issue 10: six months to 30 september 2017 investor news...since november 2016. investment outlook...

Investor News

Issue 10: Six Months to 30 September 2017

Table of Contents

Message from the CEO 1

Market Commentary 2

Future Prospects 3

Superplan/Superplan 2000 (PIE) 4

Retirement Savings Plan (PIE) 9

Lifeplan/Go Kidz Lifeplan 14

Saveguard Plus, Mortgage Plus and Retirement Plus 19

Wise Investment 23

Life Yield, Life Yield Bond, Child Life Yield and Money Maker 25

Investment Bond (former Oceanic Funds) 27

Foreign & Colonial (F&C) Investment Funds 29

Nikko Asset Management New Zealand Ltd 30

Important information 32

It’s been another busy period for Suncorp New Zealand with the announcement of our full year results to 30 June 2017. It was a challenging year, with our general and life insurance businesses delivering a net profit after tax of $87 million, compared to $200 million for the previous year.

The 2017 net profit after tax result was impacted by a number of one-off events, including the Kaikoura earthquakes, Cyclones Debbie and Cook, and additional claims from the 2010/11 Canterbury earthquakes. A trend in increased motor claims costs, experienced across the industry, also contributed to the lower result.

Looking ahead, we have a number of initiatives in place for FY18, which will deliver against our strategic priorities.

These initiatives will build a more resilient business to meet a greater number of customer and business partner needs, and help us achieve our vision to be the number one choice for New Zealanders because we are the destination for the moments that matter.

On page 2, you’ll see our fund manager Nikko Asset Management New Zealand Limited (Nikko) has provided commentary on the performance of both domestic and global markets, which have been impacted by a number of significant geopolitical events.

Domestically, economic growth has been steady as Gross Domestic Product has risen by 1.6% over the last 6 months. The unemployment rate dropped to 4.6% in quarter three, this is the lowest rate since quarter four 2008. The migration, construction and residential property sectors appear to have reached peaks following a period of growth. The NZX50 index showed strong growth for the period, outperforming global equities. From an interest rate perspective, the RBNZ have left the Official Cash Rate unchanged at an all-time low of 1.75% since November 2016.

Investment OutlookMarket volatility will continue to be a key theme impacting the current investment environment, driven by; geopolitical events, a long run of bullish equity markets and the impact of potential interest rate increases particularly in the US.

Amongst this volatility, our exposure to both domestic and international markets continues to be managed effectively by Nikko, with returns continuing to perform favourably against their investment benchmarks.

We’d love to hear from youWe are committed to providing the very best service to you, our customers. If you have any feedback or suggestions drop us a line on 0800 737 101 or send an email to [email protected].

We take this opportunity to thank our customers, our business partners and you for choosing Asteron Life for your investment needs.

Paul SmeatonChief Executive Officer Suncorp New Zealand

Message from the CEO

1

In the six months to 30 September 2017, markets have generally been strong for most investors and even some of the weakness seen earlier in the year in sectors such as Australian shares and oil prices recovered in the latter part of the period.

DomesticThe New Zealand share market continues to lead many of the global equity markets returning over 11% during the period. The broader market again outperformed the property index which returned “only” 5% for the 6-month period.

The NZ bond market has been more steady, but with the Government bond index returning over 2% for the six months this would probably be in line with investor expectations, with only the month of June posting a negative return during the period. The RBNZ continued to hold the OCR at 1.75%, a rate unchanged since the 10th of November 2016.

InternationalInternational markets were quite varied during the June quarter with the US and Japan joining New Zealand with strong returns, whilst Australia lagged. The major markets were all positive for the September quarter although rather muted in the UK (FTSE 100 up just 0.8% in local currency) and Australia (ASX 200 up 0.7% in local currency).

For many investors, the currency will have provided more movement than the underlying assets with the NZ dollar strengthening against most currencies in the June quarter only to see much of this unwind in the September quarter as the election results weakened demand for the NZD.

Commodities continued to demonstrate their volatile streak with oil in particular falling nearly 10% early in the period only to recover this and more by the end of the September period.

There is never a shortage of things for financial markets to worry over, whether this is conflict, prices, or politics

(whether real or imagined). Despite these possible worries, measures of volatility remain remarkably low, and we repeat the comments made previously that measures (such as the VIX) continue to post such low figures. For those not familiar with the VIX it is simply a mathematical model which calculates the expected (i.e. future) volatility of the S&P500 stock market based on the prices being paid for options contracts. In simple terms this is way of saying that the price of an option implicitly tells you what the market expects volatility to be. With VIX levels remaining at lows not seen since before the GFC, it is understandable that some commentators believe markets have become complacent to risk and are “pinching pennies from in front of steamrollers”.

