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| Hi <firstname> |
| The national Alert Level 4 lockdown in August was challenging for many, and we want to especially acknowledge those members and their families who may still be stuck at home. We all hope for a sense of normality sometime soon, and a sunny summer ahead! |
| Despite the national lockdown announcement in August, share markets continued to perform well for the month. However, September proved to be challenging for share markets due to various factors that weighed on investor sentiment. More information on the financial markets and option returns is included in this newsletter. |
| If you’ve got any questions about the Scheme or if there is anything you would like to see included in future newsletters, please call the Helpline on 0800 MY SUPER (0800 69 78737). |
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Life Cycle option available now |
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| On 29 September 2021 we launched a new investment option called Life Cycle. If you missed the email from early October, this new option is a ‘set and forget’ option that automatically reduces the allocation to growth assets as members get closer to retirement age. |
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Accessing your online account |
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| Our new FireSuper website that was launched earlier this year offers a new dashboard that shows your account balance, account summary, an option to download your annual confirmations, and recent account activity all in one place. Each section of the dashboard allows you to click through to find more details about each of the elements. You can also check and update your personal details, make changes to your investment options, and use a risk profiler to find out what level of investment risk you may be comfortable with and consider that with your current investment allocation. |
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Market update |
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| Quarter ended 30 September 2021 |
| Global equity markets ended the quarter flat while fixed income markets edged lower. Positive market momentum which dominated the first two months of the quarter reversed in September. Equity markets sold-off and government bond yields spiked higher as inflationary pressures, uncertain growth expectations and the anticipated tightening of monetary policy by global central banks weighed on investor sentiment. |
| The COVID-19 delta variant, inflation and the central bank’s gradual removal of quantitative easing policies (‘tapering’) are unnerving investors. We expect the pandemic-recovery trade to resume as inflation subsides, infection rates decline and tapering turns out to not equal tightening. Amid this backdrop, our outlook favours equities over bonds, the value factor over the growth factor and non-U.S. stocks over U.S. stocks. |
| The post-lockdown recovery has transitioned from energetic youthfulness to awkward adolescence. It’s still growing, although at a slower pace, and there are worries about what happens next - particularly around monetary policy and the outlook for inflation. Despite the continued effects of the pandemic, investment markets have again delivered strong returns. FireSuper members have continued to benefit from this. |
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| Source: Russell Investments Date: 26 October 2021 |
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Scheme returns |
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| (Cumulative year‑to‑date interim returns) |
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| The chart below shows the earning rates for each investment option over the fiscal year‑to‑date period (from 1 April 2021 through to 30 September 2021). The returns are net of fees and tax. |
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| Member earning rates (1 April 2021 – 30 September 2021) |
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| Source: Russell Investments. Past performance is no guarantee of future results. |
| You can find the latest earning rates and general information about how financial markets are performing on the Scheme website. |
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Online threats on the rise |
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| New Zealander’s are being impacted by cyber security threats more frequently at work and at home. The increasing number of incidents shows that it’s vital to take steps to keep ourselves safe online. This year’s Cyber Smart Week in October, run by CERT NZ, focused on empowering New Zealanders to step up their online security so they are less vulnerable to cyber‑attacks. |
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| Cyber Up with these four simple steps: |
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Upgrade to two-factor authentication |
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Update your apps and devices. |
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Online investing platforms transform attitudes to investing |
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| The Financial Markets Authority (FMA) great debate in early August 2021 focused on DIY investing. It is estimated that more than 250,000 New Zealanders are using online investing portals such as Sharesies, Hatch, and InvestNow, three-quarters of them aged 25-44. Eight out of 10 New Zealand investors have a more favourable view of investing and financial markets after using online investing platforms, according to research released by the FMA. |
| The research shows that investing becomes “social”, with new investors more likely to be influenced by online forums and an emotional connection with a company’s brand than their financial reports and disclosures. The theme of the latest World Investor Week focused on ‘Investing FOMO? Take a Mo’ which encouraged DIY investors to carefully consider investing decisions by using the ‘Five D’s of DIY Investing’ and not be primarily influenced by the fear of missing out. |
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Take time to kōrero |
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| With everything that’s happening at the moment, how can we keep upbeat and feel good – including financially well? Sorted.org.nz recently published an article titled “For wellbeing, a short chat can go a long way” during the Mental Health Awareness Week. It’s well worth a read especially during this disruptive time due to the impact of the global pandemic and local lockdowns. |
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Sorted turns 20! |
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| Since its inception in 2001, Sorted.org.nz has helped millions of Kiwis make sense of their money. They provide information and tools for budgeting, saving, investing, and retirement. Sorted.org.nz is one form of free financial advice available to you. |
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This email was sent from a mailbox that is not monitored so please do not reply to this email address. This email including any attachments may be confidential and are intended for use by the intended recipient only. If you are not the intended recipient of this email, you must not read, disclose, distribute, copy, store, print or use the information or attachment(s) contained in this email. If you are not the intended recipient, please call us on 0800 MY SUPER (0800 69 78737) and delete or destroy all copies of the message and any attachment(s).
Furthermore, the information contained in this publication is intended for general guidance only and is not personalised to you. It does not take into account your particular financial situation or goals, and it is not financial advice or a recommendation. We recommend that you read the Product Disclosure Statement (PDS) and take financial advice before making any investment decisions. In addition, past performance cannot be relied upon as a guide to future performance and returns.
This document has been prepared by Mercer (N.Z.) Limited (Mercer) on behalf of the Trustee. |
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