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Recovery eased off in September, except for NZ property

Performance update, September 2020

After a continued strong recovery since April, global share markets eased back last month with moderate falls in most markets in September. Global share markets declined by 2.9%, New Zealand’s dipped by 1.6% and Australia’s share market fared worse with a 3.7% fall in September.

The downward trend in share markets in September is often due to the fact that market participants in the Northern Hemisphere take summer holidays or have a fresh look at and reposition investment portfolios after the holidays. Other reasons for the fall may have been concerns around the resurgence of Covid-19 in some large economies and the upcoming United States Presidential Election.  

Global property shares declined by 2.5%, but in contrast, New Zealand’s listed property market rose 2.6% for the month with the rising likelihood that the Reserve Bank of New Zealand will drop interest rates even further.  The return on New Zealand property shares remains an attraction for investors.

Government bonds, both in New Zealand and internationally, remain a popular tool of the central banks to support economic stimulus, with modest positive returns in September (New Zealand bonds gained 0.9% last month). We expect the extremely easy monetary policy set by New Zealand’s Reserve Bank and overseas central banks to continue for the foreseeable future, which in turn means lower risk “income assets” are likely to continue to provide low returns.

It’s helpful to remember that KiwiSaver is an investment, and the market movements above 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.

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.

Important information

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. A disclosure statement is available from your Adviser, on request and free of charge .

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.

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 is the New Zealand Guardian Trust Company Limited.

While care has been taken to supply information in this article and 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.