Performance SummaryBenchmark Index Asset

ClassGross Performance Returns (NZD) 6 Months to 30 September 2017

S&P/NZX NZ Government Stock Index

NZ Fixed Interest

2.31%

S&P/NZX A Grade Corporate Bond Index

NZ Corporate Bond

2.50%

Bloomberg Barclays Global Aggregate Index (100% hedged into NZD

International Fixed Interest

2.22%

S&P/NZX 50 Index Gross with Imputation Credits

NZ Equity 10.89%

S&P/ASX 200 (AUD) AU Equity 0.35%

MSCI All Countries World Index 100% Hedged to NZD

International Equity

8.09%

S&P/NZX 90-day Bank Bill Index

NZ Cash 1.01%

S&P/NZX All Real Estate (Industry Group) Gross with Imputation’

Listed Property

4.99%

Market CommentaryFor the six months to 30 September 2017

2

Future Prospects

Looking forward it’s hard to get excited about global bonds with their low yields and risks of interest rates starting to rise as central banks slowly start to moderate their bond purchasing programmes.

Furthermore with possible signs of inflation continuing to be seen on the horizon, we should be cautious of the possible erosion of value in long dated bonds. On the other hand, with equity markets hitting new highs and the property cycle looking like peaking, investors are left to wonder where’s the right place to put their hard-earned money?

Nikko’s thoughts on this perennial issue remain unchanged, namely that unless an investor’s time horizon, risks or objectives have changed significantly, it is likely to be unwise to make significant changes to asset allocation based on shorter-term concerns or market movements. A portfolio that is appropriately diversified will help to avoid the temptation of trying to time the markets which is a game for the brave, brilliant or foolhardy.

3

Superplan/Superplan 2000 (PIE)

Aggressive Fund 5

Balanced Fund 5

Conservative Fund 5

Dynamic Fund 6

Global Share Fund 6

North American Share Fund 6

European Share Fund 7

NZ Bond Fund 7

Trans-Tasman Fund 7

Capital Fund 8

Global Bond Fund 8

Asteron Superplan, which covers Superplan, Superplan Locked-in, Superplan 2000 and VIP Superplan (‘Superplan’) was a registered superannuation scheme under the Superannuation Schemes Act 1989.

Superplan was a superannuation scheme for the purpose of the Securities Act 1978 and the Securities Regulations 2009.

Superplan is a unit linked, market-valued, defined contribution scheme.

Superplan transitioned to the Financial Markets Conduct Act 2013 regime on 30 November 2016. Accordingly, it is a restricted legacy superannuation scheme for the purposes of the Financial Markets Conduct Act 2013. For further information relating to the Asteron Superplan’s Trust Deed, Statement of Investment Policy and Objectives, Annual Report, Annual Financial Statements and Fund Updates please refer to https://www.asteronlife.co.nz/already-customer/investments.html.

The Trustee of Superplan is Asteron Retirement Investment Limited, a wholly owned subsidiary of Suncorp Group New Zealand Limited, whose ultimate parent company is Suncorp Group Limited, a company incorporated in Australia.

Superplan is a Portfolio Investment Entity (PIE).

Superplan is closed to new investors.

4

As at 30 September 2017

https://www.asteronlife.co.nz/already-customer/investments.html.

As at 30 September 2017Superplan/Superplan 2000 (PIE)

