Congratulations Harbour Asset Management!

Harbour Asset ManagementWe are delighted to share some good news with you; this week Harbour Asset Management was named Morningstar New Zealand Fund Manager of the Year 2017.  They are proud to have been named Fund Manager of the Year for the second year in a row.

“Harbour is one of the best stewards of New Zealand investors’ money. The shop applies a detailed, well-thought-out investment process to all its funds, has an open and transparent approach, and has consistently delivered market-leading longer-term returns.” – Morningstar

Harbour says that their fundamental goal is to be most trusted by our clients, and being named as a leading steward of investors’ capital by Morningstar helps to validate this.

We want to thank every one of our clients and supporters for putting their trust in Harbour, and we look forward to many more years of continued success and growth

Kiwisaver should be part of your long term savings plan

3 Good Reasons that Kiwisaver should be a part of your long term savings plan:Saving can be a tricky balancing act

  1. Untouchable (mostly): a lot of people have issues with impulse buying or credit control, which is evident in the figures of how much we are all in debt, Kiwisaver is your opportunity to hide funds away for the long term and you can’t spend them.
  2. Tax effective: because Kiwisaver uses PIE tax, you don’t need to contribute to the tax payments, it is done for you, and the maximum tax you will pay is 28%, which is lower than the PAYE top payment of 33%
  3. Employer Contribution: for employees, your employer will be contributing to your savings, what a fantastic incentive to provide for your long term needs.

Ok, so one more, you can change providers easily and it won’t cost you the earth.  You can pay an adviser for advice on who to invest with or just do it yourself, all information is readily available and reasonably easy to read.

If finances don’t interest you, pay someone to do it for you, just as you would pay someone to do other jobs you prefer not to do, like lawns!

Hunter Hall says no to Fossil Fuels

Note: This is NOT an endorsement to invest in Hunter Hall, it is simply news.  If you would like to consider investing anywhere please contact your local Financial Adviser.

Hunter Hall Investment Management Limited is amending its investment screen to end investments in fossil fuel companies.

 

Peter Hall AM, founder and CIO of Hunter Hall said today, “Hunter Hall seeks to avoid investments in companies that are involved in activities that are harmful to people, animals and the environment. We know from climate science that burning fossil fuels is having a powerful and accelerating impact on climate and the environment. For this reason, we have always been underweight the fossil fuel sector. But the decision to end fossil fuel investments outright enables Hunter Hall to focus on a future with new opportunities. After observing the gathering momentum of fossil fuel divestment campaigns and consulting a number of our supporters, it is clear climate change is an important issue to many retail and institutional investors”.

Prominent conservationist, Professor Tim Flannery, Councillor of the Climate Council and author of The Weathermakers said of the decision:

“Once again Hunter Hall is ahead of the curve. Divesting from fossil fuels recognizes the profoundly disruptive nature of clean technology and the rapidly emerging clean energy future.”

Hunter Hall periodically reviews its Ethical Investment Policy to ensure we remain a thought leader in ethical investing. The Policy excludes investment in companies directly involved in tobacco, gambling, armaments, uranium, nuclear energy, cutting down old growth forests and intensive animal husbandry. The decision to exclude investments in fossil fuel companies is a natural addition to our existing list of exclusions.Hunter Hall will implement this enhancement to its ethical policy by excluding companies with a Global Industry Classification Standard (GICS) 101020 titled ‘Oil, Gas and Consumable Fuels’. This classification accounts for 8% of the MSCI World Index and currently represents 2.2% (2 stocks) of Hunter Hall’s overall portfolio. We intend to divest these stocks as soon as possible and expect that the policy will be fully implemented by 30 June 2014.

Note that this policy does not apply to Hunter Hall’s institutional capability, the Hunter Hall Australian Equities Fund, which integrates ESG into its investment process rather than negative screening.

[BREAKING NEWS] Brook winding down

Brook logo[BREAKING NEWS] Macquarie Bank-owned Brook Asset Management has withdrawn its offer document from the market and is winding down its funds management operation in New Zealand.

Friday, April 4th 2014, 8:43AM

Good Returns understands that Brook will continue to manage the funds it has at the moment but has stopped taking in new money.

It will also put its KiwiSaver funds into an “orderly” wind down process rather than selling the business to another scheme provider.

