Want tailored investment advice? Applying for a category one or two investment visa?

[Dirk Mostert]

The NZ share market has actually out-performed the US market in NZ$ terms over the last few years. "Post the GFC low of March 2009, the NZX50 G index is
up +62.4%, which equates to an annualised return of +13.9%. The Australian S&P/ ASX200 Accumulation index has posted a similar NZD annualised return (+14.4%) and both indices lead global market returns, in NZD, since the GFC low of March 2009."

[Dirk Mostert]

Do you want to be flexible in your investment choices or maybe just "feel" more in control and part of the decision making process? Then I can help. I offer a variety of services, depending on the client's needs.

Immigrants applying under the Investment Visa category will find that the following two services will meet all of their needs.

1. Premium Advisory Service – if you already have funds to invest (or an existing portfolio) and would like some support in your decision making, (Includes a full investment plan to assess your risk profile) and,

2. Private Portfolio Management – if you want Forsyth Barr to manage your portfolio – within the limits of your risk tolerance and we again complete a full investment plan.

These services are backed by Forsyth Barr’s quality researchers, support staff, computer systems and compliance department.

About the company:

"Forsyth Barr is a New Zealand owned firm providing a full range of investment options including sharebroking, portfolio management, research and investment banking services. Forsyth Barr services retail, wholesale and institutional clients. They have 19 offices nationwide and employ over 250 investment professionals. Disclosure Statements are available on request and free of charge.”

[Super_BQ]

Dirk: can you back your statement with some online references and technical charting? It's easy to make such claims by picking a window time period of showing the best returns possible on the chart. The reality in NZ is that small investors never see such returns after factoring investment / advisor / administration fees on their portfolio or managed fund. Furthermore, why is there a lack of Kiwi Saver funds (or NZ managed funds) that make the distinction of outperforming the NZX index? It goes along the line why NZ listed companies don't talk in EPS.

[Dirk Mostert]

Figure 1.png

[Super_BQ]

OK, those figures don't tell me a lot because how are they basing those figures on? But just to show how different they can be from my findings, i'm showing 1 example based on same period (March 2nd, 2009 to today):

http://finance.yahoo.com/echarts?s=^NZ50+Interactive#symbol=^nz50;range=200 90302,20121207;compare=;indicator=volume;charttype =area;crosshair=on;ohlcvalues=0;logscale=off;sourc e=undefined;

http://finance.yahoo.com/echarts?s=^GSPC+Interactive#symbol=^gspc;range=200 90302,20121212;compare=;indicator=volume;charttype =area;crosshair=on;ohlcvalues=0;logscale=off;sourc e=undefined;

The NZ50 index shows total return of 62.87% which is pretty much the same as your figure. However the S&P500 figure shows 103.83% - a stark difference to your listed 31.5%. If exchange rate between NZD to USD is factored in, I don't believe the 70% difference would be based on the difference in exchange rate. Chart here shows NZD/USD of the same period:

http://finance.yahoo.com/echarts?s=N...rce=undefined;

One can cherry pick their time frame to base their figures to look best. The real problem is no one can consistently time their trades right every time to obtain maximum returns. ALL these historical charts are to be taken with a grain of salt.

The real issue is which companies should investors park their $ in? Small companies listed on the NZX with a limited market share or a well established company on the NYSE/Nasdaq that has a global market share potential (and a preferential tax treatment with emphasis based on capital gains growth instead of capital eroding dividend payments).

and just out of interest, a chart for Nasdaq indice QQQ:

http://finance.yahoo.com/echarts?s=Q...rce=undefined;

and I say again, what's the deal with NZ companies not reporting in EPS in their annual reports? All too often I hear on the radio of some big company like "The Warehouse" floating more shares to raise capital. My thoughts to the current shareholders on 'dilution' (as their % of ownership erodes) and if such a company needed the $, why did they have to pay out dividends (which triggers a tax event to the shareholders - if shareholders want an income stream from the investment, they could just simply sell part of the shares that suits their tax preference).

[Dirk Mostert]

I have to mention that I'm not an analyst and don't pretend to be one. You may very well have a good argument.
My purpose here is to show immigrants that they have more than the “bank” option when it comes to making a choice regarding their investments. Immigration NZ has set certain guidelines for investment category visas. Applicants have to invest in New Zealand – so discussing the Nasdaq returns is a moot point. What they invest in can have a huge affect on their finances though.
That is why I’m here – to help them make the right choice for them – not the right choice for the bank (and of course to have the opportunity to manage those funds for the duration).