AMP launches top-tier pension transfer solution for Brits

15 August 2016

AMP has today launched a Qualifying Recognised Overseas Pension Scheme (QROPS) product within its New Zealand Retirement Trust (NZRT). This will enable members to transfer their UK pensions to New Zealand and to AMP from their existing QROPS in New Zealand.

NZRT members have access to 27 investment funds, including 9 new funds recently launched within the scheme. The range of funds are managed by ANZ Investments, ASB Group Investments, Fisher Funds Management, Nikko Asset Management New Zealand, including single sector and diversified fund options through AMP Capital Investors. It also offers a responsible investment option for the increasing number of Kiwis who want to invest in a socially responsible way.

Therese Singleton, AMP’s General Manager of Insurance and Investments, says, “Based on what we’re hearing in the market, customers want a QROPS solution that is backed by a company with the strength, scale and the trusted brand of AMP. Through AMP’s extensive network of aligned Advisers and integrated distribution model we are offering a complete end-to-end QROPS solution.

“In particular, we are aware that customers want to do business with a top-tier provider like AMP, which is already licensed under the Financial Markets Conduct Act (FMC Act). As the new regulatory regime takes effect and potentially impacts other QROPS, it is important customers select a provider they will be comfortable with in the long-run.

“In addition to a wide range of fund choices, AMP’s offer has significant benefits for members, including providing simplified and competitive fees and access to digital services such as AMP’s online portal, My AMP, as well as the My AMP mobile App.”

AMP’s transfer offer and fee structure is simple and very competitive. AMP charges no contribution and withdrawal fees and has some of the lowest investment management, trustee and administration fees in the market.

“Despite the current exchange rate volatility, we see a continued upwards trajectory of migration from the UK to New Zealand, and providing a QROPS solution for our members is a natural fit and compliments the wide range of market-leading products and services AMP already offers,” says Singleton.

AMP’s NZRT will be open to transfers until it transitions into the FMC Act’s regime ahead of the December deadline, by which point further guidance on QROPS from the Financial Markets Authority is anticipated. 

Notes to editors:

  • AMP offers a simple QROPS fee structure:
    • No entry fees (market up to 5%)
    • No exit/transfer out fees (market up to $750 or 2.5%)
    • Simple Trustee & Administration and Fund fee, plus any fees as agreed with the Adviser. 
  • Members can choose the AMP Lifesteps investment option, which automatically allocates savings to funds that match a customer’s age over time). There is also a range of diversified funds, including funds managed by five wholesale managers. NZRT also offers a range of single sector funds so investors can build their own diversified fund to meet their risk profile.
  • A significant sum of New Zealand’s capital now being invested responsibly. The Responsible Investment Balanced Fund provides an option for investors who want to invest in a diversified balanced fund, but also want to ensure environment, social, governance and ethical considerations are taken into account. The fund is offered through AMP Capital, one of only four fund managers in New Zealand to score above 80 per cent in the Responsible Investment Association Australasia’s (RIAA) assessment (AMP Capital is included in the Australian report).
  • The AMP Global Multi-Asset Fund aims to provide investors a positive return above inflation and actively responds to changing market conditions with a flexible approach to investing. It gives investors a smoother investment journey.
  • The AMP Income Generator Fund is designed for income focused investors, which specifically targets income-producing assets and pays a monthly distribution, which will be reinvested into units. Members can set up a regular withdrawal from this fund in accordance with the permitted withdrawal rules of the Scheme/Plan. Whilst the AMP Income Generator Fund is well diversified into many types of investments, there is risk of capital loss and should not be compared with lower risk investments, such as bank deposits.
  • AMP believes there is approximately $1.6 billion of QROPS funds in New Zealand and annual flows of about $500 million. In the 12 months to March 31, 2015, UK pension transfers from 249 members amounted to $20.7 million of funds into the AMP KiwiSaver Scheme. That was prior to changes to QROPS rules which resulted in all KiwiSaver schemes losing their QROPS status from 6 April 2015.
  • It usually takes 3-6 months for the UK provider to process the transfer.
  • AMP is a leader in workplace savings with $2.5 billion in NZRT.

For further information please contact

027 406 2048