Author: Luigi Wewege

AUCKLAND, NEW ZEALAND – Over the last quarter of a century New Zealand’s economy has gone from being one of the most regulated in the OECD to one of the least regulated. Complementing this is its low-inflation environment, long-standing flexible exchange rate with no exchange controls or restrictions on bringing in or repatriating funds and it’s no wonder this island nation has established itself as a premier investment destination. The country currently enjoys a sound macroeconomic foundation with a strong fiscal position, requirements to keep public debt at prudent levels, a leading sovereign currency, favourable tax regime and a monetary […]

The start of the year is a great time for all investors to consider whether their current investment mix is still suitable – after reviewing their circumstances and any changes that may be needed for future planning. Investors sometimes retain portfolios they haven’t reviewed for a number of years. Yes, decisions were appropriate when first put in place. But perhaps personal situations have changed. For instance, an inheritance may have been received, which could have an impact on retirement planning. Perhaps a relationship break-up has significantly reduced overall assets. Or maybe the world economic outlook has led to better opportunities. […]

Like Canada, New Zealand did not suffer the severe recession that hit Great Britain and America. This was due to strict banking and lending standards that both countries have. This regulatory environment meant that the subprime loan market, which caused the recession, didn’t affect them, since these nations have practically no subprime market to begin with. When you’re not making risky loans, the effect from an economic slowdown are not as severe other than in trade with countries who endured it.

New Zealand is seen as good as it gets when it comes to investing in bonds and other interest yielding investments: it is quite simply regarded as the obvious destination for those seeking high quality combined with high yield. Global demand for New Zealand bonds hit record levels in 2013, which has continued throughout 2014. Foreign ownership of New Zealand government treasuries is heading towards 70%, hardly surprising considering this country’s Aaa/AA/AA credit rating and the significant yield compared to overseas norms.  Back in July, when raising rates for the fourth straight meeting, New Zealand Reserve Bank Governor Graeme Wheeler […]