JP Morgan estimates that over $5.5t (yes, trillion) of investor funds are currently in negative yielding government bonds. To put that into plain interest, if you purchased $10,000 (Euros to be correct) worth of German 5 year bonds currently at -0.308%, after 5 years, your $10,000 would be worth $9,846.94. To clarify, this doesn’t mean that the quarterly interest payments are negative, it means that the amount an investor is prepared to pay for the bonds is so expensive, that when it matures; combining the capital being repaid (the face value) and any income generated works out that the ‘total return’ or […]
Waterman Capital is a private equity investor established in 2004 to provide capital and management expertise to mid-market businesses based in New Zealand, with a long track record of investing in, and adding value to businesses in that space. We are excited to offer you the opportunity to attend a presentation from Executive Directors Lance Jenkins, and Chris Marshall to hear about an opportunity to invest in their third fund.
We see a lot of investors who have a long term plan, someone in their mid 40s potentially needs an investment strategy to cover a period of 60 years (or more!), yet so often our decisions are based on what makes them happy today, typically believing that they have time to ‘deal with’ the consequences. This is compounded when the decisions being made are clouded with emotion, rationalism is quickly thrown out the door! Here is a good article titled “Short-Termism: it’s more contagious than the flu” – we can’t agree more.
At first glance the Future Generation Global Investment Company looks just like any other, run-of-the-mill international investment fund, however on close inspection this fund will provide some very tangible benefits for Australian and New Zealand “at risk” youth. All of the fund’s underlying managers have either donated their services for free or at significantly discounted rates in order to benefit this very worthwhile cause. The discounted fees are donated annually to charities working closely with Australian and New Zealand youth suffering mental health issues. The fund regulators and administrators have come on board as well , with both the Australian […]
The Financial Adviser Act 2008 introduced an authorisation process to control who can and can’t provide financial advice. This has also caused some confusion, particularly for investors who are seeking financial advice. There are 3 categories AFA – Authorised Financial Adviser RFA – Registered Financial Adviser QFEA – Qualifying Financial Entity Adviser Authorised Financial Advisers (AFA) AFAs are registered on the Financial Services Provider Register and belong to a Disputes Resolution Scheme. They also go through a more rigorous approval process by the Financial Markets Authority and have higher competency standards. Authorised Financial Advisers can provide personalised advice on complex […]
Bonds are typically a word most investors have heard of, but it is an investment that is not fully understood. Shares however, are generally well understood, investors know they can fluctuate in value, they sometimes pay a dividend, they can be risky. Bonds are seen as ‘safer’ investment options, but that is not always the case. Bonds versus Term Deposits Comparing a bond to a term deposit from a major bank; a term deposit is an agreement from the investor to lend a specified amount of money to the bank, with an agreed interest rate, with agreed repayment terms. Throughout […]