Photo: RNZ / REECE BAKER
It's been a hectic few months, but right now, it's a good time to be a KiwiSaver investor again.
Markets have been volatile since details of US President Donald Trump's planned tariffs emerged, taking thousands off many people's KiwiSaver balances.
But news that the US and China had agreed to cut tariffs temporarily have helped sharemarkets rally overnight.
On Monday, US time, the S&P500 lifted 3.3 percent to its highest level since 3 March.
The Dow Jones also lifted 2.8 percent and the Nasdaq lifted 4.35 percent.
Indexes used as benchmarks for the KiwiSaver categories. Photo: Supplied
Rupert Carlyon, founder of Kōura Wealth, said most people's KiwiSaver balances should have recovered losses made through the first quarter of this year and April.
"The NZD is strong which will be impacting balances, but overall things are looking pretty good. Investors are clearly betting on continued US economic strength and the fact that the 10 percent global tariff does not materially impact growth. If the past few weeks has shown us anything it is that the 'Trump put' is clearly in effect - Trump will do everything he can to protect markets; and not to listen to what he is threatening as it is all simply negotiating tactics.
"But overall - it is a great time to be a KiwiSaver investor again."
At Pie Funds, founder Mike Taylor said most funds should now be "flattish" for the year to date but could be down 5 percent from the peak in February.
"KiwiSaver member should note, it will probably take another one or two days for this to be reflected when they log on to their provider as there is a lag effect."
Morningstar data director Greg Bunkall said there would be some funds that might not have got all the way back to where they were, because they might be positioned more defensively.
"But generally the asset classes that were impacted will have largely bounced back. Looking at our indexes which we use as benchmarks for the KiwiSaver categories, they are all pretty much recovered to levels around or above where we saw them at the end of March."
Indexes used as benchmarks for the KiwiSaver categories. Photo: Supplied
The first effects of the tariffs were seen in the March quarter.
Morningstar data for the three months showed the weakness in the markets that quarter cancelled out the effect of contributions to KiwiSaver, in aggregate.
As a group, aggressive funds lost an average 3.7 percent in the quarter, growth funds 2.7 percent, balanced funds 1.7 percent, moderate funds 0.6 percent and conservative funds 0.2 percent.
Default funds lost an average 1.7 percent.
On an annual basis, all fund categories were up about 5 or 5.5 percent.
