Since 2010 all Whai Rawa funds have been invested in a conservative investment with a primary focus remaining on minimising risk to member funds. Mercer’s Conservative Fund (the sole Whai Rawa portfolio) is a conservative mix of defensive and growth assets with a benchmark split of 80% defensive assets (50% bonds, 30% cash) and 20% growth assets (16% shares, 4% real assets). This is a similar makeup to Mercer’s Conservative KiwiSaver scheme. Find out more about different investment types and risks.
Earnings on your Whai Rawa account are calculated based on your daily balance and added to your account quarterly, with PIE tax deducted at the end of the tax year (31 March). For more information on the investments of Whai Rawa see page 16 of the Other Material Information document or peruse the Whai Rawa Statement of Investment Policy & Objectives document.
Returns Paid to Members – At the end of each quarter Link calculates the earnings to be added to each member’s account. The annualised return (before PIE tax) for the years ended 31st March were:
The returns shown in Mercer’s quarterly reports are higher than the annualised returns calculated by Link and paid to members as outlined above. Reasons for this difference include taxation rules in relation to the overseas investment component and the fact that, since 30 June 2012, Mercer’s fees are deducted before the return is paid to members. See Section 5 of the Product Disclosure Statement for more information and our key documents.