Brook is one of the smaller fund managers in New Zealand and has failed to make much traction in the market, although its parent company also runs the Macquarie sharebroking business in New Zealand.

According to FundSource Brook had $128 million in funds under management as at December 31.

Good Returns understands all staff will lose their jobs in the wind down.

MORE TO COME www.goodreturns.co.nz

Genesis Energy – Brian Gaynors opinion

This article is well worth a read if you want to be reminded of the 27 years of state asset sales we have had and whether or not they worked (usually not).  If you are interested, click here…

Here is a taste of what you will find:

The Crown’s first privatisation was the sale of 103 million Bank of New Zealand shares, representing 12.9 per cent of the company, at $1.75 each in February 1987. The $180 million capital raising was an NZX record.

BNZ’s share price fell before the October 1987 crash as investors realised it had a huge exposure to the highly leveraged listed property and investment companies. Its share price finished 1987 at $1.30, 26 per cent below the issue price less than 12 months earlier.

The trade sale programme also had a discouraging start when New Zealand Steel was sold to Equiticorp for $327 million in March 1988.

NZ Steel was not in a strong financial position and Equiticorp was struggling to survive after the October ’87 crash and the Crown accepted payment in the form of Equiticorp shares. Equiticorp shares were worth $3.25 at the time but plunged to $1.

However, the sale contract required Equiticorp to arrange the buy-back of its shares at $3.25 on demand. Equiticorp chief executive Allan Hawkins was later jailed for illegal activities related to the repurchase of these Equiticorp shares from the Government.

The lesson from the BNZ and NZ Steel transactions was that the Crown should only consider an IPO when the SOE was in a sound financial position and it should only make a trade sale to business people with substantial financial resources and extensive industry experience.

The preferred strategy was to have a partial sharemarket float…

Brian_Gaynor

Brian Gaynor

Executive Director

Brian is Chairman of Milford’s Investment Committee and head of Milford’s portfolio management and investment analysis activities. Brian is one of New Zealand’s most experienced and well-known investment analysts. Brian’s career includes roles as a Partner and Head of Research at stockbrokers Jarden & Co, a member of the New Zealand Stock Exchange, Chairman of the New Zealand Society of Investment Analysts and Chairman of the Asian Securities Analysts Council. Brian is Portfolio Manager of the Milford Active Growth Fund and the Milford KiwiSaver Plan Active Growth Fund.

New Zealand Rocks the World Stage

Well, that may be overstating it a bit, but got your attention right?

Recently Harbour Asset Management managers Andrew Bascand and Christian Hawkesby spoke to World Finance at the London Stock Exchange.  They extolled the virtues of little ol’ New Zealand and discussed the differences between Europe and NZ.

Here is the link to the YouTube clip:

Habour Asset Management talks to World Finance

Enjoy!

Note:  Not much financial language used, overall themes talked about, won’t take long to listen to.

Ross Asset Management – Do you need to worry?

This is a tragic story of “if it sounds too good to be true it probably is”.  The PwC report is less than appealing to any of those investors who are learning through the media that they really have nothing left.

If you are a client of DecisionMakers I would like you to be assured that the steps we take ensure that your investments are HELD as safely as we can possibly make it.  Please read below and know that we work for you and will do our upmost to ensure that you will not suffer such a predictable and tragic loss such as this.

If you wish to read the full article from the Financial Markets Authority into the current status of Ross Asset Management click here.

Feature How fraud is minimised
Your money is held in a reputable custodial system that is operated by Aegis (Investment Custodial Services Limited), owned by the ASB Bank, or Oneanswer, owned by First NZ Capital Ltd.
 
