Smart investors eyeing China – not New Zealand

Smart investors eyeing China – not New Zealand

Those who have chosen to invest outside New Zealand – particularly in China – are reaping big returns, says a leading investment firm.

New Zealand Assets Management director Alan McChesney said latest figures out showing China’s 7.9 per cent year-on-year GDP growth illustrates why smart New Zealand investors need to be in the economy most likely to lead the world out of a global recession.

“China is exciting – it has truly been a V-shaped recovery. The Chinese economy has turned around remarkably quickly from what was a very manufacturing and export-reliant economy into one that has stoked growth by lifting internal demand.

“The up-side from here on in is tremendous. This will be the first time since World War II that the US has not led the world out of recession.”

Mr McChesney described NZAM’s China fund as its crown jewel, having soared 20 per cent (in US dollar terms) since January 1.

“Europe still has some ways to go on the road to recovery. But China – and the Asia region in general – is well on its way.

“While some Kiwis have rekindled their love affair with residential housing, the real returns are to be had from investing outside our own country.

“We should still invest locally, but it is only a prudent investment strategy to not keep all your eggs in one basket.

“New Zealand asset classes are also very high correlated to each other. They go up and down together – the chain effect we’re seeing now as a result of the fall in dairy payouts only serve to illustrate the narrowness of our economy.”
About New Zealand Assets Management

Established in 1991, New Zealand Assets Management is a globally-focused investment management firm. Based in Auckland and Wellington, NZAM uses global equities strategies with the emphasis on providing absolute returns on clients’ invested capital.

This strategy has delivered annual compound returns of 10 per cent per annum, and annualised returns in its 18-year history are 4.8 times the international benchmark MSCI World Index (in NZ dollar terms).

It also manages an Asia and China-focused fund denominated in USD and Euros.

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