Market & Portfolio Update - June 2019
Market & Portfolio Update - June 2019
Global share markets had a strong positive performance in June, rebounding from May’s weakness, but in a somewhat volatile fashion. While over the long-term companies are valued according to their earnings, in the short-term they can be driven by investor sentiment and the current period is no exception. Global share markets rose 6% in June where the US market experienced its strongest June since 1933. This completely offset May’s weakness (the weakest May since 1970) and supported fund's strong gains so far in 2019, with a typical balanced portfolio up 10% over the last six months.
Fixed Interest investments continued to perform well, as market interest rates declined around the world, and yields on NZ bonds fell to new lows. This is a helpful source of support for economic growth, by helping make financing more affordable for a wide range of borrowers.
NZ and Australian shares also performed positively. Our local markets continue to be supported by their relatively defensive characteristics and dividend yields, which are well above the global average. These healthy dividends are looked upon favourable by investors when global and local interest rates move lower as we have continued to see.
Disclaimer: This article has been prepared for the purpose of providing general information, without taking into consideration any particular investor’s objectives, financial situation or needs. Any opinions contained in it are held as at the report date and are subject to change without notice. This document is solely for the use of the party to whom it is provided.
Market & Portfolio Update - April 2022
Global share markets continued their choppy start to 2022 during April.For New Zealand based investors, a fall in the NZ dollar played an important role in helping offset the volatility global share markets experienced. The NZ dollar fell against most major currencies supporting the returns of unhedged overseas assets (assets that are free to move with exchange rates). As a result, ‘unhedged’ overseas investments fell by only 1.8% for NZ based investors.
The KiwiSaver Gender Divide – Why are women saving less and what can be done to combat this?
Recent data shows that, on average, women have 20% less in their KiwiSavers than men. The gap being at its largest between men and women in their 40s and 50s. There are a few factors that come into play causing this divide and although it will take years to achieve equality, there are ways in which we can be proactive to help close the gap. As of August 2021, the gender pay gap is at 9.1% in New Zealand, a decrease of about 0.4% from 2020’s stats.