- Portfolios delivered further gains in May, with share markets in New Zealand and overseas continuing their recent rise. Most diversified portfolios with some allocation to shares gained between 1% and 2% for the month (after fees but before tax).
- The New Zealand Dollar fell moderately, down 3% against the US Dollar, which also helped returns on overseas shares when translated back into New Zealand Dollar terms. The Federal Reserve reaffirmed a likelihood of a further gradual interest rate increase in the United States over the coming months. This saw the US Dollar generally rise in value against other currencies.
- Interest rates fell on NZ fixed interest investments during the month. The government’s 2016 budget suggested that less government funding will be required over the coming year (and therefore less need to issue new government bonds).
- This meant that existing NZ Fixed Interest investments performed well and also supported returns on other yield-focused investments such as the NZ listed property company shares held in portfolios.
Click here to read more.
+64 3 943 4108
196 St Asaph Street
PO Box 5507 Papanui
For Commercial, Rural and Domestic Insurance: