FUTURE IN FOCUS Make money while saving the planet
THE STATUS QUO More of the same for housing in 2024
HYPE AND HOPE The true potential of artificial intelligence
Investor sentiment survey inside!
KING OF THE ROAD Mercedes new luxury EV exceeds expectations
BITCOIN ETF Has the mainstream woken up to crypto?
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GLASS HALF EMPTY Are you a victim of “money dysmorphia”?
I N F O R M E D I NVESTO R
Contents IN THIS ISSUE 10. Contributors Meet some of our expert contributors.
12. What We Like A book to help you budget and a luxury lodge to spend your savings on.
14. Essentials Fire and forest tones greet the new season.
18. A New Driver in the Global Economy Seat As the world tries to steer away from fossil fuels the opportunities for New Zealand could be huge, writes Amy Hamilton Chadwick.
24. Going Up, Going Down Economist Cameron Bagrie has the latest on the NZ economy.
26. Taking the Pulse of the Market We reveal the results of our inaugural investor sentiment survey, powered by InvestNow.
32. The Doom Merchants can Move Over New Zealand’s own AI ‘overlord’ has shrugged off the doom merchants and believes it’s the right technology at the right time for some industries, writes Nick Smith.
36. Beware of ‘Money Dysmorphia’ Crippling insecurity over money is creating a generation living in fear, writes Victoria Harris of The Curve, but a financial plan will ease those feelings.
38. When the World Heads to the Voting Booth In a year that will see half the globe summoned to vote, CMC Markets New Zealand general manager Chris Smith picks some of the stories to watch in 2024.
42. Thank-you, Mr Spiller, Now we Have ESG From small beginnings responsible investment has become pro-active around three key points, writes Martin Hawes.
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46. Time to Take a Closer Look at
New Zealand’s Biggest Fintech Companies Ben Tutty examines the top six and exactly what they offer investors.
50. Will Rates Fall or Carefully Step Down? Investors are expecting interest rates to come down sharply this year in the US, Europe and most other developed economies. But there is a risk they will drop more slowly, writes Andrew Kenningham.
54. Snapshot What’s impacting the global economy right now?
56. The Benefits of Bitcoin ETF Approval Janine Grainger, founder and CEO of Easy Crypto, provides a simple guide to what it means for the industry and how New Zealand investors can get a piece of the action.
58. Real Fighters Needed in the Green Corner Two decades of scalable and renewable energy efforts have had little impact on fossil fuel reliance, but this is no time to hang up the gloves, writes Sam Stubbs.
60. PIE Time InvestNow senior portfolio manager, Jason Choy, explains the impact of the imminent 39 per cent tax rate on trust income – and why PIE managed funds can cushion the blow.
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Contents 62. Price Growth Could be Patchy Kelvin Davidson warns while mortgage rates stay high, expectations should stay low.
64. The Advantages of Sustainable Buildings
The PMG team explains why sustainability is the key to maximising long-term growth for commercial property investors and tenants.
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66. The Flood Factor: How to Avoid Buying Flood-Prone Properties
A rare one-in-200-year storm caused widespread damage and flooding last summer. A year on, investors are very wary of flood threat. Andrew Nicol explains how property investors can navigate some risk.
68. It’s all in the Footprint and Long-Term Value
Unlocking investment opportunities in commercial property using ESG frameworks to deliver sustainable returns.
72. Fighting the Good Fight Against Fraud
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Insurance fraud is a persistent and costly problem affecting not only insurance companies and the insurance industry, but anyone who holds a policy.
74. Fashion Update The colours and styles of autumn 2024.
76. When Opulence & Performance is Simply Electrifying
Liz Dobson gets behind the wheel of a MercedesBenz EQE SUV and enjoys a world of cutting-edge technology and meticulous craftsmanship.
78. A Year of Nostalgia Mary-anne Tobin, of Design Addiction, outlines the ultimate luxe interior offerings for 2024.
80. Make Convenience the Key to Healthier Living
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Health and wellness contributor Joelene Ranby offers tips on ways we can all make our health resolutions stick.
