group) Gross with Imputation Index and S&P/
ASX 200 A-REIT Accumulation Index fully hedged to New
Zealand dollars.*
Investment guidelines
The guidelines for the NZ Property Fund are shown below:
Key features
>> The NZ Property Fund provides access to Australasian
property investment opportunities through a single fund.
>> The Fund aims to generate medium to high returns over
the long term by investing in Real Estate Investment
Trusts (REITs) and other property securities in New
Zealand and Australia, either directly or through
managed funds.
Range
(%)
Cash
0 - 20
Direct property***
0 - 35
New Zealand Property Securities ****
40 - 80
Australian Property Securities*****
20 - 60
Use of derivatives
These investment guidelines were adopted on 1 December
2014. Under its previous investment guidelines, the NZ
Property Fund invested primarily in AMP Capital Property
Portfolio (“APP”) (an unlisted fund which consisted primarily
of interests in commercial, industrial and retail properties,
all of which have now been sold pursuant to a sale and
purchase agreement as described in more detail below)
and in other property funds managed by AMP Capital.
Following the sale of APP’s properties, we submitted
redemption requests in respect of most of the NZ Property
Fund’s APP units and the proceeds received from those
redemption requests (being approximately $235.1 million)
are now invested in accordance with the investment
guidelines for the NZ Property Fund. (The balance of the NZ
Property Fund’s APP units (which represent approximately
0.3% of the Fund) will be redeemed when APP is wound
up, which cannot occur until after the later of the date on
which the period for making claims under the Agreement
expires, or if any such claims have been made, the date on
which the last such claim has been resolved.)
The Fund may use derivatives to manage risk and facilitate
rebalancing and asset allocation.
Currency Management
Annual returns to 31 March **
2015
12.33%
2014
8.93%
2013
10.00%
2012
8.49%
-1.24%
2011
-2%
0%
2%
4%
6%
Gross Return
8%
10%
12%
14%
The return received by you if you invest in this Fund will be
less than the Gross Return outlined once Management Fees,
performance fees (if any), expenses and taxes are deducted.
AMP Capital has the discretion to hedge against any
Australian dollar exposure.
*
Until 30 November 2014, the investment strategy of the NZ Property Fund was to provide investors with an opportunity to participate
in a diversified portfolio of New Zealand property by investing in managed property funds with direct property investments. Its
current investment strategy was adopted on 1 December 2014.
**
The performance information set out in the graph above shows (or, in the case of the year ended March 2015, includes) the
performance of the Fund before its current investment guidelines were adopted on 1 December 2014 .
*** Following completion of the transition to the new investment guidelines, the NZ Property Fund will still hold units in APP and the
AMP Capital Private Equity Real Estate Fund which are classified as Direct Property investments.
**** New Zealand property securities are defined to be any security listed in the S&P/NZX All Real Estate (Industry Group) Gross with
Imputation Index. The Fund may not be able to invest in Precinct Properties New Zealand Limited to the level otherwise indicated by
the S&P/NZX All Real Estate (Industry Group) Gross with Imputation Index due to restrictions imposed by the Takeovers Code (AMP
NZ Office Limited) Exemption Notice 2010. The Fund targets a minimum exposure of 90% of the S&P/NZX All Real Estate (Industry
Group) Gross with Imputation Index weights (i.e., certain small or illiquid index companies can be excluded from the investment
portfolio).
***** Australian property securities are defined as any security listed on the S&P/ASX 200 A-REIT Accumulation Index.
AMP Capital Investment Funds
23
Sale of APP’s real estate assets
As indicated above, a Sale and Purchase Agreement was
entered into in 2014 in respect of all of APP’s real estate
assets (the “Agreement”) and settlement occurred under
the Agreement on 28 November 2014.
The NZ Property Fund has entered into a deed of guarantee
in favour of the purchaser under the Agreement under
which the NZ Property Fund and the other unit holders of
APP guarantee (on a several and not joint basis) certain
of the vendor’s obligations under the Agreement, and
indemnify the purchaser if those obligations are not met
by the vendor. If a claim is brought against the NZ Property
Fund under the deed of guarantee, the NZ Property Fund
may be entitled, depending on the circumstances, to be
indemnified in respect of that claim by the Investment
Manager in its capacity as manager of APP. In addition, the
Manager has provided the purchaser under the Agreement
with a comfort letter pursuant to which the Manager has
undertaken not to:
>> allow redemptions where such redemptions would
reduce the value of the NZ Property Fund to below
$50 million; or
24
>> give notice under the AIF Trust Deed to terminate the NZ
Property Fund,
until the later of the date that is 18 months after
settlement occurs under the Agreement, or, if any warranty
or other claims have been made under the Agreement, the
date on which the last such claim has been resolved.
Specific NZ Property Fund risks
The principal risks associated with an investment in the NZ
Property Fund are as follows:
>> Property risk – following completion of the transition to
the new investment guidelines set out above, the Fund
will be indirectly exposed to property market risks. The
value of the Fund’s investment in, and returns from, the
Australasian property securities it holds may fluctuate
depending on commercial market conditions.
>> Valuation risk – property asset values can fluctuate.
The market price of the various Australasian property
securities held by the Fund, and therefore the Fund’s
Unit price, may not reflect changes that have occurred
in property asset values since the underlying properties
were most recently valued.
>> Liquidity risk – the Manager has undertaken to the
purchaser of APP’s real estate assets that, until the later
of the date that is 18 months after settlement occurs
under the Agreement, or, if any warranty or other claims
have been made under the Agreement, the date on
which the last such claim has been resolved, it will not
give effect to redemptions if they would result in the
value of the NZ Property Fund being below $50 million.
Accordingly, if the value of the NZ Property Fund nears
$50 million, redemptions by the NZ Property Fund will
be suspended and the NZ Property Fund’s ability to repay
you when you want to withdraw your investment is likely
to be affected.
>> Guarantee risk – Guarantee risk – a deed of guarantee
has been entered into between the purchaser under
the Agreement and AMP Life (NZ) Investments Limited,
the NZ Property Fund and Guardians of New Zealand
Superannuation (“Vendor Guarantors”) pursuant to
which the Vendor Guarantors agree to guarantee
(on a several, not joint, basis) certain of the vendor’s
obligations under the Agreement, and indemnify
the purchaser if those obligations are not met by the
vendor. If the vendor breaches its obligations under the
Agreement (including where there has been a breach of
a warranty given by the vendor under the Agreement),
the NZ Property Fund could be liable for its proportionate
share of losses suffered by the purchaser arising from
such breach (which could adversely affect the value of
your investment). The maximum amount for which the
NZ Property Fund could be liable for a warranty claim
under the deed of guarantee is 27.75% of:
(i) in the case of a claim in relation to
(a) any corporate warranty, the purchase price of all of
the assets;
b) a title warranty, the purchase price of the particular
property (as determined in accordance with the
Agreement) to which the claim relates, subject to
any adjustment to the purchase price in accordance
with the terms of the Agreement; and
(ii) in the case of any other warranty claim, $100 million.
>> If a warranty claim is brought against the NZ Property
Fund under the deed of guarantee, the NZ Property Fund
may be entitled depending on the circumstances to be
indemnified in respect of that claim by the Investment
Manager in its capacity as manager of APP.
These risks, along with other risks involved in investing in
the Fund are described in more detail on pages 40 to 41
below and in the AIF P Prospectus.
You are encouraged to review the AIF P Prospectus if you
wish to invest in the NZ Property Fund.
PROPERTY, INFRASTRUCTURE AND COMMODITIES
AMP Capital Listed Property Securities Fund
Established 28 November 2008
Performance objective
Investment strategy
To provide a Gross Return above the return of the S&P/NZX
All Real Estate (Industry Group) Gross with Imputation Index
over a rolling three year period.
The Listed Property Securities Fund is a portfolio of
predominantly New Zealand listed property securities.
The investment approach is research driven and positions
relative to the S&P/NZX All Real Estate (Industry Group)
Gross with Imputation Index are taken when an expectation
gap exists between the assessed value and what is implied
in the current market price.
Investment guidelines
The guidelines for the Listed Property Securities Fund are
shown below:
Range
(%)
Key features
>> Diversified exposure to predominantly New Zealand
property through a portfolio of listed property securities.
Cash
New Zealand property securities
Australian property securities
0–20
30–100
0-50
>> The Fund can also invest in Australian listed property
securities. This flexibility affords a wider investment
universe.
Currency management
>> This Fund will generally be overexposed to companies
which have high quality assets, sustainable rental flow
and are well positioned for growth.
There is discretion to hedge against the Australian dollar
exposure but historically the Fund has not been hedged
back to the New Zealand dollar.
>> AMP Capital Australia is the current investment manager
of the Fund.
25
Annual returns to 31 March
27.62%
2015
2014
-0.18%
27.60%
3.74%
2013
19.17%
16.14%
2012
18.10%
11.16%
9.38%
2011
-5%
24.01%
0%
5%
10%
Gross Return
15%
20%
25%
30%
Benchmark
The return received by you if you invest in this Fund
will be less than the Gross Return outlined above once
Management Fees, performance fees (if any), expenses and
taxes are deducted.
AMP Capital Investment Funds
PROPERTY, INFRASTRUCTURE AND COMMODITIES
AMP Capital Global Listed Infrastructure Fund
Established 6 August 2012
Performance objective
Investment strategy
To provide total returns (income and capital growth) after
costs and before tax, above the Dow Jones Brookfield Global
Infrastructure Index, fully hedged to the New Zealand
Dollar, on a rolling three year basis.
The Global Listed Infrastructure Fund provides you with
the opportunity to access a range of infrastructure
sectors across geographic regions, with active portfolio
management which seeks to target excess returns and
predictable, stable cash flows.
Investment guidelines
The Fund seeks to give you access to the return potential
associated with infrastructure assets. It focuses on
companies that own and operate infrastructure assets,
derive most of their cash flow from those assets and have
liquid market listings on major global stock exchanges.
The guidelines for the Global Listed Infrastructure Fund are
shown below:
Range
(%)
Cash
Key features
Global infrastructure securities
>> The Fund adopts a quality and value-based stock
selection methodology with an emphasis on
fundamental, bottom-up stock selection combined with
a top down overlay.
>> Diversification by region, with the aim of delivering stable
returns.
26
>> AMP Capital Australia is the international investment
manager of the Fund.
>> Fully hedged to the New Zealand dollar.
>> Securities are held directly by the Fund and this can be
beneficial from a tax perspective.
0–10
90–100
Currency management
The Fund targets a position of being fully hedged to the
New Zealand dollar. The Fund will, to the extent it is
able, apply the FDR foreign currency hedges method for
tax purposes (for further information please refer to the
Taxation section). The hedges are based on the currency
components of the underlying assets.
Currency hedges are normally rebalanced monthly but
may be adjusted intra-month to reflect any significant
cashflows.
Annual returns to 31 March*
2015
19.77%
2014
16.23%
25.45%
19.83%
17.44%
17.02%
2013
0%
5%
10%
15%
Gross Return
20%
25%
30%
Benchmark
The return received by you if you invest in this Fund will be
less than the Gross Return outlined once Management Fees,
performance fees (if any), expenses and taxes are deducted.
* The performance return for 2013 is calculated from the date of the first investment in the Fund on 10 September 2012 to 31 March 2013.
PPROPERTY, INFRASTRUCTURE AND COMMODITIES
AMP Capital Commodities Fund
Established 4 October 2011
Use of derivatives
Investment strategy
The Fund uses derivatives to obtain its commodity
exposure.
The Commodities Fund aims to provide you with a
diversified exposure to global commodities.
Performance objective
Key features
>> The Fund is managed using an excess return swap. The
excess return swap exchanges the difference between
the enhanced commodity index total return and the
return on US cash.
>> The commodities exposure is linked to the Bloomberg
Commodities Index, which covers a broad basket of
commodities encompassing agriculture, livestock,
precious metals, industrial metals and energy.
>> The approach utilises contractual arrangements that
are based on low active risk strategies designed to take
advantage of market distortions, resulting in an expected
modest excess return pick-up over the Bloomberg
Commodities Index.
To provide a gross return above the return of the Bloomberg
Commodity Index fully hedged to New Zealand dollars on a
rolling three year basis.
Investment guidelines
The guidelines for the Commodities Fund are shown below:
Cash (including the market
value of derivatives)**
Benchmark
(%)
Range
(%)
100
100–100
Currency management
The principal is held in NZ dollars. Foreign currency
exposure is minimal.
>> Collateral is held to fully back the notional value of
the swap. Collateral is invested in the NZ Cash Fund,
an actively managed fund providing the potential for
additional excess returns for the Commodities Fund.
27
Annual returns to 31 March*
2015
-22.56%
-25.37%
1.77%
0.02%
3.09%
2014
2013
3.20%
-30%
-25%
-20%
-15%
Gross Return
-10%
-5%
0%
5%
Benchmark
The return received by you if you invest in this Fund will be
less than the Gross Return outlined once Management Fees,
performance fees (if any), expenses and taxes are deducted.
* The performance return for 2013 is calculated from the date of the first investment in the Fund on 11 May 2012 to
31 March 2013.
** Currently invested in the NZ Cash Fund, though the Fund can invest in other securities.
AMP Capital Investment Funds
Our approach to responsible investing
AMP Capital and AMP Capital Australia have established
“Responsible Investment Committees”, which are
responsible for assessing the investments of the
Responsible Investment Leaders Conservative Fund,
the Responsible Investment Leaders Growth Fund, the
Responsible Investment Leaders Balanced Fund, the
Responsible Investment Leaders Global Shares Fund,
and the Responsible Investment Leaders NZ Shares Fund
(“RIL Funds”) from a socially responsible, financial and
environmental perspective, and which monitor adherence
to the “Responsible Investment Charters” that have been
established for those Funds.
Each RIL Fund will (at a minimum) avoid investment in
any company which has a substantial exposure to sectors
identified as having a high negative social impact. This
means the RIL Funds will avoid exposure, either directly
or indirectly through underlying managers and funds,
to companies with material exposure to the production
or manufacture of alcohol, armaments, gambling,
pornography, tobacco and nuclear power (including
uranium).
