KiwiSaver members mature enough to ignore market volatility

With US markets soaring on the back of President Donald Trump’s decisive election win KiwiSaver providers are cautioning against using it as a catalyst to switch fund types. 

Speaking at Good Returns’ KiwiSaver Roundtable, Managing Director of ANZ Investments Fiona Mackenzie said Trump’s return to the White House is not necessarily the key driver of the sharp rally in US stocks overnight Wednesday.

“The media is focused on the markets rewarding Trump for a win, but I would say the majority of the move is about the markets getting a certain outcome, they hate unclear election outcomes.”

“There is definitely a little bit in there around Trump’s brand, around getting rid of regulation and making it easier for big business to do well, but all of that is a very short term thing, we’re thinking about our KiwiSaver balances on a 20-30 year view,” she said.