NZIJ 129 - March 2008
What can you do?
It seems to be such a sizeable problem - stopping climate change - how can anyone do anything about it? This is the theme of our lead article and the answers suggested show that if everyone did as much as they possibly could this would make a measurable and valuable difference!
In New Zealand we have been used to hearing in the media that we have cold, draughty houses. Improved insulation and a bit of care about how we use appliances,or some thought as to where our food came from should lead us to take positive action. e.g. A Home Energy Rating Assessment will show you how energy efficient your home is and how to improve its efficiency.
What do investors do when there is turmoil in the overseas markets and ripples keep flowing out to our neck of the woods? A recent newsletter from the Russell Funds investment management Group underlined the importance of not panicking. Their three points are: Remain patient - donât be scared into action and miss the recovery in the markets; Prepare for volatility - document market movements and base strategy decisions on objectives, risk tolerance and time-frame considerations; Maintain investment discipline - especially diversification.
In New Zealand there look to be some definite trends to watch for this year. With the boom in dairy exports and the flow-on into the rural sector, 2008 is shaping up as a year where rural business will have the edge over urban sector firms.
A lot of attention is currently on the developments in the US economy and whether there will be a âde-couplingâor independence develop between Asian economies and the US. Emerging economies are playing an important part in taking up the slack from the US but a downturn in growth in the Asian region could have negative downstream effects for the Australian and New Zealand economies.
Fritz de Boer discusses some of the less visible aspects of the indices behind index funds. Fritz is happy to help you with planning your investments to suit your circumstances. Email him on fritz@nzij.co.nz.
When the unexpected happens we often wish we had thought more about insuring for the risks. David Pine looks at a recent news event that was a terrible tragedy for some families.
Caglan Bagci from NZIJ Mortgages introduces a new equity release product for retirees.
Articles
- Doing your bit - why bother? - Editor
Approximately 30 billion tonnes of CO2 are released into the atmosphere every year through human activity. About half of this is subsequently absorbed by natural carbon âsinksâ - forests, oceans, soil. The rest accumulates in the atmosphere.
- How do you rate? - Michael Lockhart, Ecosphere Limited
In December 2007 the Government announced the Home Energy Rating Scheme (or HERS) which is similar to schemes that are being run in Australia, the UK and the US.
- Investment trends and outlook - Editor
Mercer has recently released its Investment Trends and Industry Outlook for 2008. The report predicts that of the range of global pressures, emerging markets and responsible investing will be the most important factors in determining the 2008 investment landscape. Meanwhile, in New Zealand the major factors to influence the markets will be PIEs, rising property prices and skills shortages.
- Every cloud has a silver lining⦠- Caglan Bagci, NZIJ Mortgages
I donât get too many surprises from my work these days. I have been in this line of work so long and seen and studied so much that I can often predict (fairly accurately) how something will play out.
- Why use index funds? - Fritz J de Boer, CFP, NZIJ Financial Services Limited
We often hear the debate about the use of index funds as opposed to using actively managed funds or buying stocks directly. I should point out from the outset that I have never been a fan of index funds.
- Where does your income return come from? - Neville Giles, General Manager, Distribution | HANOVER GROUP LIMITED
The KISS principle of âKeep It Simple, Stupidâ acts as a constant reminder for designers. Simplicity is the key and anything unnecessarily complicated should be avoided. The KISS concept should also be applied to fixed income investments. An investor should always be able to understand how the income they are due to receive is being generated.
- Kapiti tragedy - David Pine, NZIJ Risk Management Ltd
The recent terrible mid air collision between a helicopter and a light plane near Paraparaumu airport highlights the importance of all types of insurance.
- Asian market update - Platinum Asset Management
The question being asked by many investors is how Asian markets will fare if the US economy enters a recession as a result of the current turmoil in credit markets.
- Performance will depend on sector - Editor
How firms fare this year is likely to be highly dependent on their location and which sector they are in. The dairy boom means that the rural sector is set to do better than the urban sector according to a recent report from Westpac.
- Some perspectives on the Muslim world - Australian Economic Trends | Lumley Group
The number of âMuslimsâ in the world in 2000 was close to 1.3b - about 21% of the worldâs population compared with 2 billion âChristiansâ (30%). It is expected to increase to 1.8b by 2025 or about 23% of the worldâs population at that time.
- Aussie shorts - Australian Economic Trends | Lumley Group
- Snippets
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