Where the RIL Funds invest in global share funds, the
Responsible Investment Committee will seek out global
share funds or fund managers which are identified as
leaders across the industries in a range of areas including:
In addition, with the combustion of fossil-fuels being the
main source of global greenhouse gas emissions, the RIL
Funds seek to limit exposure to companies which have
a material exposure to the most carbon intensive fossil
fuels by excluding any company that has more than a
20% exposure (as measured by percentage of market
capitalisation, or other appropriate financial metric) to one,
or a combination of, the following:
>> Environmental considerations – including energy and
resource use and product stewardship (for example,
where a company takes into account the life cycle of the
product, from manufacture to the extent to which the
product can be recycled).
28
Material exposure is considered to be where a company
derives more than 10% of its total revenue from these
industries.
>> Mining thermal coal.
>> Social considerations – including indigenous relations
and community involvement.
>> Exploration and development of oil sands.
>> Ethical considerations – including meeting fundamental
human rights, and articulating and implementing a code
of conduct.
>> Transportation of oil from oil sands.
>> Labour standards – including occupational health and
safety, International Labour Organisation standards,
working conditions and the exclusion of child labour.
>> Governance considerations – including meeting
corporate governance guidelines on board structures and
remuneration.
Additionally, fund managers and funds will also be
well regarded if they actively participate in corporate
engagement and governance initiatives.
Where the RIL Funds invest directly in shares, these share
investments will also be measured against the above
considerations.
>> Brown-coal (or lignite) coal-fired power generation.
>> Conversion of coal to liquid fuels/feedstock.
Retention and realisation policy
If an investment falls below these responsible investment
standards, it is the Responsible Investment Committees’
policy to seek to exit that investment within six months
after becoming aware of this unless remedial action is
taken to bring the investment back within the responsible
investment parameters. An investment may also be
realised at any time for financial reasons.
Further information
Further information about the responsible investment
processes can be obtained at www.ampcapital.co.nz.
What sort of investment is this?
The securities being offered are Units in the AMP Capital
Investment Funds (“the Funds”), which are Unit Trusts
established under the Unit Trusts Act and the Trust Deeds
as set out on pages 30 to 32. The names of the Funds are
set out on this page 31.
Each Unit in a Fund is of equal value and equal interest
in that Fund. A Unit gives you a beneficial interest in the
Fund’s assets. The benefit is undivided which means that
you do not have an interest in any particular part of a Fund
or in a particular asset of a Fund. The assets of one Fund
cannot be used to cover the liabilities of another Fund.
Units in the Funds are available to prospective investors
who can satisfy the minimum application and holdings
requirements.
The Investment Policy and investment guidelines reflect
our current intention in relation to each of the Funds. There
may be occasions where a Fund holds investments or cash
outside of its Investment Policy or investment guidelines.
For example, due to the closure of a Fund or other managed
fund into which it invests. If that occurs, we will take
steps to ensure that the Fund becomes compliant with its
Investment Policy and investment guidelines, as soon as is
reasonably practicable after the closure of the other Fund
or managed fund into which it invests. We set the initial
Investment Policy and investment guidelines for each Fund
and obtain the Trustee’s approval to any material changes
to the same. The Trustee will approve any changes unless it
considers that as a result of the changes it may be directed
to buy or sell assets which are manifestly not in your
interests. We will give notice of changes to Unit Holders of
the relevant Fund prior to effecting any material changes in
accordance with the terms of the Trust Deeds.
The Investment Policy and investment guidelines for a Fund
set out the investment objectives, strategy and philosophy
for the Fund and may include directions on:
>> the level of borrowing and the circumstances in which
the Fund may borrow;
>> the use of derivatives;
>> currency management;
>> exposure limits for certain securities; and
>> the duration of securities held by the Fund.
The current Investment Policies and investment guidelines
for the Funds are set out on pages 2 to 28.
Who is involved in providing it for me?
29
The names of the unit trusts being offered in this
Investment Statement are:
>> AMP Capital NZ Property Fund
>> AMP Capital Responsible Investment Leaders
Conservative Fund
>> AMP Capital Global Listed Infrastructure Fund
>> AMP Capital Commodities Fund
>> AMP Capital Responsible Investment Leaders
Growth Fund
Listed below are the details of the organisations involved in
providing each of the Funds for you.
>> AMP Capital Responsible Investment Leaders
Balanced Fund
>> AMP Capital Global Multi-Asset Fund
>> AMP Capital Income Generator Fund
>> AMP Capital NZ Cash Fund
>> AMP Capital NZ Fixed Interest Fund
>> AMP Capital NZ Short Duration Fund
>> AMP Capital Hedged Global Fixed Interest Fund
>> AMP Capital Global Short Duration Fund
>> AMP Capital NZ Shares Fund
>> AMP Capital Strategic NZ Shares Fund
>> AMP Capital Australian Shares Fund
>> AMP Capital Responsible Investment Leaders
NZ Shares Fund
>> AMP Capital Global Shares Fund
>> AMP Capital Listed Property Securities Fund
Investors should be aware that the names of directors
and addresses stated below may change from time to
time. Current names and addresses may be obtained by
contacting us at our address below.
The Manager
AMP Investment Management (N.Z.) Limited
Ground Floor,
PwC Tower,
113-119 The Terrace
PO Box 3764
Wellington 6140
New Zealand
Telephone: (04) 494 2200
Fax: (04) 494 2100
Email: ampcapital@ampcapital.co.nz
>> AMP Capital Core Global Shares Fund
>> AMP Capital Core Hedged Global Shares Fund
>> AMP Capital Emerging Markets Shares Fund
>> AMP Capital Responsible Investment Leaders
Global Shares Fund
>> AMP Capital Global Property Securities Fund
AMP Capital Investment Funds
Directors of the Manager
Grant David Hassell BCA
Wellington, New Zealand
George William Carter BA (Hons), FNZSA, FIA
Auckland, New Zealand
Keith John Poore BCA(Hons), BSc(Hons), SA Fin
Wellington, New Zealand
Bevan Trevor Graham B.Soc.Sci (Economics)
Wellington, New Zealand
Our directors and their addresses may change from time to
time without notice to you.
Our directors can be contacted at our address above.
The Promoters
AMP Capital Investors (New Zealand) Limited
Ground Floor, PwC Tower, 113-119 The Terrace
PO Box 3764, Wellington 6140
New Zealand
The following directors of AMP Capital Investors (New
Zealand) Limited who are not also directors of the Manager
are also Promoters:
Stephen James Peter Dunne (Chairman) BBus, MBA, CFA, F
Fin
Sydney, Australia
30
Sharon Beverley Davis BA, Gr Dip Bus (Law), Gr Dip Mgt,
Member of the Australian Institute of Company Directors,
Fellow of FINSIA
Sydney, Australia
Christopher James Judd AssocDip in Valuations, AdvCert in
Real Estate, Cert in Financial Markets
Sydney, Australia
Peter Raymond Verhaart BSc, PGDip FinMath, Dip Bus Stud
Paraparaumu, New Zealand
The directors of AMP Capital and their addresses may
change from time to time without notice to you.
The directors of AMP Capital can be contacted at AMP
Capital’s address.
The Trustee
The New Zealand Guardian Trust Company Limited
Level 2 Dimension Data House
99-105 Customhouse Quay
PO Box 913,
Wellington 6140
New Zealand
Telephone: (04) 901 5406
Fax: (04) 901 0108
Custodians
NZGT Nominees Limited
Level 2, Dimension Data House
99-105 Customhouse Quay
PO Box 913
Wellington 6140
New Zealand
BNP Paribas Fund Services Australasia Pty Ltd
(trading as BNP Paribas Securities Services)
Level 18, State Insurance Tower
1 Willis Street
Wellington 6011
PO Box 3299
Wellington 6140
Administration Manager
AMP Capital Investors (New Zealand) Limited
Ground Floor, PwC Tower, 113-119 The Terrace
Wellington 6140
New Zealand
AMP Capital can, and does, contract out some or all of its
administration tasks from time to time.
Nature and duration of the Funds
The AMP Capital Investment Funds are unit trusts
established under the Unit Trusts Act.
The AMP Capital Investment Funds were established under
two Trust Deeds dated 7 November 1994 (the “Global
Funds Trust Deed”) and 16 May 1995 (the “AIF Trust Deed”)
respectively, each of which has been amended at various
times to provide for the establishment of the various Funds.
Amended and restated versions of the AIF Trust Deed
and the Global Funds Trust Deed incorporating all of the
amendments up to 2 April 2013 were entered into by the
Trustee and the Manager on 2 April 2013.
Amending Deeds to the AIF Trust Deed dated 6 August
2012, 6 November 2012, 22 October 2013, 10 February
2014 and 1 April 2014 were entered into between
the Manager and the Trustee which established the
Responsible Investment Leaders NZ Shares Fund, the Global
Listed Infrastructure Fund, the Global Multi-Asset Fund, the
Income Generator Fund and a number of wholesale unit
trusts.
Supplemental Deeds were entered into between the
Manager and the Trustee dated:
>> 11 July 2013, which recorded the change in name of the
“Wholesale Unit Trust Global Bond Fund 3” to the “AMP
Capital Global Short Duration Fund”;
>> 21 November 2013, which recorded the change in name
of the “AMP Capital NZ Multi-Asset Fund” to the “AMP
Capital Global Multi-Asset Fund”;
>> 29 May 2014 under which the AIF Trust Deed was
amended to provide for specific payment provisions for
the Income Generator Fund and such other funds which
are subsequently established by the Manager on similar
terms to the Income Generator Fund; and
>> 24 June 2014, which recorded the change in name of the
“Wholesale Unit Trust Commodities Fund” to the “AMP
Capital Commodities Fund”.
>> 16 April 2015, which recorded the change in name of
the “AMP Capital Conservative Fund” to the “AMP Capital
Responsible Investment Leaders Conservative Fund”
and the “AMP Capital Growth Fund” to the “AMP Capital
Responsible Investment Leaders Growth Fund”.
The Global Funds Trust Deed governs the Global Shares
Fund, Hedged Global Fixed Interest Fund, Australian Shares
Fund, Responsible Investment Leaders Global Shares Fund,
Core Global Shares Fund, Core Hedged Global Shares Fund,
Emerging Markets Shares Fund, and the Global Property
Securities Fund (“the Global Funds”) and was entered into
originally between The Public Trustee and AMP Investment
Management (N.Z.) Limited.
On 28 June 1996 The New Zealand Guardian Trust Company
Limited was appointed as the new trustee of the Global
Funds.
The AIF Trust Deed governs the Responsible Investment
Leaders Conservative Fund, Responsible Investment Leaders
Growth Fund, NZ Shares Fund, NZ Fixed Interest Fund, NZ
Cash Fund, NZ Short Duration Fund, Strategic NZ Shares
Fund, Responsible Investment Leaders Balanced Fund, NZ
Property Fund, Listed Property Securities Fund, Global Listed
Infrastructure Fund, Responsible Investment Leaders NZ
Shares Fund, Global Short Duration Fund, Global MultiAsset Fund, Income Generator Fund and the Commodities
Fund (“the AIF Funds”) and is between the Trustee and the
Manager.
The Funds were established on the following dates:
Responsible Investment Leaders
Conservative Fund
16 May 1995
Responsible Investment Leaders
Growth Fund
16 May 1995
Responsible Investment Leaders
Balanced Fund
17 October 2008
Global Multi-Asset Fund
22 October 2013
16 May 1995
NZ Fixed Interest Fund
16 May 1995
NZ Short Duration Fund
29 June 2007
7 November 1994
4 October 2011
16 May 1995
NZ Shares Fund
Strategic NZ Shares Fund
1 February 2001
Australian Shares Fund
Responsible Investment Leaders
NZ Shares Fund
Core Global Shares Fund
Core Hedged Global Shares Fund
30 September 2007
Emerging Markets Shares Fund
30 September 2007
Responsible Investment Leaders
Global Shares Fund
29 June 2007
Global Property Securities Fund
30 September 2007
NZ Property Fund
16 May 1995
Listed Property Securities Fund
28 November 2008
Global Listed Infrastructure Fund
Commodities Fund
6 August 2012
4 October 2011
Relationship between AMP Entities
We are a wholly-owned subsidiary of AMP Capital and
our ultimate holding company is AMP Limited (a company
incorporated in New South Wales, Australia) through a
majority shareholding in one of our holding companies.
Any sale or disposal of Assets to us or any of our Related
Persons (which includes any investment fund managed by
us or our Related Persons) or the purchase or acquisition of
any Assets from us must be approved by the Trustee.
AMP Capital
The Funds
The Manager
The Trustee
31
1 April 2014
NZ Cash Fund
Global Short Duration Fund
7 November 1994
30 September 2007
AMP Limited
Income Generator Fund
Hedged Global Fixed Interest Fund
Global Shares Fund
1 July 1996
6 November 2012
Unit Holders
The issuer
The issuer for each of the Funds is AMP Investment
Management (N.Z.) Limited. The principal activities of
AMP Investment Management (N.Z.) Limited are the
management and administrative control of investment
funds. AMP Investment Management (N.Z.) Limited was
incorporated as a company on 26 August 1987 and has
been carrying on those activities since incorporation.
How much do I pay?
The minimum initial lump sum investment for each Fund is
$100,000. Thereafter, the minimum additional investment
is $100,000 per Fund. We may accept or reject applications
for lesser amounts in our absolute discretion without giving
any reason for giving such a refusal.
The Issue Price for Units in a Fund is the net asset value
per Unit calculated by us as at the date the application is
accepted, unless the Trustee approves the Issue Price to be
calculated by us as at a date before the Issue Date of the
relevant Units.
Please note that if you invest through an administration
or custodial service then a different application process
and different minimum investment levels may apply.
The minimum investment level will depend on which
administration or custodial service you invest through.
