'Business as usual' despite correction fears
MJW has released its latest investment survey, in which actuary Ben Trollip said KiwiSaver growth funds were still heavily exposed to equities – at 75.6 per cent on average, compared to just 2.4 per cent for alternative assets.
“Just five of the 12 growth funds have allocations to alternatives, despite worries that traditional asset classes may be overvalued,” he said. “It is interesting that there’s not a greater allocation away from equities in these funds. They’re going about business as usual.”
Trollip said a move out of equities looked sensible because they were "looking stretched", and a shift to alternatives could deliver results this year.
Mercer was the exception among the funds, he said, with a relatively low allocation to shares compared to the others, and a sizable alternatives allocation. But Trollip said that move seemed to have been made too early - Mercer suffered compared to other managers over the past year.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
