MJW Investment Survey highlights the performance of Invest Link KiwiSaver providers

Melville Jessup Weaver have released their MJW Investment Survey March 2025 (click here to download it).

The survey discusses the impact of the US trade policy which caused understandable nervousness in the first quarter. Market volatility began to rise around the end of February and peaked for the quarter in early March. Subsequent events in early April, following President Trump’s liberation day announcement, saw volatility approach levels seen in March 2020 when Covid-19 rocked markets.

While there has been a breathing space since the liberation day announcement, the eventual resolution of these trade policies is still unclear. Measures of uncertainty have calmed since the excitement of early April, but still remain well above normal levels.

The author expect volatility in markets to continue in the nearer term while threats of trade retaliation between the world’s two largest economies continue.

We note that markets have rallied recently after President Trump hinted that tariffs on Chinese goods will come down substantially. Still, the speed, extent and uncertainty of US trade and tariff policy announcements means markets will remain twitchy.

At an individual KiwiSaver Scheme level, the survey authors report that Milford continues to boast impressive results while advising that Generate has had an attractive return profile over recent years on a risk-adjusted basis.

Booster has been closer to the mid-point in terms of performance, but also has some of the lowest risk scores across the fund types reflecting their approach to diversification, which includes investing directly into New Zealand businesses and property.

Booster is one of the bigger proponents of unlisted New Zealand assets and some of its funds invest in private equity and direct property ventures. The firm take this approach to diversify away from listed securities and invest back into New Zealand, allowing the funds to invest in companies and property through additional channels while sidestepping some of the volatility that comes with investing through markets.

MJW conclude that investors who have a longer time horizon should remain mindful that volatility in markets is expected to continue during these troubled times, reviewing their risk appetite, objectives and broader investment strategy as appropriate.

We advise that you contact a Financial Adviser before switching your KiwiSaver funds during these turbulent times.