The great $1.4 billion KiwiSaver panic
Many investors caught up in the great $1.4 billion KiwiSaver sell-off in March will never switch back to a growth fund.
An exodus of panicked KiwiSavers switched from share-heavy growth funds into cash and conservative funds in March as global sharemarkets plunged, and Milford’s head of KiwiSaver Murray Harris said: “Many of these members will never switch back to the fund which they came from.”
April and early May had seen a proportion of those who panicked switch back into growth funds, Harris said, but the switch had cost them dearly with growth funds having already clawed back much of their losses as markets staged recoveries.
April also saw non-KiwiSaver investors looking to buy into sharemarkets at lower prices after Covid-19-related market falls, said Leighton Roberts, founder of the Sharesies investment service, which has experienced a surge in new clients.