All aboard flight 2022: Portfolio check-in now open
Article written by InvestNow – 22nd December 2021
Remember travel?
It wasn’t all fun, as Kiwis preparing for long-anticipated jaunts will soon discover as they stuff chilly bins into chocka cars, squeeze snorkels into suitcases or join the socially distanced airport queues.
But preparation, as always, can help smooth the transition from home base to holiday destination: details matter.
According to the Smarter Travel website, for instance, even packing a flight carry-on bag requires careful planning. In fact, the Smarter Travel risk management plan advises of ‘7 Things Not to Do When Packing a Carry-on Bag’.
And if carry-on is complex enough, the full-suitcase strategy is almost rocket science.
“Packing a suitcase may seem like a straightforward task—but do it wrong, and you could end up losing valuables, paying overweight baggage fees, or cleaning up messy spills,” Smarter Travel says.
Like most plans, suitcase-packing begins with a list of essential items, the travel advisory service says.
How’s your portfolio checklist looking?
As investors ready to depart 2021, too, it’s a good time to dust off portfolio checklists; after travelling the distance of a year new destinations may lie ahead.
Compared to the spectacular 2020 that saw both the sharpest share market drop since the global financial crisis (GFC) and the quickest rebound in history, 2021 has been more subdued for investments.
Figures from consultancy firm Mercer, for instance, show NZ share markets were flat for the 11 months to the end of November 2021.
Over the same period, however, broad global equity indices rose more than 20% in unhedged terms for Kiwi investors.
On the downside, local bond markets fell between 5 to 7.5% during the calendar year to November 30 while international fixed income benchmarks also dipped slightly into the red (-0.2 to -1.1%).
Growth-focused and balanced fund investors would still be well ahead over the year-to-date – albeit amid increasing volatility in the final months of 2021.
Rising inflation and the threat of higher interest rates (realised in NZ, at least) have shaken both share and bond investors alike.
While the year-end turbulence might be discomforting, investors should consult their long-term plan for guidance on how to handle the new conditions: for some that might mean making a few portfolio adjustments; for others, it could be just business as usual.
Before making a move, though, here’s a few items to check off and consider on the investor to-do list:
1. Revisit your investment beliefs
Investing is about more than number-crunching. Even the largest professional investors (such as the NZ Superannuation Fund) take time to think about their underlying beliefs, asking questions like:
- Is low-cost passive management always the most appropriate way to invest? Can active managers add value? Or is it best to use a mix of index and active funds depending on the asset class?
- How much diversification is enough?
- Does sustainable investing matter? If so, is it better to invest in funds that screen out ‘bad’ companies or with those that work with firms to improve corporate behaviour?
The answers, of course, will vary according to each individual but they can put investment strategies on a sounder footing. Read widely – InvestNow, for example, has a growing resource base of market insights, research, etc., from fund managers, to inform the search;
2. Reset your goals
Things change. Career, family, health, personal and financial circumstances are all constantly evolving. Investment goals should move in line with the shifting life dynamics. Are you now saving for a house? Your child’s education? Is retirement looming closer than you thought?
Goal-setting helps clarify why you are investing and what the next steps might be;
3. Review risk tolerance
Spoiled by two years of mainly smoothly rising markets, some investors might have forgotten risk exists. But increasing volatility, as well as other changes in personal circumstances, could make many rethink what type of investor they really are: use the Sorted ‘Investor kickstarter’ tool to recalibrate your risk tolerance;
4. Revise your asset allocation
Investment beliefs and lifestyle goals will both influence your portfolio asset allocation (simply, the mix of growth and income assets you own), which requires regular reviews to stay in synch. A place to start could be our ‘Getting Started Guide’. Whilst it is currently positioned as a tool for new investors, the context and content are equally relevant to someone already on the way with their investment journey.
5. Rebalance your portfolio
The nitty-gritty buying and selling of funds in your InvestNow portfolio follows on from the previous steps. Does the risk profile of your existing portfolio match the asset allocation, arrived at after considering investment beliefs and life goals? If not, which funds do you need to buy or sell?
The differing performance of investments over time can also skew portfolios away from your asset allocation – regular rebalancing may be necessary.
6. Housekeeping task
One thing that can often be overlooked, is keeping your personal details up to date. Review your InvestNow account and make sure your personal details are correct. This includes your tax rate and PIR rate, phone number, address, email, etc.
Tools to help
InvestNow has a range of sophisticated tools available, to use:
- Getting Started Guide – InvestNow Managed Funds
- InvestNow Historical Fund Performance Reports – Shows recent reports of our top-performing funds for previous months
- InvestNow News – Market insights, research, etc., from our fund managers
- InvestNow articles
- And more, which you can view here on our InvestNow Resources & Tools page
The InvestNow team wishes you all the best for the year ahead; and don’t forget to travel safe in 2022.