Performance Superplan Superplan 2000

6 months 5.85% 6.09%

1 year 9.35% 10.09%

3 years (pa) 8.92% 9.67%

5 years (pa) 9.76% 10.48%

7 years (pa) 7.15% 7.83%

Fund size (million) $5.9 $0.6

Unit Price 2.0589 2.2214

Aggressive FundAsset allocation

Cash Nikko AM Global Equity Hedged Fund

Nikko AM Global Equity Unhedged Fund

Nikko AM Wholesale Concentrated Equity Fund

Nikko AM Wholesale Multi Strategy Fund

Nikko AM Wholesale NZ Cash Fund Nikko AM Wholesale Option Fund

14.05%

15.10%

20.60%

11.34%

1.16%

3.15%

Conservative FundAsset allocation

Cash Nikko AM Global Equity Unhedged Fund

Nikko AM Wholesale Core Equity Fund

Nikko AM Wholesale Global Bond Fund

Nikko AM Wholesale NZ Bond Fund

Nikko AM Wholesale NZ Cash Fund


6 months 3.72% 4.21%

1 year 3.71% 4.64%

3 years (pa) 5.36% 6.29%

5 years (pa) 5.95% 6.84%

7 years (pa) 5.64% 6.53%


Unit Price 2.7787 2.5680

38.14%

19.53%

12.93%

9.73%

17.77%

1.90%

Balanced FundAsset allocation





Nikko AM Wholesale NZ Bond Fund Nikko AM Wholesale NZ Cash Fund Nikko AM Wholesale Option Fund Nikko AM Wholesale Property Fund


6 months 5.41% 5.79%

1 year 6.16% 6.78%

3 years (pa) 7.53% 8.26%

5 years (pa) 8.76% 9.52%

7 years (pa) 7.43% 8.23%


Unit Price 3.3863 2.7014

25.31%

6.03%

19.31%16.52%

17.20%

1.15%4.82%

NotesYou can click on the hyperlinks above to access more information.



4.79%

4.86%

34.61%

5



6 months 6.97% 7.23%

1 year 7.85% 8.53%

3 years (pa) 9.26% 9.86%

5 years (pa) 10.65% 11.21%

7 years (pa) 8.60% 9.24%


Unit Price 3.0801 2.7392

Dynamic FundAsset allocation





31.18%

28.34%12.09%

10.50%

1.35%6.98%

4.87%


6 months 7.51% 8.03%

1 year 15.17% 15.99%

3 years (pa) 9.19% 9.89%

5 years (pa) 12.19% 12.97%

7 years (pa) 8.78% 9.56%


Unit Price 2.8347 2.4412

Global Share FundAsset allocation



81.40%

17.00%

1.60%

North American Share FundAsset allocation

Cash F&C North American Fund F&C US Smaller Companies Fund



6 months 4.41% 5.00%

1 year 18.86% 19.85%

3 years (pa) 9.96% 10.47%

5 years (pa) 13.82% 14.44%

7 years (pa) 11.68% 12.33%


Unit Price 3.8931 2.7738

5.28%0.01%4.45%

90.26%




4.71%

6


European Share FundAsset allocation

Cash F&C European Growth &

Income Fund Nikko AM Wholesale NZ

Cash Fund

NZ Bond FundAsset allocation

Government Stock SOE and Local Authority NZ Registered Banks Corporate debt


6 months 12.35% 12.99%

1 year 27.21% 27.60%

3 years (pa) 9.74% 10.45%

5 years (pa) 13.20% 13.93%

7 years (pa) 9.31% 10.04%


Unit Price 3.1516 2.7176


6 months 2.33% 2.37%

1 year 0.15% 0.24%

3 years (pa) 4.57% 4.59%

5 years (pa) 3.91% 3.92%

7 years (pa) 4.99% 4.98%


Unit Price 3.5739 2.8007

1.62%

96.71%


6 months 11.98% 12.33%

1 year 9.73% 10.46%

3 years (pa) 14.65% 15.39%

5 years (pa) 15.28% 15.99%

7 years (pa) 12.57% 13.28%


Unit Price 6.0336 4.8279


Trans-Tasman FundSector allocation

Consumer discretionary Consumer staples Energy Financials Healthcare Industrials Information technology Materials Telecommunications Utilities Real Estate Cash

1.67%

Asset Allocation Combined Total %

Cash 0.87%

Nikko AM Wholesale NZ Bond Fund 99.13%

14.6%

37.2%

30.7%

17.5%


Cash 1.09%

Nikko AM Wholesale Core Equity Fund 98.91%

Country Allocation

NZ Equities 86.1%

Australian Equities 12.9%

Cash 1.0%

5.6%1.0%

20.5%

4.1%3.6%

11.6%

9.3%

10.6%

6.6%

5.1%

4.3%

17.7%

7



Cash 2.16%

Nikko AM Wholesale Global Bond Fund 97.84%


6 months 1.09% 1.19%

1 year -0.31% -0.14%

3 years (pa) 3.86% 3.86%

5 years (pa) 4.29% 4.31%

7 years (pa) 4.54% 4.55%


Unit Price 2.8713 3.0359

Global Bond FundAsset allocation

Governments Agency Credit Collateralised & MBS Emerging market debt Cash, derivatives, other

