Amongst the topics covered in this edition we highlight:
The Macro Outlook – From Calm, to Choppy Conditions.
Trade tensions, increased financial market volatility, higher interest rates (particularly in the US) and slippage of global growth indicators have resulted in a rougher ride for investors in the early part of 2018 than was enjoyed in 2017. Unfortunately, while this can test investors’ nerves, it is only to be expected as financial markets return to normality.
Financial market performance year to date can only be described as lack lustre. As is often the case, some of changes that we had thought could take a full year to eventuate, have already nearly come to pass. Specifically, oil is well on the way to hitting US$80/barrel, inflation is up in the US, US 10 year Treasury interest rates have been over 3% and equity valuation multiples have reduced. It is not unreasonable to expect that this may be balanced by less dramatic changes for the rest of the year. – page 4
Two Crucial Components of the NZ Economy – Ports and Electricity
Recent trade tensions have highlighted the importance of trade to the NZ economy and consequently the important role that ports play. As NZ’s largest and fastest growing port, we profile Port of Tauranga and its CEO, Mark Cairns. – page 10
Electricity is a form of energy that is almost as important as water to modern life in NZ. Its importance is only likely to grow as the Government focuses on meeting NZ’s commitment under the Paris climate accord. Consequently, the electricity sector is facing challenges from political scrutiny as well as surprising technological changes. – page 14
Managing the Proceeds of a Business Sale
The sale of a business results in the realisation of many years of hard work by a business owner. However, it leaves many past-business owners in a quandary as to how to best manage the sale proceeds. At FNZC, your adviser can work with you to determine your risk profile, investment time horizon and financial objectives. From this information, they can construct an appropriate investmentportfolio. Starting from this foundation, they can assist with the ongoing management of the portfolio and the more significant modifications required when a change in circumstances warrant a modification. – page 34