Stratus | AMP KiwiSaver – Risk Profile Questionnaire
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AMP KiwiSaver – Risk Profile Questionnaire

Jude Drummond, AFA

KiwiSaver & Group Super Specialist, Retirement Savings

Stratus Financial Services, Ltd

The AMP Risk Profile is a series of 10 questions that help you determine your attitude to risk, known as your risk profile, and the AMP investment options that best suit your profile. Please note that the AMP Risk Profile is not an investment of financial plan and should be treated as a guide only.

What is your attitude to risk?

Your attitude to risk is an important aspect to consider before investing. To achieve potentially higher returns, you will have to be prepared to accept a higher risk of loss. This is because the funds and assets that offer high potential returns are generally more volatile than those producing lower returns. It is called the ‘risk/return trade-off’.

AMP KiwiSaver has 27 investment funds that you can choose to invest your KiwiSaver contributions in. This also includes any contributions from your employer (if applicable) and the government (e.g. Member Tax Credits). You can choose to split your investment across up to seven funds and you can change those selections at any time.

AMP KiwiSaver’s investment funds offer a variety of:

  • Risk levels
    • Meaning funds that invest in high levels of risk to those that invest in lower levels
  • Fund Managers
    • The fund manager are a company that makes the investment decisions for an investment fund
    • AMP offers additional fund managers as well as their own, such as ANZ, ASB, Fisher Funds, and Nikko AM

AMP KiwiSaver investment funds as at 31 March 2017

Growth vs. Income Assets

Growth assets are designed to grow your investment. They include investments such as shares, alterative investments, and property. They tend to carry higher levels of risk, yet have the potential to deliver higher returns over longer investment time frames.

Income assets are Cash and Fixed Interest assets. Such as Bonds and Term Deposits, these tend to have lower returns of the long term but, lower risk in the short term.

What does X% in Growth Assets mean?

Once you have completed your risk profile, it will calculate the percentage of growth assets that you would be most comfortable to invest in. This graphic of the AMP KiwiSaver Lifesteps Investment Programme shows which AMP funds are best suited to your risk profile.

AMP KiwiSaver Lifesteps Investment Programme

The Lifesteps Investment Programme (Lifesteps) automatically allocates your savings to the fund that matches your age over time. This means your savings are invested in the most appropriate fund for a typical investor your age (see the graphic above)

When you’re younger, you can generally accept more unpredictable investment returns, in exchange for the potential to earn greater returns over the long term.

However, as you get older you have less time to recover any losses before needing your retirement savings. Lifesteps aims to reduce the potential for investment losses as you age.

Changing how your AMP KiwiSaver funds are invested

If you wish to change how your AMP KiwiSaver funds are invested, you can change them online through MyAMP (AMP’s online access to your AMP KiwiSaver), or by completing an AMP KiwiSaver Changing your Investment Options form (this can be found on the AMP website) and returning the completed form to Stratus.

If you are unsure of any of the above information, or wish to meet with one of Stratus’ advisers to discuss your AMP KiwiSaver, please contact us by either 04 499 6500, 0800 STRATUS (if you’re outside of Wellington), or