Investment Report Q3/Q4 2017

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Investment Insight | The future of crypto mining is sustainable

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"As we discussed two weeks ago in our Investment Insight about Allbirds , we’re always looking for opportunities to buy shares in innovative companies at the IPO stage. This is why we’ve just invested in Iris Energy’s IPO on the NASDAQ. Iris Energy is a Bitcoin mining company with a difference: it uses only renewable energy to power its mining operations. "The total size of the Bitcoin mining industry in 2021 is estimated to be US$16bn, with significant scope for growth in the coming years. Iris Energy represents an important and necessary step forward for this industry: a future where crypto mining operations can make a meaningful difference to carbon emissions and to the communities they operate in..." Read more about Bitcoin's energy consumption and the investment case for Iris Energy below.
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Investing in a high inflation environment

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It was back in August of last year that I first referenced the growing inflation risk in New Zealand and labelled it the 'silent thief'. It is now official; the silent thief has arrived. Stats NZ 1 have confirmed that the Consumer Price Index (CPI) increased 5.9 percent for the 12-month period ended December 2021. This is the highest rate experienced over the last 30 years and anecdotal evidence suggests that many supply chain pressures are yet to peak. Offshore, the situation is similar with the United States CPI climbing to 7% in 2021. Like New Zealand, this is also a multi-decade high; in fact, it's the highest rate since June 1982. And perhaps more telling is that the United States central bank, the Federal Reserve, is no longer referring to inflation as 'transitory' but acknowledging the potential for it to be 'persistent'. OK, so no big surprise here; anyone who has been supermarket shopping over the last six months is well aware of this. At curr...
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Retirees' strategies for coping with negative markets

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In last month’s column, I discussed the impact that falling markets can have on those clients who are in the saving phase of their lives. I concluded, somewhat surprisingly, that for clients who are disciplined and invest in a certain way, negative markets can help build wealth. Although this conclusion is valid for half of the population (i.e. those in the wealth accumulation phase of their lives), what about those clients who are retired and looking to receive a sustainable level of drawings to help fund their living costs? The simple answer is that for retired people, a falling market environment has to be endured rather than benefited from. It is a time when the way a portfolio is ‘engineered’ will become a critical determinant of whether the strategy will be able to sustain the same level of drawings when markets turn negative. Don’t cut down half-grown trees. For retired clients, the way in which the portfolio is constructed has a lot in common with a diversified farming...
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