Welcome to SuperNews - August 2009
Please note that this edition replaces the newsletter sent 31 August 2009.
SuperNews is the Association's bi-monthly electronic newsletter, keeping you abreast of what's happening in the workplace savings industry.
In this edition we wrap up our one-day Forum held in Wellington, call for entries to our 2009 Communication Awards, introduce you to our "new look" and bring you the results of the NAB & BNZ Superannuation FX survey.
Communication Awards 2009
Think your recent investment statement or media campagin is a step above the rest? Then put it to the judges!
The ASFONZ Communication Awards recognise excellence in marketing and communications in the workplace retirement savings industry and aims to assist in raising the standard of communications.
This year there will be four award categories:
- Investment Statement of the Year
- Annual Reporting of the Year (combined Annual Report and Members’ Benefit Statement)
- Best Other Workplace Savings or KiwiSaver Communication (including Media Campaigns)
- Best “New Entrant” to the ASFONZ Communications Awards
All entries will be eligible to win the supreme “ASFONZ Excellence in Communication” Award (and subsequent 'bragging rights' for the year).
Entries will open from 1 October 2009. You can enter as many communication campaigns into as many award categories as you wish.
More details including judging criteria, guide to entry and entry forms are available on our website: www.asfonz.org.nz/communication-awards.
Entries for the Awards close on 31 October 2009.
The entries will be judged in November, and the Communication Awards ceremony will be held as an evening function on Thursday 3 December, in Auckland.
STOP PRESS - This years Awards programme will see the launch of an innovative new category aimed at rewarding KiwiSaver providers. We will announce more detail on this soon!
Re-brand of the Association
A proposed change of name for the Associaton was announced at our recent one-day Forum in Wellington.
ASFONZ Chair David Ireland says the time is now right for a change of name.
"From 1 November, the Association will become known as Workplace Savings NZ - Te māngai penapena ā-mahi. "The literal translation of the Māori tagline is ‘the mouthpiece for workplace savings'.
"The decision to change the name was made because we believe it is important to have a name that more closely reflects the activities of the Association.
"Forty years on, we are far more than just a body for superannuation funds: our focus is on workplace savings as a whole, including KiwiSaver,"
The proposed name is subject to ratification by members at a Special General Meeting planned in conjunction with an industry breakfast on Wednesday 21 October to discuss this. We will let you know more details and encourage you all to come along and have your say.
ASFONZ 2009 Forum
The ASFONZ 2009 one-day Forum held on Thursday 6 August was a success. Over 130 delegates from the workplace savings industry flocked to Te Papa to think about Plain Englishing Workplace Savings & KiwiSaver.
Finance Minister Bill English opened the day's procedings confirming that Government are not planning further significant change to KiwiSaver.
The Forum then kicked into gear with a robust panel discussion examining the question "does the employer have arole to play in workplace retirement savings?". One consistent theme appeared to be recognition that employees have an information need in the KiwiSaver space. However there was less conformity on where investor advice should be sourced and whether the employer should assist or facilitate this.
Jack Regan of AMP then demonstrated a solid grasp of the issues faced by the industry speaking to the topic "The Challenges of Choice".
The Retirement Commissioner, Diana Crossan, spoke to the work being undertaken to ensure financial literacy for New Zealanders is tangible, measurable and meaningful.
After lunch, independent media commentator John Bishop gave delegates an insight into the macro workings of the media and their role, or lack thereof, in financial literacy.
Next Peter Duvall of Colonial First State looked at whether ther are lessons providers can learn from the Australian experience. In summing up Peter highlighted that:
- member confidence in the system is a must;
- developing engagement is a longer term journey;
- compelling benefits are critical to engagement and action
Paul Newfield next spoke on the critical question of decumulation in the KiwiSaver world. Paul highlighted that there is not 'one size fits all', and discussed some thought provoking potential decumulation options. As an industry the exploration and lobbying for such options should be high on our priorities lists (editor).
The concluding presenters were Bevan Graham and Andrew Hunt who reviewed the domestic and international economies respectively. Delegates will, without doubt, have their own take aways from these two outstand updates.
Presentations from the Forum can be downloaded from our website: www.asfonz.org.nz/forum-agenda/
September Industry Breakfast
ASFONZ & Women in Super invite you to join our guest speaker Jason Wong, AMP Capital's Head of Investment Strategy, as he provides his answer to the big question everyone wants answered: is the recession is finally over?
Wellington (click here to register)
Wednesday 16 September 2009, 7.30 - 9.00 am
The Wellington Club, 88 The Terrace, Wellington
Auckland (click here to register)
Thursday 17 September 2009, 7.30 - 9.00 am
The Auckland Club, 34 Shortland Street, Auckland
Trustee Education Programme
Looking to complete your ASFONZ Certificate of Trusteeship?
The Certificate is comprised of 4 modules. Each module is run as a half-day session and designed facilitate an interactive 'workshop' learning environment including case studies and discussion.
Introduction to Trusteeship
Wellington, Wednesday, 11 Nov 2009 (AM)
Best Practice Governance
Wellington, Wednesday 11 November 2009 (PM)
Introduction to Wholesale Investing
Auckland, Friday 13 November 2009
Note: No registration fee for ASFONZ members!
Trustee Investment Decisions
Wellington, Thursday 12 November 2009 (AM)
For more Information and to Register:
Online via our website: www.asfonz.org.nz/education-programme-info OR;
Email info@asfonz.org.nz with your name, contact details and the name of the module you wish to enroll for.
NAB & BNZ Superannuation FX Survey
An advertorial from BNZ Capital
The results from the 2009 NAB and BNZ Superannuation FX Survey are in! The key finding – currency matters. Super funds are now taking currency management very seriously, with 85% of respondents ranking currency as an important or very important issue.
As the global financial crisis unfolded, the New Zealand dollar fell dramatically. After climbing to a high of 82 cents against the US dollar in March 2008, it swiftly slipped to a low of 49 cents in March 2009. The dramatic swings in the New Zealand dollar meant that decisions on how to manage currency risks had a significant impact on superannuation returns.
The need for liquidity to fund hedging losses after the currency fell sharply became a paramount issue for many super funds, and the currency contribution to overall portfolio performance was huge in 2008. For the MSCI World ex-Australia Index, the currency contribution to returns from an unhedged portfolio in New Zealand dollars would have been about 24%; fully hedged it would have been closer to 4%. Never has it been more apparent that currency strategy matters, arguably just as much as manager selection.
So how are NZ super funds dealing with currency issues? Despite the increased focus, super funds in New Zealand have not materially changed the way they think about currency benchmarks, unlike their trans-Tasman counterparts. Only 42% of New Zealand funds changed currency benchmarks over the course of the year, compared with 61% of Australian funds.
Not only did New Zealand fund managers tend to maintain a more consistent currency strategy, but they placed a different importance on what factors would elicit a change in benchmark. The cash impact of hedging was seen by 53% of Australia managers as a reason to change the benchmark, compared to 46% in New Zealand. More startling, just 46% of New Zealand managers cited a change in the value of the currency as a reason to alter the benchmark - a stark comparison to 74% of Australian managers.
Click here to see the complete Superannuation FX Survey Results or, for further information, contact Greg Ball at BNZ directly, by phone (09) 924 8600 or email Greg_Ball@bnz.co.nz
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