So what has happened?
Sharemarkets here and overseas have come down from highs experienced earlier in the year, and over the past few weeks markets have been especially volatile (moving up and down). This is due to the economic impact of the Covid-19 Coronavirus spreading, with governments and markets reacting to new developments happening on a regular basis.
What’s important to remember is that this sort of movement in the sharemarkets does happen from time to time, especially in response to such major global events.
If you’re invested in the ASB KiwiSaver Scheme, ASB Investment Funds or ASB Superannuation Master Trust, you may have already seen an impact. These products are invested in funds and these funds are generally invested in a combination of shares, property, bonds and cash meaning they will be influenced by movements in global sharemarkets. Different funds will have a different allocation between shares, property, bonds and cash – and this is why some funds are impacted more by movements in sharemarkets than others.
The impact of the Coronavirus has been quite severe, with many events, flights, and activities being delayed or cancelled. Numerous countries have put in place strict quarantine and border control measures. All of these things impact businesses, trade and the sharemarkets.
The volatility currently being experienced is very high – markets are moving sharply both up and down in reaction to news and developments happening all over the world. This is why even conservative and moderate funds, which have a lesser exposure to global sharemarkets have been impacted.
We expect market dips to happen from time to time and it’s important to remind yourself that investing is for the long-term. Rather than focusing on the day-to-day movements, we recommend making sure you’re in the right fund for your goal.
What you need to think about
If you are wondering what this means for you, check out the frequently asked questions that we are hearing from customers and to make sure you’re in the right fund for your goals, follow the link relevant for you:
· ASB KiwiSaver Scheme
· ASB Investment Funds
· ASB Superannuation Master Trust – government employees
· ASB Superannuation Master Trust – non-government employees
Your requests and our processing times
If you’ve requested a fund switch or withdrawal, it’s important to understand that the final dollar amount paid to you or switched into your new fund selection, is likely to be different from the balance shown in FastNet Classic. This is normal given unit prices can change in value everyday depending on how markets have performed.
We’re currently experiencing higher than normal call volumes and queries so please note that our processing times may take longer than usual. We appreciate your patience and apologise for any inconvenience caused.
Further useful links
This content does not have regard to the financial situation or needs of any reader. As individual circumstances differ, you should seek appropriate professional advice.
We believe that the information on this webpage is correct and any opinions, conclusions or recommendations are reasonably held or made, based on the information available at the time of its compilation, but no representation or warranty, either expressed or implied, is made or provided as to accuracy, reliability or completeness of any statement made in this document. Any opinions, conclusions or recommendations set forth in this document are subject to change without notice and may differ or be contrary to the opinions, conclusions or recommendations expressed elsewhere by ASB or Commonwealth Bank. We are under no obligation to, and do not, update or keep current the information contained in this document. No person involved in the preparation of this document accepts any liability for any loss or damage arising out of the use of all or any part of this document.
Interests in ASB Investment Funds, ASB Superannuation Master Trust and the ASB KiwiSaver Scheme (‘the Schemes’) are issued by ASB Group Investments Limited, a wholly owned subsidiary of ASB Bank Limited (ASB). ASB provides administration and distribution services for the Schemes. No person guarantees interests in the Schemes. Interests in the Schemes are not deposits or other liabilities of ASB. They are subject to investment risk, including the loss of income and principal invested. For more information see the Schemes Product Disclosure Statements, available from the register of offers of financial products at www.business.govt.nz/disclose, (search for either ASB Investment Funds, ASB Superannuation Master Trust or ASB KiwiSaver Scheme).