Market risk
Risk that the market value of investments may change due to a number of factors. These can include changes in economies, world events (such as pandemics), environmental events, climate change, the performance of individual entities, regulatory changes, investor sentiment, political events, inflation, and interest and currency exchange rates.
Asset allocation risk
Risk of changes in the value of the fund due to exposure to riskier assets. Funds that invest in more growth assets (such as equities, listed property and listed infrastructure) generally go up and down in value more over the short term than funds that invest in more income assets (such as cash and cash equivalents, and fixed interest).
Credit risk
Risk that an issuer or a counterparty is unable or unwilling to repay what they owe.
For example, if an issuer of a fixed interest investment is not able to pay interest or repay all the principal, returns of the fund could be lower.
Currency risk
Risk that changes in currency exchange rates will affect the value of the fund. Investments denominated in foreign currencies are exposed to currency risk.
Interest rate risk
Risk that the market value of an investment may change due to changes in interest rates.
For example, the market value of fixed interest investments will fall if interest rates in the market increase.
Liquidity risk
Risk that an asset cannot be sold at the desired time or at a reasonable value.
Liquidity risk may impact your ability to withdraw, transfer or switch your investment.
Active management risk
Risk that arises from our, or our external fund managers’, active management of investments.
As an active manager, we make decisions about what proportion of each asset class to hold, what investments to hold, and the level of currency exposure.
Derivative risk
Risk that arises from the use of derivatives where the value is derived from the performance of another asset or index (such as a share market index), an interest rate or an exchange rate.
For example, investment losses could be caused by changes in the value of the underlying assets, indices or rates.
Concentration risk
Risk that arises from a fund’s investments being concentrated in particular assets, types of assets, industries, countries or regions.
Climate change risk
Risk that the market value of an investment may change due to the impacts of climate change. Climate change risks are broad and can affect the wider economy. For example, severe weather events may damage physical assets, while shifts in market sentiment or increased government regulation in response to climate threats can influence asset values.
Other relevant risks
Operational risk
Risk of inadequate or failed internal processes, people (including key personnel risk) and/or systems or from external events, including risks arising from third-party providers or partners.
Regulatory risk
Risk of changes to tax, KiwiSaver, and other legislation or regulations, or changes to, or loss of, the scheme’s PIE status.
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Important information
ANZ New Zealand Investments Limited (‘ANZ Investments’) is the issuer and manager of the ANZ KiwiSaver Scheme, the OneAnswer KiwiSaver Scheme and the ANZ Default KiwiSaver Scheme (no longer a default scheme and closed to new members). For the scheme guides and product disclosure statements see KiwiSaver documents and forms or ask at any ANZ branch.