Market & Portfolio Update - June 2021
Returns on overseas investments were supported by the New Zealand dollar falling against most major currencies during the month. The US dollar strengthened by 4% in June after the Federal Reserve brought forward their expectation for hikes in the Fed Funds Rate from 2024 to 2023. Given the strength of the economic data so far this year, there is a possibility this could be brought forward again.
Global share markets were up over 2% for the month in their home currency terms, and almost 6% in NZD terms (due to the weaker NZ dollar). Pleasingly, both our active global share managers delivered significantly higher returns, with California-based Fisher investments, benefiting from their exposure to the technology sector.
The New Zealand and Australian share markets also produced solid returns for the month, although were both relatively quiet on the news front. Many of the higher growth companies were back in favour during June, with their valuations being supported by longer-term interest rates falling back a little after rising in the first part of the year.
You’re Missing Out on Tax Savings If You Haven’t Had a Chattels Valuation Done
We’ve been recommending chattels valuations from Valuit for over 20 years, and it still amazes us how many property investors haven’t had one completed.
If you own a rental property and your current accountant hasn’t discussed chattels valuations and depreciation with Valuit, there’s a very good chance you’re paying thousands of dollars more tax than you need to over the life of the property.
12 Common issues and mistakes we regularly see
We review many financial statements prepared by other accountants. Below are some recurring issues we frequently identify, many of which are also areas the IRD commonly focuses on.