Market & Portfolio Update - August 2018
Market & Portfolio Update - August 2018
August was a relatively quiet month for share markets, but with currency movements boosting fund returns. The New Zealand dollar fell 5% against the major currencies and this helped the performance of New Zealand investors with investments off shore, reinforcing the importance of global diversification.
Emerging markets (e.g. China, Brazil, Russia) were the standout share markets during August. The fortunes of these markets are typically tied to the performance of commodities as they are some of the largest producers and consumers of a number of different commodities.
We made some changes to funds’ global share investments, to improve their overall return prospects relative to risks. We sold shares in oil rig owner National Oilwell Varco, switching to the more diversified, larger oil services firm Schlumberger. We also sold shares in American Express, whose shares are up strongly over the past year, reinvesting in Visa. These changes are covered in more detail over the page.
Disclaimer: This article has been prepared for the purpose of providing general information, without taking into consideration any particular investor’s objectives, financial situation or needs. Any opinions contained in it are held as at the report date and are subject to change without notice.
The magic of the managed fund
Let’s talk about shares for a minute. No matter how you invest, there are really just two ways to make money from owning shares:
1. You receive a slice of the profits (called dividends), or
2. You sell your shares to someone else for more than you paid (that’s capital gain).
That’s it. Anything else is simply a different way of packaging those two outcomes.
What is Life Insurance?
Life insurance is one of those things that many people know they should probably have but they’re not quite sure what it does, how it works, or whether it’s actually relevant to them. This article breaks it down in clear, everyday terms to help you understand the basics before you decide if it’s something worth exploring further.