NZ Funds Investment Report Q1/Q2 2018

-

Popular posts from this blog

Retirees' strategies for coping with negative markets

-
Image
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...
Read more

Investment Insight | Backing BIRD to fly

-
Image
"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.
Read more

Investment Insight | Outlook 2022 | Year of the Tiger

-
Image
As we move on to the final throes of the year the focus across global markets is increasingly on the trade-off between inflation and growth. In this Investment Insight, we outline the key themes that we believe will test markets and drive client portfolios in 2022. Inflation abounds Inflationary pressures remain stickier than many had believed. The United States Consumer Price Index (CPI), a key measure of inflation, rose to 6.8% in November and core CPI increased to 4.9%, a 30-year high. With inflation clearly more persistent than many had anticipated, a clear theme for 2022 is tightening financial conditions i.e. increasing interest rates. Global financial conditions remain extremely loose. Indeed, higher actual and expected inflation has kept real interest rates in many countries deeply negative. This naturally encourages investors to move further out on the risk spectrum. This will change in the coming year. Over the last month, the United States Federal Re...
Read more