Resolution Life NZ Trust Fund

The Resolution Life NZ Trust Fund (NZ Trust) is a trust established by Resolution Life.  Its primary purpose is to provide a mechanism to identify and hold a pool of assets with a value that supports Resolution Life’s policy liabilities in respect of New Zealand policyholders.

Investment assets are held on trust by Resolution Life NZ (as trustee) and units in the NZ Trust have been issued to Resolution Life.  Those units are held as part of Statutory Fund No. 1.

Trust Deed

The terms of the NZ Trust are set out in a Trust Deed.  Set out below is a brief overview of key terms of the Trust Deed. Click here to view a copy of the Trust Deed. Please note that references to AMP Life Limited / AMP Life in the Trust Deed should be construed as reference to Resolution Life. Similarly, reference in the Trust Deed to “AMP Life NZ Trust Fund” should be construed as reference to “Resolution Life NZ Trust Fund” and reference to “AMP Life Statutory Fund No. 1” should be construed as “Resolution Life Statutory Fund No. 1”. This follows the change in name of AMP Life Limited to Resolution Life Australasia Limited in November 2021.

Assets of the NZ Trust:  The assets of the NZ Trust consist of investment assets contributed by Resolution Life from assets held in its Statutory Fund No. 1.  The assets of the NZ Trust are available to meet Resolution Life liabilities in the same way as other statutory fund assets, including benefits or claim payments to Resolution Life’s policyholders.

Net assets value calculation and reconciliation of fund balance:  Resolution Life must maintain assets in the NZ Trust with a net asset value at least equal to the Required Balance.  The Required Balance is calculated as an amount by reference to Resolution Life’s policy liabilities to its New Zealand policyholders.  The trustee must perform a reconciliation of the net asset value of the NZ Trust to the Required Balance each month.  The Required Balance is calculated as at the last day of the most recent calendar quarter.

If the net asset value of the NZ Trust is less than the Required Balance, Resolution Life is required to transfer additional assets to the NZ Trust.  If the net asset value of the NZ Trust is more than the Required Balance, Resolution Life is permitted to request withdrawals from the NZ Trust to Resolution Life of an amount up to the excess.

Manager:  Resolution Life has been appointed by the trustee as its agent to invest and manage the investments of the NZ Trust, and must do so in accordance with the investment mandates which apply to Statutory Fund No. 1. This reflects that the assets in the NZ Trust remain part of Statutory Fund No. 1.

Withdrawals:  The Trust Deed restricts the purpose for which funds can be withdrawn from the NZ Trust.  These restrictions have been designed to ensure that Resolution Life can continue to operate its business in the ordinary course, including meeting payment obligations to policyholders.

Reporting:  The Trust Deed sets out various reporting obligations between the trustee and Resolution Life.  This includes Resolution Life providing information reasonably requested by the trustee to establish or verify the Required Balance of the NZ Trust and any additions or withdrawals from the NZ Trust.  In addition, the trustee has specific notification obligations, including to enable Resolution Life to establish or verify the net asset value of the NZ Trust.

Financial statements:  Audited financial statements for the NZ Trust will be prepared on an annual basis.

Amendments:  The Trust Deed can only be amended by deed executed by the trustee and Resolution Life.  The approval of the Reserve Bank will be required except in limited circumstances.

Retirement of trustee:  If the trustee retires, is removed or otherwise ceases to hold office as trustee of the Trust, Resolution Life will have the power of appointing a new trustee with the approval of the Reserve Bank.

Termination of NZ Trust:  Resolution Life must obtain confirmation from the NZPAC that it supports the termination of the Trust and obtain the approval of the Reserve Bank before giving notice to terminate the NZ Trust.

Deed Poll

Resolution Life has also entered into a Deed Poll for the benefit of the Reserve Bank and Resolution Life NZ (as trustee of the NZ Trust).  The terms of the Deed Poll can be enforced by the Reserve Bank and Resolution Life NZ.  The purpose of the Deed Poll is to ensure that the Reserve Bank has a contractual right to enforce compliance with certain aspects of the Trust Deed in the courts if necessary.