As Chairperson of the Investment Committee, I’m pleased to provide an update on some recent developments aimed at enhancing our investment strategies for the benefit of our clients.
UPDATE TO THE INVESTMENT COMMITTEE CHARTER
We are in the process of updating our charter to reflect global best practices. This includes the introduction of a formal Environmental, Social, and Governance (ESG) section. ESG considerations will continue to be driven by the preferences of our clients. We incorporate ESG factors into our investment process, allowing clients to invest in line with their personal values while still aiming for strong financial performance.
Further changes are taking place in the background to ensure client portfolios are best positioned to reflect their financial position, goals, objectives and appetite for risk. If these impact you and your portfolio, we will advise you individually.
ECONOMIC INSIGHTS FROM DAVID BASSANESE (BETASHARES)
We were also fortunate to receive an economic update from David Bassanese, Chief Economist at BetaShares. Here are some key takeaways from his insights:
- Market Pricing in Rate Cuts: The market is currently anticipating a couple of interest rate cuts this year in New Zealand, with the Reserve Bank of New Zealand (RBNZ) signalling a shift in policy.
- RBNZ Joins the Global Trend: The RBNZ has joined other central banks in moderating monetary policy, potentially paving the way for further economic stimulus.
- Bond Yields to Decline Further: We can expect further declines in bond yields, which could provide opportunities in fixed-income investments.
- Global Earnings Outlook: Earnings expectations globally remain solid, with forecast growth of 11% over the next 12 months. This outlook supports our decision to increase global equity exposure, as strong corporate earnings are a key driver of market performance.
As always, we remain focused on adjusting our strategies to navigate the ever-changing economic landscape while keeping our clients’ long-term goals at the forefront. Should you have any questions or wish to discuss how these changes may impact your portfolio, please don’t hesitate to reach out to your adviser.
