It’s likely that you have seen the daily news about tariffs and the impact on share markets so you might be wondering what that means for your KiwiSaver account.
Here is our round up of what’s happening and what to expect.
So, if you are concerned, please give us or your financial adviser a call.
Recently, the US Government announced a range of tariffs to be introduced on its trading partners. Exactly what the final tariffs will look like remains unclear – negotiations are ongoing.
What is clear is that tariffs impact the global economic environment and are likely to make goods produced in other countries more expensive for consumers to buy.
There is still a lot of uncertainty on where things will land and in response markets around the world are bouncing around.
Depending on what fund you are in, you might have seen your balance fall. This can be hard to see but it’s important to know that markets do move about in this way from time to time. But the long-term history of global share markets is that they eventually recovered from situations like this and delivered growth to investors. See the chart below on global share markets’ performance in the last 10 years.*
The US has indicated that it is willing to negotiate on the level of tariffs it has imposed so the markets are likely to bounce around for a little while yet. Nobody can say for sure how long that will last but there could still be some bumps to come.
Recently, the US Government announced a range of tariffs to be introduced on its trading partners. Exactly what the final tariffs will look like remains unclear – negotiations are ongoing.
What is clear is that tariffs impact the global economic environment and are likely to make goods produced in other countries more expensive for consumers to buy.
There is still a lot of uncertainty on where things will land and in response markets around the world are bouncing around.
Remember Covid? Unfortunately, a lot of New Zealanders switched KiwiSaver funds when markets fell during the covid pandemic. When markets bounced back that meant they missed out on the recovery.
It’s an important lesson to keep in mind now.
As uncomfortable as it might be watching the markets change as quickly as they have recently, if you are in the correct fund for your goals, you can relax and ride it out.
If you are feeling unsure if you are in the right fund or your goals have changed, we recommend you get professional advice.
For advice about your Booster KiwiSaver Scheme account, our in-house KiwiSaver experts can help you at no extra cost. Call us on 0800 336 338 or send a message.
If you would prefer independent advice, we have a network of over 400 advisers across New Zealand, so can connect you with an adviser that’s right for you.
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Booster Investment Management Limited is the issuer of the Booster KiwiSaver Scheme (Scheme). The Scheme’s Product Disclosure Statements are available at www.booster.co.nz or by contacting your financial adviser.
*Global share market performance in the chart is represented by the performance of the MSCI World Index with net dividends re-invested, in New Zealand dollar terms. This index is a widely used index, typically used to reflect the overall performance of global share markets. It is a broad market index that captures the performance of large and mid-cap companies across 23 developed countries.