Market & Portfolio Update - November 2021

10 December by Lifetime in Market Update

Market & Portfolio Update - November 2021

News of the new Omicron variant broke late in the month, resulting in modest volatility in global share markets. Markets don’t tend to like uncertainty, and it is still early in terms of understanding the Omicron variant. Much more data is required, but initial suggestions are that it is more transmissible but potentially less severe than the Delta variant. Vaccine makers are also optimistic that existing vaccines will provide some protection, and Omicron specific vaccines can be developed reasonably quickly if required.

For New Zealand based investors, the volatility global share markets experienced was offset by the NZ dollar falling. The NZ dollar depreciated against most major currencies, supporting the returns of unhedged overseas assets (assets that are free to move with exchange rates). The result was a positive 3.2% return for unhedged overseas investments.

Fixed interest portfolios provided the diversification we expect during a period of equity market volatility. Both Global and New Zealand fixed interest portfolios returned almost 1%.

In New Zealand, the Reserve Bank hiked the Official Cash Rate 0.25% as expected – taking the rate to 0.75%. Their updated forecasts now show the OCR reaching 2.5% by mid-2023.

preview image - Market & Portfolio Update - April 2022

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.

by Lifetime in Market Update
preview image - The KiwiSaver Gender Divide – Why are women saving less and what can be done to combat this?

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.