Member’s Whai Rawa funds are now able to be invested in the Mercer Investment Trusts New Zealand’s Socially Responsible Conservative, Balanced and Growth Portfolios.
Each portfolio has a different level of risk and accordingly different return expectations.
Current Whai Rawa Investment
Investor Choice was introduced in 2020 to ensure that all our whānau have options as to which Whai Rawa investment fund their money is invested in. Looking at the options available ensures that at any age, account balance or life stage you can choose a Fund that better reflects the personal needs and risk appetite of your whānau.
The Whai Rawa Unit Trust (the Scheme) is invested in Mercer Investment Trusts New Zealand’s Socially Responsible Conservative, Balanced and Growth Portfolio’s. Each portfolio has a different level of risk and accordingly different return expectations.
NOTE: The returns you receive are dependent on the investment decisions of WRFL, the fund management decisions of the Fund Manager and the performance of the investments. The value of those investments may go up or down. Note that even the lowest category does not mean a risk-free investment.
Your member account
When your contributions are made, they join a pool of assets from other members invested in that same portfolio. To keep track of the value of each person’s share of the pool, the total value of the assets in the pool is divided into units of equal value. Units are then allocated to your account. The value of your savings rises or falls depending on changes in the price of the investment assets owned. Unit prices are used to help track changes in the value of your Whai Rawa account.
For more information on the investments of Whai Rawa see the Other Material Information document or view the Whai Rawa Statement of Investment Policy and Objectives document.
Returns paid to members
On a daily basis, the value of your investment will rise or fall based on the unit price. In our new member account platform, you’ll notice that the value of your Whai Rawa savings is being calculated and available daily. The number of units you own and their value will appear alongside your account balance when you check your account.
Market Fluctuation FAQs
The last two year 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.
You can read more here – https://www.mercerfinancialservices.co.nz/mercer-magazine/markets—economy/coronavirus-investing.html
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.
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
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 COVID-19 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.
Market and Whai Rawa Fund Specific Commentary – You can now read a regular Investment Commentary including a market update and information about the Whai Rawa fund. Click below to download the PDF file.
May 2021 Investment Commentary (click to download)
April 2021 Investment Commentary (click to download)
March 2021 Investment Commentary (click to download)
October 2020 Investment Commentary (click to download)
August 2020 Investment Commentary (click to download)
May 2020 Investment Commentary (click to download)
March 2020 Extra Commentary – The Impact of Coronavirus (click to download)
October 2019 Investment Commentary (click to download)
September 2019 Investment Commentary (click to download)
June 2019 Investment Commentary (click to download)
April 2019 Investment Commentary (click to download)
March 2019 Investment Commentary (click to download)
January 2019 Investment Commentary (click to download)