If a payment is dishonoured or reversed, no Units will be
issued in respect of that payment or any Units issued based
on that payment will be cancelled.
You should refer to the administration and custodial service
terms and the relevant marketing material for further
information about investing in AMP Capital Investment
Funds through that service.
Payments may be made by cheque or by such other method
as is determined by us, the Custodian or administration
service (as applicable). Payments are to be made to us, the
Custodian or administration service (as applicable).
AMP Capital Investment Funds
What are the charges?
AMP Capital Investment Funds
charges
entry fee when you make a subscription and the applicable
exit fee when you make a redemption request or your Units
are repurchased.
The fees and charges set out below are exclusive of GST
unless otherwise specified, and may change from time to
time in our sole discretion.
Switching units
Entry and Exit Fees (inclusive of GST)
Fund
32
Entry fee
Exit fee
Responsible Investment Leaders
Conservative Fund
0.08%
0.08%
Responsible Investment Leaders
Growth Fund
0.25%
0.25%
Responsible Investment Leaders
Balanced Fund
0.17%
0.17%
Global Multi-Asset Fund
0.15%
0.15%
Income Generator Fund
0.15%
0.15%
NZ Cash Fund
0.00%
0.00%
NZ Fixed Interest Fund
0.05%
0.05%
NZ Short Duration Fund
0.05%
0.05%
Hedged Global Fixed Interest
Fund
0.15%
0.15%
Global Short Duration Fund
0.10%
0.10%
NZ Shares Fund
0.35%
0.35%
Strategic NZ Shares Fund
0.35%
0.35%
Australian Shares Fund
0.20%
0.20%
Responsible Investment Leaders
NZ Shares Fund
0.35%
0.35%
Global Shares Fund
0.22%
0.22%
Core Global Shares Fund
0.22%
0.22%
Core Hedged Global Shares Fund
0.22%
0.22%
Emerging Markets Shares Fund
0.30%
0.30%
Responsible Investment Leaders
Global Shares Fund
0.25%
0.25%
Global Property Securities Fund
0.20%
0.20%
NZ Property Fund
0.35%
0.35%
Listed Property Securities Fund
0.35%
0.35%
Global Listed Infrastructure Fund
0.20%
0.20%
Commodities Fund
0.25%
0.25%
Entry fees will apply to your investments in Units in the
Funds. Exit fees will apply if you ask us to redeem or
repurchase your Units.
Entry and exit fees are charged as a percentage of the total
Issue Price or Repayment Price of the number of Units being
issued, purchased, redeemed or repurchased and are paid
into the relevant Fund.
The entry and exit fees for each Fund are set by us. The
entry fee is a fee providing for the likely cost of purchasing
or developing Assets for the Fund, and the exit fee is a fee
providing for the likely cost of selling or disposing of Assets
of the Fund. We are entitled under the Trust Deed, and
reserve the right to determine the entry and exit fees to be
a higher or lower percentage than that stated in the table
above (including zero). You will be advised of the applicable
You may request that we switch your investment in one
Fund to another Fund. Switching of investments between
the Funds is, in effect, a sale of Units in one Fund and a
purchase in another. Therefore, exit and entry fees will
generally apply if you wish to switch your investment from
one Fund to another Fund.
We may (but are not obliged to) action a switch on receipt of
written authorisation from you. To effect a switch, Units in
the relevant Fund will be sold at the applicable Repayment
Price (see the “How do I cash in my investment?” section on
page 42 for information on calculation of the Repayment
Price) and Units in the other Fund will be bought at the
applicable Issue Price (see the “How much do I pay?” section
on page 31 for information on calculation of the Issue Price).
The entry and exit fees described above will apply.
The provisions in the Trust Deeds applying to redemption or
repurchase of Units and issue of Units will apply to switches
(including, in the case of the NZ Property Fund, the special
redemption provisions for that Fund (see pages 23-25)).
Initial service fee
No initial service fee is currently being charged for any
of the Funds. If any initial service fee was charged in the
future, it would be payable in addition to any entry fee.
Manager’s fee
We are entitled to charge an annual management fee to
each Fund of up to 2% per annum of the Value of the Assets
of the Fund. The management fees (which are expressed
as a percentage of the Value of the Assets of each Fund)
as at the date of this Investment Statement are set out in
the table below and are payable by quarterly instalments
from the Fund. The Manager may vary the management
fee for any Fund. GST is charged at 15% on 10% of the
management fee in accordance with the non-binding IRD
agreement with the Financial Services Council of New
Zealand Incorporated on behalf of the funds management
industry. The Inland Revenue is reviewing the portion of
management fees subject to GST and this percentage may
change in the future.
Management fees – excluding GST
Responsible Investment Leaders
Conservative Fund
1.00%
Responsible Investment Leaders
Growth Fund
1.20%
Responsible Investment Leaders
Balanced Fund
1.10%
Global Multi-Asset Fund
1.15%
Income Generator Fund
0.80%
NZ Cash Fund
0.25%
NZ Fixed Interest Fund
0.55%
NZ Short Duration Fund
0.55%
Hedged Global Fixed Interest Fund
0.70%
Global Short Duration Fund
0.75%
NZ Shares Fund
0.75%
Strategic NZ Shares Fund
1.00%
Australian Shares Fund
1.00%
Responsible Investment Leaders
NZ Shares Fund
0.75%
Global Shares Fund
1.00%
Core Global Shares Fund
1.15%
Core Hedged Global Shares Fund
1.15%
Emerging Markets Shares Fund
1.35%
Responsible Investment Leaders
Global Shares Fund
1.35%
Global Property Securities Fund
1.25%
NZ Property Fund
0.35%
Listed Property Securities Fund
0.75%
Global Listed Infrastructure Fund
1.25%
Commodities Fund
0.80%
Except as set out below, where the Funds invest in any
other funds managed by us, AMP Capital or any of our
related companies, the fees that would ordinarily be
charged on the underlying funds in respect of these
investments will be waived.
On the termination of a Fund, we are entitled to be paid out
of the Fund a reasonable fee of such amount as is approved
by the Trustee, based on time spent by us on matters
relating to the termination of the Fund. There is no limit on
the amount of this fee, apart from the requirement that it
be reasonable in the circumstances and be approved by the
Trustee.
AMP Capital will be paid a fee of $10,000 per month in its
capacity as the manager of APP, which fee is paid by the
unitholders of APP (including the NZ Property Fund) in
proportion to their respective APP unitholdings. The NZ
Property Fund holds approximately 27.75% of the units in
APP.
Performance fees
A performance fee may be payable to us, AMP Capital,
AMP Capital Australia or any of the underlying managers
used within the Funds. As at the date of this Investment
Statement, performance fees are payable in respect of
the Funds, or other funds into which the Funds invest, as
follows:
>> Strategic NZ Shares Fund (the performance fee is
currently equal to 10% of the amount by which the Fund
outperforms the S&P/NZX 50 Portfolio Index. We may
increase the rate of this fee on three months’ notice to
you, but this fee must not exceed 20% of the amount by
which the Fund outperforms the applicable benchmark).
>> Future Directions Emerging Markets Share Fund, (a
performance fee of up to 20% of the amount by which
the underlying investment managers outperforms the
applicable benchmark applies).
>> Core Global Shares Fund invests in Wholesale Unit
Trusts in respect of which performance fees (of up to
12.5% of the amount by which the relevant Wholesale
Unit Trust outperforms the applicable benchmark) are
payable to the underlying investment managers. In
addition, one of those Wholesale Unit Trusts will invest
in a fund in respect of which a performance fee (of up
to 25% of the amount by which the fund outperforms
the applicable benchmark) is payable. The investment
managers to whom those performance fees are payable
are not related companies of either the Manager or AMP
Capital. The Global Shares Fund and the Core Hedged
Global Shares Fund invest in the Core Global Shares Fund
and therefore indirectly will bear a proportionate share
of any performance fee that is payable in respect of the
Wholesale Unit Trusts in which the Core Global Shares
Fund invests.
These fees may be varied, or new fees may be imposed,
from time to time in accordance with the trust deed for the
relevant fund. You can contact us for further information
about these performance fees.
Any of the Funds (where consistent with their Investment
Policies and investment guidelines) may invest into the
funds listed above (or any other fund which charges a
performance fee). Through their unitholdings in these
funds, those funds will bear a proportionate share of any
performance fee if one is charged.
Trustee fee
The Trustee is entitled to be paid, by way of remuneration
for its services, a fee out of each of the Funds.
The Trustee’s fee is determined on the basis of a scale
agreed from time to time between us and the Trustee.
Currently, the Trustee’s fee for each Fund is not to exceed
0.1% per annum of the average daily Value of the Assets of
that Fund. There are no other limits on the amount of this
fee in respect of each Fund.
In addition, the Trustee is entitled to receive a fee of such
amount as is from time to time agreed between us and
the Trustee for convening and attending meetings of
Unit Holders. There is no limit on the amount of this fee.
The Trustee is also entitled to be reimbursed for various
expenses in accordance with the Trust Deeds.
On termination of a Fund, the Trustee is entitled to be
paid from the Fund a reasonable fee of such amount as is
approved by us based on the time spent by the Trustee on
matters relating to the termination of the Fund. There are
no limits on the amount of this fee in respect of each Fund,
apart from the requirements that it be reasonable in the
circumstances and be approved by us.
GST is payable on the Trustee’s fees.
AMP Capital Investment Funds
33
Other charges and expenses
The Funds will incur brokerage and (where applicable) taxation
and global custodial charges. Some of these charges may be
paid to AMP Capital for performing investment administration
tasks (or to other entities to which AMP Capital contracts
investment administration tasks). All expenses incurred in the
operation of the Funds will also be met fully by the Funds.
The amount of the expenses and charges will be shown in the
financial statements for each Fund.
AMP Capital may, in its discretion, choose to cap the amount
of any expenses and charges required to be met by any of
the Funds. These charges may be varied from time to time in
accordance with the Trust Deed for the relevant Fund.
Please contact us for further information on charges.
What returns will I get?
The return on your investment reflects:
Taxation
>> the increase or decrease in the Unit price; and
Taxation is likely to affect returns from the Funds. Any
changes to either PIRs or marginal tax rates (including
changes to applicable thresholds) could affect the tax
efficiency for you of investing in the Fund relative to other
comparable investments.
>> income distributions (for those Funds that make
distributions, if any).
34
The Unit price of a Fund reflects the value of the underlying
assets of that Fund. The value of your investment at any
time will therefore depend on the value of the underlying
assets at that time. The value of Units may vary and, at
times, may even be less than you paid. Key factors that
determine the Unit price and income distributions include
market fluctuations in the value of Fund investments and
the income received on them, tax and fees. Investors should
note that while markets have generally improved since the
global financial crisis they do remain volatile and you may
experience fluctuations in returns. Unit prices may also be
affected by currency movements where Assets are invested
outside of New Zealand. Where considered appropriate,
AMP Capital is empowered to use suitable Hedging*
techniques to fix the value of investments in New Zealand
dollar terms.
The NZ Property Fund has a discounted redemption regime
(in addition to the standard redemption regime for units
in that Fund), which, if any Unit Holder elected to redeem
their units in the NZ Property Fund under that regime, may
affect the amount of returns received on such redemption
(See pages 50 to 51 and also the AIF P Prospectus for more
information on the discounted redemption regime and this
option for the NZ Property Fund).
No amount of returns, quantifiable as at the date of this
Investment Statement and enforceable by you, is promised
other than in respect of the Income Generator Fund as
detailed on page 37 under the heading “Distributions of
Income”.
The fixed monthly distribution amount in respect of the
Income Generator Fund is only promised to the extent the
assets of the Income Generator Fund are sufficient to make
such distributions and none of the Manager, any member
of the AMP Group, the Trustee, the Trustee’s nominee
companies nor any of their respective directors, officers or
agents, guarantees payment of such distributions.
No guarantees of capital or earnings are given, and past
performance is not indicative of future returns. None of the
Manager, any member of the AMP Group, the Trustee, the
Trustee’s nominee companies nor any of their respective
directors, officers or agents, guarantees the value of the
Units, repayment of the Units, payment of any income on
the Units or performance of the Funds.
The Funds are PIEs. A Fund’s taxable income (referred to
below simply as “income”) is attributed to you in proportion
to the number of Units you hold in the Fund.
A Fund pays tax on the income attributed to you at your
selected PIR.
What is a Prescribed Investor Rate (PIR)?
Tax is paid by the relevant Fund on the net income
attributed to you at your PIR. The PIR is based on your
taxable income e.g. income from salary, wages and any
additional sources of income that you would include in your
income tax return and the income attributed to you from
any PIEs in which you invest, including the Funds.
The following PIRs apply:
>> 10.5% for investors who are:
−− New Zealand resident individuals who have given
us their IRD number and who derived in either of
the last two income years preceding the current tax
year $14,000 or less in taxable income (excluding PIE
income) and $48,000 or less in taxable income and PIE
income combined; or
−− a New Zealand resident trustee of certain testamentary
trusts that elect to have a 10.5% PIR;
>> 17.5% for investors who are:
−− New Zealand resident individuals who do not qualify
for the 10.5% PIR but who have provided their IRD
number to us and who derived in either of the last two
income years preceding the current tax year $48,000
or less of taxable income (excluding PIE income) and
$70,000 or less in taxable income and PIE income
combined; or
−− a New Zealand resident trustee of a trust (except
unit trusts and charitable trusts but including
superannuation funds) that elects to have a 17.5% PIR;
>> 28% for non-residents, New Zealand resident individuals
who are not eligible for either the 10.5% PIR and 17.5%
PIR and trusts (except unit trusts and charitable trusts
but including superannuation funds) that elect to have a
28% PIR; and
>> 0% for the following entities (if resident in New Zealand):
* See the glossary for an explanation of the term “Hedging”.
−− charities, PIEs, companies (including deemed
companies such as unit trusts), Proxies; and
−− superannuation funds and trusts that have not elected
to have a higher PIR.
