What makes a good fund manager?
Mercer has a team of over 100 dedicated researchers worldwide using a rigorous framework to help us discover the most compelling managers. The key factors we assess include a fund manager’s ability to generate valued-adding investment ideas, how effectively these investment ideas are translated into the portfolio, and how much of the value-add is given back in the form of transaction costs and opportunity costs. Those who we consider have best potential to generate value-adding investment ideas and effectively action those ideas receive our highest A rating.
Why should SuperEasy members be excited about SuperEasy’s new relationship with Mercer?
As part of our relationship with SuperEasy we are excited to be offering a webinar to members on what’s happening in financial markets and what’s influencing movements. We are hoping to break down what’s often considered a complex area and make it easier to understand for SuperEasy members. Trends in financial markets have an impact on portfolios and your retirement savings, and as a result we think it’s important for members to understand these forces. We look forward to seeing you on the webinar!
What are some key things to remember about long-term investments like KiwiSaver (e.g. fluctuations will occur)?
KiwiSaver portfolios are typically invested in various asset classes and financial markets. The value of any investment asset, whether it’s shares, property, bonds, or commodities, can fluctuate over the short term due to market volatility. While volatility is unavoidable, it’s important to remember that for those who are still a long way off retirement, KiwiSaver is a long-term investment, and it’s the long-term results that matter. Fluctuations may mean balances may drop from time to time. When this happens, it’s important not to panic. Long-term investments have the time to ride out short-term volatility to take advantage of the potential for long-term returns. For example, over the last 45 years the world stock market (MSCI) has had 11 years with negative returns, but even through that, it has averaged an annual return of 9.83% per annum increasing an original investment of USD $10,000 to $690,000! (source: Curvo)
Anything else members should know about you and Mercer?
The team and I, both here and around the globe, are passionate about how we help protect and grow New Zealanders retirement wealth. It is a great privilege and responsibility, and one that we are committed to delivering. The world of investments can be complicated, but we are here to help. If there is anything you need to know, please get in touch with the SuperEasy team and we’ll do everything we can to help.