Capital FundAsset allocation

Governments NZ Registered Banks Local Authorities Corporates


6 months 0.85% 1.13%

1 year 1.76% 2.31%

3 years (pa) 2.30% 2.85%

5 years (pa) 2.60% 3.14%

7 years (pa) 2.64% 3.18%


Unit Price 2.7194 2.3175


Cash 1.28%

Nikko AM Wholesale NZ Cash Fund 98.72%

13.1%

85.7%

0.8%0.4%

32.8%

10.2%19.6%

33.0%

2.8% 1.6%

8

Retirement Savings Plan (PIE)

Retirement Savings Plan was a section of the Asteron Superannuation Fund which was a registered superannuation scheme under the Superannuation Schemes Act 1989.

Asteron Superannuation Fund was a superannuation scheme for the purpose of the Securities Act 1978 and the Securities Regulations 2009.

Retirement Savings Plan is a unit linked, market-valued, defined contribution scheme.

The Asteron Superannuation Fund was renamed the Asteron Retirement Savings Plan and transitioned to the Financial Markets Conduct Act 2013 regime on 30 November 2016. Accordingly, it is a restricted legacy superannuation scheme for the purposes of the Financial Markets Conduct Act 2013. For further information relating to the Asteron Retirement Savings Plan’s Trust Deed, Statement of Investment Policy and Objectives, Annual Report, Annual Financial Statements and Fund Updates please refer to https://www.asteronlife.co.nz/already-customer/investments.html.

The Trustee of Retirement Savings Plan is Asteron Retirement Investment Limited, a wholly owned subsidiary of Suncorp Group New Zealand Limited, whose ultimate parent company is Suncorp Group Limited, a company incorporated in Australia.

Retirement Savings Plan is a Portfolio Investment Entity (PIE).

Retirement Savings Plan is closed to new investors.

Deposit Fund 10

NZ Fixed Interest Fund 10

International Fixed Interest Fund 10

Managed Conservative Fund 11

Managed Neutral Fund 11

Managed Growth Fund 12

NZ Equity Fund 12

International Equity Fund 12

NZ Property Fund 13

9




As at 30 September 2017Retirement Savings Plan (PIE)