Your actual rate will depend on your personal
circumstances, including your taxable and PIE income in
the two years preceding the current tax year and your
tax residency. If you have recently become a New Zealand
tax resident, you must include the total amount of your
foreign sourced income in your assessable income when
determining your PIR. However, you may choose not
to determine your PIR on this basis in either or both of
your first two years as a New Zealand tax resident, if you
expect that your taxable income in either of these years
to be significantly lower than your total income in the
income year prior to becoming a New Zealand resident. The
description of the PIRs above reflects our understanding of
tax laws as at the date of this Investment Statement.
You should check that you have provided us with your
correct PIR.
If you do not notify us of your PIR, then the default rate of
28% will apply. In the case of joint investors the higher PIR
of the joint investors is used.
The Commissioner of Inland Revenue can require us to
disregard the PIR notified to us by you and apply a PIR
notified by the Commissioner.
For more information about PIRs and to determine your
correct PIR rate please refer to the IRD website
“www.ird.govt.nz/toii/pir/” or contact your professional tax
adviser.
Tax treatment if you are eligible for and notify us of a
0% PIR
If you are eligible for and notify us of a 0% PIR, then the
relevant Fund will not have any tax liability in respect of
income attributed to you. You must instead include the
attributed income and claim any attributed losses as
deductions in your own tax return. You will be responsible
for payment of tax on the income attributed to you. Also,
tax credits for foreign withholding tax and other types of
credits such as imputation credits are attributed to you to
be credited against tax payable in your own tax returns.
Tax treatment if you are eligible for and notify us of a
PIR greater than 0%
If you are eligible for and notify us of a PIR which is greater
than 0%, the following will apply to you:
>> The relevant Fund will be liable to pay tax on income
attributed to you. If there are excess tax credits for
a period or the relevant Fund has a loss rather than
net income for a period, the Fund may in certain
circumstances receive a tax refund and may be able to
pass on the benefit of that refund to you.
>> The tax paid on income attributed to you will be a final
tax and you will not be required to file a tax return which
includes that income, except if you are a trustee that
elects the 10.5% or 17.5% PIR, or if you have recently
become a New Zealand tax resident and have chosen
to disregard foreign income derived before becoming a
New Zealand resident in determining your PIR. Such new
residents and trustees that elect the 10.5% or 17.5% PIR
will be required to file a tax return including its attributed
income, with a credit allowed for any tax paid by the
relevant Fund on that income.
>> If you have elected a PIR which is too low, or failed to
advise us that your PIR has increased, you will be liable
to include your attributed income in a tax return and
to pay tax on that income at your relevant marginal tax
rate (with a credit allowed for tax paid by the Fund on
that income). You may also be liable for any penalties or
interest which may apply.
If you advise a PIR that is higher than your applicable rate,
then you will not be able to claim back the excess tax paid.
If the tax liability on income attributed to you exceeds your
investment in the relevant Fund, some or all of your Units
could be redeemed and the proceeds of the redemption paid
to the IRD. To the extent this tax liability is not paid by the
Fund, you may need to pay the tax directly to the IRD.
The advantage of PIE
PIE funds may provide you with a significant benefit over
holding assets (or investments) directly.
In particular, PIEs pay tax on income attributed to you at
your relevant PIR, which is capped at 28%. Investors in a PIE
with a marginal tax rate of 33% who elect the 28% PIR may
therefore obtain a tax advantage.
Impact of PIE taxation for certain taxpayers
In some circumstances your personal marginal tax rate
could be lower than your PIR. In this event investing
through a PIE may not be appropriate.
In addition, investing in the Funds may not be appropriate
if you are a non-resident in New Zealand for tax purposes.
This is because New Zealand tax will be imposed on income
attributed by the Funds to you at 28%, which may be higher
than the New Zealand tax rate that applies to income
that you may get from other comparable New Zealand
investments. (Note that these Funds are not “foreign
investment PIEs”, the income from which that is attributed
to “notified foreign investors” can be taxed at different
rates).
Given that there are a number of circumstances where
you may pay more tax in a PIE, rather than other forms of
investment, it is important to consult your professional tax
adviser to determine whether a PIE is best for you.
Why do I need a PIR?
The rules relating to the taxation of investment income
enable funds that become PIEs to calculate their tax using
PIRs elected by investors which can be 28%, 17.5%, 10.5%
or 0% subject to satisfying various conditions. In order
for the funds to pay tax on your attributed income at the
appropriate rate, you need to ensure that you have supplied
the correct PIR and IRD number at all times.
When do I need to provide my PIR?
You should provide your PIR when you invest in a Fund,
along with your IRD number. Each year, we will ask you to
reconfirm your PIR. You should review your rate each year to
ensure it is correct and notify us of any changes.
It is important that you provide your PIR when requested.
If you fail to provide your PIR or your IRD number then your
investment will be taxed at the default rate of 28%. This
rate could be higher than your PIR. If you provide a PIR
that is lower than your correct PIR, you will be liable to pay
tax on the attributed income at your relevant tax rate after
allowing a credit for tax paid by the Fund on that income
(plus any applicable interest and penalties) and to file a tax
return. If you advise a PIR that is higher than the applicable
rate, you will not be able to claim back the excess tax paid.
AMP Capital Investment Funds
35
Custodial investors
The PIE tax regime makes specific provision for custodians
who hold legal title to Units on behalf of underlying
investors who have provided the funds for the Units held by
the custodian. A custodian that holds units for an investor
in a Fund may give a notice to the Fund that the custodian
is a Proxy. If you invest through a custodian who has elected
to be a Proxy then the following responsibilities will not
be undertaken by us or the Trustee, but will instead be
undertaken by that custodian:
>> calculating and organising payment of the tax liability on
income attributed to the Proxy by applying the PIRs of the
underlying investors;
>> making adjustments to the Units held on behalf of
underlying investors (by redeeming Units) or the
distributions (if any) made to underlying investors
or requiring payments to be made by the underlying
investors to reflect the tax liability on income attributed
to the underlying investors;
>> organising the provision of returns and other information
to the Inland Revenue Department; and
36
>> providing to the Fund any information concerning the
underlying investors that may be relevant to whether the
Fund continues to meet the eligibility requirements for a
PIE (such as the Maximum Investor Interests requirement
and the Minimum Number Of Investors requirement).
We may require Proxies to enter into contractual
arrangements with us regarding compliance by Proxies with
the requirements of tax legislation.
Other
Tax legislation and rates of tax are subject to change. The
impact of taxation may vary depending on your individual
circumstances.
It is important to seek professional taxation advice before
you invest or deal with your investment in any way as the
taxation treatment of your investment will be specific to
your circumstances and to the nature of your investment.
None of the Trustee or its nominee companies, the Manager
or AMP Capital, any of their respective related companies or
directors, or any other person takes responsibility for your
taxation liability.
If we ask you to provide information to enable us to
determine whether any Fund continues to meet the PIE
eligibility requirements, you must supply that information to
us within 30 days of the request.
We have a wide range of discretions to operate each Fund as
a PIE including:
>> discretions relating to the calculation of tax;
>> adjusting distributions to you or redeeming your Units of
to meet your liability for tax; and
>> taking all steps necessary to ensure that the Fund meets
the PIE eligibility requirements including:
−− rejecting applications for Units and transfers of Units
to ensure the Maximum Investor Interests requirement
under the Tax Act is not exceeded; or
−− if your unitholding exceeds the Maximum Investor
Interests requirement, selling, redeeming or
repurchasing Units.
You will be given notice and an opportunity to remedy a
breach of the Maximum Investor Interests requirement
(provided that there is time to remedy the breach under
the relevant tax legislation). The proceeds from any sale,
redemption or repurchase carried out by us to remedy
such a breach (less any costs and expenses incurred by us
in respect of the same) will be paid to you, and neither we
nor the Trustee shall be liable for any loss you may incur
under or in connection with any such sale, redemption or
repurchase.
The Funds that hold foreign shares (that is, shares in any
company not resident in New Zealand) are subject to the
foreign investment fund rules and the fair dividend rate
(FDR) method is used in respect of such shares, except for
shares in certain Australian resident companies listed on an
approved ASX Index (taxed under ordinary New Zealand tax
rules) and certain “non-ordinary” shares (which are instead
subject to the comparative value (CV) method). Under the
FDR method, Funds that hold foreign shares are deemed to
derive taxable income equal to 5% of the market value of
the shares, calculated on a daily basis and weighted over
the income year. Dividends and gains received on such
shares are not taxable and losses incurred on the disposal
of such shares are not deductible when the FDR method
is applied. Where the CV method is applied (see above)
changes in the value of an investment over the income
year (including those due to foreign exchange movements)
are included in the Fund’s income, together with amounts
received during the income year from holding or disposing
of the investment.
The FDR foreign currency hedges tax calculation method
may or may not be implemented on a Fund by Fund basis,
as appropriate. That method is intended to minimise
mismatches in income and expenditure on hedges relating
to shares taxed under the FDR method or which are listed
on the ASX, and income on those shares. The current
treatment of foreign currency hedges will continue where
the FDR foreign currency hedges method cannot be applied
or is not adopted.
Switches and redemptions
If you switch from one Fund to another Fund or redeem
Units the tax liability at your PIR on income attributed
to you up to the switch or redemption will need to be
satisfied, either by us cancelling Units or deductions from
distributions (if any).
If you hold your Units on capital account (i.e. if you would
not be taxed on a transfer of the Units), then the entire
amount of any Unit redemption proceeds will not be
taxable for you. If you hold your Units on revenue account
(i.e. if you would be taxed on a transfer of the Units),
then you should obtain professional taxation advice as to
whether redemption proceeds will be taxable for you.
Transfers
If you apply to transfer your Units we may treat the transfer
as a cancellation of your Units and the issue of new Units to
the transferee (in which case the entry and exit fees set out
on page 32 will be payable). If we treat your application as
a cancellation, the transfer will be treated as a redemption
of your Units for tax purposes. However, if a transfer is not
treated as a cancellation of your Units, you will be treated
as having disposed of your Units to the transferee and the
ordinary rules for share/unit disposals will apply. In this
case there may be tax consequences for you, depending
on whether you acquired the Units with the purpose of
disposal, are a share/unit trader or acquired and disposed of
the Units as part of a profit making undertaking or scheme.
Also, tax at your PIR may be payable on income attributed
for you for the period up to the date of transfer of the Units.
be received by the Fund over the following twelve month
period. This will include an amount of income to be retained
by the Income Generator Fund to cover any tax that may
be payable in respect of any PIE allocated taxable income.
The income retained by the Income Generator Fund as a
notional tax amount may not be the same as the PIE tax
payable in respect of taxable income attributed to you. .
Distributions of income
The monthly fixed distribution amount will be paid:
Our policy is to make distributions from the following Funds
on the basis set out below:
>> NZ Cash Fund
>> NZ Fixed Interest Fund
>> NZ Short Duration Fund
>> NZ Shares Fund
>> Strategic NZ Shares Fund
>> Global Short Duration Fund
>> Income Generator Fund
>> Listed Property Securities Fund
(the “Distributing Funds”).
For all Distributing Funds other than the Income Generator
Fund:
>> Distributions will be calculated on or about the fifth
business day prior to 31 March and 30 September in
each year (or at such other time as may be determined
by us in accordance with the Trust Deed) and be made to
those Unit Holders on the relevant Fund’s register of Unit
Holders as at the close of business on the last business
day prior to the relevant calculation date.
>> We will determine the amount of income to be
distributed on the basis of the income received by
each such Fund over the period in respect of which the
distribution is being made.
>> We intend to distribute approximately 70-72% of the
income (adjusted for any imputation credits that may be
available) received by each such Fund during the relevant
distribution period (although we retain the discretion to
distribute a lesser proportion, or make no distribution
at all, in respect of any one or more of the relevant
Funds). The amount distributed in respect of each Unit
in a relevant Fund will be the amount of income to
be distributed from that Fund (as determined by us)
divided by the number of Units on issue as at the close
of business on the last business day prior to the relevant
calculation date.
>> Distribution payments are intended to be made within
five business days of the date on which the amount of
the relevant distribution is calculated.
In accordance with the AIF Trust Deed, the Income
Generator Fund pays a fixed monthly distribution amount
to Unit Holders. For the period from 1 April 2015 to 31
March 2016, the Fund will pay 0.33 cents per Unit per
month (being an annualised rate of 3.96 cents per Unit per
annum). We will review the monthly distribution amount,
and may re-set it, on or about 1 April in each year for the
following 12 month period. We will determine the monthly
distribution amount at each such annual review based on
our expectation of the amount of gross income likely to
>> First, out of the Net Income of the Income Generator
Fund for the relevant month;
>> Second, to the extent that the Net Income of the Income
Generator Fund for the relevant month is not sufficient to
pay the fixed distribution amount for that month in full,
out of the Retained Net Income Amount for the Fund;
and
>> Third, to the extent that the fixed distribution amount
is not able to be paid in full out of the Net Income of the
Income Generator Fund for the relevant month or from
the Retained Net Income Amount for the Fund, out of
capital.
Each monthly distribution amount will be paid to those
Unit Holders on the register of Unit Holders as at the
close of business on the last business day of each month.
We may suspend payment of the monthly distribution
amount where we form the view that, due to adverse
market or other circumstances, it is in the best interests
of Unit Holders generally to do so. In such circumstances,
we will provide you and the Trustee with written notice
of such suspension. During the period for which any such
suspension is in effect, the distribution amounts that would
otherwise have been payable to you during that period will
be cancelled and you will not receive, or have any claim,
in respect of the cancelled distribution amounts. Instead,
those amounts will be retained by the Income Generator
Fund and, as such, will be reflected in the price of the Units
in the Income Generator Fund. We may lift the suspension
at any time by providing you and the Trustee written notice
that such suspension has been lifted and, if not lifted
prior, the suspension will be deemed to have been lifted
on the 1st of April immediately following the date of the
suspension notice.
