What do tariffs and trade wars mean for your KiwiSaver? - The Prosperity Project

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, US, on Tuesday, March 11, 2025. The stock market on Monday shifted towards defensive sectors such as energy, consumer staples, and utility companies, which tend to fare well during recessions, as investors sought shelter from the potential economic storm. Photographer: Michael Nagle/Bloomberg via Getty Images

Investors are being reminded “this too shall pass” as political and economic uncertainty continues to rattle US share markets.

The S&P500 is down about 10% from its highs earlier this year, and some KiwiSaver fund mangers are reporting an increase in investors opting to switch funds as they see the impact on their balances.

But portfolio manager at Milford Asset Management, Mark Riggall, told Nadine Higgins on The Prosperity Project, the Herald’s personal finance podcast, investors should be more focussed on their investment timeframe.

“For many people, that use for those funds is going to be many, many years away. So, doing something in the short term because you’re concerned about what’s going on might be detrimental to your long-term returns.”

“Of course, pay attention, make sure you know what your fund manager’s doing and, how they’re positioned, but, by and large for KiwiSaver, it should be really easy to just to stay put.”

Riggall says while US markets are volatile, and could remain so for some time, it’s not all bad news.

“There are other parts of the world that are not faring so badly. Europe has been doing quite well this year, and in fact is up on the year. So, it’s a big contrast to what’s going on in the US.”

He says the nature of KiwiSaver funds and how they invest means there can also be benefits from dips in the market.

“So, for a retirement product like KiwiSaver where you’re contributing every month from your salary, that is (dollar cost) averaging it, right? You are buying more units of whichever fund you’re in, and if markets are volatile then you’re buying more units for the same dollars that you’re investing.

“Then over the long run, you should see price appreciation of these funds.”

Listen to the full episode of The Prosperity Project for more about the state of the stock market.

The podcast is hosted by Nadine Higgins, an experienced broadcaster and a financial adviser at Enable Me.

You can follow the podcast at iHeartRadio, Apple Podcasts, Spotify, or wherever you get your podcasts. New episodes are released every Monday.