Kapiti Financial Advice Limited – KiwiSaver and Investment
As expected, the RBNZ raised the Official Cash Rate (OCR) by 50 basis points to 3.0% this week. The Bank also raised the future track for the OCR, forecasting a peak of 4.1% by mid 2023, slightly higher than in the previous May Monetary Policy Statement. The Reserve Bank upped their forecasts for non-tradeable inflation … Read more
NZ Funds Income Generator fund is designed to limit losses in a negative share market environment. The fund provides a select portfolio of New Zealand and Australian companies with a focus on those paying high dividends with strong cash flows and reasonable valuations. These companies have avoided the worst of the 2022 sell-off so far, … Read more
NZ Funds have released their Monthly Review for April 2022. It reveals that the fund manager has used S&P500 and Nasdaq put options to generate significant returns in April, in a share market that has been falling. They intend to continue using put options while market volatility remains high and tending to the downside. NZ … Read more
In their latest Investment Insight NZ Funds discuss a problem that has been concerning me for a long while. Fixed interest securities, such as bonds, have an important role in the portfolios of clients with a low tolerance to risk or a short time-horizon. They provide low risk and a steady interest income throughout the … Read more
This week, financial commentator Janine Starks wrote an opinion piece titled Why you’re probably investing too much in KiwiSaver: https://www.stuff.co.nz/business/opinion-analysis/300321717/why-youre-probably-investing-too-much-in-kiwisaver The question is raised because your savings are essentially locked-in until you turn 65 years of age. Special rules ensure KiwiSaver funds held through to retirement, with some exceptions around first home purchase and financial … Read more
Annual fund charges published by KiwiSaver and managed fund providers allow investors to compare the cost of having your money managed by the respective providers. This stands in contrast to fees charged by share brokers and investment advisory firms, which can be difficult to calculate. Indeed, there can be multiple levels of fees which can … Read more