Should a distribution from any of the Distributing Funds be
made you may choose to have your distributions reinvested
in Units in that Fund, or direct credited to a nominated
bank account (discussed below).
Income received by a Distributing Fund and not distributed
will be retained in that Fund and reflected in the Unit price.
Any PIE tax payable in respect of taxable income attributed
to you by the Fund will be paid on your behalf by the Fund
at your selected PIR. In order to meet any such PIE tax
payment, we will redeem such number of your Units as
may be required and pay the redemption proceeds the PIE
tax to the IRD. Any such redemption will be made shortly
after 31 March each year or, if earlier, the date on which
you sell redeem some or all of your Units. (Further details
on the payment of PIE tax are set out in the section headed
“Taxation” on pages 34 to 36.)
AMP Capital Investment Funds
37
For all Funds other than the Distributing Funds, as at the
date of this Investment Statement it is our policy not to
distribute income received. Accordingly, any income will
be retained by, and reflected in, the Unit price of the nondistributing Funds.
Income reinvestment plan
You may, at any time, elect to have all (but not part) of
your distribution of income from the Distributing Funds
reinvested in further Units.
You will be given a reasonable opportunity to make
your election. You can cancel, at any time, your election
to reinvest distributions from the Distributing Funds in
further Units. Applications to reinvest distributions that
are received by the Registry up to 10 business days before
a distribution date will be effective from, and including,
that distribution. An election may be withdrawn by written
notice to us at any time. A withdrawal will take effect not
less than five business days after notice of the withdrawal is
received by us.
38
We may, in our discretion, satisfy income reinvestment
elections by purchasing Units and/or by applying to the
Fund for the issue of Units. Such purchases or applications
will be made on the distribution date or, if that day is
not a business day, on the last business day before the
distribution date. At the time of purchase or application, we
must not have any information that is not publicly available
that would, or would be likely to, have a material adverse
effect on the price of the Units if the information were
publicly available. Units will be allotted or transferred to you
in accordance with your income reinvestment elections on
the relevant half yearly distribution date.
Units issued in respect of income reinvestment elections
will:
>> be issued on the terms specified in this Investment
Statement and the AIF Prospectus (or in respect of the
Income Generator Fund, the prospectus for that fund
dated 28 November 2014); and
>> have the same rights as all other Units in the relevant
Distributing Fund.
Your reinvestment in Units will be rounded down to
the nearest whole Unit (and rounding differences will
be retained in the Distributing Fund on your behalf).
Reinvestment fees are not currently being charged
(although we reserve the right to charge such fees).
The financial statements and most recent annual report
for the Distributing Funds are available on request, free of
charge, from our registered office.
The income reinvestment option may be varied, withdrawn
or cancelled by us at any time, by giving not less than three
months’ notice to you. This Investment Statement contains
(in respect of the income reinvestment option) all the terms
required by the Securities Act (Dividend Reinvestment)
Exemption Notice 1998.
Retentions
For all Funds other than the Distributing Funds (discussed
above), our current policy is not to make distributions but to
reflect income received in the Unit price. In this regard, we
may, in our discretion, retain net income of a Fund rather
than distribute that income.
Redemption and repayment
For each Fund (other than the NZ Property Fund), in
normal circumstances repayment or redemption of your
Units will be made within 10 business days of us receiving
the Repayment Request, although we reserve the right
to procure repayment at a later date, subject to the
requirements of the relevant Trust Deed.
For the NZ Property Fund, in normal circumstances, we
must set a “Relevant Date” within two years of receiving
a Repayment Request (or within two years of the end of
any relevant suspension period) and must complete the
repayment or redemption within 30 days following the
Relevant Date. The NZ Property Fund has two alternatives
to the standard redemption policy (which would generally
only apply if there are liquidity issues with the NZ Property
Fund because it had insufficient cash reserves to meet
Repayment Requests in the timeframe required under
the Trust Deed and will only apply for so long as the NZ
Property Fund continues to hold units in APP) and their
availability would depend on the circumstances prevailing
at the relevant time. These alternatives are:
>> a discounted redemption regime; and
>> an option for the Fund to distribute APP units to Unit
Holders who are eligible to invest directly in APP (this is
limited to certain categories of investors approved by
APP).
We may, in certain circumstances, suspend the obligation to
repurchase, or cause the redemption of, Units from a Fund
(including the NZ Property Fund) (for instance, where we
believe, in good faith, that it is not practicable or would be
prejudicial to your interests for the Trustee to realise Assets
or borrow to permit redemptions – this could be because
of market or Asset conditions or other circumstances). Any
such suspension shall continue until cancelled by us.
Repayments may be suspended for 90 days after the date
on which the Repayment Suspension Notice was given,
unless the Trustee agrees to a longer suspension period.
Repayments may not, however, be suspended for longer
than one year after the date of the notice without your
approval by Extraordinary Resolution.
The Manager has undertaken to the purchaser of APP’s
real estate assets that, until the later of the date that is 18
months after settlement occurs under the Agreement, or,
if any warranty or other claims have been made under the
Agreement, the date on which the last such claim has been
resolved, it will not give effect to redemptions if they would
result in the value of the NZ Property Fund being below $50
million. Accordingly, if the value of the NZ Property Fund
nears $50 million, redemptions by the NZ Property Fund
may need to be suspended and the Fund’s ability to repay
you when you want to withdraw your investment is likely
to be affected.
Person legally liable to pay returns
AMP Investment Management (N.Z.) Limited is the person
legally liable to pay you your returns (subject to the terms
of the Trust Deed).
What are my risks?
The principal risks of the money paid by subscribers for
Units not being recovered in full, and of subscribers not
receiving the returns described under the heading “What
returns will I get?”, are set out below. Risks which are of
particular relevance to the Global Multi-Asset Fund and the
Income Generator Fund are set out on page 40 and risks
which are of particular relevance to the NZ Property Fund
are set out on pages 40 to 41.
Valuation risk
Risks
Derivative and counterparty risk
The performance of the Funds can be influenced by many
general factors impacting on markets in which they invest,
including inflation, interest and growth rates, changes in
government policy and tax laws, political events, changes
in investor sentiment, performance of the underlying
businesses or assets and, particularly in the case of the
Global Funds, currency fluctuation. The Assets of the
Funds are market linked, and therefore are susceptible to
general market fluctuations and individual security price
fluctuations. The AMP Capital Investment Funds each have
a different level and variety of risks, due to the different
features and objectives of each Fund. (See the description of
each Fund and its objectives contained on pages 2 to 28 of
this Investment Statement).
Financial instruments known as ‘derivatives’ may be used
for the purposes of managing risks (particularly market and
currency risk) and for investment purposes. A derivative is
a contract with a return that depends on or derives from
one or more underlying assets or reference items. The
most common underlying assets or reference items include
shares, bonds, currencies, commodities, cash, interest rates,
events, entities and market indices.
Due to the market linked nature of the Funds it is possible
that the investor will not recover the amount paid or the
returns described above. It is also possible (particularly
where an investment is terminated in the short term)
that on termination the investor may receive less than the
amount paid for the Units.
Liquidity risk
The Funds allow redemption of Units, subject to certain
procedural requirements, including our right under the
Trust Deed to delay and/or suspend redemptions. During
normal operational circumstances, redemptions can be
met out of cash held by the relevant Fund. However, if the
value of redemptions significantly outweighs the value of
subscriptions, the Fund may not be able to meet Repayment
Requests out of cash reserves and will be reliant on selling
or redeeming (whichever is relevant) some of the Fund’s
Assets to enable it to meet the Repayment Requests.
These Fund Assets may not be immediately realisable. For
example, if a Fund’s Assets consist of units in a property
holding unit trust, the Fund’s ability to redeem those units
will be reliant on the time it takes the fund it is investing
in to action the redemption, and potentially sell assets to
generate cash to meet the redemption request. Similarly, a
Fund which invests in another Fund or any other managed
fund may not be able to realise its investment in that Fund
or other fund immediately if the Fund or other fund has
been closed or is being wound up.
In volatile market conditions, a Fund’s Assets may not
necessarily be as easily realisable as they may have been at
a previous point in time, or may only be able to be realised
at a lower value than might be expected in normal market
conditions. This could have a negative effect on the value of
a Fund’s Assets and its performance, and in turn may affect
the value of your investment and the returns you receive
from the Fund.
The Funds’ unit prices are based on the latest market
information. For securities or stocks that are illiquid or
trade infrequently this pricing may not fully reflect the price
available to either buyers or sellers. Accordingly, there is
a risk that the quoted unit price may change when these
assets are revalued by the market following a transaction.
Using derivatives involves risks, including:
>> the potential for large gains or losses exaggerating the
effect of any increase or decrease in the value of the
underlying assets or reference items; and
>> the other party to the derivative contract not meeting its
obligations, or there being a delay in those obligations
being met (such failures or delays could occur for a
number of reasons, including the counterparty being in
financial difficulty or subject to some insolvency event
(e.g. receivership, liquidation etc)).
Some derivatives are traded on an exchange and settled
through a central counterparty settlement system.
The Fund would be exposed to similar risks as those
set out above in respect of the operator of the settlement
system.
Operational risk
The Funds may be exposed to operational risks that result
from external events or failure of internal processes,
people and systems. These risks include technology risk
(including business systems failure), human error or
failure, fraud, non-compliance with legal and regulatory
obligations, counterparty performance under outsourcing
arrangements, legal risk, data integrity risk, security risk and
external events (including pandemics).
Currency risk
Currency risk may affect Funds which invest in offshore
assets and which are not hedged or only partially hedged.
Currency risk is the risk of exchange rate fluctuations
between the New Zealand dollar (the currency in which the
Funds are valued) and foreign currencies. As some of the
Assets of the Funds are invested offshore, returns can be
affected by movements between the New Zealand dollar
and other currencies.
AMP Capital Investment Funds
39
Concentration risk
Income Generator Fund
Certain Funds’ Assets may be concentrated in a particular
issue, investment vehicle or type of investment vehicle,
geographical area or industry. Such Funds are subject to
higher credit and default risks than Funds having a more
diversified portfolio. In addition, the value of such Funds
may be subject to greater market volatility.
As at the date of this Investment Statement, in addition to
the risks set out above, the following risks are of particular
relevance to the Income Generator Fund:
Short-selling
Some of the underlying entities that the Funds invest into
may conduct short-selling. The aim of short-selling is to sell
at a high price and buy the asset at a later time, at a lower
price. Consequently, the potential loss to the Fund may be
greater than for traditional purchase and sale transactions,
as the potential increase in price of the asset sold (and
hence the potential loss) is unlimited.
Risk of loss of PIE status
40
The eligibility requirements to maintain PIE status pose a
risk. Although we have mechanisms available to manage
compliance with the PIE eligibility requirements of the Tax
Act, there remains a risk that the Funds could lose PIE status
if there is a breach of those requirements and we do not
become aware of the breach in time to correct it. This risk, if
manifested, may have an adverse effect on the tax position
of the Fund and/or you. In particular, distributions made
by the Fund to you would be taxable for you (subject to
exceptions for returns of subscription amounts) if the Fund
lost PIE status.
Wrong PIR risk
If an investor or underlying investor has provided a PIR that
is lower than the correct PIR that investor will be liable for
any tax shortfall (and any interest and penalties) and must
file a tax return. Investors or underlying investors who
provide a PIR that is higher than the correct PIR, or who do
not provide a PIR and are therefore subject to the default
rate of 28%, will not be able to claim back the excess tax
paid.
Global Multi-Asset Fund
As at the date of this Investment Statement, in addition to
the risks set out above, the following risk is of particular
relevance to the Global Multi-Asset Fund:
Asset allocation and concentration risk
The Global Multi-Asset Fund invests in the Australian AMP
Capital Multi-Asset Fund and the Schroder Real Return
Fund. The investment managers of the Australian AMP
Capital Multi-Asset Fund and the Schroder Real Return Fund
each have the flexibility to significantly change the asset
class mix at any time and within broad ranges. Therefore,
the Global Multi-Asset Fund may be concentrated in
a particular asset class or type of investment vehicle,
geographical area or industry at any point in time, which
may subject the Global Multi-Asset Fund to significant
performance volatility relative to its objective. If this
volatility occurs, the Global Multi-Asset Fund may fail to
meet its stated performance objective.
Capital risk
If the Income Generator Fund’s income is insufficient to
meet the monthly fixed distribution amounts payable
to Unit Holders in the Income Generator Fund, it will be
necessary for such distributions to be made from capital
(unless distributions have been suspended). If this occurs,
there will be a reduction in the amount of capital available
to be invested by the Income Generator Fund and this will
also reduce the unit price of Units in the Income Generator
Fund. As a result, the net income of the Fund may be
reduced, which could result in further capital payments
being made to meet the fixed monthly distribution amount.
Distributions risk
General market fluctuations and individual security price
fluctuations could reduce the Income Generator Fund’s
fixed monthly distribution amount when re-set by the
Manager.
Where the Manager forms the view that, due to adverse
market or other circumstances, it is in the best interests
of Unit Holders in the Income Generator Fund generally
to suspend distributions, it may do so by written notice to
such Unit Holders and the Trustee. During the period for
which any such suspension is in effect, the distribution
amounts that would otherwise have been payable to you
during that period will be cancelled and you will not receive,
or have any claim, in respect of the cancelled distribution
amounts. Instead, those amounts will be retained by the
Income Generator Fund and, as such, will be reflected in the
price of the Units in the Income Generator Fund.
NZ Property Fund
As at the date of this Investment Statement, in addition
to the risks set out above (excluding the Global MultiAsset Fund asset allocation and concentration risk), there
are certain risks which are of particular relevance to the
NZ Property Fund which you should be aware of before
investing:
Liquidity risk
The Manager has undertaken to the purchaser of APP’s
real estate assets that, until the later of the date that is 18
months after settlement occurs under the Agreement, or,
if any warranty or other claims have been made under the
Agreement, the date on which the last such claim has been
resolved, it will not give effect to redemptions if they would
result in the value of the NZ Property Fund being below $50
million. Accordingly, if the value of the NZ Property Fund
nears $50 million, redemptions by the NZ Property Fund will
be suspended and the NZ Property Fund’s ability to repay
you when you want to withdraw your investment is likely to
be affected.