EDITOR’S LET TER
Going Green can be a Money Machine Incentivising green technology is key to addressing climate change and it needs investors – visionaries who can see how such technologies can change the world and make them millions in the process. The United States’ Inflation Reduction Act brought into federal law what has been called the most important climate action since 2015’s Paris Agreement. Its stated aim is to curb inflation by reducing government budget deficit, lowering prescription drug prices and promoting clean energy. Its scope is unprecedented. So is its potential for investors. IRA represents carrot, rather than stick, with tax breaks offered to companies using green technology instead of penalties for those who don’t. According to an online Time story, published last August, the impact of the act has been swift. Greg Matlock, head of Ernst and Young’s Americans Energy Transition division, stated: “Within a week we noticed tangible movement on investments from clients. It was quick, it was immediate, and it doesn’t appear to be slowing down.” Incentivising the development and implementation of green technology is key to addressing climate change. And green technology needs investors – visionaries who can see how such technologies can change the world and make them millions in the process. Our autumn issue is dedicated to green investment. Amy Hamilton Chadwick explores the topic in her excellent article on page 18, outlining the potentials of the transition away from fossil fuels. In it, she states: “Global clean energy investment rose 17 per cent in 2023 to reach US$1.8 trillion, driven not only by renewable energy generation and EVs, but also by hydrogen technology and carbon capture, according to Bloomberg.
has set up a $2 billion green energy investment fund, and renewable energy consumption and supply reached record highs in 2023.” The potential is huge. We have an abundance of natural energy sources and the chance to reduce our dependence on oil and coal, but it needs government incentives and significant investment to make it work. This autumn issue also features the results from our inaugural investor sentiment survey, powered by InvestNow. Nearly 500 investors took part, and the results were fascinating. New Zealand investors come in all age ranges and income levels. Forty-six per cent of our respondents were female; nearly 70 per cent lived outside Auckland. The majority (66 per cent) prefer to use apps and digital platforms to invest; and 66 per cent were positive about their investments in 2024. Surveys are useful as they provide a snapshot of a time and place – and an anchor point from which to analyse future sentiment. They also give us insights into our readers’ thoughts, feelings and behaviours. These insights allow us to create engaging content that helps our readers make better, more informed decisions around investment. We hope you enjoy reading this issue of Informed Investor as much as we enjoyed creating it. Take care and happy investing.
“Here in Aotearoa, investment giant BlackRock
Joanna Mathers Editor
Editor Joanna Mathers
Resident economist Ed McKnight
Art Director Mark Glover
Printer Webstar
Account Manager Stephanie Bryant – 021 165 8018
Retail Distributor Are Direct
Subscriptions Jill Lewis – subscriptions@informedinvestor.co.nz This magazine is subject to NZ Media Council procedures. A complaint must first be directed in writing, within one month of publication, to the email address, stephanie@informedinvestor.co.nz. If not satisfied with the response, the complaint may be referred to the Media Council PO Box 10-879, The Terrace, Wellington 6143; info@mediacouncil. org.nz. Or use the online complaint form at www.mediacouncil.org.nz. Please include copies of the article and all correspondence with the publication. AUTU M N 2 0 2 4 | I N F O R M E D I NVESTO R 8
Published by: Opes Media Informed Investor 33 Federal Street, Auckland Central, Auckland. www.informedinvestor.co.nz
Informed Investor is an investment magazine published quarterly by Opes Media. You need Informed Investor’s written permission to reproduce any part of the magazine. Advertising statements and editorial opinions in Informed Investor reflect the views of the advertisers and editorial contributors, not Informed Investor and its staff. Informed Investor’s content comes from sources that Informed Investor considers accurate, but we don’t guarantee its accuracy. Charts in Informed Investor are visually indicative, not exact. The content of Informed Investor is intended as general information only, and you use it at your own risk: Informed Investor magazine is not liable to anybody in any way at all. Informed Investor does not contain financial advice as defined by the Financial Advisers Act 2008. Consult a suitably qualified financial adviser before making investment decisions. Informed Investor magazine does not give any representation regarding the quality, accuracy, completeness or merchantability of the information in this publication or that it is fit for any purpose. To advertise in Informed Investor, you must accept Informed Investor magazine’s advertising terms and conditions. Please contact Stephanie@informedinvestor.co.nz about advertising. Informed Investor is printed on environmentally responsible paper. The paper is produced using elemental chlorine-free pulp, sourced from sustainable and legally harvested farmed trees. The magazine is recyclable. PRINT ISSN 2744-6085 DIGITAL ISSN 2744-6093
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UP FRONT
Meet Some of Our Contributors CAMERON BAGRIE
KELVIN DAVIDSON
Cameron is the managing director of Bagrie Economics, a boutique research firm. He was previously chief economist at ANZ, a position he held for over 11 years.
