Fund changes
Nikko Asset Management (AM) to AMP 2024
What do you need to know about these changes?
We have completed the transition of management of the Nikko AM funds to AMP Wealth Management New Zealand Limited (AMP).
To help you understand how this might impact you, we have summarised the changes below, organised by fund and scheme.
For full details, refer to information about the AMP funds in the Statement of Investment Policy and Objectives (SIPO) document for the AMP KiwiSaver Scheme and for the New Zealand Retirement Trust (NZRT) which have been updated with the new AMP fund schedules.
Changes to fund names
The changes for both the AMP KiwiSaver Scheme and NZRT are the same:
| Current Fund name | New Fund name |
|---|---|
| Nikko AM Conservative Fund | AMP Conservative Fund No. 2 |
| Nikko AM Balanced Fund | AMP Balanced Fund No. 4 |
| Nikko AM Growth Fund | AMP Growth Fund No. 2 |
The name changes have been updated throughout the AMP website, all documents, and in your MyAMP app and portal.
Reduction in Total Fund Costs (TFC)
One of the key benefits of making these changes is that you are now paying less in fees. The fund charges have decreased in-line with the corresponding AMP fund Total Fund Charges as follows:
| Nikko Fund TFC | New (AMP) Fund TFC | Reduction in TFC | |
|---|---|---|---|
| AMP KiwiSaver Scheme Nikko AM Conservative Fund | 1.12% | 0.79% | 0.33% |
| AMP KiwiSaver Scheme Nikko AM Balanced Fund | 1.31% | 0.79% | 0.52% |
| AMP KiwiSaver Scheme Nikko AM Growth Fund | 1.32% | 0.79% | 0.53% |
| NZRT Nikko AM Conservative Fund* | 0.90% | 0.77% | 0.13% |
| NZRT Nikko AM Balanced Fund* | 1.10% | 0.92% | 0.18% |
| NZRT Nikko AM Growth Fund* | 1.10% | 0.852% | 0.248% |
* This is based on a current average admin fee of 0.28% and average adviser fee of 0.04%.
Fee information for all funds will continue to be available in Quarterly Fund Updates (QFU) for each fund.
Changes to Strategic Asset Allocations
The asset allocation of each fund has changed slightly in-line with the corresponding AMP fund asset allocation as follows:
Nikko AM Strategic Allocations | New AMP Strategic Allocations | ||||
| Fund name | Income asset allocation | Growth asset allocation | Fund name | Income asset allocation | Growth asset allocation |
| Nikko AM Conservative Fund | 77% | 23% | AMP Conservative Fund No.2 | 72% | 28% |
| Nikko AM Balanced Fund | 41% | 59% | AMP Balanced Fund No. 4 | 43% | 57% |
| Nikko AM Growth Fund | 22% | 78% | AMP Growth Fund No. 2 | 21% | 79% |
Changes to Investment Objectives
The investment objective and policy of each fund has changed in-line with the investment objectives of the AMP funds now that the transition from Nikko AM to AMP is complete.
To view the investment objective and policy of the AMP funds, refer to the SIPO for the AMP KiwiSaver Scheme and for the NZRT.
Changes to Investment Management Styles
Nikko AM and AMP take different approaches to how they manage investments. Nikko AM takes an active-management approach, whereas AMP mainly uses index-management strategies. Generally speaking, active management involves a lot of buying and selling of investments with the goal of beating the market. Index management minimises buying and selling, instead it looks to match market performance over the long term by constructing portfolios that track a benchmark index.
To view the Investment Philosophy of AMP, refer to the SIPO for the AMP KiwiSaver Scheme and for the NZRT.
Actual Transaction Costs
There was a cost incurred by underlying managers to buy and sell underlying assets of the funds necessary to complete the manager transition. This is not a fee but a transaction cost. We worked closely with Nikko AM to ensure that these transaction costs were as low as possible. The cost amount which has been applied to each investor, depending on the fund/s you are invested in, ranges from $1.10 to $2.60 for every $1,000 invested and has been included within the unit price.
The actual transaction costs are as follows:
| Actual transaction cost | |
| AMP KiwiSaver Scheme Nikko AM Conservative Fund | 0.11% |
| AMP KiwiSaver Scheme Nikko AM Balanced Fund | 0.22% |
| AMP KiwiSaver Scheme Nikko AM Growth Fund | 0.26% |
| NZRT Nikko AM Conservative Fund | 0.11% |
| NZRT Nikko AM Balanced Fund | 0.13% |
| NZRT Nikko AM Growth Fund | 0.15% |
Fund selection
In addition to the AMP branded funds, AMP continues to offer a selection of funds offered by third party managers (Milford, SuperLife, and Mercer), with a range of different investment styles and philosophies which are available for you to choose from. You can choose to switch into any other fund(s) offered within your relevant scheme at any time.
If you would like to change funds, visit the MyAMP app or online web portal. If you are not already registered for MyAMP you can register online now.
We recommend talking to your Adviser before making any changes.
We’re here to help - if you have any questions, please get in touch by email at workplaceadmin@amp.co.nz (for NZRT) or kiwisaver@amp.co.nz (for AMP KiwiSaver Scheme) or give us a call at 0800 267 005.