Harbour Outlook: A rebound amid uncertainty
Key market movements
Global equities rebounded in January. The MSCI All Country World Index (ACWI) increased 2.4% last month, in New Zealand dollar-unhedged terms. With the NZD strengthening through January, returns in hedged terms were 3.3% for the month.
Locally, the New Zealand equity market weakened with the S&P/NZX 50 Gross Index (including imputation credits) down 0.9% in January. In contrast, Australian equities had a c...
The Future of Clean Energy: Supercritical geothermal
Supercritical Geothermal: The future of clean energy?This is the first in a series of Harbour’s research on the energy transition. Our Navigators will explore New Zealand’s transition to a clean and reliable energy system by 2050.
We felt it best to start with a combination of controversy and innovation. The recent $60 million investment by the Government to explore the potential of supercritical geothermal highlights the lon...
Harbour Navigator: A Year in Review: Charting sustainability themes from 2024
Climate change disclosures have taken their place in the limelight on the back of new reporting regulations.
Positive trends have been observed in company health and safety performance and action towards addressing modern slavery concerns.
The oversight of artificial intelligence use is a key emerging issue at the governance level for company boards.
Sustainability considerations were particularly prevalent in company disclosu...
Harbour Outlook: So much for the Christmas rally
Key market movements
The MSCI All Country World Index (ACWI) increased 3.1% last month, in New Zealand dollar-unhedged terms. The gain, however, was entirely due to a sharp drop in the NZD with the index falling 1.7% in NZD-hedged terms in December – so much for the Christmas rally!
Locally, the New Zealand equity market eked out further gains in December with the S&P/NZX 50 Gross Index (including imputation credits) up 0.4%. ...
Top 10 Risks and Opportunities for 2025
At 11:59pm on Wednesday the 25th of March 2020, New Zealand entered a nationwide lockdown to prevent the spread of COVID-19. At the time, headlines about COVID-19's impact on share markets ranged from terrible to catastrophic. Yet, at the time of writing, the US equity market has returned more than 190% since that point in 2020, while the New Zealand share market has returned almost 70% (more on that gap later). Few would have...
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Harbour Navigator: A Dose of Reality: Key US healthcare controversies
At a Jefferies’ healthcare conference recently, concerns about the U.S. subsidising global healthcare markets were highlighted, with discussions on disparities in drug pricing and reimbursement practices. Globally, vaccine fatigue and misinformation remain significant challenges, as do funding pressures across the healthcare sector.
The conference emphasised advancements in vaccine technologies, including mRNA and saRNA, but ...
Harbour Investment Outlook: Let the good times roll
Key market movements
The MSCI All Country World Index (ACWI) increased 4.4% last month, in New Zealand dollar-unhedged terms, almost matching last month. This time the strength had very little to do with NZD weakness as returns in NZD-hedged terms were 4.1% for November.
Locally, the New Zealand equity market had another good month, with the S&P/NZX 50 Gross Index (including imputation credits) increasing 3.4%. The S&P/ASX 200...
Harbour Navigator: Vertical SaaS is devouring software - and AI is hungry for the next bite
In 2011 Andreessen Horowitz, founder of a16z, famously said “software is eating the world”, making the prediction that, over the next decade, the world would see many industries be disrupted by software. Perhaps some of the more prominent examples were how Netflix gutted Blockbuster and the suicide of Borders as it handed over its online business to Amazon under the theory that online book sales were unimportant.
Today, softw...
Harbour Investment Outlook: Waiting game
Key market movements
The MSCI All Country World Index (ACWI) increased 4.5% last month, in New Zealand dollar-unhedged terms. However, the strength was due entirely to NZD weakness with returns in NZD-hedged terms, coming in at -1.1% for October.
Locally, New Zealand equity market returns picked up after a couple of flat months, with the S&P/NZX 50 Gross Index (including imputation credits) increasing 1.7%. The S&P/ASX 200 Ind...
Harbour Navigator: I see red, I see red, I see red: Adapting to Trump policy uncertainty
A Trump victory and likely Republican congressional sweep could signal major shifts in US economic policy, such as tax and tariffs.
Markets had partly leaned into a Trump win, with many strategists previously picking a Republican clean sweep as a 30-40% chance.
However, the immediate reaction of markets suggests a further possible movement of asset prices as bond yields factor in potentially higher US inflation, larger US defi...
