Market Updates

Keep up to date and informed on what’s been happening in the markets both here and overseas in our latest Market Updates and regular Quarterly Market Update video below.

Market Update

BT Insights Monthly Market Performance

BT Insights is an investment market publication prepared by BT Funds Management (NZ) Limited, the funds management business of Westpac in New Zealand. BT Insights are designed to keep you in touch with what’s happening in investment markets.

Monthly Market Performance - May 2020

Click on the video below to watch the May 2020 market update.

COVID-19 Investment Update

As markets dropped in the lead up to national Alert Level 4, we moved to adjust the asset allocation within the diversified managed funds. The allocation to cash and bonds was moved slightly higher relative to the equity (i.e. share market) allocation. In addition, our allocation to alternative investments has helped mitigate some of the downside experienced.

Examples of some of the moves made by the underlying investment managers within the equity allocations include:

  • A lower exposure to businesses more impacted by COVID-19, like travel, oil, discretionary retail and tourism. They own less in domestic companies like Air New Zealand, Auckland Airport, Tourism Holdings and Sky City.
  • Limiting exposure to businesses likely to take a larger hit from recent events, like the chemical and energy sector including Oil Search; and entertainment businesses like Aristocrat.

Seizing buying opportunities

Selective buying opportunities can present themselves when companies are oversold. As an active investment manager, we’re able to capitalise on these opportunities when they arise.

Examples of some of the recent actions by the underlying investment managers within the equity allocations include:

  • Buying more stock in high quality defensive consumer staples businesses, such as Nestle, Proctor & Gamble and Coles; infrastructure companies like Fortescue Metals and National Grid; and financial market exchanges like London Stock Exchange and Chicago Mercantile Exchange. 
  • Adding to solid businesses where prices have dropped sharply due to their sensitivity to economic cycles, but which we expect to be well positioned for when the market begins to recover. These include Mainfreight, Port of Tauranga, Goldman Sachs, Comcast and Burberry. 
  • Holding more in Kiwi businesses that should be largely unaffected or potentially see an increase demand like Fisher & Paykel Healthcare, Spark, Contact Energy, a2 Milk and EBOS Group.

While the above detail is correct as at 6 April 2020, please note that markets will change daily and so the above moves are subject to change.

For more detail on this, please feel free to contact your Westpac financial adviser.

Market Volatility

Want to know more about peaks and troughs in markets? Investments can surge ahead, stay flat, or dip meaning your KiwiSaver savings won’t grow at a steady rate. As markets generally recover over the long term, it’s important not to over-react in the short term.

If you'd like to know more about how the Covid-19 Coronavirus affects your Westpac KiwiSaver Scheme account, click here.

Click here to see some investment tips.

For general Covid-19 updates, click here.