As well as all the benefits Te Rūnanga provides, your Whai Rawa funds are invested in Mercer Investment Trusts New Zealand’s Socially Responsible Conservative Portfolio, which is a conservative investment. Generally, investing in a conservative investment means you are willing to take on some moderate ups and downs in value and are seeking average long-term returns, a bit higher than in a defensive fund but most likely not as high as in a growth fund.
Current Whai Rawa Investment
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 Investment Trusts New Zealand’s Socially Responsible Conservative Portfolio (into which all Whai Rawa funds are currently invested) 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). Find out more about different investment types and risks.
Earnings on your Whai Rawa account are calculated based on daily unit pricing. The value of your savings rises or falls depending on changes in the price of the investment assets owned. Unit prices are used to help track changes in the value of your Whai Rawa account.
How do units work?
When your contributions are allocated to the fund, they join a pool of assets from other members invested in that same portfolio. To keep track of the value of each person’s share of the pool, the total value of the assets in the pool is divided into units of equal value. Units are then allocated to your account, according to the amount of your contribution and the entry unit price at the time of your transaction.
For more information on the investments of Whai Rawa see the Other Material Information document or view the Whai Rawa Statement of Investment Policy & Objectives document.
Returns Paid to Members – On a daily basis, the value of your investment will rise or fall based on the unit price. When the new digital platform is up and running early in 2020, you’ll notice then that the value of your Whai Rawa savings is being calculated and available daily. The number of units you own, and their value will appear alongside your account balance when you check your account. This will be a major difference from the current online platform.
The annualised return (before PIE tax) for the years ended 31st March were:
- 2019 5.43%
- 2018 5.22%
- 2017 5.32%
- 2016 5.24%
- 2015 9.48%
- 2014 7.16%
- 2013 6.86%
- 2012 6.65%
- 2011 3.19%
- 2010 3.89%
- 2009 7.44%
- 2008 7.77%
Please note that previous returns are not indicative of future returns. Earning rates may be negative and no repayment of principal or the payment of any earnings or returns is guaranteed.
The returns shown in Mercer’s quarterly reports are higher than the annualised returns calculated 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 the Product Disclosure Statement for more information.
Market and Whai Rawa Fund Specific Commentary – You can now read a regular Investment Commentary including a market update and information about the Whai Rawa fund.
January 2019 Investment Commentary (click to download)
March 2019 Investment Commentary (click to download)
April 2019 Investment Commentary (click to download)
June 2019 Investment Commentary (click to download)
September 2019 Investment Commentary (click to download)
October 2019 Investment Commentary (click to download)