New Zealand Post
INFORMATION FOR MEMBERS OF THE
NEW ZEALAND POST SUPERANNUATION PLAN
The price of shares around the world has fallen significantly as investors assess the impact of the spread of COVID-19. This has impacted the Super Plan. The Short Term Fund only invests in cash. Returns for this fund are holding steady. However, returns for the Medium Term Fund and Long Term Fund will be sharply negative for March. You can expect your balance to drop at the end of the month if you are invested in these options.
We or the helpline team cannot give individual financial advice. However, we can provide some general thoughts that might help you assess your situation. Unfortunately, all investment involves an element of risk, and none of us knows what is around the corner. We recommend you stick to a long-term investment strategy based on your personal circumstances – especially when you expect to access your savings.
Markets tend to recover – eventually. The Medium Term Fund and Long Term Fund have provided very good returns in the past, and we have every reason to believe they will do so again. If you switch to the Short Term Fund, you will lock in your current losses and miss out on any recovery. However, you need to be able to invest for long enough for that to happen.
If you need to access your money in the near future, you might not want to risk further losses by remaining invested in the Medium Term Fund or the Long Term Fund. In this case, you might want to switch to the more conservative Short Term Fund.
Think carefully before making a change. When markets fall sharply as they have now, it is natural to want to take action. It’s OK to leave your money invested where it is if you’re comfortable that’s the right place to be given your investment timeframe.
If you do want to change your investment strategy, you can do so online or by filling in and returning a Change of investment form – download one here. If you do make a change, remember that it won’t take effect until the first of the month after we receive your completed form/online change.