By Marcus Wild, Chief Client Officer, and Sean Henaghan, Chief Investment Officer, Aurora Capital

If you’ve been following the news lately, it’s easy to feel a bit of headline fatigue. Between shifting global dynamics and tensions in the Middle East, the world can feel uncertain. When that uncertainty shows up in financial markets, it’s natural to feel concerned.

But there’s an important perspective that experienced long-term investors understand: volatility isn’t something to fear. In many ways, it’s part of how long-term wealth is built.

The opportunity in market movements

For those investing regularly, market ups and downs can actually work in your favour.

Think of it like shopping somewhere you visit often. If you know you’ll be buying regularly over many years, you wouldn’t want prices to stay high all the time. The occasional sale can be a good thing.

For members of the Aurora KiwiSaver Scheme, market dips mean your regular contributions are buying investments at lower prices. Over time, that can help build a stronger position.

Sean often puts it this way:

Think of your KiwiSaver investment like building a house from bricks.

Each time you contribute, you’re buying “bricks”, or units in your investment. Over time, those bricks come together to build your house, your overall savings for the future.

When markets dip, the price of those bricks becomes cheaper. That means your regular contributions can buy more bricks than before.

So while the value of your house might move around in the short term, you’re actually using those periods to build more of it.

And over time, more bricks can mean a bigger, stronger house.

What Sean is seeing in markets

While volatility can create opportunity, it’s still important to understand what’s behind it.

Right now, three key factors are driving market movements:

• Energy prices: Global tensions can push oil prices higher, which can flow through to inflation
• Interest rate expectations: Markets are adjusting expectations around when central banks may begin lowering interest rates
• Investor sentiment: Short-term movements are often driven by confidence and caution, rather than changes in long-term value

These factors can create uncertainty in the short term, but they are a normal part of investing.

How Aurora supports your investment journey

While we recognise the opportunities that volatility can bring, our focus is on helping investors stay on track through all market conditions.

Our multi-manager approach is designed to deliver the same destination, with a smoother journey.

By partnering with a range of global specialist managers, we build diversified portfolios designed to perform across different environments. This includes:

• Infrastructure and private credit: Investments in areas such as utilities and business lending can provide more stable, income-focused returns when share markets are more volatile
• Manager diversification: We work with multiple managers, each with different styles and strengths, reducing reliance on any single approach

This approach helps balance growth with resilience, so you can stay invested with confidence.

A note from Marcus

We know that market volatility can feel uncomfortable. That’s completely normal.

But it’s worth looking beyond the headlines and focusing on what really matters – your long-term goals.

Over time, some level of market movement is not just expected, it’s necessary. It’s what creates the opportunity for growth.

Think of your adviser as your co-pilot. You don’t need to react to every bump along the way, you just need to know you’re on the right path.

If you’re ever unsure, or just want to talk things through, we’re here to help. That ongoing support is a key part of the Aurora KiwiSaver Scheme.

Want to talk things through?

Talk to your Adviser today or get in touch with the Aurora Client Care Team

0800 242 023
hello@aurora.co.nz