New Investment Guide Aims To Bridge Knowledge Gap For Kiwis Looking To Markets For First Time

Leading commercial property fund manager, PMG Funds, has published a guide aimed at better equipping New Zealanders to protect and grow their wealth through investment.

As we begin a global cycle that will see the greatest ever transfer of intergenerational wealth – with an estimated $1.6 trillion set to pass from New Zealand’s Baby Boomers to Gen X, Millennials and Gen Z over the next three decades – PMG Funds’ Matt McHardy, says it’s crucial that these recipients balance access to investment markets with knowledge of how to approach them. Particularly as historically low interest rates will likely continue to undermine the appeal of traditional savings options like term deposits.

“Given the explosion in apps and online platforms, it has never been easier to access investment products, from commercial property funds to crypto. But this also means it’s never been easier to make bad decisions,” says McHardy.

“This guide is not intended to be a definitive handbook to help Kiwis dive headlong into commercial property investment. Rather, we’ve published it as a plain-language introduction to provide those looking to the investment markets with enough knowledge and confidence to ask the right questions – of themselves and of others – to get started, whether this is in commercial property or other asset classes.”

Covering the basic principles of all mainstream investment and opportunities within the commercial property sector, the guide includes chapters on:

• How to identify your own investor profile
• Understanding liquidity, volatility and real rates of return
• Why diversification matters
• Commercial property sectors and trends
• How commercial property investment differs from residential
• The core tenets of effective property management

McHardy says the broad scope and tone of the guide reflects learnings from the work of the PMG Charitable Trust, and its mission to improve financial literacy among young New Zealanders.

“While it can be relatively easy for our young people to admit to insufficient levels of financial literacy, for adults this can feel confronting. Therefore, we’ve put together the guide to be accessible and inclusive to a variety of levels of knowledge without being patronising.

“Ultimately we hope that this will help people understand the fundamentals and lead them down a path of sustainable wealth creation through building a quality, diversified investment portfolio.”

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