FAQ 

You can access details of your shareholding on Computershare's website - https://www-au.computershare.com/Investor/default.asp

The company code is TWR. You'll need your shareholder number and FIN (New Zealand shareholders).

Australian shareholders, please enter 9999 for the FIN.

If you do not have your shareholder number or FIN, please contact Computershare on +64 9 488 8777 or email enquiry@computershare.co.nz

Computershare Investor Services
Private Bag 92119
Auckland Mail Centre
Auckland 1142
New Zealand

Fax: +64 9 488 8787

New contributions to and withdrawals from the Fund ceased in April 2008 and the Fund is in the process of being wound up. Capital is being returned to investors in instalments as the Fund’s assets are liquidated. To date there have been pro-rata payments of capital on 16 May 2008, 15 August 2008, 14 November 2008, 6 March 2009, 5 August 2009, 18 December 2009, 4 March 2010, 2 June 2010, 20 October 2010, 1 July 2011 and 13 October 2011.

The July 2011 capital repayment also included income generated by the Fund for the year ended 31 March 2011 and was 2.47% per annum of the average balance of unitholder investment for the period. The Fund continues to earn interest, and this interest, net of expenses, will be paid out at the direction of the Trustee. The timing and the amount of the next income distribution will be determined by the Trustee after the audited financial statements for the year ending 31 March 2012 have been issued.

The amount returned to investors depends on the ability of the mortgagees to refinance or repay their loans, or the Fund's ability to sell loans to other lenders. Every effort is being made to preserve investor’s capital during the wind up process.

At 31 March 2011, the mortgage portfolio was comprised of 67 mortgages with a value of $23.9 million (net of $0.1m loan provisioning). Total arrears in MortgagePlus have decreased from $1.0m at 30 September 2010 to $0.45m at 31 March 2011.

Capital will continue to be repaid to the Fund’s investors as the mortgages are repaid, refinanced or sold. The last payment of capital paid on 13 October 2011 brought the total capital repaid to investors to 92%.

The current economic conditions and the nature of the Fund’s assets make it extremely difficult to predict the timing of future capital repayments.

MortgagePlus is in the process of being wound-up in an orderly manner and as it does so, it continues to earn income on its assets. The last distribution of income was made in respect of the 12 months to 31 March 2011 and was paid in July 2011. This amount was equivalent to 2.47% per annum of the average balance of unitholder investment for the period.

The Fund continues to earn interest, and this interest, net of expenses, will be paid out at the direction of the Trustee.  The timing and amount of the next income distribution will be determined by the Trustee after the audited financial statements for the year ending 31 March 2012 have been issued.

TOWER cannot guarantee full repayment, and the amount returned depends on the ability of the mortgagees to refinance or repay the loans, or the Fund’s ability to sell loans to other lenders.

The audited financial statements for the year ended 31 March 2011 show 6.1% of mortgages having a maturity profile greater than 5 years.

The next payment may not take place until after the completion of the audited financial statements for the year ending 31 March 2012, when we intend to next make an income distribution.

• TOWER manages this on behalf of the investor, and informs the investor of the details in an annual tax statement.  Details will also be included in an investor's annual or 6 monthly statements.
• Tax is calculated on a daily basis and paid/refunded at the end of each tax year, or on a withdrawal. 
• If the PIR is not 0% the fund will determine any tax payable/receivable and adjust the investor's unit holding for this amount.  Certain non-individuals may also be required to deal with this income and any PIE tax paid in their tax return.
• If the PIR is 0%, the fund will advise the investor of the income and tax credits allocated to them and the investor will include the income and get the benefits of tax credits in their tax return.

• Investors can change their PIR at any time by providing a new rate and their IRD number at the same time to TOWER. The new PIR will apply to any future tax calculations.
• If an investor elects a rate which is lower than the correct rate, they may have to pay additional tax and penalties at a later date.  
• If an investor elects or defaults to a higher rate than they are entitled to, there is no ability to reclaim any overpaid tax.  It is therefore important to accurately advise your PIR.

