Harbour Navigator: Style rotation in the investment wardrobe
Markets, much like fashion, are never fixed. What is in vogue today can be overlooked tomorrow, only to return in style a few seasons later. The same applies to equity investing. Value, growth and quality all rotate in and out of favour, shaped by the macro backdrop and investor sentiment.
Over the past year, the market’s wardrobe has shifted noticeably. Historically we have seen a high degree of correlation between regional …
Harbour Outlook: Turning point – policy easing takes hold
Key market movements
Global equities rose strongly in September, with the MSCI ACWI up 5.3% in unhedged NZD terms and 3.6% NZD-hedged, as the US Federal Reserve resumed its rate-cutting cycle. Easing monetary policy and resilient earnings supported broad-based gains.
New Zealand equities advanced 3.0%, buoyed by expectations of further RBNZ rate cuts and signs of stabilisation in the housing market. Australian shares fell 0.8…
Harbour Navigator: End of easing in sight as new governor takes charge
Market anticipates 75bps of OCR cuts by mid-2026, possibly delivered in upcoming RBNZ Meetings in October and November.
Dr Anna Breman, appointed as new RBNZ Governor, starts 1st December. Dr Breman comes to New Zealand after serving as First Deputy Governor of the Swedish central bank.
At 2.25%, the Official Cash Rate (OCR) would have been lowered by 3.25% within 18 months and finally would be comfortably within accommodati…
Harbour Navigator: Key ESG themes from New Zealand's 2025 reporting season
Renewable energy investments have accelerated dramatically, with companies committing billions toward solar, wind, and battery storage projects.
Worker wellbeing and safety improvements have emerged as critical social priorities amid significant organisational restructuring.
Artificial Intelligence (AI) governance and cybersecurity have become board-level imperatives as companies navigate rapid technological change.
New Zeala…
Harbour Navigator: Are we there yet……
As a child on long car trips to sunny destinations there would be the constant chorus of ‘Are we there yet?’ to the parents up front. The terse retort from up front would usually be ‘Not yet!’. We could draw parallels with the performance of the New Zealand equity market and company earnings which have been on a long sideways journey.
The latest reporting season for New Zealand companies with June balance dates continued this…
Harbour Outlook: Central banks easing as markets broaden
Key market movements
Global equities continued their strong run in August, returning 2.5% in unhedged NZD terms and 2.0% NZD-hedged, their fourth month in a row of gains. Equity market performance broadened, with investors rotating away from the mega-cap technology companies and into small-cap stocks.
The New Zealand equity market posted a modest gain, with the S&P/NZX 50 Gross Index (including imputation credits) returnin…
Harbour Navigator: Bank capital proposal to support growth (and competition)
The Reserve Bank of New Zealand (RBNZ) has launched a review of capital risk weights and adequacy.
The review responds to concerns that the 2019 capital framework was seen in many quarters as overly conservative, potentially constraining credit supply and competition. The new framework aims to balance financial stability with efficiency and competitiveness, aligning New Zealand with peer jurisdictions rather than targeting a “…
Harbour Navigator: REIT all about it – two reasons to invest in listed property
Stronger earnings and a helpful income boost relative to cash rates could help New Zealand (NZ) listed property securities – known as Real Estate Investment Trusts (REITs) – deliver better returns.
New Zealand REIT returns have improved over the last year, and we believe that earnings and lower interest rates may continue to provide future support for the New Zealand REIT asset class returns.
Earnings growth: A turning point
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Harbour Navigator: Open Your Wallets – Biotech Conference Highlights Capital Intensity
The biotech sector, both private and public, has a plethora of new drugs and treatments in the pipeline courtesy of large capital injections 5–7 years ago.
However, there needs to be another capital infusion to bring these opportunities to market. The key question is who will fund these opportunities and who will capture the anticipated returns.
We recently attended an Australasian biotech conference that featured over forty …
Harbour Outlook: Balancing caution with conviction
Key market movements
Global equities extended their rally in July, returning 4.2% in unhedged NZD terms and 2.2% NZD-hedged, supported by continued momentum in technology shares and growing investor confidence. The MSCI All Country World Index posted its third consecutive monthly gain, taking the 3-month return to 12.6% in unhedged NZD terms.
The New Zealand equity market continued to climb, with the S&P/NZX 50 Gross Index (…