Guarantee risk
A deed of guarantee has been entered into between
the purchaser under the Agreement and the Vendor
Guarantors pursuant to which the Vendor Guarantors agree
to guarantee (on a several, not joint, basis) certain of the
vendor’s obligations under the Agreement, and indemnify
the purchaser if those obligations are not met by the
vendor. If the vendor breaches its obligations under the
Agreement (including where there has been a breach of a
warranty given by the vendor under the Agreement), the NZ
Property Fund could be liable for its proportionate share of
losses suffered by the purchaser arising from such breach
(which could adversely affect the value of your investment)
The maximum amount for which the Fund could be liable
for a warranty claim under the deed of guarantee is 27.75%
of:
(i) in the case of a claim in relation to
(a) any corporate warranty, the purchase price of all of
the assets;
(b) a title warranty, the purchase price of the particular
property (as determined in accordance with the
Agreement) to which the claim relates, subject to any
adjustment to the purchase price in accordance with
the terms of the Agreement; and
(ii) in the case of any other warranty claim, $100 million.
If a warranty claim is brought against the Fund under the
deed of guarantee, the Fund may be entitled depending
on the circumstances to be indemnified in respect of
that claim by the Investment Manager in its capacity as
manager of APP.
Cost of meeting Repayment Requests
The amendments to the Trust Deed approved by Unit
Holders in the NZ Property Fund on 1 December 2010
include a discounted redemption regime. Under this regime
(which only applies for so long as the NZ Property Fund
continues to hold units in APP), if assets in which the Fund
invests are sold to satisfy a discounted redemption, the
costs of selling those assets (including loss in value) will
be passed through to the exiting Unit Holders (rather than
spreading these costs across all Unit Holders in the NZ
Property Fund).
No wind-up of the NZ Property Fund
As mentioned above, settlement under the Agreement for
the sale of APP’s real estate assets occurred on
28 November 2014. Following receipt of the NZ Property
Fund’s proportion of the proceeds of the sale of APP’s real
estate assets, the Manager expects to be more easily able
to meet Repayment Requests. As a result, it is less likely
that the Manager will need to wind up the NZ Property
Fund to meet Repayment Requests, depending on the
manner in which the proceeds are dealt with.
The Manager has undertaken to the purchaser under the
Agreement that it will not give notice under the AIF Trust
Deed to wind up the NZ Property Fund until the later of the
date that is 18 months after settlement occurs under the
Agreement or, if any warranty or other claims have been
made under the Agreement, the date on which the last
such claim has been resolved.
Property risk
Given the NZ Property Fund’s investment in Australasian
property securities, the NZ Property Fund is indirectly
exposed to property market risks.
The value of, and returns generated from, the NZ Property
Fund’s investment may fluctuate depending on commercial
property market conditions, which can be influenced by
general economic factors as well as insured and uninsured
catastrophic events (e.g. fires, floods, earthquakes,
volcanoes or wars). This may affect the value of Units in the
NZ Property Fund.
Valuation risk
As the NZ Property Fund’s principal investment (following
completion of the transition to the new investment
guidelines set out above) will be in Australasian property
securities (which reflect underlying investments in both
development and investment property both of which can
be subject to fluctuations in value), fluctuations in the
value of the assets underlying as the Australasian property
securities can affect the price of the Australasian property
securities, and therefore the NZ Property Fund unit price. As
a result, the change in Unit price may not reflect changes
that have occurred in asset values since the most recent
valuation. While the NZ Property Fund values its Units at
least once every five business days, the property assets it
indirectly invests in are independently valued on a periodic
basis. Accordingly there may be a shift in property asset
values between valuations that is not reflected in the Unit
price, and while the NZ Property Fund will seek to take into
account general market conditions, the NZ Property Fund
does not have the benefit of daily or weekly underlying
property asset valuation updates in respect of the securities
it holds.
Personal liability and consequences of
insolvency
You are not liable for any further payment as a result of us
or a Fund becoming insolvent. You are liable to meet any
tax liability attributed to you which exceeds the value of
your investment in a Fund (in which case you indemnify the
Trustee for the difference between the value of your Units
and that tax liability).
A custodian who holds legal title to Units on behalf of
underlying investors in a Fund and elects to be a Proxy
(as described on page 35) agrees, under the terms of the
application form attached to this Investment Statement
to indemnify us and the Trustee for any losses, liabilities,
costs or expenses arising from any breach (in relation to
the underlying investors the custodian is responsible for)
of the Maximum Investor Interests requirement or the
Minimum Number Of Investors requirement under the Tax
Act, including any losses, liabilities, costs or expenses arising
from the Fund losing PIE status.
Creditors of each Fund (including us, the Promoter and the
Trustee for their fees and expenses) will rank ahead of your
claims in the event of the Fund being wound up. Your claims
against a particular Fund rank equally among the claims
of other Unit Holders in proportion to the number of Units
held.
If any of these risks eventuate the relevant Fund could suffer
loss as a result.
Anti-money laundering, countering
financing of terrorism and sanctions
We are subject to anti-money laundering, countering
financing of terrorism and sanctions laws (“AML Laws”) in
New Zealand, Australia and elsewhere.
AMP Capital Investment Funds
41
The AML Laws require us to do a number of things
including: verifying your identity and address before we
issue Units in any of the Funds to you (and at certain times
after that); monitoring your transactions; reporting any
suspicious transactions to the Police; and keeping identity,
address and transaction records about you.
The AML Laws also prohibit us from doing a number of
things, including issuing Units in the Funds to you until
your identity and address have been verified. The AML
Laws also mean we may have to delay or refuse to process
transactions you have requested or suspend operation of
your accounts with us.
To help us comply with the AML Laws, you are required
to make a number of declarations when completing the
application form to purchase Units in the Funds.
Can the investment be altered?
You are able to change the amount of your investment at
any time (subject to the minimum investment required of
$10,000).
42
You are able to request us to switch your investment in one
Fund to another AMP Capital Investment Fund(s). We may
(but are not obliged to) action a switch on receipt by us
of written authorisation. The minimum number of Units,
which may be switched between Funds, is 500 but the
investor must retain a minimum holding of 500 Units in
the Fund from which the switch is made. To effect a switch,
Units in the existing Fund will be sold at the applicable
Repayment Price (see page 43 for information on calculation
of the Repayment Price) and Units in the other Fund will be
bought at the applicable Issue Price (see the “How much
do I pay?” section on page 31 for information on calculation
of the Issue price). Entry and exit fees are payable when
selling Units in one Fund and buying Units in another (see
page 32). The provisions in the Trust Deeds applying to
redemption or repurchase of Units and issue of Units will
apply to switches (including, in the case of the NZ Property
Fund, the special redemption provisions for that Fund (see
below)).
Under the Tax Act, certain group investment funds,
public unit trusts and superannuation funds can transfer
expenditure to a master fund. Under the Tax Act, any such
transfer of expenditure to a Fund will be included in the
calculation of the relevant investor’s attributed PIE income.
We are permitted to credit you with Units in recognition of
any tax deduction that a Fund has received as a result of a
transfer of expenditure under this section.
The terms and conditions on which you may subscribe
for Units may be altered by amendment to the AIF
Prospectus, the AIF P Prospectus or the prospectus for the
Income Generator Fund (as applicable) or this Investment
Statement. The terms and conditions of the relevant Trust
Deed itself may only be altered with the approval of us and
the Trustee and in accordance with the relevant Trust Deed.
A summary of all Trust Deed amendments made since the
date of the last annual report must be sent to you with (or
as part of) the annual report for the Funds.
How do I cash in my investment?
General
You may at any time request the repayment or redemption
of some or all of your Units. For each Fund (other than
the NZ Property Fund), in normal circumstances payment
will be made within 10 business days of our receiving a
Repayment Request.
NZ Property Fund
For the NZ Property Fund:
>> we must set a “Relevant Date” within two years of
receiving a Repayment Request or the end of any relevant
suspension period (and that Relevant Date must not be
more than two years following receipt of the Repayment
Request or the end of the relevant suspension period) and
must complete the repayment or redemption within 30
days following the Relevant Date; and
>> if we have not set a Relevant Date in respect of all the
specified Units in a Repayment Request within two years
of the date the Manager received the Repayment Request
(or for requests which were outstanding at the beginning
of a suspension period, within two years of the last day
of the suspension period), we must, within 30 days of
the expiry of that period, either commence a wind-up
of the NZ Property Fund or convene a meeting of Unit
Holders with a view to obtaining Unit Holder approval by
Extraordinary Resolution of a restructuring proposal (and
failing approval must commence a wind-up of the Fund).
As mentioned above, the Manager has undertaken to the
purchaser of APP’s real estate assets that, until the later of
the date that is 18 months after settlement occurs under
the Agreement, or, if any warranty or other claims have
been made under the Agreement, the date on which the
last such claim has been resolved, it will not give effect
to redemptions if they would result in the value of the
NZ Property Fund being below $50 million. Accordingly,
if the value of the NZ Property Fund nears $50 million,
redemptions by the NZ Property Fund may need to be
suspended and the NZ Property Fund’s ability to repay you
when you want to withdraw your investment is likely to be
affected.
In specie distribution
We may satisfy any Repayment Request in respect of the
NZ Property Fund by the transfer or In Specie Distribution
of Assets of the Fund rather than in cash, subject to the
provisions of the Trust Deed. For each of the other Funds, if
we obtain your agreement we may satisfy your Repayment
Requests by transferring or making an In Specie Distribution
of Assets of the relevant Fund to you rather than by paying
you in cash.
Suspension
We may, in certain circumstances, suspend the obligation to
repurchase, or cause the redemption of, Units from a Fund
(for instance, where we believe, in good faith, that it is not
practicable or would be prejudicial to the interests of Unit
Holders for the Trustee to realise Assets or borrow to permit
redemptions – this could be because of market or Asset
condition or other circumstances). Any such suspension
shall continue until cancelled by us.
Redemption or repurchase
You may choose either repurchase or redemption, and in
normal circumstances we will give effect to your choice
but we are not bound to do so and reserve the right to
withdraw either option. We have discretion to refuse to
repurchase, or cause the Trustee to refuse to redeem,
if redemption or repurchase of less than 500 Units is
requested (except where all of your Units are to be
redeemed).
Where you have requested redemption or repurchase of
some Units we may require repurchase, if applicable, or
redemption of all remaining Units if the total number of
Units remaining would be less than 500.
Provisions relating to PIE status
If your unitholding would threaten or cause a Fund to be
ineligible as a PIE we have the discretion to redeem or
repurchase the number of Units giving rise to the breach.
If the Maximum Investor Interests requirement is exceeded,
we have the right to sell, redeem or repurchase the number
of Units which give rise to the breach. You will be given
notice and an opportunity to remedy any such breach of
the Maximum Investor Interests requirement (provided that
there is time to remedy the breach under the relevant tax
legislation). The proceeds from any such sale, redemption
or repurchase carried out by us to remedy any such breach
(less any costs and expenses incurred by us in respect of the
same) will be paid to you, and neither us nor the Trustee
shall be liable for any loss that you may incur on any such
sale, redemption
or repurchase.
Any distributions paid or bonus units credited to you will
be deducted from this price also to the extent necessary to
ensure you get no benefit from the Fund. For further details,
please see the AIF Prospectus, the AIF P Prospectus or the
prospectus for the Income Generator Fund (as applicable) or
the Trust Deeds.
Subject to our discretion, if a Fund is a PIE, you are entitled
to sell your interest in a Fund to another person (subject to
our pre-emptive right to purchase those Units as set out in
the Trust Deed). However, we do not believe that there is an
established market for such sales.
As the Funds are PIEs, applications for the transfer of Units
may be treated as a cancellation of the transferor’s Units
and the issue of new Units to the transferee (in which case
the entry and exit fees set out on page 32 will be payable).
The transfer of a Unit may be refused if certain
administrative requirements imposed by the Trust Deeds
and specified in the AIF Prospectus, the AIF P Prospectus
or the prospectus for the Income Generator Fund (as
applicable) are not complied with or the transfer would
result in the transferor holding less than 500 Units in the
Fund.
Tax on redemptions
Where Units are redeemed, the tax liability (if any) on
income attributed to you up to the redemption date will
need to be satisfied either by us cancelling Units or by
deduction from any distributions. Generally this will occur
by cancellation of Units on redemption.
Repayment price
Units are redeemed or repaid at the Repayment Price.
Except in the case of the NZ Property Fund (see above), the
Repayment Price will be calculated by us as at the date we
receive your Repayment Request, unless the Trustee gives
prior approval for the Repayment Price to be calculated at
an earlier date. An exit fee is payable (see page 33).
For the NZ Property Fund, the Repayment Price will be
calculated by us as at the Relevant Date, unless the Trustee
approves the Repayment Price being calculated by us at a
date before the Relevant Date. An exit fee is payable (see
page 32).
AMP Capital Investment Funds
43
Who do I contact with inquiries about my
investment?
Inquiries should be directed to:
Client Service Centre
AMP Capital Investors (New Zealand) Limited
Ground Floor, PwC Tower, 113-119 The Terrace
Wellington 6011
PO Box 3764, Wellington 6140
Telephone: 0800 400 499
Fax: (04) 494 2123
Email: clientservicecentre@ampcapital.co.nz
Is there anyone to whom I can complain if I have
problems with the investment?
