Update of Statement of Investment Policies and Objectives (SIPO)
We have recently completed our annual review of investment strategy and have updated the SIPOs for each of the SuperLife schemes to reflect the outcome of that review.
What is a SIPO?
A SIPO is a publicly available document describing the investment objectives and parameters for a scheme. It includes detailed information on each fund’s investment strategy, objective and permitted investments.
Find the latest SIPO for each SuperLife scheme.
How often is a SIPO reviewed?
We review each SIPO annually to ensure it incorporates applicable changes to the law and guidance provided by Financial Markets Authority, as well as any changes following our annual review of investment strategy.
Before amending a SIPO, we discuss the changes with Public Trust, the supervisor of the SuperLife schemes.
What has changed following the SIPO review?
The most recent SIPO review included changes to target investment mixes (for Ethica and the managed funds) and market indices.
The changes to the target investment mixes increase each fund’s target allocation to international assets. We still maintain a relatively high overall allocation to New Zealand shares, but we have reduced our allocation to Australian shares. Also, by improving our cashflow management, and because of the schemes’ continued growth, we have managed to reduce our allocation to cash because holding too much reduces a fund’s longer run performance. Each must hold some cash to facilitate switches and withdrawals.
The changes to market indices are to ensure the index against which a fund is measured is better aligned to the fund’s assets.
Finally, we have changed the SuperLife Invest SIPO to allow the scheme to generate revenue for its investors from financial product lending. This is when a financial institution does not have sufficient financial products to complete a sale that it has agreed to, and therefore commonly temporarily borrows financial products from a fund to meet its obligations.