Kelvin joined CoreLogic in March 2018 as senior research analyst, before moving into his current role of chief economist. He brings with him a wealth of experience, having spent 15 years working largely in private sector economic consultancies in both New Zealand and the UK.
MIKE HEATH
ANDREW KENNINGHAM
Mike has been leading the InvestNow service since launch, March 2017. Over the past 20+ years he has held senior management roles for some very well-known NZ and international businesses and brands – TAB, Contact Energy, Reuters and Rabobank.
Andrew is the chief Europe economist for Capital Economics. He was previously an economic adviser for the United Kingdom Foreign Exchange.
CHRIS SMITH
SAM STUBBS
Chris is the general manager at CMC Markets. He has more than 15 years’ investing experience in financial markets, global equity, commodity, and forex markets.
Sam is the founder and MD of Simplicity, New Zealand’s only low-cost, nonprofit funds manager. Previously from the banking world having worked for Goldman Sachs and NatWest Markets in London and Hong Kong, Sam believes the finance industry should be as much a force for good as a source of profit.
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C ONTRIBUTORS
VICTORIA HARRIS
MARTIN HAWES
Former portfolio manager at Devon Funds, Victoria is co-founder of The Curve, a digital platform aimed at educating women around money.
Martin is the chairman of the Summer KiwiSaver Investment Committee. He’s an authorised financial adviser and offers his services throughout New Zealand.
RICH LYONS
ANDREW NICOL
Rich is the retail investment manager of Oyster Property Group. He is responsible for overseeing both retail and wholesale equity raising for transactions, the growth of Oyster’s investors, and continuing to improve Oyster’s service offering to investors.
Andrew is an authorised financial adviser and the managing partner of Opes Partners. He has more than 15 years’ experience in banking, finance, and property.
MARY-ANNE TOBIN
BEN TUTTY
Former senior underwriter turned qualified interior designer, Mary-Anne Tobin is constantly viewing the latest international trends and incorporating these into her designs. She also blends modern day aesthetics with practical solutions.
Ben is an Auckland-based but not Auckland-bound property investor and freelance writer. He’s travelled and worked across Asia, Europe, and Australasia, writing for some of the biggest names in property and finance.
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UP FRONT
What We Like A book to help you budget and a luxury lodge to spend your savings on.
Be the boss of your budget Budgeting can feel arduous and boring, but Cameron Wislang’s new book Budgeting Like a Legend gives it a fun new twist. The 26-year-old from Kapiti Coast has helped people with serious mental health issues find work and manage their money, and now he’s turned his attention to the general public. In the book he explains how to get ahead with money by tracking what you spend, what you earn, and your financial literacy. He’s a funny guy and a money master and Budgeting Like a Legend could be just what you’ve been after.
Budgeting Like a Legend, Cameron Wislang, Harper Collins NZ, RRP $35.
WIN We have five copies of the book to give away – just head to our Facebook page (Informed Investor magazine), like the page, and tell us why you need this book in your life.
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W H AT W E L I K E
Escape to the countryside Luxury lodge Wharekauhau Country Estate, located in the Wairarapa, has curated an escape that encapsulates the best of a Kiwi countryside “farm stay” with all the luxury trimmings. The Country Hideaway package features five days and nights exploring rolling farmlands, soaking up breath-taking coastal vistas, quad biking over black sand beaches and indulging the best of neighbouring Martinborough’s renowned wines, accompanied by award-winning fine dining.
Wharekauhau sits just 90 minutes by car (or 10 minutes by helicopter) from Wellington, at the foothills of the looming Remutaka ranges. Situated on over 3,000 acres of land, the lodge was founded on the original homestead of an 1840s beef and lamb station that is still working to this day. All the expected amenities that come with a luxury lodge stay will be at your fingertips (including a bespoke bubble bath menu), but the Country Hideaway experience will also allow you to get an appreciation of the “jeans, boots and
labradors” ethos that makes Wharekauhau one of a kind. The County Hideaway package starts from $11,950 including five nights’ accommodation, daily four-course dinners, private fireside dining, daily full country breakfasts, ATV quad bike tour of the estate, tour of the Martinborough wine region and a bottle of Billecart-Salmon champagne on arrival. For reservations, visit wharekauhau.co.nz
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ESSENTIALS
All the Colours of Autumn
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Fire and forest tones greet the new season.