Any complaints or problems with the investment should be
directed to:
If your complaint cannot be resolved with the Promoter, you
may direct your complaint to:
Client Service Centre
AMP Investment Management (N.Z.) Limited
Financial Services Complaints Limited
4th Floor
101 Lambton Quay
PO Box 5967
Wellington
New Zealand
(address and contact details as for AMP Capital Investors
(New Zealand) Limited below)
or
44
AMP Capital Investors (New Zealand) Limited
Ground Floor, PwC Tower, 113-119 The Terrace
Wellington 6011
Telephone: 0800 400 499
Fax: (04) 494 2123
Email: clientservicecentre@ampcapital.co.nz
In addition, the Promoter and Manager are registered with
Financial Services Complaints Limited, a dispute resolution
scheme approved under the Financial Service Providers
(Registration and Dispute Resolution) Act 2008. Under that
scheme, if you have any complaints or problems with your
investment, you should first try to resolve these with the
Promoter. The Promoter’s contact for complaints is Andrew
Penn, Executive Legal Counsel, who can be contacted at the
Promoter’s address above.
Telephone: 0800 347 257 or (04) 472 3725
Fax: (04) 472 3728
If you are not satisfied with the outcome of your complaint
you can contact:
The Manager, Corporate Trusts
The New Zealand Guardian Trust Company Limited
Level 2, Dimension Data House
99-105 Customhouse Quay
PO Box 913
Wellington 6140
New Zealand
Telephone: 0800 166 747.
PO Box 3764, Wellington 6140
Telephone: 0800 400 499
Fax: (04) 494 2123
Email: clientservicecentre@ampcapital.co.nz
What other information can I obtain about this
investment?
Further information about the AMP Capital Investment
Funds is contained in the AIF Prospectus, the AIF P
Prospectus or the prospectus for the Income Generator
Fund (as applicable), the most recent registered financial
statements of each Fund and also the relevant Trust Deeds
and their amendments.
A copy of the AIF Prospectus, the AIF P Prospectus, the
prospectus for the Income Generator Fund, the current
registered financial statements and Trust Deeds for the
Funds can be obtained upon request and free of charge
from us at:
Ground Floor
PwC Tower
113 - 119 The Terrace
Wellington 6011
New Zealand
A copy of the AIF Prospectus, the AIF P Prospectus, the
prospectus for the Income Generator Fund, the financial
statements and other documents relating to the Issuer, are
also filed on the public register at the Companies Office of
the Ministry of Business, Innovation and Employment and
are available for public inspection either on the Manager’s
file on the website of the Companies Office at www.
business.govt.nz/companies or (on payment of the relevant
fee) by telephoning the Companies Office during normal
business hours on 0508 266 726.
The following information in relation to any Fund in which
you invest may also be requested in writing free of charge
from us:
>> An annual statement for taxation purposes.
>> Further copies of this Investment Statement.
>> A written statement of your unitholding as detailed in
the Unit Holder Register.
>> Annual financial statements.
>> A copy of the AMP Capital Investment Funds annual
report.
>> A copy of the Trust Deeds and any amendments to them.
You can also obtain a copy of the Unit Holder Register from
us subject to payment of a fee.
We will provide the following information to wholesale
Unit Holders through AMP Capital’s client reporting website
available at ampcapital.co.nz:
>> Within 15 business days of the end of each month, a
Monthly Statement of Account detailing the value of
your investment, income distributions and any of your
transactions that have occurred during the month.
Once every six months you will receive either: a statement
of your unitholding; or
>> a notice stating that you have the right to receive from
us, without payment of any fee, a written confirmation
of your Unit holding if you request one. The notice will
also provide you with details on how you may obtain the
written confirmation by electronic means.
Quarterly reports are available on AMP Capital’s client
reporting website within four weeks of the end of each
quarter. You will have access to a report on each of your
wholesale Funds covering:
>> Performance
>> Current investment strategies.
>> Economic environment and investment markets.
You will receive annually, in respect of any Fund in which
you invest, an annual report which will include the audited
financial statements for the Fund.
The information you provide is covered by the Privacy Act
1993.
Your rights in relation to personal information are governed
by the Privacy Act 1993.
When you invest in the AMP Capital Investment Funds,
and during the period of your investment, personal
information relating to you may be required by us and
the Trustee. This information is needed for administering
your investment and may be used and disclosed for the
purposes of the Funds and to assist you with other financial
services provided by AMP. Your personal information may
be disclosed to AMP Capital and other members of the AMP
Group.
During normal working hours you are entitled, free of
charge, to see any personal information we hold about you.
If you believe that any of the details are incorrect, you may
ask for a correction to be made. If for any reason we are
unable to make the correction requested, details of your
request will be permanently attached to your personal
information.
This Investment Statement was prepared at 18 September
2015 for the purpose of the Securities Act.
None of the Manager, any member of the AMP Group, the
Trustee, the Trustee’s nominee companies nor any of their
respective directors, officers or agents, guarantees the
value of the Units, repayment of the Units, payment of any
income on the Units or performance of the Funds.
>> A brief update on any market or economic events related
to your investments.
AMP Capital Investment Funds
45
Glossary
“Agreement” means the sale and purchase agreement for
the sale of all of APP’s real estate assets;
“AIF Funds” or “AMP Capital Investment Funds” means the
NZ Shares Fund, NZ Fixed Interest Fund, NZ Cash Fund, NZ
Short Duration Fund, Strategic NZ Shares Fund, Responsible
Investment Leaders Growth Fund, Responsible Investment
Leaders Conservative Fund, Responsible Investment
Leaders Balanced Fund, NZ Property Fund, Global Listed
Infrastructure Fund, Listed Property Securities Fund,
Responsible Investment Leaders NZ Shares Fund, Global
Short Duration Fund, Global Multi-Asset Fund, Income
Generator Fund and the Commodities Fund;
“AIF P Prospectus” means the current registered prospectus
for the NZ Property Fund;
“AIF Prospectus” means the current registered prospectus
for the AIF Funds (except for the NZ Property Fund, which
is governed by the AIF P Prospectus) and the Income
Generator Fund, which is governed by a prospectus specific
to that fund dated 28 November 2014);
46
“AIF Trust Deed” means the AMP Capital Investment Funds
Trust Deed dated 16 May 1995 between the Manager and
Trustee (as amended and consolidated from time to time
and formerly called the “AMP Capital Investment Funds New
Zealand Funds Unit Trust Deed”);
“AML Laws” means laws relating to anti-money laundering,
countering financing of terrorism and sanctions in New
Zealand, Australia and elsewhere;
“AMP Capital” means AMP Capital Investors (New Zealand)
Limited;
“AMP Capital Australia” means AMP Capital Investors
Limited, a company incorporated in Australia;
“AMP Group” means AMP Limited and its related
companies (as that term is defined in the Companies Act
1993);
“APP” means AMP Capital Property Portfolio (an unlisted
fund which consists primarily of interests in commercial,
industrial and retail properties);
“Current Value” means the Assets less the Liabilities of
the Fund. For Unit pricing purposes, it is not necessarily
equivalent to the net asset value in the Financial
Statements. For example, differences arise due to the cost of
realisation being included in the Financial Statements and
other adjustments that are made for Unit pricing purposes;
“Custodians” means NZGT Nominees Limited and BNP
Paribas Fund Services Australasia Pty Limited (trading as
BNP Paribas Securities Services);
“Emerging Markets Shares Fund” means AMP Capital
Emerging Markets Shares Fund established 30 September
2007 (formerly called AMP Capital Extended Markets Global
Shares Fund);
“Extraordinary Resolution” means a resolution that is
carried on a show of hands by a 75% majority of the Unit
Holders of a Fund present in person or by proxy or attorney
and voting at the meeting, or if a poll is demanded, a 75%
majority of the votes cast on the poll;
“Funds” means all of the Global Funds and the AIF Funds
(and “Fund” means any one of the Funds, as applicable);
“Global Funds” means the Global Shares Fund, Hedged
Global Fixed Interest Fund, Australian Shares Fund, the
Responsible Investment Leaders Global Shares Fund, Core
Global Shares Fund, Core Hedged Global Shares Fund,
Emerging Markets Shares Fund, and the Global Property
Securities Fund;
“Global Funds Trust Deed” means the AMP Capital
Investment Funds Global Funds Unit Trust Deed dated 7
November 1994 between the Manager and the Trustee (as
amended and consolidated from time to time);
“Global Listed Infrastructure Fund” means AMP Capital
Global Listed Infrastructure Fund established 6 August
2012;
“Global Multi-Asset Fund” means AMP Capital Global MultiAsset Fund established 22 October 2013 (formerly called
AMP Capital NZ Multi-Asset Fund);
“ASX” means the Australian Securities Exchange;
“Global Property Securities Fund” means AMP Capital
Global Property Securities Fund established 30 September
2007;
“Australian AMP Capital Multi-Asset Fund” means AMP
Capital Multi-Asset Fund a fund managed by AMP Capital
Australia;
“Global Shares Fund” means AMP Capital Global Shares
Fund established 7 November 1994 (formerly called AMP
Investments’ Global Equities Fund);
“Australian Shares Fund” means AMP Capital Australian
Shares Fund established 1 July 1996 (formerly called AMP
Investments’ Australian Equities Fund);
“Global Short Duration Fund” means AMP Capital Global
Short Duration Fund established 4 October 2011 (formerly
called Wholesale Unit trust Global Bond Fund 3);
“Commodities Fund” means AMP Capital Commodities
Fund established 4 October 2011 (formerly called Wholesale
Unit Trust Commodities Fund);
“Gross Issue Price of Units” means the Issue Price of units
before tax and before fees are deducted;
“Core Global Shares Fund” means AMP Capital Core Global
Shares Fund established 30 September 2007;
“Core Hedged Global Shares Fund” means AMP Capital Core
Hedged Global Shares Fund established
30 September 2007;
“Gross Return” means the percentage return of a Fund for
a specified period calculated by using time-weighted rates
of return of the Gross Issue Price of Units of the Fund (in
this context “Gross Return” means the return before the
deduction of tax, expenses and fees and assumes all income
is reinvested);
“Hedged Global Fixed Interest Fund” means AMP Capital
Hedged Global Fixed Interest Fund established 7 November
1994 (formerly called AMP Investments’ Global Fixed
Interest Fund);
“Hedging” means a strategy in which investment risk and
thus the volatility of a portfolio is reduced by strategies,
which include, but are not limited to, the use of call and put
options, swaps, short selling or futures contracts;
“Income Generator Fund” means AMP Capital Income
Generator Fund established 1 April 2014;
“In Specie Distribution” means the distribution of an asset
in its actual form, rather than first being transferred into
cash or another form (for example, a share distributed “in
specie” would be transferred to you rather than sold and the
cash proceeds paid to you);
“Issue Price” means the Current Value of a Fund divided by
the number of Units of that Fund plus the entry fee for that
Fund plus the initial service fee (if any) for that Fund;
“Listed Property Securities Fund” means AMP Capital Listed
Property Securities Fund established 28 November 2008;
“Manager” means AMP Investment Management (N.Z.)
Limited;
“Maximum Investor Interests” means that an investor in
an investor class must not hold more than 20% of the total
investor interests in the class as defined in the Tax Act;
“Minimum Number Of Investors” means that each investor
class must include 20 or more persons as defined in the Tax
Act;
“NZ Cash Fund” means AMP Capital NZ Cash Fund
established 16 May 1995 (formerly called AMP Investments’
New Zealand Cash Fund);
“NZ Fixed Interest Fund” means AMP Capital NZ Fixed
Interest Fund established 16 May 1995 (formerly called AMP
Investments’ New Zealand Fixed Interest Fund);
“NZ Property Fund” means AMP Capital NZ Property Fund
established 16 May 1995 (formerly called AMP Investments’
NZ Property Fund);
“NZ Shares Fund” means AMP Capital NZ Shares Fund
established 16 May 1995;
“Promoter” means AMP Capital and each of its directors
who are not directors of the Manager;
“Responsible Investment Leaders Balanced Fund” means
AMP Capital Responsible Investment Leaders Balanced Fund
established 17 October 2008;
“Responsible Investment Leaders Conservative Fund”
means AMP Capital Responsible Investment Leaders
Conservative Fund established 16 May 1995 (formerly
called AMP Investments’ Income Fund and AMP Capital
Conservative Fund);
“Responsible Investment Leaders Global Shares Fund”
means AMP Capital Responsible Investment Leaders Global
Shares Fund established 29 June 2007;
“Responsible Investment Leaders Growth Fund” means
AMP Capital Responsible Investment Leaders Growth Fund
established 16 May 1995 (formerly called AMP Investments’
Growth Fund and AMP Capital Growth Fund);
“Responsible Investment Leaders NZ Shares Fund” means
AMP Capital Responsible Investment Leaders NZ Shares
Fund established 6 November 2012;
“RIL Funds” means AMP Capital Responsible Investment
Leaders Global Shares Fund, AMP Capital Responsible
Investment Leaders Conservative Fund , AMP Capital
Responsible Investment Leaders Growth Fund, AMP Capital
Responsible Investment Leaders Balanced Fund and the
Responsible Investment Leaders NZ Shares Fund;
“Securities Act” means the Securities Act 1978;
“Strategic NZ Shares Fund” means AMP Capital Strategic
NZ Shares Fund established 1 February 2001;
“Tax Act” means the Income Tax Act 2007;
“Trust Deeds” means the Global Funds Trust Deed (as
amended from time to time) and the AIF Funds Trust Deed
(as amended and consolidated from time to time) (and
“Trust Deed” means either of the Trust Deeds, as applicable);
“Trustee” means The New Zealand Guardian Trust Company
Limited;
“Unit” means an undivided interest in the relevant Fund as
defined in the Trust Deed;
“Unit Trusts Act” means the Unit Trusts Act 1960;
“NZ Short Duration Fund” means AMP Capital NZ Short
Duration Fund established 29 June 2007 (formerly called
AMP Capital NZ Enhanced Yield Fund);
“Vendor Guarantors” means the NZ Property Fund, AMP Life
(NZ) Investments Limited and Guardians of New Zealand
Superannuation; and
“NZX” means NZX Limited;
“Wholesale Unit Trusts” means funds managed by the
Manager that are not available for investment through this
Investment Statement.
“PIE” means a portfolio investment entity for the purposes
of the Tax Act;
“PIE income” means the income attributed to a person by
the PIEs in which the person has invested, less any losses
attributed to the person by PIEs, but does not include any
dividends paid to the person by Listed PIEs (a type of PIE).