• Joint investors must each elect a PIR and PIE tax will be deducted at the highest PIR applicable to any of the investors. 
• If joint investors want to be taxed independently at their individual PIR, the investment cannot be held jointly.

• Withdrawals will be paid to the investor net of any applicable PIE tax.  For a NZ resident individual investor, no further tax will be payable by the investor on the amount withdrawn, unless the investor has advised a PIR lower than the PIR they are allowed.  Investors on the 0% PIR and certain other non-individual investors are required to include the PIE income and tax credits  related to any withdrawals, in their tax returns.

• Partial withdrawals will be grossed up to include PIE tax 
• For example, if an investor requests a $1,000 partial withdrawal, tax will be calculated on that figure and the amount withdrawn from the investor's account will be $1,000 plus applicable tax.
• Partial withdrawals include regular withdrawals, lump sum withdrawals, fee deductions and distributions of income.
• Should an investor change their PIR following any partial withdrawals, the new PIR will only apply to the income that was not taxed under the partial withdrawal.

• Depending on which funds are involved, there may be a tax consequence.  TOWER recommends investors seek specific tax advice before contemplating a transfer or a switch.

• Investors transferring units to another party should seek tax advice on the method used.  The change of ownership will be deemed a withdrawal by the original investor.  PIE tax will be payable on the transfer and the balance received by the new owner will be after the PIE tax has been deducted.

• Read the TOWER Investment Series Investment Statement here 
• Consult a financial adviser
• Visit the IRD website - www.ird.govt.nz
• Call 0800 379 372
• Email investments@tower.co.nz

If you sign up by completing a physical copy of the application form, nominate your school by inserting the school name in full in section 9 (School Nomination) of the form.

When signing up online enter the name of your school in full, under the section headed up Adviser Details.

If you are already in the TOWER KiwiSaver Scheme, and want to nominate a school, or wish to change your nominated school, please complete this form.

Note: It is important that you clearly write the full name of your chosen school. This way you will make sure we know who you want us to be donating money too!

There are so many reasons to join the TOWER KiwiSaver Scheme, and TOWER has just given you one more. If you have any questions at all about our Cash 4 Schools programme, or to obtain a copy of the TOWER KiwiSaver Scheme investment statement contact us or call 0800 379 372 and we'll be happy to help.

School Registration Form 

1. Following registration to the TOWER Cash 4 Schools programme, TOWER Managed Funds Limited, or another member of the TOWER group (TOWER), will provide a quarterly donation to the school equal to 0.05% pa. of funds under management for those TOWER KiwiSaver members who have nominated a school, provided that the quarterly donation payment is $50 or more. If the donation amount due to the school is below $50, the donation will be held until the next donation date, or until such time as the donation amount exceeds $50.
2. TOWER Managed Funds Limited, or another member of TOWER, will make a $20 one-off donation to the school for each TOWER KiwiSaver Scheme member that nominates the school as their beneficiary. The $20 donation will only be made for those members who are not already a member of the TOWER KiwiSaver Scheme.
3. No additional money is payable by the members, the Trustee, or the TOWER KiwiSaver Scheme.
4. TOWER reserves the right to review and amend these terms and conditions at any time.

A recent review of the Fund has shown that due to current and expected ongoing withdrawals the Fund is reducing to a size no longer economically liable.

In light of these factors, TOWER, in consultation with the Trustee, has decided to wind-up the Fund.

Once TOWER decided to wind up the Fund it became necessary to halt all investments and withdrawals into the Fund so that all the Fund’s investors could be treated equitably while the Fund’s assets are being liquidated in anticipation of the Fund’s wind-up. This ensures that, should any costs or issues arise in respect of the realisation of the Fund’s assets, these are shared equally between all the investors who were invested in the Fund at the time the decision to wind-up the Fund was made.

