NZIJ 127 - December 2007/ January 2008
Adapting to change
Along with change come opportunities and this is borne out by the latest UN Intergovernmental Panelâs Report on Climate Change from which we reproduce some information in our lead article. There is now enough evidence and enough urgency to mean action on reducing emissions is necessary and imminent. Hardly a day goes by without more media coverage of carbon credits, reducing emissions, environmental sustainability issues. From a canny investorâs viewpoint the process of adapting our behaviour and the introduction of mitigating technologies will produce new avenues for investment and downstream benefits.
On the personal side, we are being encouraged to change our mindset on energy use and look to renewable resources. (See also our article from Ecosphere - Cleaning up on renewables). This is the way of the future and it is an unstoppable trend.
It is likely that some of these changes will hit our pockets as we will have to pay more to construct energy efficient homes but the benefits of lower energy use will be picked up in the future. This will not make life for first home buyers very easy and it will increase the costs of housing for all. Already the percentage of income needed to cover a home loan has increased substantially in the last few years.
However, other factors such as reduced immigration and high interest rates are seeing a release of steam from the housing market and prices are likely to stabilise for existing housing stock.
While the amount of funds flowing into managed funds has been much lower this year so far, it is likely that the changes associated with the introduction of KiwiSaver and the Portfolio Investment Entity regime will see a turnaround in the trend. KiwiSaver for Kids, has the potential to be a big part of this as parents and grandparents discover the likely benefits for their children of joining the scheme now. For more information on this,please call Fritz de Boer on 0800 90 60 90 or email fritz@nzij.co.nz
The summer holiday season presents us all with the golden opportunity to review our financial situation. It is easy to let the year slip by without adjusting our insurances, mortgages or investments to take into account the changes in our lives. If you need some help, members of our team will be pleased to assist you! Just phone 0800 90 60 90 or email invest@nzij.co.nz to be directed to the appropriate person.
In the meantime, all our best wishes for a happy Christmas and a restful and restorative holiday!
Articles
- Download NZIJ127 - December 2007/ January 2008
- Opportunities arise from climate change - Information taken from a summary of the Fourth Assessment Report of the UN Intergovernmental Panel o
Long-term and wider economic opportunities are arising from climate change.
- Kiwisaver For Kids - Kids Can Join Too - Fritz J De Boer, Cfp, Nzij Financial Services Limited
With no minimum age to join, the savings incentives attached to KiwiSaver make it a great way to put aside money for your kidsâ future.
- Australia and New Zealand Carbon Disclosure Project Report 2007 - Australian Economic Trends | Lumley Group
- What is GOOD advice? - Fritz J de Boer, CFP, NZIJ FINANCIAL SERVICES LIMITED
âWhat is good advice WORTH to you?â
- Risk aversion returns in the wake of bank losses - Editor
Since the initial euphoria generated by the Federal Reserveâs two rate cuts in September and October, risk aversion has returned following a number of announcements by banks of large write-offs relating to the sub-prime mortgage market.
- Get life! - David Pine, NZIJ Risk Management Ltd
The latest statistics from the life insurance industry make interesting reading. Sovereign is still well out in front but others are gaining on them.
- When good loans go bad: accounting for bad debts and asset qualit - Neville Giles, General Manager, Distribution, Hanover Group Limited
A key factor in assessing the quality of a finance company is the level of bad debts. The primary skill in lending is ensuring that the monies lent are repaid by the borrower. Before investing your savings into a finance company, one of the areas you should therefore look at are the notes to the accounts outlining asset quality.
- Home Loan Affordability
- âOwnershipâ comprises a number of rights - Caglan Bagci, NZIJ Mortgages
I was a bit disorganised at the time I sat down to write this article. Information I had hoped to have access to, never materialised and I was left scratching my Movember handle bars wondering what to write about.
- Assessing international brands - Platinum Asset Management
When assessing the investment merits of companies with international brands, a key consideration is the inherent strength of the companyâs brands and how they have been managed through time, often with successive management teams.
- Cleaning up on renewables - Michael Lockhart, Ecosphere Limited
This is the third article in a series of four about environmental sustainability.
- Enjoying retirement: age 65+ - serialised from the book Financial Passages from ING
âTo be 70 years young is sometimes far more cheerful and hopeful than to be 40 years old..â OLIVER WENDELL HOLMES (1809-1894)
Part 7 of our serialisation of Financial Passages from ING
No one ever told you life could be this good. Itâs taken a while, but now youâre enjoying being wise and content. You can kick up your heels if you want to, but perhaps you enjoy the quiet times, savouring the fruits of your labour and the richness this time offers you. Youâre proud of your achievements and your family. Life is good!
- Pulp facts - Platinum Asset Management
Pulp, paper (and container board) continue to be one of the few commodity areas where the BRICS insatiable demand is yet to show up in any major improvement in commodity pricing or producer profits.
- Fund flows take significant hit - from information supplied by FundSource
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