Market & Portfolio Update - November 2020
Global markets performed very strongly during November. The first catalyst markets liked was the result of the US election. Although we haven’t seen the ‘blue wave’ result the polls were suggesting, it is looking like the US presidency and Senate will be divided. A divided government means it is less likely there will be significant change to regulations, giving more certainty to companies and investors.
The second major catalyst was the positive news from the phase three trials for Covid-19 vaccines. Banks, energy, and travel stocks all performed strongly as a result. The Australian share market in particular, performed well on this news. The Australian market has a larger allocation to these sectors than other global markets, resulting in it being up almost 10% in local currency terms.
Booster have recently increased the holdings in Australian companies that operate in the sectors that are likely to benefit the most from the global economy reopening and reduced the holdings in more defensive style companies. Although it is still likely it will take some time to get back to pre-Covid normality, investment markets tend to look forward so some are positioning funds in expectation of this.
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.