25 Apr AMP KiwiSaver Scheme performance update – March
Markets in March have continued to deliver a solid performance with positive returns
The month of March has continued to provide a solid performance for investors globally, as US-China trade relations are beginning to look a bit more positive. While global share markets still show positive returns in Europe and the USA, some smaller Emerging Markets have lagged due to a decline in world export trade with China. New Zealand shares still continue to benefit from this low-interest rate market outlook. The central banks expect that the risks of inflation are declining this year and as a result, have continued to keep interest rates relatively low for 2019. The AMP KiwiSaver Scheme funds have continued to improve in value this month and have shown a good level of gains in the first three months of this year, recovering from their decline at the end of 2018.
KiwiSaver is a long-term savings plan. If you would like more information or to discuss whether you’re in the right fund to suit your savings needs, please contact us.
How do the latest returns compare to the average term deposit?
Compared to the average return on the average term deposit for 1 year of 3.41% and 5 years of 5.35% (offered by the major banks in New Zealand as at 30 March 2018 and 28 March 2014 respectively), the returns for some of our key funds were:
- AMP Growth Fund Average Annual Return (5 Years): 7.66%
- AMP Balanced Fund Average Annual Return (5 Years): 6.65%
- AMP Moderate Fund Average Annual Return (5 Years): 5.48%
These returns are after total fund charges and before tax and are calculated based on unit price movements adjusted by total fund charges and tax credits and including a full allowance of any foreign tax credits.
You can view returns for all the AMP KiwiSaver Scheme funds here.
If you have any questions you can talk with us today.
Detailed commentary
March was another month of solid positive performance of global assets. U.S. stocks notched their biggest quarterly gains in nearly a decade, lifted by investors view that central banks would hold interest rates at low levels, as global growth slows. This allowed global equities to gain 1.6% in March, while Emerging Markets rose 1.4%. Major indexes have now recouped almost all the losses they had suffered in the final months of 2018, as a result of the fears about a global economic downturn last year. Much of this year’s rally was fuelled by relief that central banks were willing to back off their rate-increase campaigns after growth cooled from the euro zone to China.
The Reserve Bank of New Zealand was no exception, indicating in its March Monetary Policy Statement for the first time that there is justification for a cut in domestic interest rates. This more accommodative move from the RBNZ helped push the NZD exchange rate down, which is good for our export industries, but also lifted the NZ equity market to record highs.
A lower path for world interest rates assisted global property and infrastructure to strong monthly returns of 3.8% and 3.0%, respectively. NZ listed property was even stronger, logging a 4.9% gain for March – though this was a little below the broader NZ equity market’s 5.6% rise in value. Overall, the improved sentiment towards growth asset classes, backed by a good performance from bond markets, has lifted the value of KiwiSaver markedly in 2019 and we expect to see additional gains later this year, although there will be periodic patches of weakness as well given the slower company earnings compared to last year.
A disclosure statement is available on request and free of charge from your Adviser.
*Please note past returns are not indicative of future returns. For more information, download a copy of the AMP KiwiSaver Scheme Product Disclosure Statement and Fund Update Booklet, which have been lodged on the Scheme’s offers register entry at companiesoffice.govt.New Zealand/disclose. AMP Wealth Management New Zealand Limited is the issuer and manager of the AMP KiwiSaver Scheme (the ‘Scheme’). The Supervisor of the Scheme is The New Zealand Guardian Trust Company Limited.
AMP Wealth Management New Zealand Limited is the issuer and manager of the AMP KiwiSaver Scheme (the ‘Scheme’). The Supervisor of the Scheme is The New Zealand Guardian Trust Company Limited.
For more information, download a copy of the AMP KiwiSaver Scheme Product Disclosure Statement and Fund Update Booklet, which have been lodged on the Scheme’s offers register entry at companiesoffice.govt.nz/disclose.
The information included in this article is of a general nature and is not a substitute for financial or other professional advice. To the extent that the information constitutes advice, it is class advice only. Before taking any action, you should always seek financial advice or other professional advice relevant to your personal circumstances. For personal financial advice, we recommend you contact your adviser or if you don’t have an adviser, contact us on 0800 267 263 and we can put you in touch with one.
A disclosure statement is available from your adviser, on request and free of charge.