"We can, and do, rest easy, secure in the knowledge that our financial interests are in good hands..."

G & J

Economic & Market Updates

New Zealand Superannuation – A Core Cost to Pay

The growing cost of New Zealand Superannuation is an issue that the Retirement Commissioner and media have raised as a concern. This week, current Prime Minister Bill English addressed the issue, with proposed changes to entitlement age, and increasing the residency length requirement for immigrants.

The current government proposes legislative changes to be introduced in March next year. This is after the election. What has been proposed is therefore a policy, and may not necessarily become law.

Am I in the Right KiwiSaver Fund?

This is a commonly asked question of financial advisers especially when KiwiSaver investors are in a group default scheme. It is always a bit difficult to answer at the time, given that the first thing an adviser is supposed to do is provide the person with a disclosure statement, before even attempting to answer the question. It is all a bit unusual given that journalists, teachers, and members of parliament can legally answer the question yet the clear majority of them have no qualifications or expertise to do so.

Currency – to hedge or not to hedge?

As New Zealand is a small export orientated country, most of our exports are not sold in New Zealand dollars. The New Zealand dollar tends to fluctuate considerably. There is little that New Zealand can do to protect our currency from fluctuating significantly. When there is a global hiccup, there is a flight to the so-called safety of the US dollar. With BRIXIT, the GBP fell considerably lowering farmers’ returns for lamb.

Lower Bond Rates May be Here to Stay

Most people with money to invest tend to look at fixed interest investments as a home for some of it. Traditionally fixed interest is used within portfolios for stability, a means of reducing overall investment risk, and as an income stream.

2016 in Review and What will 2017 Bring?

Happy New Year. 2016 has been and gone. Unfortunately, it has proven to be a difficult year, and more so, the last quarter for investments. The year passed quickly by.

Global headlines were dominated by Syria, Terrorism, BRIXIT, the Rio Olympics and the US Presidential Election. In New Zealand, there was also the Kaikoura earthquakes, and the resignation of John Key as leader of the National Party and as Prime Minister.

Syndicate content