I do not hold your money so cannot manipulate the values or abscond with it
Money withdrawn from the wrap platform can only be paid into your nominated bank account   I do not have any access to your nominated bank account. I cannot withdraw any money and siphon to an account of my choice
The custodian is subject to strict compliance standards and is externally audited   The external auditor would uncover any funds that have incorrect values ascribed to them by the custodian, plus uncover any unlawful transactions
The physical buying and selling of securities is undertaken via licensed share brokers who are subject to separate external compliance checks.    There are multiple checks and balances and stock exchange rules require prescribed behaviour and audit that would quickly uncover errant activity.
The value subscribed to each custodial security is checked daily by the custodian and is not a figure that I can insert   I cannot manipulate the reported values
All valuation reports are generated from within the wrap platform The calculations and values within the reports are not created by me. These are undertaken by the platform and custodian 
The majority of your investments are in managed funds which have their own custodian and auditor and the unit prices are checked by the research houses.    There are multiple external checks and balances to ensure the number of units held are accurate and that the unit price is correct.
Any additional contributions to the investments are paid directly to the custodian correct. No investment monies are paid to my bank account. The only money we receive is that legitimately authorised by you to be deducted by the custodian from your account and paid to me as adviser fees. 
The wrap platform will send directly to you an annual transaction report.  This will enable you to double check to see if there have been any unauthorised transactions

NZ attractive against a complex global picture – Milford Asset Management


Published in Blog, Economy on 15 Nov 2012

Globally it is a very mixed and somewhat complex picture. In the US, the election result provided no change. Obama is still President; the Senate is still controlled by the Democrats and the House in the hands of the GOP.

The US equity market has taken this negatively and for all the hope the market had for presidential, business friendly change, it is now focussing on whether the Republicans and Democrats can come to a compromise over the so called fiscal cliff.

In terms of company revenue and earnings in the US, we are seeing a somewhat softer period, no doubt affected by the uncertainty of fiscal measures. The US equities market has pulled backed, is under pressure and the US market is likely to go through a more volatile period again.

In Europe the Euro is weakening again due to economic concerns as well and more uncertainty with regards to peripheral economies. A key issue is it appears that Germany is no longer insulated from Southern Europe’s problems. The latest industrial production figures from Europe and especially Germany were very disappointing. In Europe things seem to be getting worse.

On the positive side is Chinas economy does appear to be stabilising. The latest data came in quite strong. Industrial production was up 9.6% year on year in October and Chinese retail sales came in at 14.5% growth year on year. The big focus now is the Chinese political transition and how this will affect the Chinese economy but one would expect a new government to be positively disposed to stimulating the economy, which could have positive flow on effects for NZ and Australia.

In New Zealand the NZ50 was up over 3% in October, which was well ahead of global indices and the market rally continued despite a batch of soft New Zealand corporate and economic data. What is driving the gains is the attractiveness of New Zealand’s high dividend yielding stocks, which have been rerated post the positive dividend surprises seen in the last reporting season and as investors are forced to invest in higher yielding equities as bonds mature because of lack of new supply.

Dividend yields should support NZ equity valuations until earnings growth recovers and whilst there still remains much uncertainty with respect to European sovereign debt issues, Chinese political transition and a slower growth rate in the US, NZ equities are insulated from most of these issues and have a number of attractive qualities.

Mark Warminger

Portfolio Manager

Clean Green Fund Investing

by Steve Sweeney |  Thursday, 4 November 2010

Investors like to make money and for many years, the companies yielding the best returns may not have been responsible corporate citizens. History is littered with shining examples of corporate profits taking precedence over doing the right thing, whether by the people, the environment or through good corporate governance. A greater focus on so-called responsible investing has seen many companies becoming good corporate citizens; examples include companies that rejuvenate land they have mined or that contribute to the wellbeing of communities in which they operate.

Increasing investor appetite for such companies has led to the emergence of a number of funds, varying described as ethical, socially responsible investing (SRI) or simply sustainable investing (ESG – environment, social and governance).

Each year, Lonsec researches and rates a number of these funds.

Types of responsible funds

1. Ethical: Negative screening of companies in certain industries deemed to have a harmful societal impact. Avoiding investments in bad companies is the overarching investment motivation;

2. SRI: Generally negative screening of certain sectors in line with above but may also include a positive screening element seeking to include socially responsible companies. Rewarding good corporate citizens is a partial investment motivation;

3. ESG: A belief that those companies with advanced approaches to environmental, social and governance risk management will exhibit superior performance than companies with suboptimal approaches. While it is likely that these companies will tend to rank highly on corporate ethics, unlike ethical investment, financial performance is the overarching investment consideration.

Lonsec takes this a step further, focusing on the depth of responsible investment factors incorporated into the investment process – the output of which is a light, medium or dark green rating from Lonsec’s analysts. Read More