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C & D

KiwiSaver

The case for global corporate bonds

Corporate bonds are issued by companies as a way of raising cash to fund their operations. They are essentially a different way for companies to raise debt away from a bank loan, or more typically a syndicated bank borrowing facility. 

What a Year

Once again the New Zealand stock market has performed pretty well this year. During the year there have been several new issues, most notably the very large IPO’s for Mighty River Power and Meridian.

Some people say that these IPO’s have not been successful. The fact that they effectively replaced 49% of the tax payers “book value” with hard currency is a success in its own right. They also did so without scavenging money from other publicly listed companies is also encouraging.

KiwiSaver Periodic Disclosure

Recently KiwiSaver providers had to commence providing Quarterly Disclosure Statements for their various KiwiSaver Funds. This includes fee and performance reporting in a standardised approach.

When it comes to performance reporting, the providers are required to provide after tax and fee returns. The tax rate, or more correctly, the prescribed investor rate (PIR) that is used is the highest PIR rate being 28%. This is different to the figures that Research House Morningstar publishes. They use the gross of tax return figures.

Five Common Investment Myths

19 Aug 2013

Not knowing how to go about it is one of the main reasons why people don’t invest, along with a number of misconceptions about investing. Here are some of the most common myths and why you shouldn’t believe them:

Tougher times for Fixed Interest

Most investors know that the four major classes of investment assets are cash, fixed interest, property and shares. Typically in a fully diversified investment portfolio cash and property (such as listed property trusts) usually account for a much lesser proportion than fixed interest and shares.

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