Performance

6 months 1.10%

1 year 2.26%

3 years (pa) 2.93%

5 years (pa) 3.17%

7 years (pa) 3.17%

Fund size (million) $3.7

Unit Price 11.0380

Deposit FundAsset allocation


Performance

6 months 2.47%

1 year 0.45%

3 years (pa) 5.02%

5 years (pa) 4.29%

7 years (pa) 5.36%


Unit Price 3.2753

NZ Fixed Interest FundAsset allocation


Performance

6 months 1.13%

1 year -0.22%

3 years (pa) 4.30%

5 years (pa) 4.75%

7 years (pa) 4.96%


Unit Price 3.4382

International Fixed Interest FundAsset allocation



Cash 1.74%



Cash 1.81%



Cash 1.01%


14.6%

37.2%

30.7%

17.5%

13.1%

85.7%

0.8%0.4%

32.8%

10.2%19.6%

33.0%

2.8% 1.6%

10


Managed Neutral FundAsset allocation






19.18%16.53%

25.10%

Performance

6 months 5.78%

1 year 7.02%

3 years (pa) 8.77%

5 years (pa) 10.00%

7 years (pa) 8.70%


Unit Price 3.4411

1.47%6.00%4.80%

Performance

6 months 4.26%

1 year 4.65%

3 years (pa) 6.72%

5 years (pa) 7.30%

7 years (pa) 6.96%


Unit Price 3.1839

Managed Conservative FundAsset allocation




Nikko AM Wholesale NZ Bond Fund Nikko AM Wholesale NZ Cash Fund

9.82%37.52%

17.52%19.64%

13.65%

1.85%



17.24%

4.83%

4.86%

11


Managed Growth FundAsset allocation





30.37%

28.08%12.56%

10.57%

Performance

6 months 7.31%

1 year 8.60%

3 years (pa) 10.54%

5 years (pa) 11.95%

7 years (pa) 9.91%


Unit Price 3.5624

1.74%7.01%4.82%


4.86%

1.89%International Equity FundAsset allocation



Performance

6 months 7.82%

1 year 15.88%

3 years (pa) 10.26%

5 years (pa) 13.56%

7 years (pa) 9.99%


Unit Price 3.0346

81.53%

16.58%


NZ Equity FundSector allocation


Country Allocation

NZ Equities 86.1%


Cash 1.0%

Performance

6 months 12.23%

1 year 10.24%

3 years (pa) 15.54%

5 years (pa) 16.20%

7 years (pa) 13.32%


Unit Price 4.5849


Cash 1.89%


5.6%1.0%

20.5%

4.1%3.6%

11.6%

9.3%

10.6%

6.6%

5.1%

4.3%

17.7%

12


NZ Property FundCountry allocation

New Zealand Australia Cash

Performance

6 months 3.34%

1 year -2.92%

3 years (pa) 9.39%

5 years (pa) 9.49%

7 years (pa) 11.42%


Unit Price 4.8537

89.40%

1.00%

9.60% Asset Allocation Combined Total %

Cash 1.57%

Nikko AM Wholesale Property Fund 98.43%

13

Lifeplan/Go Kidz Lifeplan

Lifeplan is a unit-linked, market-valued life insurance policy issued by Asteron Life Limited.

Lifeplan is NOT a Portfolio Investment Entity.

Lifeplan is closed to new investors.

Capital Fund 15

NZ Bond Fund 15

Conservative Fund 15

Global Bond Fund 16

Balanced Fund 16

Dynamic Fund 16

Global Share Fund 17

Trans-Tasman Share Fund 17

North American Share Fund 17


14


As at 30 September 2017Lifeplan/Go Kidz Lifeplan

Performance

6 months 0.75%

1 year 1.53%

3 years (pa) 1.92%

5 years (pa) 2.03%

7 years (pa) 2.04%


Unit Price 2.5555



Performance

6 months 1.84%

1 year 0.36%

3 years (pa) 3.57%

5 years (pa) 2.95%

7 years (pa) 3.67%


Unit Price 3.1401

NZ Bond FundAsset allocation


Performance

6 months 3.78%

1 year 4.27%

3 years (pa) 5.24%

5 years (pa) 5.56%

7 years (pa) 4.98%


Unit Price 2.6298







19.20%

113.59%

10.03%38.41%

17.18%

1.59%


Cash 2.01%



Cash 2.24%



14.6%

37.2%

30.7%

17.5%

13.1%

85.7%

0.8%0.4%

15


Performance

6 months 0.93%

1 year 0.03%

3 years (pa) 3.06%

5 years (pa) 3.30%

7 years (pa) 3.45%


Unit Price 2.5418

Global Bond FundAsset allocation


19.29%16.57%

25.09%

Performance

6 months 5.48%

1 year 6.69%

3 years (pa) 7.43%

5 years (pa) 8.39%

7 years (pa) 6.85%


Unit Price 3.0877

Balanced FundAsset allocation






1.48%4.85%6.01%

30.31%

28.41%

12.44%

10.48%

Performance

6 months 7.08%

1 year 8.48%

3 years (pa) 9.33%

5 years (pa) 10.34%

7 years (pa) 8.10%


Unit Price 2.9146

1.77%7.16%

4.83%




Cash 1.68%


17.00%

4.82%

4.89%

4.60%

Dynamic FundAsset allocation





Nikko AM Wholesale NZ Cash Fund Nikko AM Wholesale Option Fund Nikko AM Wholesale Property Fund

32.8%

10.2%19.6%

33.0%

2.8% 1.6%

16


Performance

6 months 7.51%

1 year 15.26%

3 years (pa) 9.19%

5 years (pa) 12.01%

7 years (pa) 8.06%


Unit Price 2.5391

Global Share FundAsset allocation



80.51%

17.43%

2.06%

North American Share FundAsset allocation

Cash F&C North American Fund Nikko AM Wholesale NZ

Cash Fund

Performance

6 months 4.04%

1 year 18.64%

3 years (pa) 9.50%

5 years (pa) 13.25%

7 years (pa) 10.79%


Unit Price 3.5998

95.77%

1.21%3.02%

Trans-Tasman Share FundSector allocation

Consumer discretionary Consumer staples Energy Financials Health Care Industrials Information technology Materials Telecommunications Utilities Real Estate Cash




Cash 1.23%


Country Allocation

NZ Equities 86.1%


Cash 1.0%

Performance

6 months 12.42%

1 year 10.56%

3 years (pa) 15.41%

5 years (pa) 15.43%

7 years (pa) 12.36%


Unit Price 5.8624

5.6%1.0%

20.5%

4.1%3.6%

11.6%

9.3%

10.6%

6.6%

5.1%

4.3%

17.7%

17



Cash F&C European Growth & Income Fund


Performance

6 months 12.86%

1 year 27.41%

3 years (pa) 9.52%

5 years (pa) 12.80%

7 years (pa) 8.61%


Unit Price 2.8671

97.25%

0.51% 2.24%


18

Saveguard Plus, Retirement Plus (pre-PSP version) and Mortgage Plus are unit-linked, market-valued life insurance policies issued by Asteron Life Limited.

