I SSU E ON E DECEMB ER 2021

The quarterly newsletter of i-Select Limited

Smooth sailing Leaders at sea and investing A strong year for returns – the numbers revealed

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You may need our Kiwi slang translations! 1

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ISSUE ONE DECEMBER 2021

A N OT E F R O M T H E C E O

Contents 3

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A note from our CEO

Welcome to Selections

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i-Select – the experts in pension transfer

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Smooth sailing. Leaders at sea and investing

Welcome to the first edition of Selections, the magazine we’ll be publishing electronically four times a year to share the world of i-Select with you.

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Funds growth a pleasing result

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Adviser profile. Tony Chamberlain, financial adviser at GBPensions

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ome readers may not know much about us – i-Select – or what we do, but in a nutshell: we manage your superannuation schemes along with the schemes of about 1300 other people around New Zealand and overseas.

As the manager and administrator of your superannuation scheme, we’d like to stay in touch to provide a welcoming face to the oftenunseen world of money management. We are proud of the growth of our company that has made us New Zealand’s largest self-select scheme and the only New Zealand provider of single member QROPS schemes.

You may know our products, recommended to you by your financial adviser, but perhaps nothing about us as a company. We plan to change that with this magazine.

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The i-Select Kiwi to UK translation service

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Your investments in the skilled care of licensed advisers

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Staff Eats. A taste of happiness – Caramel Slice

1/161 Burnett Street PO Box 274 Ashburton 7740 New Zealand

We think it important that the more you know about how your superannuation scheme works the better placed you are to work with your adviser to make informed decisions on it.

That growth is testimony to the expertise we have and the results we get for our members, and we think it needs to be celebrated and shared with you as we work together towards your prosperous and well-earned retirement.

And who better to help you with that knowledge than the people who designed your scheme – the people here at i-Select.

Enjoy this first edition of Selections and I’ll look forward to sharing more news and investment information again in our next edition.

In Selections, we’ll be introducing you to the people behind your investments, highlighting important developments in the investment and retirement funds sectors, providing information on potentially improving your fund’s structure, and even delivering humour and lifestyle tips – check out our moreish Caramel slice recipe on the back page!

Chris Heffernan Chief Executive Officer

Phone +64 3 308 0144 Email [email protected] 2

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i-Select – the experts in pension transfer i-Select is a specialist in bringing United Kingdom pensions to New Zealand, and in providing superannuation schemes and tax structures for them once here.

Northland

12 | 84

Advisers & Members Advisers

Auckland

Members

77 | 664

Waikato/BoP/Central

161

O

ur niche team knows everything there is to know about that and our clients trust us to deliver.

We have staff dedicated to risk management and compliance. We have, we believe, staff with more knowledge of UK and New Zealand pension tax requirements than any other company in the country.

We are the biggest self-select scheme in New Zealand and the only provider of a single member QROPS Scheme. We are also the only scheme with a specialist tax division.

We have a team of administrators that work tirelessly and closely with your financial adviser, and the other 180 or so advisers around New Zealand who deal with i-Select, to provide dedicated service and support to your affairs.

The clue is in our name – we provide choice and empowerment to our members. Nearly 1,300 people trust us to provide their superannuation schemes, and we manage $370 million (September 2021) in funds, an increase of nearly 10% from the previous corresponding 12-month period.

Waikato/BOP

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Whanganui/Manawatu/Hawkes Bay

5 | 49

We don’t just help you invest, we set up structures that give you the best platform for bringing your retirement funds to New Zealand.

Wellington

We put our clients first.

We know that, as superannuitants, the security of your funds is of paramount importance to you, and here at i-Select it is a responsibility that sits at the core of everything we do.

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Thank you for investing in i-Select superannuation. Your financial future is in good hands.

Marlborough/Tasman

8 | 53

Canterbury/West Coast

302

Canterbury

49

Otago/Southland

5 | 46 International

100

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Spirit of Adventure RESILIENCE AND FRIENDSHIPS FORGED Student Maddie Webb (14), daughter of i-Select staff member Nicky Webb, took the trip of a lifetime on the Spirit of Adventure recently. Here is her story.

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i, I’m Maddie. I was very fortunate to have been chosen as one of 10, Year 10 students from Methven’s Mt Hutt College to represent the school on this voyage of a lifetime. There were also 20 other students from two other South Island schools. I was so very excited to attend this adventure and exceedingly grateful for the opportunity. My experience certainly did not disappoint! We had some amazing new experiences. Each day started at 6am with everyone diving off the side of ship for our first dip of the day. We learnt how to hoist sails which was rather back-breaking. We learnt many knot techniques. We also climbed the rigging which made me very nervous and extremely excited at the same time. It was a great achievement, as you could see far off into the distance from the top.