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1. Medowlark Afrodite ring - medowlark.co.nz, 2. The Shilo candle holder - superette.co.nz, 3. Bohzali Paola & Joy Cora table lamp - archipro.co.nz, 4. Citta Atlas of Furniture Design - www.cittadesign.com, 5. Leisure Boucle chair - nedcollections.co.nz, 6. Maison Francis Kurkdjian ud eau de parfum - www.mecca.com, 7. Stanley Quencher 2.0 - superette.co.nz, 8. Fazeek Wave cutlery - superette.co.nz, 9. Jarvis glass vase - homelabstore.co.nz, 10. Citta canvas weekend bag - www.cittadesign.com AUTU M N 2 0 2 4 | I N F O R M E D I NVESTO R 1 4
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Make it Count
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Resene Bianca
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Resene East Bay
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Resene Fire 17
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Resene Half Forest Green
Bright accents and cooling whites for hip home highlights.
11. Frank Green bottle - superette.co.nz, 12. Rattan lounge chair - homelabstore.co.nz, 13. Città feather blanket - cittadesign.co.nz, 14. 100% french linen tea towel - homelabstore.co.nz, 15. Città Halo serving bowl - www.cittadesign.com, 16. Carhartt Work Varsity Kinto To Go tumbler - superette.co.nz, 17. Caterpillar sofa - korhome.co.nz, 18. Sardina candlestick - homelabstore.co.nz, 19. Città Otto vase - www.cittadesign.com
resene.co.nz/colorshops
Green /ɡriːn/
‘Make less harmful to the environment’ Merriam-Webster Dictionary
‘Investing in green initiatives is more than a financial strategy; it’s a commitment to a sustainable future’ – Olive Coulson
GREEN ECONOMY
There’s a New Driver in the Global Economy Seat As the world tries to steer away from fossil fuels the opportunities for New Zealand could be huge, writes Amy Hamilton Chadwick.
It’s more expensive to buy a battery electric vehicle (EV). It costs more than the equivalent petrol car, you’ll probably want to install a charger, and you’re going to need to learn about the charging network and change the way you plan trips. So, it’s fairly costly. But once the money has been invested, and you’ve adjusted to a different way of powering your car, your ongoing costs are much lower. Recharging is much cheaper than buying petrol; maintenance and repairs are lower; and your emissions are close to zero. On a much larger scale, this is analogous to what’s happening in the global economy. As the world tries to move away from fossil fuels, the upfront costs are astonishingly large. Mind-boggling sums of money are required to create the kind of energy generation, infrastructure and technology we need. But once the facilities, systems and innovations are in place, the total cost of powering our world should be much lower. Ideally, energy generation will be cheaper, emissions will reach net zero, and the green economy will create billions of jobs. So, what does this mean for New Zealand and the average Kiwi investor?
New green economy inevitable In 2023, the world generated 50 per cent more renewable energy than it did in 2022, and this year global electricity emissions are set to fall for the first time, according to independent energy “think tank” Ember. Clean electricity is at a tipping point, which will have a major impact on emissions as we continue to electrify activities that were previously powered by fossil fuels, like heating our homes, driving and some manufacturing. Global clean energy investment rose 17 per cent in 2023 to reach US$1.8 trillion, driven not only by renewable energy generation and EVs, but also by hydrogen technology and carbon capture, according to Bloomberg. Here in Aotearoa, investment giant BlackRock has set up a $2 billion green energy investment fund, and renewable energy consumption and supply reached record highs in 2023. As the United Nations’ Secretary-General, Antonio Guterres, put it in January: “Let me be very clear again: the phase-out of fossil fuels is essential and inevitable. No amount of spin or scare tactics will change that. Let’s hope it doesn’t come too late.”
‘Clean electricity is at a tipping point.’ AUTU M N 2 0 2 4 | I N F O R M E D I NVESTO R 1 9