Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


AMP Henderson picks property and private capital

AMP Henderson picks property and private capital for 2003

While global equity markets are expected to improve in 2003 New Zealand’s largest fund manager says it’s a good time to consider asset classes such as private capital and property.

“The similarities in returns from major equity markets are the highest they have been in 40 years suggesting that 2003 equity returns will be fairly similar to each other, whichever market you invest in,” said AMP Henderson managing director Catherine Savage.

“This means that to manage risk investors should now look to diversify their portfolios across asset classes, rather than across markets within asset classes. And we believe that two of the most attractive asset classes for 2003 are private capital and property.”

“We’re not advocating cashing up your equity investments because you’ve had a bad run. The key to good investment strategy is acquiring a well-balanced portfolio of reasonably priced assets. Currently we believe private capital and property are reasonably priced and give good diversification.”

Ms Savage said that investors had to accept that the consistently strong equity returns of 1982-2000 were not sustainable and that future equity markets would return to “normal” levels of volatility.

“After the expensive markets of the late 1990s, markets are now priced to deliver positive real returns, at something close to long-run levels. That’s about 8% pre-tax for global equities, 10% for NZ equities, and 6% for fixed interest, with currency hedging providing potential for further upside.”

“Property and private equity are two asset classes where pricing seems good and diversification benefits tangible. The investment case for property is particularly strong, as property yields have not fallen anywhere near as fast as interest rates, making property increasingly attractive relative to fixed interest.”

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news