TOWER is legally obliged to treat all investors in the Fund equitably, which also means that TOWER had to treat both investments and withdrawals even-handedly by halting both at the same time once the decision to wind up the Fund was taken.

TOWER cannot treat either investments or withdrawals differently in a way that might advantage or disadvantage the Fund’s investors who request those transactions versus other investors in the Fund.

No, effective 19 July 2011, TOWER has already arranged for this to stop.

Your investment will be worth the market value of the assets of the Fund at the time it is terminated less any fees and expenses applicable upon winding up the Fund.

Not at all. Each fund is held separately in trust and its assets are completely separate to TOWER’s assets.

The decisions that have been made in relation to the Fund have been based on TOWER’s obligation to act in the best interests of investors and to treat investors equitably.

No. As each fund is held in a separate trust, the decisions made in respect of the Fund have no effect on any other investments you have with TOWER.

A recent review of the Fund has shown that due to expected ongoing withdrawals, the Fund is no longer meeting client needs.

TOWER, in consultation with the Trustee, investigated converting the Fund into an emerging markets fund, the review indicated that converting the fund was not supported by sufficient demand and that further withdrawals would follow, reducing the Fund to a size that is no longer economically viable.

Consequently, the Trustee in consultation with TOWER has made the decision to wind-up the Fund

Once TOWER decided to review the investment strategy of the Fund it became necessary to halt all investments into and withdrawals out of the Fund so that all its investors – present or potential – could be treated equitably while the Fund’s assets are being realised prior to the potential transition into an emerging markets fund. This ensures that, should any costs or issues arise in respect of the realisation of the Fund’s assets, these are shared equally between all current investors (note these would only be any costs involved in selling the Fund’s current assets, not any associated with purchasing new assets).

TOWER cannot treat investments or withdrawals differently or in a way that might advantage or disadvantage the Fund’s investors who request those transactions versus other investors in the Fund.

Following the decision to wind-up the Fund, the Fund will remain closed until February 2012 when it is expected investors will receive their initial wind-up proceeds.

Yes, your funds continue to remain invested throughout the suspension and until the wind-up date.

The Trustee provided approval for immediate liquidation of the Fund’s investments following the decision to suspend and review the Fund. As such, TOWER requested the underlying investment manager (GAM Hong Kong Limited) to liquidate the assets of the Fund.  The majority of assets held by the Fund have been liquidated and are now held in cash within the Fund.

To recognise the lower investment management costs associated with cash holdings, TOWER has voluntarily reduced its Investment Management Fee on the Fund from 1.75% p.a. to a concessionary rate of 0.60% p.a. from 1 November 2011.

Returns during this period will reflect the value of the respective investments held by the Fund at any point in time.

In our letter dated 14 December 2011 we advised that you would receive your initial wind-up proceeds from the Fund, or could elect to transfer the proceeds to another TOWER fund, as soon as practical after 1 February 2012. We expect that you will receive your initial wind up proceeds during February 2012.

Your investment will be worth the market value of the liquid assets of the Fund at the time it is wound up less any fees and expenses applicable upon winding up the Fund.

As detailed in our letter dated 14 December 2011, approximately 0.53% of the Fund is represented by investments that are unable to be liquidated at present.

A letter and Investor Direction Form were sent to all investors on 14 December 2011. Please complete the Investor Direction Form and return to TOWER in the prepaid envelope as soon as possible. The Investor Direction Form allows you to elect whether to transfer your wind-up proceeds to another TOWER fund/s or elect to have your initial wind-up proceeds paid to a nominated bank account.

If you have misplaced the letter or form, please contact us on 0800 379 372 for another copy.

Once TOWER decided to wind up the Fund it became necessary to halt all investments into and withdrawals out of the Fund so that all the Fund’s investors could be treated equitably while the Fund’s assets are being liquidated. This ensures that should any costs or issues arise in respect of the realisation of the Fund’s assets, these are shared equally between all current investors.

