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Overview

As well as all the benefits Te Rūnanga provides, Te Rūnanga also provides some benefits to you if you are a member of Whai Rawa. 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. The level of risk and return in each Portfolio would correspond to your fund choice.

Current Whai Rawa Investment

Choosing an investment Fund is an important decision and may have a significant impact on your investment for your future education, whare or retirement. The Whai Rawa Unit Trust (the Scheme) is invested in Mercer Investment Trusts New Zealand’s Socially Responsible Conservative, Balanced and Growth Portfolio’s. The level of risk and return in each Portfolio correspond to your fund choice.

The three available funds are:

Conservative: This fund is considered a ‘lower-risk’ option than the other two with about 80% of your savings invested in defensive assets like fixed interest and cash. The remaining 20% is invested in growth assets such as shares, property and infrastructure.

Balanced: Sits in the middle of the fund options. Balanced is considered riskier than the conservative fund, but less risky than the growth fund. About 55% of your savings are invested in growth assets such as shares, property and infrastructure. The remaining 45% is invested in defensive assets like fixed interest and cash.

Growth: Growth is considered a higher-risk option with about 75% of your savings invested in growth assets such as shares, property and infrastructure. The remaining 25% is invested in defensive assets like fixed interest and cash.

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
Why has my account balance fluctuated so much lately?

Movements in the financial markets caused by reactions to the spread of COVID-19 have had a significant impact on many investments. COVID-19 has continued to spread at a rapid pace around the world and has been declared a global pandemic by the World Health Organisation. This is causing a shock to the global economy, pushing it and most national economies into a recession. Financial markets have responded with falls in investment values, and a flight to the safety of Government bonds.

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

It is an uncertain time for investors, with many in both Whai Rawa and other investments seeing a significant drop in their balances.

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 – http://purl.co.nz/wr/riskquiz/. This may help you in determining the most appropriate fund for your investments, although we re-iterate information provided about changing funds now.

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 –http://purl.co.nz/wr/riskquiz/

I’ve just moved my account into a Growth Fund. Should I switch back to Conservative?

As above – the Financial Markets Authority (FMA) recommend exercising caution before switching funds in the wake of COVID-19 impacts on the market. They comment that if your balance falls, then don’t panic. It is supposed to move up and down, but over the long term should keep rising as you keep contributing and prices recover.

Gillian Boyes from the Financial Markets Authority shares hers comments on market volatility in this recent article: https://www.fma.govt.nz/news-and-resources/fma-stories/comment-by-gillian-boyes-in-nz-herald-on-market-volatility-and-kiwisaver

Again, 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 –http://purl.co.nz/wr/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 lately has been very 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.

Investment Commentary

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.

2020 Commentaries

May 2020 Investment Commentary (click to download)

March 2020 Extra Commentary – The Impact of Coronavirus  (click to download)

2019 Commentaries

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)