KiwiSaver Volatile? Stay the Course.

We understand that the current market volatility is causing concern, impacting all KiwiSaver accounts across New Zealand.

Global economic factors, including new tariffs, fluctuating economic reports, central bank pronouncements, and geopolitical events like the situations in Ukraine and the Middle East, are contributing to this turbulence.

We recognise these fluctuations can be unsettling. However, we want to reassure you that market volatility is a natural part of the investment landscape. Historical data consistently demonstrates that markets tend to recover and experience long-term growth.

Our Core Philosophy: Staying the Course

We generally advocate for a disciplined approach: sticking to your established investment plan. Reacting impulsively by switching funds or withdrawing investments during downturns can result in "locking in losses" and missing out on future growth opportunities. Market timing is notoriously difficult, and attempting to predict short-term movements can be counterproductive.

Why Long-Term Perspective Matters

Instead of fixating on daily headlines, we encourage you to align your KiwiSaver investments with your long-term financial objectives and risk tolerance. A well-diversified portfolio, strategically designed to withstand market fluctuations, is crucial for long-term success.

Here's our general advice during these times:

• Maintain Your Plan: If your investment horizon is long-term, staying invested and riding out the volatility is often the most prudent strategy.

• Resist Emotional Decisions: Avoid making impulsive choices driven by fear or anxiety.

• Consult Our Expert Advisers: If you have any concerns or wish to review your investment strategy, our experienced advisers are here to provide personalised guidance.

Remember, market fluctuations are a normal part of the investment journey. Stay informed, stay disciplined, and let your long-term strategy work for you. Do always reach out if you have any questions, or if you’ve never received any personalised advice around your KiwiSaver let us know; we are here to help.