TOWER cannot treat investments or withdrawals differently or in a way that might advantage or disadvantage the Fund’s investors who wish to make such transactions versus other investors in the Fund.

Yes, your funds remain invested until the wind-up date.

In preparation for the wind-up TOWER requested the underlying investment manager (GAM Hong Kong Limited) to liquidate the assets of the Fund. The majority of assets held by the Fund have been liquidated and are now held in cash within the Fund. 

To recognise the lower investment management costs associated with cash holdings, TOWER has voluntarily reduced its Investment Management Fee on the Fund from 1.75% p.a. to a concessionary rate of 0.60% p.a. from 1 November 2011.

Returns during the wind-up period will reflect the value of the respective investments held by the Fund during this period.

Your investment will be worth the market value of the liquid assets of the Fund at the time it is wound up less any fees and expenses applicable upon winding up the Fund.

As detailed in our letter dated 14 December 2011, approximately 3.29% of the Fund is represented by investments that are unable to be liquidated at present.

• You're 18 or over, and under the age of eligibilty to receive a retirement benefit from KiwiSaver.
• Contributions to KiwiSaver are being deducted from your salary or wages.
• You aren't having complying member contributions already deducted from your salary or wages in relation to a complying superannuation scheme.

• Make sure that your existing investment schemes trust deed allows transfers to a registered KiwiSaver scheme. You can check this by asking your existing scheme administrator.
• Check to see what the terms of transferring out are. i.e. fees, penalties etc.
• If you are happy with the terms and you can transfer your funds, simply fill in our transfer form and send to TOWER.

Subject to qualifying criteria, if you want to buy your first home and intend to live in it (i.e. not rent it out) you can use the KiwiSaver funds you've accumulated to help purchase your first home once you have been a KiwiSaver member for at least three years. (Note the $1,000 kick start and Member Tax Credits are not able to be withdrawn for this facility). Not only can you make a one-off withdrawal of your funds to help buy your first home, but after 3 years of contributing you may also be entitled to a first home deposit subsidy from the Government of $1,000 for each year you have been contributing.  The maximum available subsidy is $5,000 after 5 years of contributing.

There are certain qualifying criteria for the first home deposit subsidy. This is administered by Housing New Zealand. The current qualifying criteria can be found at the Housing New Zealand website http://www.hnzc.co.nz/hnzc/web/rent-buy-or-own/buying-your-first-home-with-kiwisaver/buying-your-first-home-with-kiwisaver_home.htm

The member tax credit is a Government contribution into your KiwiSaver Scheme.

For individuals able to permanently reside, and resident in New Zealand, aged between 18 and the age at which they can access their KiwiSaver savings, the Government will contribute 50 cents for every $1 (dollar) you contribute up to a maximum of $10 per week (approximately $521.43 per annum) and pay this as a lump sum into your TOWER KiwiSaver Scheme account as at 30 June each year, subject to qualifying criteria.

The amount of the tax credit you are eligible to receive depends on when you joined KiwiSaver and how much you contribute. For example if you joined halfway through the KiwiSaver year (1 January) and made a contribution you would be eligible to receive half of the member tax credit.

KiwiSaver works by deducting money straight from your pay and putting it into a fund of your choice. It works like PAYE, and uses the PAYE system to get your money to Inland Revenue.

Your employer is responsible for providing you with information on KiwiSaver. If you are enrolled or sign up they'll manage your contributions and send them through to Inland Revenue to your chosen KiwiSaver scheme. Your employer is currently required to make a minimum contribution to your TOWER KiwiSaver Scheme account of 2% of your gross salary or wages. (subject to certain exceptions, refer to the TOWER KiwiSaver Scheme investment statement for further details). In the 2011 Budget it has been proposed that the minimum employer contribution rate for all new and existing members will rise to 3% from to April 2013.

You have a lot of choice when it comes to KiwiSaver, including who you want to look after your money. If you don't choose a provider, Inland Revenue will choose a default provider for you. Your employer may also choose a provider.