The Retirement Plus PSP (Personal Superannuation Plan) transitioned to the Financial Markets Conduct Act 2013 regime on 30 November 2016 as a restricted legacy superannuation scheme for the purposes of the Financial Markets Conduct Act 2013, and was subsequently wound up, effective 29 June 2017.

The Trustee of Retirement Plus PSP was Asteron Retirement Investment Limited, a wholly owned subsidiary of Suncorp Group New Zealand Limited, whose ultimate parent company is Suncorp Group Limited, a company incorporated in Australia.

Saveguard Plus, Retirement Plus and Mortgage Plus are NOT Portfolio Investment Entities.

Saveguard Plus, Retirement Plus and Mortgage Plus are all closed to new investors.

Saveguard Plus, Mortgage Plus and Retirement Plus

Money Fund 20

Fixed Interest Fund 20

Conservative Fund 20

Managed Fund 21

Equity Fund 21

International Equity Fund 21

North American Equity Fund 22


Aggressive Fund 22

19


As at 30 September 2017Saveguard Plus, Mortgage Plus and Retirement Plus

Performance

6 months 0.77%

1 year 1.56%

3 years (pa) 1.93%

5 years (pa) 2.06%

7 years (pa) 2.06%


Unit Price 4.1371

Money FundAsset allocation


Performance

6 months 1.87%

1 year 0.41%

3 years (pa) 3.59%

5 years (pa) 2.98%

7 years (pa) 3.69%


Unit Price 5.8633

Fixed Interest FundAsset allocation








Performance

6 months 4.24%

1 year 4.90%

3 years (pa) 5.81%

5 years (pa) 6.11%

7 years (pa) 5.50%


Unit Price 3.7559

17.80%

9.69%37.93%

19.31%

12.91%

2.37%



Cash 2.15%



Cash 2.10%


14.6%

37.2%

30.7%

17.5%

13.1%

85.7%

0.8%0.4%

20


Performance

6 months 5.85%

1 year 7.28%

3 years (pa) 8.00%

5 years (pa) 8.99%

7 years (pa) 7.47%


Unit Price 9.4082

Managed FundAsset allocation






16.83%

15.89%19.30%

25.57%

1.81%6.09%

4.90%

International Equity FundAsset allocation



Performance

6 months 7.87%

1 year 15.82%

3 years (pa) 9.58%

5 years (pa) 12.20%

7 years (pa) 8.49%


Unit Price 3.5814

81.15%

16.82%

2.03%



Equity FundSector allocation



Cash 1.10%


Country Allocation

NZ Equities 86.1%


Cash 1.0%

Performance

6 months 13.21%

1 year 11.57%

3 years (pa) 16.11%

5 years (pa) 16.52%

7 years (pa) 13.59%


Unit Price 14.0853

4.67%

4.95%

5.6%1.0%

20.5%

4.1%3.6%

11.6%

9.3%

10.6%

6.6%

5.1%

4.3%

17.7%

21


North American Equity FundAsset allocation

Cash F&C North American Fund Nikko AM Wholesale NZ Cash Fund

Performance

6 months 3.30%

1 year 18.03%

3 years (pa) 9.42%

5 years (pa) 13.47%

7 years (pa) 11.09%


Unit Price 3.9948

97.60%

Aggressive FundAsset allocation






Nikko AM Wholesale Option Fund

Performance

6 months 6.51%

1 year 10.71%

3 years (pa) 9.25%

5 years (pa) 9.94%

7 years (pa) 7.09%


Unit Price 3.9406

15.83%

2.79% 10.37%

21.79%

14.32%

1.20%

1.60%0.80%



Cash F&C European Growth & Income Fund


Performance

6 months 12.77%

1 year 27.31%

3 years (pa) 9.55%

5 years (pa) 12.93%

7 years (pa) 8.82%


Unit Price 3.2953

98.29%

1.63%0.09%



33.69%

22

Managed Fund 24

Wise Investment

Wise Investment is a unit-linked, market-valued life insurance policy issued by Asteron Life Limited.