All aboard flight 2022: Portfolio check-in now open
Article written by InvestNow – 22nd December 2021
Remember travel?
It wasn’t all fun, as Kiwis preparing for long-anticipated jaunts will soon discover as they stuff chilly bins into chocka cars, squeeze snorkels into suitcases or join the socially distanced airport queues.
But preparation, as always, can help smooth the transition from home base to holiday destination: details matter.
According to the Smarter Travel website, for instance, even packing a flight carry-on bag requires careful planning. In fact, the Smarter Travel risk management plan advises of ‘7 Things Not to Do When Packing a Carry-on Bag’.
And if carry-on is complex enough, the full-suitcase strategy is almost rocket science.
“Packing a suitcase may seem like a straightforward task—but do it wrong, and you could end up losing valuables, paying overweight baggage fees, or cleaning up messy spills,” Smarter Travel says.
Like most plans, suitcase-packing begins with a list of essential items, the travel advisory service says.
How’s your portfolio checklist looking?
As investors ready to depart 2021, too, it’s a good time to dust off portfolio checklists; after travelling the distance of a year new destinations may lie ahead.
Compared to the spectacular 2020 that saw both the sharpest share market drop since the global financial crisis (GFC) and the quickest rebound in history, 2021 has been more subdued for investments.
Figures from consultancy firm Mercer, for instance, show NZ share markets were flat for the 11 months to the end of November 2021.
Over the same period, however, broad global equity indices rose more than 20% in unhedged terms for Kiwi investors.
On the downside, local bond markets fell between 5 to 7.5% during the calendar year to November 30 while international fixed income benchmarks also dipped slightly into the red (-0.2 to -1.1%).
Growth-focused and balanced fund investors would still be well ahead over the year-to-date – albeit amid increasing volatility in the final months of 2021.
Rising inflation and the threat of higher interest rates (realised in NZ, at least) have shaken both share and bond investors alike.
While the year-end turbulence might be discomforting, investors should consult their long-term plan for guidance on how to handle the new conditions: for some that might mean making a few portfolio adjustments; for others, it could be just business as usual.
Before making a move, though, here’s a few items to check off and consider on the investor to-do list:
1. Revisit your investment beliefs
Investing is about more than number-crunching. Even the largest professional investors (such as the NZ Superannuation Fund) take time to think about their underlying beliefs, asking questions like:
- Is low-cost passive management always the most appropriate way to invest? Can active managers add value? Or is it best to use a mix of index and active funds depending on the asset class?
- How much diversification is enough?
- Does sustainable investing matter? If so, is it better to invest in funds that screen out ‘bad’ companies or with those that work with firms to improve corporate behaviour?
The answers, of course, will vary according to each individual but they can put investment strategies on a sounder footing. Read widely – InvestNow, for example, has a growing resource base of market insights, research, etc., from fund managers, to inform the search;
2. Reset your goals
Things change. Career, family, health, personal and financial circumstances are all constantly evolving. Investment goals should move in line with the shifting life dynamics. Are you now saving for a house? Your child’s education? Is retirement looming closer than you thought?
Goal-setting helps clarify why you are investing and what the next steps might be;
3. Review risk tolerance
Spoiled by two years of mainly smoothly rising markets, some investors might have forgotten risk exists. But increasing volatility, as well as other changes in personal circumstances, could make many rethink what type of investor they really are: use the Sorted ‘Investor kickstarter’ tool to recalibrate your risk tolerance;
4. Revise your asset allocation
Investment beliefs and lifestyle goals will both influence your portfolio asset allocation (simply, the mix of growth and income assets you own), which requires regular reviews to stay in synch. A place to start could be our ‘Getting Started Guide’. Whilst it is currently positioned as a tool for new investors, the context and content are equally relevant to someone already on the way with their investment journey.
5. Rebalance your portfolio
The nitty-gritty buying and selling of funds in your InvestNow portfolio follows on from the previous steps. Does the risk profile of your existing portfolio match the asset allocation, arrived at after considering investment beliefs and life goals? If not, which funds do you need to buy or sell?
The differing performance of investments over time can also skew portfolios away from your asset allocation – regular rebalancing may be necessary.
6. Housekeeping task
One thing that can often be overlooked, is keeping your personal details up to date. Review your InvestNow account and make sure your personal details are correct. This includes your tax rate and PIR rate, phone number, address, email, etc.
Tools to help
InvestNow has a range of sophisticated tools available, to use:
- Getting Started Guide – InvestNow Managed Funds
- InvestNow Historical Fund Performance Reports – Shows recent reports of our top-performing funds for previous months
- InvestNow News – Market insights, research, etc., from our fund managers
- InvestNow articles
- And more, which you can view here on our InvestNow Resources & Tools page
The InvestNow team wishes you all the best for the year ahead; and don’t forget to travel safe in 2022.
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