There are six default providers including TOWER, but it's much better for you to choose your own KiwiSaver provider.

If you start a new job you are automatically enrolled in KiwiSaver, however you can opt out between week 2 and week 8 of your employment, and any contributions you've made will be refunded to you.

When you first enrol in KiwiSaver the Government will give your KiwiSaver scheme a $1,000 kick start to help get you going.

If you are between 18 and the age of eligibility for a retirement benefit from KiwiSaver, the Government will currently contribute 50 cents for every $1 (dollar) you contribute, up to a maximum of $521.43 per year, subject to qualifying criteria.

It is also now compulsory for employers to make contributions into their staff's KiwiSaver Scheme accounts, if you are over 18 years old the current minimum employer contribution rate. In the 2011 Budget it has been proposed that the minimum employee contribution rate for all new and existing members will rise to 3% from 1 April 2013.

Your employer can contribute more than the minimum if they wish.

As long as you meet certain criteria, you can also use your TOWER KiwiSaver Scheme savings to put towards the purchase of your first home.

KiwiSaver is a long term retirement savings scheme. This means contributions are generally locked in until you're eligible for NZ Super (which is age 65 at the moment), or until you have been a member of a KiwiSaver scheme for five years – whichever is the later ('retirement age').

After that, you can choose to withdraw part or all of your savings as a lump sum, or you can make regular withdrawals, or you can simply continue saving.

You may be able to cash in a portion of your investment in KiwiSaver (which may or may not include the $1000 Government kick-start and member tax credit) prior to reaching retirement age. These circumstances are:

• Where any Legislation/court order requires a withdrawal to be made
• For the purchase of a first home (subject to meeting qualifying criteria)
• Upon your death
• Where you suffer or are likely to suffer from significant financial hardship, or are suffering from a serious illness and satisfactory evidence has been provided and accepted by the Trustee
• Where you are permanently emigrating* (no earlier than 1 year after your permanent emigration from New Zealand, satisfactory proof will need to be provided and accepted by the Trustee)

When cashing in your investment, any member tax credits are not payable if your withdrawal is for permanent emigration, or where your permanent residence was outside New Zealand but you had received the member tax credit for that period. You cannot access the $1000 Government kick-start or your member tax credit if you wish to make a withdrawal due to significant financial hardship or for the purchase of your first home. The $1000 Government kick start contribution and member tax credit will be payable on a withdrawal for serious illness. You may not charge or borrow against the security of your KiwiSaver balance.

* Legislation has been passed, which once in effect, will not permit KiwiSaver members to withdraw their balance from the TOWER KiwiSaver Scheme where they permanently emigrate to Australia. Instead, such members will only be able to transfer their scheme entitlement to certain qualifying Australian superannuation schemes. This change is expected to come into effect in late 2011. As at 19 September 2011 no specific date can be provided as the legislation relies on equivalent legislation in Australia being passed. For further information please call TOWER on 0800 379 372.

The TOWER KiwiSaver Scheme offers heaps!

With the TOWER KiwiSaver Scheme you may be eligible for all the benefits of a KiwiSaver scheme. These include:

• $1,000 kick-start from the Government when you first join KiwiSaver
• Compulsory employer contributions (subject to certain exceptions)
• A member tax credit based on a 50 cent subsidy from the Government for each $1 (dollar) you contribute (up to $521.43) paid into your TOWER KiwiSaver Scheme each year (subject to qualifying criteria)
• First home buyer's deposit subsidy after three years, to a maximum of $5,000 after 5 years' contributions (subject to qualifying criteria)
• Withdrawal of your and your employer's contributions to purchase your first home after 3 years membership (subject to qualifying criteria).
• We'll give you five investment choices that are easy to understand and we can provide you with access to other benefits, such as health and life insurance.
  

You'll also have 24 hour access to information about how your savings are performing, right here through this website!

