Yen Carry Trade Shift Puts KiwiSaver Investors on Alert

New Zealand KiwiSaver investors face risks if global market trends shift. Japan's current account surplus has fueled a carry trade, where investors borrow in cheap yen to fund investments worldwide.

This practice has been ongoing for over a decade and has seen Japan export capital instead of traditional goods like cars or electronics.

Naomi Fink, Chief Economist and Chief Global Strategist at Amova Asset Management, highlights the importance of this trade in her opinion piece.