Harbour Outlook: Inflection Points
Global share markets delivered one of their strongest monthly returns as market expectations moved from a ‘higher for longer’ interest rate environment to a ‘soft-landing’ for the US economy. The fall in long term bond yields was driven by softer economic data, renewed signs of slowing inflation, and a lower-than-expected US Treasury funding requirement. The continued fall in inflation data allowed central bankers to deliver ‘hawkish pause’ (not lifting rates but ready to if inflation re-emerges) type comments during the month. This weak inflation data contributed to markets beginning to price in cuts to official interest rates over 2024. Given the rise in bond yields was the key headwind for equities in prior months, the fall in yields drove a sharp rally in equity markets.
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The Future of Wealth: Part four - The future of portfolio construction
Is there really anything better than a 60/40 portfolio?The future of wealth is shaped by a new generation of investors - bringing new thinking, expectations, and standards. Across this four-part series, Harbour delves into the evolving landscape and strategies for generating customer value, poised to be the primary catalyst for both present and future transformations in the sector.
In part four, Portfolio Manager, Chris Di Le...
The Future of Wealth: Part three - The future of responsible investing
The future of wealth is shaped by a new generation of investors - bringing new thinking, expectations, and standards. Across this four-part series, Harbour delves into the evolving landscape and strategies for generating customer value, poised to be the primary catalyst for both present and future transformations in the sector.
In part two, Senior Credit Analyst, Simon Pannett, explains the responsible investment spectrum and the growing need for the industry to possess expertise in ethical and responsible investment choices for investors.
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Harbour Outlook: Economic Crosscurrents
- The MSCI All Country World Index (ACWI) continued its decline, posting a -2.7% loss in New Zealand dollar-hedged terms (and a 0.2% gain in unhedged NZD terms). Despite three consecutive months of negative returns, the 12-month return figure for the index stands at 9.5% in NZD-hedged terms and 10.4% in unhedged terms.
- Returns for the month were similarly weak in local markets, with the S&P/NZX 50 Gross Index (with imputation credits) falling -4.8%, and the S&P/ASX 200 Index falling -3.8% (-2.4% in New Zealand dollar terms).
- Bond indices were also negative over the month. The Bloomberg NZ Bond Composite 0+ Yr Index fell -0.2%, whilst the Bloomberg Global Aggregate Bond Index (hedged to NZD) also dropped -0.7% over the month. This came as the US market saw 10-year government yields increase to 4.9%, a level not seen since 2007, with resilience in US economic data prompting the market to largely unwind an expectation that the Federal Reserve would be cutting rates in 2024.
The Future of Wealth: Part two - The future of investing: bridging the gender gap
The future of wealth is shaped by a new generation of investors - bringing new thinking, expectations, and standards. Across this four-part series, Harbour delves into the evolving landscape and strategies for generating customer value, poised to be the primary catalyst for both present and future transformations in the sector.
In part two, Executive Director, Ainsley McLaren, discusses the opportunities that lie in underst...
The Future of Wealth: Part one - The future of the wealth management firm
The future of wealth is shaped by a new generation of investors - bringing new thinking, expectations, and standards. Across this four-part series, Harbour delves into the evolving landscape and strategies for generating customer value, poised to be the primary catalyst for both present and future transformations in the sector.
In part one, Andrew Bascand explores the trends set to revolutionise the wealth management sector i...
Harbour Navigator: Harbour Listed Property Sustainability Survey 2023 - Taking care of sustainable business
Sustainability benefits for property owners: Research indicates that commercial properties with higher sustainability ratings have more consistent cash flow, higher occupancy rates, higher rents, and attract tenants with lower risk. Improving sustainability can enhance cash flow quality, reduce regulatory compliance risk, and improve market perception and brand value for listed property securities.
Harbour Listed Property Sus...
Harbour Outlook: Higher for longer, but how much longer?
The MSCI All Country World Index (ACWI) declined for the second month in a row, posting a -5.0% return in unhedged New Zealand dollar terms (-3.4% in hedged terms after strengthening in the New Zealand dollar). Returns were similarly weak in local markets, with the S&P/NZX 50 Gross Index (with imputation credits) falling -1.9%, and the S&P/ASX 200 Index falling -2.8% (-4.1% in New Zealand dollar terms).
Globally, weakness was...
Harbour Navigator: The ‘Longroad’ to solar success
It's scorching hot in Phoenix, Arizona, where temperatures have reached record highs. This extreme weather is making it a perfect place for renewable solar energy developments like Infratil’s investment - Longroad Energy.
The new Inflation Reduction Act (IRA) includes many beneficial features to support clean energy developments (such as Longroad Energy) including tax credits, incentives for American-made components, and su...
Harbour Navigator: Sustainability themes from reporting season
Climate change analysis from companies is evolving on the back of new reporting regulation.
Cost of living pressures and labour market tightness are leading to staff pay increases and customer hardship initiatives for some companies.
Sustainability measures are being increasingly included as key performance indicators (KPIs) in executive pay practices.
Sustainability issues continued to feature prominently in the latest rou...