Wise Investment is NOT a Portfolio Investment Entity.

Wise Investment is closed to new investors.

23


As at 30 September 2017Wise Investment

Performance

6 months 5.54%

1 year 6.65%

3 years (pa) 7.57%

5 years (pa) 8.34%

7 years (pa) 6.82%


Unit Price 2.3154







Nikko AM Wholesale NZ Cash Fund Nikko AM Wholesale Option Fund Nikko AM Wholesale Property Fund

17.56%

16.45%

19.07%

25.16%

1.18%5.88%

4.95%


4.88%

4.88%

24

Life Yield, Life Yield Bond, Child Life Yield and Money Maker

Life Yield (including Life Yield Bond, Child Life Yield and Money Maker) are unit-linked, market-valued life insurance policies issued by Asteron Life Limited.

They are NOT Portfolio Investment Entities.

Life Yield (including Life Yield Bond, Child Life Yield and Money Maker) are all closed to new investors.

Capital Fund 26

Global Fund 26

25


As at 30 September 2017Life Yield, Life Yield Bond, Child Life Yield and Money Maker

Performance

6 months 0.90%

1 year 1.84%

3 years (pa) 2.22%

5 years (pa) 2.38%

7 years (pa) 2.40%


Unit Price 6.4816



Global FundAsset allocation






Performance

6 months 5.87%

1 year 7.36%

3 years (pa) 8.32%

5 years (pa) 9.33%

7 years (pa) 7.81%


Unit Price 13.2571

19.49%

16.52% 25.12%

4.91%6.07%


Cash 1.13%



1.91%

4.75%

16.40%

4.83%

13.1%

85.7%

0.8%0.4%

26

Investment Bond (former Oceanic Funds) is a unit-linked, market-valued life insurance policy issued by Asteron Life Limited.

Investment Bond is NOT a Portfolio Investment Entity.

Investment Bond is closed to new investors.

Investment Bond (former Oceanic Funds)

Capital Protected Fund 28

Capital Secure Fund 28

Managed Fund 28

27


As at 30 September 2017Investment Bond (former Oceanic Funds)

