NZ Funds have released their Investment Report for the first half 2021.
They believe that professional financial advice can help you understand and manage investment risk and navigate your choice of manager, asset allocation and contribution rate.
NZ Funds expect local and international shares will continue to rise over the medium term, but at a much more modest pace.
The large, strongly growing technology companies (Facebook, Amazon, Apple, Microsoft, Google and Uber) are expected to continue to win market share and compound their earnings.
Diversification is one of the undisputed tenets of finance, improving risk-adjusted returns over time. As part of this strategy, listed shares and bonds are central to long-term investing and therefore to managing New Zealander’s wealth. But in line with global norms, NZ Funds believe that New Zealanders should also benefit from access to additional asset classes – and modern investment techniques.
In line with this philosophy NZ Funds can invest in a more diversified range of financial assets – currencies, commodities, futures, gold and crypto assets. The additional asset classes are all highly liquid and have full, daily price discovery. This is important as it means risk can be managed and clients’ investments can be accurately priced.
NZ Funds also apply a socially responsible approach to all the investments they manage, monitored by Scandinavian-based research giant ISS ESG.
NZ Funds apply downside mitigation to help protect clients’ funds in a rapidly falling market and upside capture in a rising market, for example by purchasing additional market share through financial markets instruments.
NZ Funds use a number of tools and techniques to manage risk including research, portfolio construction techniques, security diversification and liquidity risk management, downside risk mitigation specialisation and their Point portfolio management system which covers a wide range of functions from trade placement and execution to portfolio management analytics.
Their performance in achieving these goals is discussed in their NZ Funds Investment Report 1H 2021.
Please let me know if you think NZ Funds might be right for you.