NZ Funds Investment Report Q1/Q2 2018

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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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Goals based investing – a new way of thinking.

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In a previous article, I explained the power of compounding investment returns. The article highlighted the impressive synergies created by the combined effects of; starting early, maintaining regular contributions and reinvesting your returns.  It all sounds so simple. But I guess one of life’s truisms is; “that which is simple is not necessarily easy”. This disconnect between knowledge and action has caused some advisers and fund managers to rethink the way they provide advice to clients and construct investment portfolios.  It appears that for some clients the traditional diversified portfolio approach is a barrier to success as that portfolio can seem far removed from the client’s life. In the real world our financial goals are driven by the things that we want to achieve. They are fluid in nature and many in number. Accordingly they have different time frames and can even compete with one another.  A traditional diversified portfolio, which is constructed...
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Investment Insight | Backing BIRD to fly

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"At NZ Funds, we’re constantly looking for innovative companies to invest in, particularly at the IPO (Initial Public Offering) stage. Investing at the 'ground floor' level gives our clients the greatest chance of benefiting from long-term growth in company share prices. It’s rare to be presented with the opportunity to back a new NASDAQ listing that also has strong New Zealand connections. This is one of the reasons we were delighted to make a successful bid for shares in Allbirds (NASDAQ: BIRD), which has grown from a Kickstarter campaign by its Kiwi cofounder to a global footwear and apparel company with a US$3.1 billion market capitalisation..." Read the full story about NZ Funds' IPO investment in Allbirds below.
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