April – Market Commentary

12 April, 2022

We have requested one of our Fund Managers, Harbour Asset Management, to provide our members with a current outlook in the investment market. Given the feedback from our recent members survey, moving forward we are keen to provide regular updates from each of our fund managers.

Please see the commentary below.

Global share markets were mixed in March, with the US, Australian and New Zealand markets higher while European and Asian markets drifted lower. Greater certainty of higher long term interest rates came from the US Federal Reserve, while continued Russian – Ukraine military action contributed to volatility over the month. Commodity prices were higher, including the price of oil increasing another 7% over the month.

The S&P/NZX50 Portfolio index finished the month ending 31 March 2022 up 2.07% and the year down -0.74%.

Fisher & Paykel Healthcare and Ryman Healthcare were the key drag on New Zealand share market returns, alongside Air NZ, which announced its long-awaited capital raising. Smaller-capitalisation companies, Pushpay, Eroad and Sky TV saw their share prices recover.

The S&P/NZX All Real Estate Industry Group Gross with Imputation Index returned 1.31% in March 2022 to be up 1.30% for the last 12 months.

Lower-than-expected COVID support for tenants contributed to REITs reporting better-than-expected net property income over the month.

More clarity about long term interest rate settings favoured investments with structural tail winds, such as real estate investment managers Home Consortium and Goodman Group.

Upcoming Event:
We have organised a lunch time webinar with staff from Harbour Asset Management, Portfolio Manager Shane Solly and Executive Director Ainsley McLaren, especially for our SuperEasy members. Wednesday 4th May 12.30pm – 1.30pm

They will be talking about Harbour, how they invest, the outlook for investments and will be available to answer member’s questions about the investment markets (without providing personalised financial advice).

Click here to access the invite and register to join the webinar!