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October share markets' bumpy ride

23 Nov 2018 by  Andrew Fletcher

You may have noticed and heard that share market returns have been volatile during October and, as some of our funds have an allocation to both New Zealand and international shares, this may have affected your KiwiSaver balance. 

The important thing to remember is that for most members, KiwiSaver is a long-term investment.  Over the long-term funds with a higher allocation to shares should deliver higher returns, but with higher volatility, than cash and conservative funds.

Our key message to you is – don’t panic!  Share markets go up and down, and generally you are invested in KiwiSaver for the longer term, so you should be able to weather these share market movements.  Over a longer-term timeframe (5 or 10 years) returns are still strong for most funds.

The other way to look at it is that currently some share prices are lower, so your money is buying more shares than it has previously, and once these share prices recover (which history indicates they should) you should benefit by holding more shares.

Need some advice?

If you are concerned about whether you are in the correct fund for your individual circumstances we recommend you complete our risk profile to establish if you are in the correct fund and then seek the advice of an authorised financial adviser if necessary.  An authorised financial adviser would take all your personal circumstances into consideration when advising on your investment and retirement savings.

Andrew Fletcher

Andrew Fletcher has worked within the New Zealand superannuation industry for over 20 years, holding account management positions and providing class advice for KiwiSaver, stand-alone superannuation schemes and master trust employer based plans. Andrew has been with Aon for nearly 6 years.

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