Volatility prompts 500pc lift in switches

ANZ general manager of wealth products and marketing Ana-Marie Lockyer said the bank had noticed a significant increase in KiwiSaver members switching their accounts to more conservative investments.

The rate of switches was up 500 per cent at the peak and 300 per cent on a weekly average over the period of increased market uncertainty.

September was the first quarter in a number of years in which KiwiSaver balances declined.

Lockyer said the majority of switches were made by younger KiwiSaver members.  “That’s perfect if they are looking to buy a house soon and wanted to lock it in but it is more challenging if they saw the balance change and thought ‘I don’t like this volatility, I’ll move down the risk spectrum’ because if they sit there for 40 years it could have unintended consequences.”