Harbour Navigator: Private assets and their role in multi-asset portfolios
Growth in evergreen private investment funds has been significant and may provide a more efficient way to access private opportunities across different regions, sectors and transactions.
The broader and growing opportunity set in private markets can help mitigate the concentration risk of the modern-day equity market.
Liquidity remains an important consideration. Private assets are less liquid than listed markets, even when a…
Harbour Outlook: A lacklustre finish to 2025 for NZ stocks vs. the world
Key market movements
Global shares ended 2025 strongly. The MSCI ACWI rose 0.9% (NZD unhedged) in December (0.7% NZD hedged), taking full year returns to 19.2% for both classes. There was dispersion across sectors in December: Materials (+4.4%) and Financials (+4.2%) led the month, while defensives lagged, with Utilities (-2.9%) and Consumer Staples (-1.4%) under pressure.
The S&P/NZX 50 added 0.5% in December and 4.1% for th…
Top 10 Risks and Opportunities for 2026
A 2025 post-mortem before we look ahead
Looking back on 2025, we reflect on the third year of exceptional returns in US and global equities. Over the past three years, global equities have delivered more than 18% per annum, led by the US market with returns averaging above 20% per annum. This year, however, the story has shifted. Returns have broadened, with European and emerging markets taking the lead on the equity return le…
Harbour Outlook: Defensive sectors take the lead
Key market movements
Global equities were slightly negative in November, with the MSCI ACWI falling -0.3% in unhedged NZD terms and 0.0% NZD-hedged. A notable rotation saw defensive sectors outperform cyclical sectors and technology, reversing the trend observed since May's market recovery.
New Zealand equities declined -0.4%, despite an encouraging earnings season and strengthening business and consumer confidence pointing t…
Harbour Outlook: Investors eye local recovery
Key market movements
Global equities were positive again in October, with the MSCI ACWI up 3.7% in unhedged NZD terms and 2.7% NZD-hedged. Easing trade tensions between the US and China and a solid third quarter earnings season supported gains.
New Zealand equities advanced 1.9%, buoyed by easing monetary conditions and early signs of an economic recovery. Australian shares delivered a smaller gain of 0.4%, with their unemplo…
Harbour Navigator: Style rotation in the investment wardrobe
Markets, much like fashion, are never fixed. What is in vogue today can be overlooked tomorrow, only to return in style a few seasons later. The same applies to equity investing. Value, growth and quality all rotate in and out of favour, shaped by the macro backdrop and investor sentiment.
Over the past year, the market’s wardrobe has shifted noticeably. Historically we have seen a high degree of correlation between regional …
Harbour Outlook: Turning point – policy easing takes hold
Key market movements
Global equities rose strongly in September, with the MSCI ACWI up 5.3% in unhedged NZD terms and 3.6% NZD-hedged, as the US Federal Reserve resumed its rate-cutting cycle. Easing monetary policy and resilient earnings supported broad-based gains.
New Zealand equities advanced 3.0%, buoyed by expectations of further RBNZ rate cuts and signs of stabilisation in the housing market. Australian shares fell 0.8…
Harbour Navigator: End of easing in sight as new governor takes charge
Market anticipates 75bps of OCR cuts by mid-2026, possibly delivered in upcoming RBNZ Meetings in October and November.
Dr Anna Breman, appointed as new RBNZ Governor, starts 1st December. Dr Breman comes to New Zealand after serving as First Deputy Governor of the Swedish central bank.
At 2.25%, the Official Cash Rate (OCR) would have been lowered by 3.25% within 18 months and finally would be comfortably within accommodati…
Harbour Navigator: Key ESG themes from New Zealand's 2025 reporting season
Renewable energy investments have accelerated dramatically, with companies committing billions toward solar, wind, and battery storage projects.
Worker wellbeing and safety improvements have emerged as critical social priorities amid significant organisational restructuring.
Artificial Intelligence (AI) governance and cybersecurity have become board-level imperatives as companies navigate rapid technological change.
New Zeala…
Harbour Navigator: Are we there yet……
As a child on long car trips to sunny destinations there would be the constant chorus of ‘Are we there yet?’ to the parents up front. The terse retort from up front would usually be ‘Not yet!’. We could draw parallels with the performance of the New Zealand equity market and company earnings which have been on a long sideways journey.
The latest reporting season for New Zealand companies with June balance dates continued this…
