Coronavirus: Covid-19 exposes naked risk behind KiwiSaver funds
So what of our KiwiSaver funds - that money we’ve entrusted to financial gurus to invest for our retirement? “Some of the things that may cause a fund’s value to move up and down, which affect the risk indicator, are asset allocation risk, market risk, currency risk, interest rate risk, credit risk and liquidity risk.”Excellent. Oversight for KiwiSaver funds’ risk management rests with the Financial Markets Authority. “FMA expects Trustees to ensure they have appropriate monitoring mechanisms in place to ensure Managers are adequately managing investment risk within KiwiSaver schemes,” the FMA wrote in a 2014 report on monitoring investment risk in KiwiSaver schemes. Investment risk a “key focus” for the FMA...Back in 2014, the FMA looked at investment risk as an important issue.