Performance update, July 2020
Market sentiment continued to improve, with US shares gaining 5.5% in July. Emerging Markets and China rose by 8% and 6.2% respectively in July , while NZ shares climbed 2.4%. In comparison, the Australian market and Europe were held back by the continued impact of CoVid-19 and associated market response, with European shares declining by 3.6% and Australian shares only rising by 0.5% in July.
In July, central banks continued to keep interest rates low, and returns were mixed across a number of markets reflecting concerns about the economic impact of the CoVid-19 virus. Government bonds, both in NZ and internationally, have continued to benefit from the central banks purchasing them to support economic stimulus, and yields have fallen in response to global and domestic developments. The NZ Government 10-year bond rate moved back down to 0.74% and similarly the US 10-year Treasury rate moved downwards to 0.53% .
We can expect the market ups and downs to continue for some time. It’s helpful to remember that KiwiSaver is an investment, and market movements are a normal part of investing.
It’s important to keep your financial goals in mind when you’re thinking about investments, including your KiwiSaver account. That’s why making sure you’re in a suitable fund is important, and if you are, hang in there, as for most members KiwiSaver is a long-term investment.
If you can continue to make regular contributions to your KiwiSaver account, you’re now buying investments at a cheaper price than they were at the start of the year.
One of the benefits of being with a full-service provider like AMP is that we have a team of experienced advisers who can help you make sense of what’s going on. We can also talk to you about getting a plan in place to help you get on track with your KiwiSaver – we’re here to help.
The information included in this article is of a general nature and is not a substitute for financial or other professional advice. To the extent that the information constitutes advice, it is class advice only. Before taking any action, you should always seek financial advice or other professional advice relevant to your personal circumstances. For personal financial advice, we recommend you contact your Adviser or if you don't have an Adviser, contact us on 0800 267 263 and we can put you in touch with one.
AMP KiwiSaver Scheme
AMP Wealth Management New Zealand Limited is the issuer and manager of the AMP KiwiSaver Scheme (the 'Scheme'). The Supervisor of the Scheme is The New Zealand Guardian Trust Company Limited.
For more information, download a copy of the AMP KiwiSaver Scheme Product Disclosure Statement and Fund Update Booklet, which have been lodged on the Scheme's offers register entry at companiesoffice.govt.nz/disclose.
A disclosure statement is available from your Adviser, on request and free of charge.
New Zealand Retirement Trust
For more information, download a copy of the NZRT Product Disclosure Statement (Workplace or Personal sections) and Fund Update Booklet. AMP Wealth Management New Zealand Limited is the issuer and manager of the New Zealand Retirement Trust. The Supervisor of the Scheme is the New Zealand Guardian Trust Company Limited.
While care has been taken to supply information on this website that is accurate, no entity or person gives any warranty of reliability or accuracy, or accepts any responsibility arising in any way including from any error or omission.