Provided you are making personal contributions to your TOWER KiwiSaver Scheme account, the Government will contribute on an annual payment basis the KiwiSaver member tax credit (MTC), an amount of 50 cents for every $1 (dollar) you contribute up to a maximum of $10 per week to your TOWER KiwiSaver Scheme account (approximately $521.43 per year).  Your employer will also contribute to your TOWER KiwiSaver Scheme account when your wage or salary is paid. Your employer’s current minimum contribution is 2% of your before-tax annual wage or salary and is paid over and above what you earn from your job. In the 2011 Budget it has been proposed that the minimum employer contribution rate for all new and existing members will rise to 3% from 1 April 2013.  With the power of compound interest, these employer contributions can make a big difference to the amount you save up through your TOWER KiwiSaver Scheme account. Employer contributions are well worth having and you are entitled to receive them under certain conditions.  These benefits are subject to qualifying criteria.

a) The Government’s KiwiSaver member tax credit (MTC)

The Government will automatically contribute your MTC payment after the end of the KiwiSaver financial year (June 30) provided you have made personal contributions within that year and your permanent place of residence is in New Zealand, subject to qualifying criteria.

This MTC payment will match your personal contributions to your TOWER KiwiSaver Scheme account at the rate of 50 cents for every $1 (dollar) you contribute up to $10 per week (if you join the TOWER KiwiSaver Scheme part way through the year you will be entitled to a pro-rata MTC based on the duration of your membership)

To maximise this entitlement, you would need to save the equivalent of $20 per week into your TOWER KiwiSaver Scheme account

You can make this saving by regular contributions (including deductions from wage or salary) or lump sum payments

b) The employer’s KiwiSaver contribution

The employer’s contribution is worth an extra 2% per year of your wage or salary before tax and is paid on top of your earnings from your job (Meaning it is not deducted from your wage or salary). In the 2011 Budget it has been proposed that the minimum employer contribution rate for all new and existing members will rise to 3% from 1 April 2013.

So long as you are currently making personal contributions of at least 2% (proposed to increase to 3% from 1 April 2013) from your wage or salary before tax to your TOWER KiwiSaver Scheme account, the employer’s contribution is payable too whether you are working full time or have a part-time job.

Your employer cannot legally refuse to pay the employer contribution to your TOWER KiwiSaver Scheme account provided you are making your own contributions.

If you are working already or when you start a new job, you can obtain the employer’s  contribution into your TOWER KiwiSaver Scheme account by telling your employer that you want to begin making personal contributions to your TOWER KiwiSaver Scheme account by regular deduction from your wage or salary.

If you are over 18 and are either not employed or are self employed you may be eligible for most of the benefits of a KiwiSaver scheme except for employer contributions. You may be eligible for:

• $1,000 kick-start from the Government when you first join KiwiSaver
• A member tax credit based on a 50 cents per $1 (dollar) contribution matching subsidy from the Government (up to $521.43) paid into your TOWER KiwiSaver account each year (subject to qualifying criteria)
• First home buyer's deposit subsidy after three years of contributing, to a maximum of $5,000 after 5 years' contributions (subject to qualifying criteria)

The TOWER KiwiSaver Scheme gives you the choice of five investment funds with differing profiles. Details are in the investment statement and we do recommend that you work through the 'What is your investment profile?' questionnaire in the investment statement to assist you in getting an idea as to the sort of investment that may be the appropriate investment  for you and consult a professional financial adviser.

You can change your investment choice at any time and you may invest in more than one investment fund.

1. Download and read the TOWER KiwiSaver Scheme investment statement 
2. Consider your investment profile in the investment statement and consult a professional financial adviser
3. Have your IRD number handy
4. Complete the application form online or in the investment statement
5. If you want to make regular payments, complete a direct debit authority form
6. Take a copy of your proof of identity forms
7. Make any initial contribution payment with a cheque made out to the TOWER KiwiSaver Scheme Main Bank Account.
8. Compile the above and send to TOWER at Freepost 521, PO Box 1849, Wellington .