Above: Maddie kneeling, left.

One very rewarding exercise was going ashore on Buffalo Beach in Whitianga to help the Mercury Bay Environmental Trust and the Department of Conservation weed dunes. It was strenuous work collecting over 800kg of weeds on such a hot day, but very satisfying to be a part of vital conservation work.

We saw pods of dolphins swimming alongside the ship and had rafting competitions to shore which was absolutely hilarious fun. We also took part in interschool races on the beaches and team competitions onboard. We were all very competitive and felt like we were truly learning how to be dedicated ship mates.

This trip definitely took me out of my comfort zone. I learnt many things about myself. I have learnt that it is always best to push yourself out of your comfort zone and try new things – it’s definitely worth it.

We also took turns steering the ship alongside the captain, which was an unbelievable feeling. Doing my stint on the ship’s night watch was a little rotten, having to leave my warm bunk at 2am, but still very worthwhile being on deck in the dead of night.

I am very proud of what I have achieved personally and will always guarantee I approach new things positively and with great resilience.

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Funds growth a pleasing result It’s been another stellar year for the funds we provide access to for our members, with some truly standout portfolio returns for our top performers and an average return across all our membership portfolios in our main superannuation scheme of 9%.

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If you think a large and tightly controlled superannuation scheme does not suit your style, why not talk to us about our single member schemes.

While past performance is no guarantee of future returns, i-Select will continue to provide access to investment opportunities that we believe offer the best returns and have the most suitable risk profiles for superannuitants.

They are not for everyone, and your financial adviser can let you know if such a scheme does not fit your circumstances. But for those who qualify, they give the freedom to invest retirement savings into commercial property, listed or unlisted shares or other qualifying investments close to your heart.

e are pleased that in the turbulent financial environment of the past 12 months, we have been able to offer access to a range of investments that have provided growth and a measure of stability.

As New Zealand’s largest self-select superannuation scheme, we are also proud of our ability to offer you access to literally thousands of individual investments that you can tailor to suit your lifestyle and personal investment needs.

We look forward to working with you again next year to manage your superannuation scheme into a prosperous and comfortable future.

Total funds under management 350,000

400,000

 9.35%

 11.28%

Top 3 best performing portfolio returns in the main superannuation scheme

PIE scheme returns

Average fund value

12 months to September 2021 20%

12 months ending Sept 2021 after scheme tax

350,000

300,000

44% 26% 25%

15%

300,000

250,000

250,000 200,000 10%

200,000 150,000 150,000 100,000

5%

100,000

50,000

50,000

0

0 September 2020

September 2021

0% September 2020

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September 2021

AUD

GBP

NZD Conservative

NZD Balanced

Average return across all membership portfolios

NZD Growth

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THE I-SELECT KIWI TO UK T R A N S L AT I O N SERVICE

A DV I S E R P R O F I L E

If you thought the complexities of transferring your pension to New Zealand were difficult to understand, wait till you have to start understanding the everyday language kiwis use!

A conversation about collaboration

To help you navigate your way through life so you don’t end up taking a tiki tour and packing a sad, and everything is sweet as, here are some common New Zealand slang words translated.

i-Select is a leading New Zealand provider of UK pension transfer products,and a big part of our success has been through collaborating with more than 180 independent financial advisers around New Zealand to get our products to market. Tony Chamberlain, a financial adviser at GBPensions in Auckland, chatted with us recently about his work with i-Select.

What do you enjoy about working with i-Select?

Barbie

Barbecue

Choice

A positive general exclamation

Chips

Crisps (also used for french fries)

Chocka

Completely full

Crook

Unwell / ill

Dairy

Corner store

An egg

A fool

Gutted

Disappointed

Greasies

Fish and Chips

Heaps

A large amount

Jandals

Flip flops

What is your professional background?

A mare

Tough situation (from nightmare)

I’m a director of GBPensions, a company that works solely on pension transfers.

Maccas

McDonalds food chain

Munted

Broken (an object); drunk (a person)

No worries

No problem

Packing a sad

Throwing a tantrum

Sweet as

No problem

Stoked

Happy

Tiki tour

Taking the long route to a destination

Togs

Swimwear

Further information

Wop wops

Middle of nowhere

Read more about GBPensions here: https://www.gbpensions.co.nz/

Yeah Nah

No (but can also mean maybe!)

Read about the full range of i-Select products here: https://www.i-select.co.nz/resources

Yonks

Forever

The transfer regime between the UK and New Zealand is highly dependent on tax and there is no other similar company in New Zealand with such a depth of pension taxation knowledge.

For a starter, they are the best technical team in the country for pensions. They do things no other schemes can do.

