Information about the change to Aurora strategies.
We're changing the way the strategies are set up.
The legacy Aurora First Home Buyer Strategy and the legacy Aurora Balanced Strategy are currently set up as 'advice strategies.' These Strategies are not offered in a Product Disclosure Statement (PDS), which is a regulatory document that explains how a product works. There are strict rules about what information must be provided in a PDS, and these rules are set by the Financial Markets authority. We have formalised all advice strategies by putting them into a PDS.
Members who are currently invested in the legacy Aurora Home Buyers Strategy and the legacy Aurora Balanced Strategy must give us their consent to be transferred to the equivalent 'multi-fund investment option,' which are the formalised versions of these legacy strategies that are now offered in our PDS.
What does this mean for you after you give consent?
- Your Strategy will have the same risk and return objective.
- Your Strategy will have the same name.
- The fees on your Strategy won't change.
- You'll still get great ongoing advice.
- You'll have a seamless, hassle free experience when common portfolio management adjustments are made in the future. See examples below.
Are you ready for a more seamless experience?
As an active investment manager, it makes sense for us to adjust and refine the portfolios in response to changing market conditions, so that risk and return objectives can be met. This is what we do for all the investment options offered in our PDS. The experience for you will be seamless. Read further on for examples of the types of common portfolio management adjustments that we might make.
Why we're transferring your investment.
We're doing this so that future enhancements and adjustments to your KiwiSaver investment can be made seamlessly, without having to ask for your permission every time we want to make a change. Instead, we need your permission just once, right now. This is expected to give you a better and easier experience with your KiwiSaver investment.
Examples of the types of enhancements and adjustments that we'll be able to make.
Some of the common types of adjustments we might make to your KiwiSaver investment on your behalf includes changing the underlying fund allocation mix, or increasing/decreasing the investment risk, amongst others. There are clearly defined allowable ranges that limit the size of the adjustments we are permitted to make on your behalf. These ranges can be found in the Aurora KiwiSaver Statement of Investment Policy and Objectives, available here.
What happens if you don't give consent?
If you do nothing, you are not giving consent. You will stay in the Legacy strategy. There is no benefit to staying in the Legacy Strategy, as you won't be able to access the more detailed quarterly reporting and overall improved experience that is available when you switch to the equivalent multi-fund investment option.
We urge you to provide your consent. Please talk to your financial adviser if you'd like to discuss consent or review whether there is another investment option that may be more suitable for you.