KiwiSaver investors are urged to remain calm and consider the long term

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The steep drop in global stock markets has led to a flurry of calls from anxious investors to the nation’s largest KiwiSaver provider.

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ANZ Investments said it received as many calls in the past week as it did in the whole of May and that calls were 20% higher than normal, with inquiries about volatility, falling stock values accounts and the opportunity to switch funds.

Head of ANZ fund management Fiona Mackenzie said the heightened concerns were understandable, but investors needed to keep calm and take a long-term view.

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“The queries we receive relate to similar topics: market fluctuations, the value of individual investments and whether to switch funds.”

“But it’s important for investors to remember that financial markets go up and down…history tells us that markets recover – some faster than others, but they do recover,” Mackenzie said.

She said investors need to remember that KiwiSaver is a long-term retirement investment, although she sees a positive side to the increase in calls.

“I think it’s a positive sign that so many clients are contacting us. We’ve had a lot of engagement with people over the past two and a half years that change during volatility is not a good thing, in especially for KiwiSaver, which is a long-term investment, so it’s a sign that the commitment is working and Kiwis are maturing as investors.”

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And Mackenzie said investors should maintain their contributions during the current volatility, allowing them to increase their investments at a lower cost.

Meanwhile, ANZ chief investment officer Paul Huxford said the falls needed to be put into perspective and major US indexes were still ahead of where they were before the pandemic hit.

“People remember market sell-offs, but it’s even more important to remember that every bear market was followed by a rally and new long-term highs.”

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He said ANZ had not changed its approach to long-term investing.

“Our team generally focuses on what we believe to be high quality companies with strong balance sheets managed by people with strong leadership qualities; companies that over time should become more valuable and therefore help grow the wealth of our members,” said Huxford. said.

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