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We have put some information together to help you understand Market Volatility and how this can impact your Whai Rawa investment. We recommend reading through the below FAQ's and watching the videos which describe general concepts that apply to your investments such as Whai Rawa and Kiwisaver.

Russian Investment Update

We are extremely saddened by the Russia – Ukraine conflict and the humanitarian impact it has caused.

The Whai Rawa Unit Trust is invested in Mercer Investment Trusts New Zealand’s Socially Responsible Conservative, Balanced and Growth Portfolios.

Members have enquired as to whether Whai Rawa has any Russian investments presently. Mercer Investments has confirmed Whai Rawa funds have no equity exposure to Russian companies or equity investments.

Whai Rawa funds have a small debt exposure to Russian investments through the Global Absolute Return Bond Fund (non-government), less than 0.01% across all portfolios. Various sanctions prevent any immediate trading of this bond fund as Russia is closed off from the global financial system. Whai Rawa has formally requested Mercer Investments to remove this holding and to end any ties with Russian investments.

The Russian – Ukraine conflict has so far resulted in significant market volatility. Our investment options are diversified, and we expect this should provide a strong base to withstand the market turmoil. Whai Rawa will continue to work closely with Mercer Investments to provide timely updates on ending its Russian ties and investment performance of the portfolios.

Any further pātai, please get in touch.

Market Fluctuation FAQs
Can my account balance fluctuate?

The last two years have seen a number of impacts on investments due to COVID-19. Mercer, our Investment Manager, advise that market corrections are normal and over longer-term markets tend to recover.

Gillian Boyes from the Financial Markets Authority comments that investments work in timeframes of decades, up to 40 or 50 years. For these long-term goals, a growth or balanced fund is usually the best option. These funds have higher-risk assets in them, such as shares and property. So, when world markets are unpredictable, they will be the ones with balances that move around more. The (significant) upside is, over the longer-term these funds will usually provide higher returns, growing your money more.

If you’d like to revisit your Risk profile at this time you can take our Risk Quiz here – www.whairawa.com/riskquiz. This may help you in determining the most appropriate fund for your investments.

What should I consider when switching funds?

Consider your investment strategy in your decision. The length of time you have to invest your pūtea/money, your age, Whai Rawa balance and how risk averse you feel will all contribute to your decision.

The Financial Markets Authority (FMA) – our regulator – comments that investors [should] consider carefully before switching funds, as they will, on occasion, see major ups and downs in balances. Recognising that some people might need the money immediately for a first home, switching funds during market turbulence forces the sale of investments at lower prices and gives up the prospect of gains when those investments start to recover. Remember if your balance falls, you haven’t actually lost any money – it just means the value of your investments has dropped. But if you change your fund that loss becomes real – your provider has to sell your investments at that new low value, so you end up locking in that loss. Even stopping contributions can be a bad idea because you’ll be missing out on the bargain buying your fund manager will be doing

Consider your investment strategy in your decision. The length of time you have to invest your pūtea/money, your age, Whai Rawa balance and how risk averse you feel will all contribute to your decision. If you’d like to revisit your risk profile at this time, one of the ways you can do this is by taking our Risk Quiz here –www.whairawa.com/riskquiz

How can I stay up to date?

To keep updated on investments and financial markets Whai Rawa gathers information from a wide range of parties involved in New Zealand and global markets and we recommend you do the same. Here are some useful links:

Understanding Market Volatility – Video Series

We’re excited to share with you two videos we’ve worked on alongside our Investment Manager, Mercer NZ Ltd. We know that the market can be volatile and this may have caused you to question how market cycles work and consequentially whether or not you’re in the right fund with your investment. These videos help to understand the current movements in the financial markets and what impact market volatility has had on your investment.

These videos describe general concepts that apply to your investments – whether you have a KiwiSaver, Whai Rawa or other superannuation/investments.

NOTE: The information contained in the video is intended for general guidance and information only and is not personalised to you. It does not take into account your particular financial situation or goals. Before making any investment decision, you should refer to the Product Disclosure Statement and / or consult an appropriately authorised adviser.