Performance

6 months 2.19%

1 year 1.56%

3 years (pa) 3.59%

5 years (pa) 3.47%

7 years (pa) 3.51%


Unit Price 4.0421

Capital Protected FundAsset allocation

Cash Nikko AM Wholesale Core Equity Fund



44.41%

44.32%

10.11%

1.16%

Performance

6 months 2.24%

1 year 1.57%

3 years (pa) 4.21%

5 years (pa) 4.47%

7 years (pa) 4.43%


Unit Price 2.8709

Capital Secure FundAsset allocation

Cash Nikko AM Wholesale Core Equity Fund



44.25%

10.41%

1.76%

Performance

6 months 5.53%

1 year 6.66%

3 years (pa) 7.64%

5 years (pa) 8.65%

7 years (pa) 6.92%


Unit Price 3.9409







15.70%

19.56%

16.60%

25.27%

1.90%4.88%




43.59%

4.93%

4.99% 6.18%

28

Foreign & Colonial (F&C) Investment Funds

Source: F&C Investments Sales Support/Retail Sales Team as at 30 September 2017

Sector Allocation %

Financials 26.1

Consumer Goods 23.2

Industrials 15.6

Consumer Services 14.0

Technology 10.6

Health Care 4.8

Basic Materials 3.2

Cash 2.5

Geographic Exposure %

Germany 22.2

Netherlands 18.2

Ireland 15.4

Switzerland 9.9

France 8.7

Sweden 6.0

Denmark 4.8

Norway 3.3

Spain 3.2

United Kingdom 3.2

Italy 2.7

Cash 2.4

F&C European Growth & Income Fund

Sector Allocation %

Financial Services 26.3

Technology 17.1

Consumer Discretionary 14.1

Health Care 14.0

Producer Durables 11.8

Materials & Processing 6.1

Consumer Staples 2.8

Utilities 2.4

Energy 0.8

Cash 4.6

F&C US Smaller Companies Fund

F&C North American FundSector Allocation %

Financials 21.1

Technology 18.3

Consumer Services 15.8

Health Care 13.8

Industrials 12.9

Consumer Goods 6.3

Oil & Gas 5.8

Utilities 2.0

Telecommunications 2.0

Basic Materials 2.0

Cash 0.0

29


Nikko Asset Management New Zealand Ltd

Source: Nikko Asset Management New Zealand Limited

Sector Allocation %

Governments 13.1%

NZ Registered Banks 85.7%

Local Authorities 0.8%

Corporates 0.4%


Sector Allocation %

Governments 32.8%

Agency 10.2%

Credit 19.6%

Collateralised & MBS 33.0%

Emerging market debt 2.8%

Cash, derivatives, other 1.6%


Sector Allocation %

Government Stock 30.7%

SOE and Local Authority 17.5%

NZ Registered Banks 37.2%

Corporate debt 14.6%


Country Allocation %

US 50.9%

Europe (ex. UK) 15.7%

Asia Pacific (ex. Japan) 14.7%

UK 6.0%

Canada 4.2%

Japan 2.9%

Emerging Europe, Middle East & Africa 1.6%

Latin America 1.2%

Cash 2.8%

Nikko AM Global Equity Funds

Sector Allocation %

Consumer discretionary 11.6%

Consumer staples 9.3%

Energy 4.1%

Financials 3.6%

Healthcare 20.5%

Industrials 10.6%

Information technology 5.1%

Materials 4.3%

Telecommunications 6.6%

Utilities 17.7%

Real estate 5.6%

Cash 1.0%



NZ Equities 86.1%


Cash 1.0%


New Zealand 89.4%

Australia 9.6%

Cash 1.0%

Nikko AM Wholesale Property Fund

Sector Allocation %

Consumer discretionary 17.1%

Consumer staples 7.9%

Energy 6.1%

Financials 12.5%

Healthcare 10.8%

Industrials 9.9%

Information technology 18.8%

Materials 5.4%

Real estate 2.3%

Telecommunications 3.2%

Utilities 3.2%

Cash 2.8%

30


http://www.nikkoam.co.nz/funds/historic-fund-updates-institutional

Nikko Asset Management New Zealand Ltd (continued)

Geographic Composition %

US/Canada 57%

Global 15%

Emerging Markets 4%

Developed Europe 15%

Developed Asia 8%

Other 1%

Strategy Composition %

Long/Short Equities 20%

Opportunistic/Macro 15%

Relative Value 34%

Merger Arbitrage/Event Driven 9%

Credit 17%

Portfolio Hedge 0%

Cash 5%


Asset Allocation %

NZ Equities 63.0%


Cash 14.1%


Source: Nikko Asset Management New Zealand Limited

31


http://www.nikkoam.co.nz/funds/historic-fund-updates-institutional

Asteron Life LimitedAsteron Retirement Investment LimitedL13 Asteron Centre, 55 Featherston Street, Wellington 6011PO Box 894, Wellington, New ZealandTelephone (04) 495 8700 Facsimile (04) 495 8550 Toll free 0800 746 746www.asteronlife.co.nz

Important information

1. The performance of each fund is calculated from the movement in the sell price of units over the period shown.

2. Performance returns for periods of less than one year are non-annualised. Returns for periods of one year or more are shown as compound annual rates of return.

3. Returns for “Non-PIE” funds are calculated after tax and investment management fees have been deducted but before any policy charges or other fees which may apply.

4. Returns for PIEs are calculated after management fees but before tax. Net returns for Superplan and Retirement Savings Plan (Asteron Superannuation Fund) before 1 June 2008 have been grossed up to an equivalent pre-tax figure. Tax will be deducted from each investor’s account at their Notified Investor Rate (NIR).

5. Returns shown are historical and are not necessarily an indication of future performance.

6. This information is of a general nature and is not personalised to your situation. If you would like advice which takes account of your particular financial

situation or goals, please contact your financial adviser. The information under the headings Market Commentary and Future Prospects, has been supplied by Nikko Asset Management New Zealand Limited and reflects their opinions which should not necessarily be regarded as statements of fact. Neither Asteron nor any member of Suncorp Group Limited and its controlled entities accepts any responsibility or owes any duty of care, except as provided under the Consumer Guarantees Act 1993 or the Financial Advisers Act 2008, to anyone who relies on this information. Investments in the securities referred to in this publication are not guaranteed by any member of Suncorp Group Limited and its controlled entities.

7. The preparation and provision of the information provided has been made in good faith and compiled from a number of sources. Whilst all care has been taken to provide reasonably accurate information within this report, Asteron cannot guarantee the validity of all data and information, and is not liable for any errors or omissions.

8. The products in this publication are closed to new investors and some are closed to increases in premiums/contributions.


issue 10: six months to 30 september 2017 investor news...since november 2016. investment outlook...

Documents