Dividends from a Listed PIE that are not excluded income
under the Tax Act are taxable income;
Words or phrases not defined in this Glossary have the
same meaning as in the relevant Trust Deed.
“PIR” means the Prescribed Investor tax Rate as that term is
defined in the Tax Act;
“Proxy” means a proxy referred to in section HM 33 of the
Tax Act;
AMP Capital Investment Funds
47
AMP Capital Investment Funds
FORM OF APPLICATION FOR UNITS
Office use only: client number
[ATTACH CHEQUE HERE]
Please use a black pen and print in CAPITAL LETTERS.
1 WHAT TYPE OF INVESTOR ARE YOU?
Individual
Joint ownership
Company
Trust
Superannuation scheme
Partnership
Unincorporated body/club
Incorporated society
ARE YOU AN EXISTING UNIT HOLDER?
Yes*
No
* If yes, please advise Unit Holder number
ARE YOU A PROXY?
Yes
No
2 COMPLETE FULL NAME DETAILS (CAPITAL BLOCK LETTERS PLEASE)
MAIN APPLICANT
Title
Surname
Tax Status
Given name[s]
NZ Resident
Prescribed Investor Rate*
Non-Resident
IRD Number
PIR
JOINT APPLICANT #1
Title
Surname
Tax Status
Given name[s]
NZ Resident
Prescribed Investor Rate*
Non-Resident
IRD Number
PIR
JOINT APPLICANT #2
Title
Surname
Tax Status
Given name[s]
NZ Resident
Prescribed Investor Rate*
Non-Resident
IRD Number
PIR
*For joint accounts we must use the highest PIR rate.
If you are unsure how to determine your prescribed investor rate you can determine this at www.ird.govt.nz/toii/pir. If the PIR is invalid
the default rate will apply.
ENTITY/JOINT NAME
3 ADDITIONAL TAX DETAILS
It is mandatory to provide the US taxation status of all applicants, even if they are also a taxpayer in New Zealand.
You do not need to complete this section if the application is in the name of a Superannuation Scheme which is registered in New Zealand.
Individuals and Joint Ownership
Please indicate if you are a United States (US) citizen or resident for US tax purposes.
Applicant 1 Yes
No
Applicant 2 (if applicable)
Yes
No
If “yes” to the preceding question, please provide your US Taxpayer Identification Number (TIN). For individuals, this is your Social Security Number (SSN).
AMP Capital Investment Funds
Page 1 of 6
SSN (numeric values only)
Applicant 1 SSN (numeric values only)
Applicant 2 (if applicable)
Non-individuals (entities)
1. Is the entity a United States (US) company, US partnership or US trust for US tax purposes?
Yes
No
If“yes” to Question 1, please provide the US Taxpayer Identification Number (TIN) or exemption code if the entity is an exempt payee.
For entities, the TIN is the Employer Identification Number (EIN) of the company, partnership or trust.
EIN (numeric values only)
Or
Exemption code
(If the entity is either a US company, US partnership or US trust and you have completed this question, please go to Section four.)
2.
If the entity is a financial institution, please provide either:
a) The entity’s Global Intermediary Identification Number (GIIN);
Or
b) The FATCA status of the entity
(If the entity is a financial institution and you have completed this question, please go to Section four.)
3.(If “no” to Question 1 and Question 2 is not completed)
Does the entity have one or more individuals who are US citizens or residents for tax purposes who directly or indirectly:
- have more than a 25% interest in the company or partnership
Yes
No
- is/are a trustee, beneficiary, or otherwise control(s) the trust?
Yes
No
If “yes” to Question 3, you will need to provide AMP Capital with the name, residential address and TIN of each US person.
US Person 1 - Full Name
Residential Address – Not a PO Box
Unit number
Street number Street name
Suburb/Town
Postcode
State
Country
US Taxpayer Identification Number (TIN)
(numeric values only)
US Person 2 - Full Name
Residential Address – Not a PO Box
Unit number
Street number Street name
Suburb/Town
Postcode
State
Country
(numeric values only)
US Taxpayer Identification Number (TIN)
If there are more than two US Persons, please write their details on a separate page and attach to this form.
Further information about “Additional Tax Details” section can be found on the AMP Capital website in a “Learn about FATCA” document.
(www.ampcapital.co.nz/investing with us/adviser information)
AMP Capital Investment Funds
Page 2 of 6
4 COMPLETE POSTAL ADDRESS AND CONTACT DETAILS
Unit number
Street number Street name
Suburb/Town
Home phone
Postcode
Work phone
Email
5 AMOUNT OF UNITS APPLIED FOR
I/We wish to invest NZ$
to purchase Units in the following AMP Capital Investment Fund(s).
(Applications must be for a minimum of $100,000 in any Fund.)
.
AMP Capital Responsible Investment Leaders Conservative Fund
NZ$
AMP Capital Responsible Investment Leaders Growth Fund
NZ$
AMP Capital Responsible Investment Leaders Balanced FundNZ$
AMP Capital Global Multi-Asset Fund
NZ$
AMP Capital Income Generator Fund
NZ$
AMP Capital NZ Cash Fund
NZ$
AMP Capital NZ Fixed Interest Fund
NZ$
AMP Capital NZ Short Duration Fund
NZ$
AMP Capital Hedged Global Fixed Interest Fund
NZ$
AMP Capital Global Short Duration Fund
NZ$
AMP Capital NZ Shares Fund
NZ$
AMP Capital Strategic NZ Shares Fund
NZ$
AMP Capital Australian Shares Fund
NZ$
AMP Capital Responsible Investment Leaders NZ Shares Fund
NZ$
AMP Capital Global Shares Fund
NZ$
AMP Capital Core Global Shares Fund
NZ$
AMP Capital Core Hedged Global Shares Fund
NZ$
AMP Capital Emerging Markets Shares FundNZ$
AMP Capital Responsible Investment Leaders Global Shares Fund
NZ$
AMP Capital Global Property Securities FundNZ$
AMP Capital NZ Property Fund
NZ$
AMP Capital Listed Property Securities Fund
NZ$
AMP Capital Global Listed Infrastructure FundNZ$
AMP Capital Commodities Fund
NZ$
TOTAL INVESTMENTNZ$
AMP Capital Investment Funds
Page 3 of 6
6 DISTRIBUTION PAYMENTS
I/We elect to receive income distribution (if made) as follows:
Reinvest in additional units in the Fund.
Direct credit to bank account.
Distributions will be made by direct credit, please enter bank account details below:
Name of Bank
Account name
Bank/Branch
Account number
Suffix
–
7ACKNOWLEDGEMENTS
I/We have read the latest Investment Statement dated 18 September 2015 and understand that the terms and conditions of the Trust Deed will be
binding on us. I/We agree to accept the Units issued to me/us by the Manager as a Unit Holder under the relevant Trust Deed for those Units. I/We
agree to be bound by the provisions of that Trust Deed (as duly amended from time to time). I/we acknowledge that AMP Investment Management
(N.Z.) Limited, AMP Capital Investors (New Zealand) Limited and other members of the AMP group of companies (AMP Group) are subject to anti-money
laundering, countering financing of terrorism and sanctions laws (AML Laws) in New Zealand, Australia and elsewhere. I/we agree not to do anything
could cause any member of the AMP Group to breach the AML Laws. I/we agree to provide each member of the AMP Group with all information and
other assistance it reasonably requires to comply with the AML Laws. I/we agree to indemnify each member of the AMP Group against any loss it suffers
as a result of me/us providing incorrect or incomplete information. I/we agree that no member of the AMP Group shall be liable to me/us or anyone else
for any refusal to process or delay in processing a transaction I/we have requested or a suspension of my/our accounts with a member of the AMP Group
in accordance with the AML Laws. I/we represent and warrant that I/we have no cause to believe the funds used to purchase Units in the Funds are the
proceeds of crime or will be used to finance terrorism.
I/We agree that all information about me/us disclosed in this form may be used by AMP Investment Management (N.Z.) Limited or disclosed to and used
by AMP Capital Investors (New Zealand) Limited and the Trustee for the purpose of managing the Funds and my/our holding, including compliance with
the AML Laws. I/We know that I/we can request such access to and correction of any information held about me/us by AMP Investment Management
(N.Z.) Limited or AMP Capital Investors (New Zealand) Limited and the Trustee. Notwithstanding the foregoing, I/we acknowledge that where a suspicious
transaction report has been made about me/us, the person who has made that report is not able to give me/us access to any information about that
report (including its existence) and I/we have no right to request information in that report be corrected. I/We will inform AMP Investment Management
(N.Z.) Limited of any changes to the information provided by me/us to AMP Investment Management (N.Z.) Limited, AMP Capital Investors (New Zealand)
Limited or the Trustee.
I/We acknowledge that I/we may be required separately in relation to this application to pay a fee to AMP Capital Investors (New Zealand) Limited or an
associated person.
I/we acknowledge that if I/we am/are a custodian applying on behalf of another person(s):
• I/we warrant to the Trustee and the Manager that the other person(s) has received a copy of the current Investment Statement for the Funds, prior
to this application being submitted; and
• that person(s) is my/our ‘customer’ in terms of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 and I/we have and will
comply with my/our obligations in respect of that person(s) under that Act, including to verify the identity of that person(s); and
• If I/we am/are a Portfolio Investor Proxy, I/we:
• agree to establish systems and procedures to monitor the holdings of underlying investors and to monitor such holdings, and to manage and
remedy any breach of the Maximum Investor Interest requirements in section HM 15 of the Tax Act or the Minimum Number Of Investors
requirements in section HM 14 of the Tax Act, relating to underlying investors within the time periods permitted under section HM 25 of the Tax
Act, and to immediately notify the Manager on becoming aware of any such breach; and
• agree to indemnify the Trustee and the Manager for any losses, liabilities, costs or expenses arising from any breach of the Maximum Investor
Interest requirements in section HM 15 of the Tax Act or the Minimum Number Of Investors requirements in section HM 14 of the Tax Act relating
to underlying investors who I/we, as Portfolio Investor Proxy, am/are responsible for, including the losses, liabilities, costs or expenses arising from
the Fund losing PIE status.
AMP Capital Investment Funds
Page 4 of 6
8 DECLARATION AND SIGNATURE
Joint holders should all sign this form. A company should execute this form in accordance with its constitution. If this form is executed under Power of
Attorney, the certificate of non-revocation of Power of Attorney below should be completed and a copy of the Power of Attorney forwarded with this form.
Signature(s) of applicant(s) (or for companies, execute as a deed)
MAIN APPLICANT
Date
or
JOINT APPLICANT #1
Date
JOINT APPLICANT #2
Date
This Application Form must not be issued, circulated, or distributed unless accompanied by the Investment Statement dated 18 September 2015.
Certificate of non-revocation of Power of Attorney
I,
of
Hereby certify:
THAT, by a Power of Attorney dated the
day of
(Name of person for whom attorney is signing)
appointed me his/her/its attorney on the terms and conditions set out in the Power of Attorney.
THAT I have executed the application for Units printed on the face of this form as attorney under that Power of Attorney and pursuant to the powers thereby
conferred upon me.
THAT at the date of this certificate I have not received any notice or information of the revocation of that Power of Attorney by the death or liquidation of the
donor or otherwise.
Signed at
This
day of
20
Signature of attorney
9 IDENTITY VERIFICATION OF NEW APPLICANT
To be completed by the underlying investor in conjunction with the adviser through whom this application is made.
Identity verification must be completed in all cases where the applicant is new to the AMP Capital Investment Funds (in accordance with the Financial
Transactions Reporting Act 1996 and the Anti-Money Laundering and Countering Financing of Terrorism Act 2009).
Identification Details
Please provide details and a copy of one of the following primary documents or two of the following secondary documents:
• A Primary document must contain a photograph and must be one of the following: passport (personal details page), firearms licence, credit card with
photograph, foreign identity card, NZ driver’s licence.
• A Secondary document must be one of the following: birth certificate, certificate of membership of a professional body, credit card, evidence of a bank
account in your name (e.g. deposit slip), community services card, tertiary identification, international driver’s licence.
MAIN APPLICANT
Primary/Secondary Document description
Document Number
Expiry Date
D
D
M
M
Y
Y
Y
Y
Expiry Date
D
D
M
M
Y
Y
Y
Y
Secondary Document description
Document Number
AMP Capital Investment Funds
Page 5 of 6
JOINT APPLICANT #1
Primary/Secondary Document description
Document Number
Expiry Date
D
D
M
M
Y
Y
Y
Y
Expiry Date
D
D
M
M
Y
Y
Y
Y
Expiry Date
D
D
M
M
Y
Y
Y
Y
Expiry Date
D
D
M
M
Y
Y
Y
Y
Secondary Document description
Document Number
JOINT APPLICANT #2
Primary/Secondary Document description
Document Number
Secondary Document description
Document Number
Declaration (to be completed by adviser)
I have sighted the original(s) of the document(s) referred to above and confirm that the document(s) are correctly described. I also confirm that
the person(s) named in the Personal Details section of this application form and the person(s) identified in the document(s) referred to above are
the same individual(s). I have recorded information regarding the source of the funds or the customer’s wealth, and completed Politically Exposed
Persons checks.
I have no reason to believe that each person listed above is not who he or she claims to be.
Signature
Date:
ADVISER DETAILS
Adviser Name
Adviser Number
Adviser Business
AMP Capital Investment Funds
Page 6 of 6
Contacting AMP Capital
For information about investing with AMP Capital,
please contact us.
Auckland office
Level 16, 188 Quay Street
Auckland
PO Box 5436 Auckland 1141
Wellington office
Ground Floor, 113 - 119 The Terrace
Wellington
PO Box 3764 Wellington 6140
Telephone
0800 400 499
8.30am – 4.30pm New Zealand time, Monday to Friday
Website
58
ampcapital.co.nz
AMP Capital Investors (New Zealand) Limited