If it is possible to be done, i-Select products will allow it to be done, whereas most other companies’ products are really one-trick ponies, very basic, and if you don’t fit in a neat little box, they won’t want to help you.

With Chris Heffernan’s technical support, we can put some very innovative packages together. The admin support from i-Select is also second-tonone – very efficient, very quick, they’re just really on to it. They know exactly what they are on about, they know their market and business very well. How does your relationship with i-Select work?

I’m one of the few advisers who has transacted transfers in both the UK and New Zealand – advising in the UK for 18 years and for 16 in New Zealand.

We, as the advisers, do the actual transfer and complete the paperwork, and understand what the implications of transferring or not might be, and we advise our clients as to what products are available to them.

I’m a Certified Financial Planner (CFP) and a Chartered Life Underwriter (CLU), well above the minimum requirements to be an adviser here, and one of only 47 advisers in New Zealand to have both those qualifications.

The technical support and product range from i-Select is where the magic happens. They have distinctly different products, and with them you can pretty much do anything the legislation says is allowable. They also understand how to use legislation and tax rules to help clients into one of their products, and Chris is very giving of his time to help us work out the best solutions. 10

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Your investments in the skilled care of licensed advisers With some of your most important life and financial decisions – how and where to invest your retirement savings – depending on the knowledge of advisers, it is crucial to have confidence in their abilities and compliance.

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he Financial Markets Authority has developed a programme to help formalise that, through adviser licensing, and which will provide more certainty to investors.

Kingdom pension transfer process and be able to communicate that to clients wanting to move their pension to New Zealand

The authority has recently set 30 September, 2022, as the target date by when all transitional financial advice providers should have applied for their Class 1 or Class 2 full licences. For Class 3 licence applicants, the date is 30 June 2022. All financial advice provider transitional licences expire 16 March 2023.

• a look at the pros and cons of transferring funds

COMING SOON

Our training modules include:

• the tax implications of transferring

An online knowledge base for our members

• a review of the various UK and NZ scheme types and transfer requirements We also run training sessions to train advisers on: • the different types of schemes

i-Select fully supports this programme and is pleased to see our advisers getting onboard. It provides another level of risk oversight to our member portfolios alongside our comprehensive, inhouse risk management programme.

• how tax for each scheme type is calculated, accounted for and paid • residence, transitional residence and pension exemptions

As well as the full licence application kit and other resources on the Financial Markets Authority website, the authority is also developing selfassessment tools to help Class 1 and Class 2 licence applicants identify where they might need to do further work to meet the full licensing requirements.

In the new year, i-Select is putting together an online education resource for members that will help you better understand and manage your investments.

• the pros and cons of transferring pensions versus taking benefits directly from UK pension schemes • compliance and reporting Education and compliance – two key and often intertwined strands of a successful risk management programme that i-Select proactively works to develop with the advisers who manage your retirement funds.

Inhouse training resources At i-Select, we have also developed inhouse training resources to further the knowledge and abilities of our advisers.

We want it to be completely focused on your knowledge needs, and we’d like your guidance as to what we put in it. What would you like to know about pension fund investing?

We run web-based training sessions for advisers to help them clearly understand the United

Email Chris today with your ideas: [email protected]

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S TA F F E AT S

A RECIPE FOR HAPPINESS

Caramel Slice

Karen Johnston, our Compliance Manager, oversees compliance, accounts, projects and audits while also helping develop new and innovative products. She also keeps us happy at morning tea with her famous caramel slice! We can’t share a piece with you but we can let you into the secret of how to make it for yourself. Ingredients

Preparation and cooking

Base

Base

Six crushed Weetbix (or use rolled oats)

Mix dry ingredients together.

3/4 cup coconut

Melt 100g butter, mix into dry ingredients mixture should be evenly moist and not too dry. If too dry, add a little more melted butter.

3/4 cup flour

Press into 20 cm square tin lined with baking paper.

3/4 cup sugar

(Or, go on, be a little decadent and make a double recipe in a 30 cm tin – and maybe add chocolate chips before pressing into the tin.)

1 teaspoon baking powder 100g butter

Bake at 180 degrees C for approximately 15 minutes. The base should be golden around edges.

Topping

Topping

25g butter

Melt 25 grams butter, add 3 tablespoons of golden syrup and 1 tin of condensed milk. Mix until combined.

3 tablespoons golden syrup 1 tin condensed milk 1/2 block of Whittakers chocolate Chopped nuts or shredded coconut (optional)

Pour over cooked base and return to oven, changing the oven to fan grill if possible until the caramel bubbles all over. Cool for 5 minutes, then sprinkle chopped dark chocolate over the top. Leave to soften for 5 minutes and then spread with the back of a spoon. Sprinkle chopped nuts or coconut over the top.

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