The start of the
year is a great time for all investors to consider whether their current
investment mix is still suitable – after reviewing their circumstances and any
changes that may be needed for future planning.
Investors
sometimes retain portfolios they haven’t reviewed for a number of years. Yes,
decisions were appropriate when first put in place. But perhaps personal situations
have changed. For instance, an inheritance may have been received, which could
have an impact on retirement planning. Perhaps a relationship break-up has
significantly reduced overall assets. Or maybe the world economic outlook has
led to better opportunities. Any number of matters could have changed since you
last reviewed your portfolio. These could significantly affect your time-frame
- or indeed your goals.
With an excellent
track record in handling past financial crises, New Zealand is a safe haven for
investments. Although highly regulated, it has some of the most reliable
economic and fiscal policies in the world. When coupled to some of the highest
interest rates amongst developed nations, it’s little wonder that the country
has a reputation as the jurisdiction of choice for investors.
New Zealand’s
economy grew by 3.4% last year. That was the largest increase in ten years and
- according to analysts - the country promises even more growth this year, when
the economy is expected to grow by a full 4%. Moreover, New Zealand is expected
to be enjoying its first budget surplus in seven years, a remarkable situation,
compared with other countries.
New Zealand’s
favourable position is widely expected to lead to major tax reductions for low
and middle income earners, amounting by 2017 to NZ$1.5 billion, together with a
prudently controlled debt and a growing economy. It is undoubtedly New
Zealand’s excellent economic policies that have taken overall business
confidence index to a recent high of 30.4. With current fiscal policies likely
to continue in the same successful fashion, they indicate a welcome opportunity
for the investment community. Shouldn’t that include you?
Amongst those
taking most advantage of the country's positive business environment is the
financial sector. It’s already becoming one of the most attractive of all for
investment. The NZX50 was up 17.0 per cent last year, a stellar performance,
against a 16.5 per cent increase in 2013 and 24.2 per cent in the bumper year
before that.
Over the last
decade, the New Zealand market has delivered an average annual return of no
less than 6.7 per cent. However, the last three years have been exceptional. In
2015, investors remaining alive to the opportunities should expect the same
outstanding returns.
About the
Author
Luigi Wewege is the founder of Vivier Group & CEO
of its Auckland based financial services arm Vivier & Co. He is
also the Managing Director of its sister companies Vivier Investments, Vivier Developments, Vivier Home Loans and Vivier Mortgages.
Vivier & Co
Vivier and Company
Limited (‘VCL’) is registered in New Zealand under number: 1130618. VCL is a
member of Financial Services Complaints Limited a New Zealand Government
approved Dispute Resolution Scheme, and maintains an insurance policy with
Standard and Poor's A+ rated insurers, providing a NZD2,000,000 indemnity on
any one claim/loss in the aggregate.
For further details, please contact
Press at Vivier
Group
Level 31, Vero
Centre, 48 Shortland Street Auckland 1010, New Zealand
+64 9 889 3998
press@viviergroup.com
