Commentator – Ruari McGregor, Director & Chief Operating Officer Q: What are the dangers for consumers in investing in products that don’t have arm’s length custody arrangements?
A: The definition of custody is “protection, care or guardianship of someone or something.”  In the managed funds world this relates to safeguarding the underlying shares, bonds and other securities held within each managed fund independently of the fund manager. In New Zealand,  Custodians are required to have an assurance engagement with a qualified auditor every year.

All […]

Commentator – Rebecca Thomas – Chief Executive Officer & Executive Director

Q: What are the dangers for consumers in investing in products that don’t have arm’s length custody arrangements? 

A: Without having an arm’s length( independent)  custody arrangement the investor loses all protection on how those funds are supposed to be invested. This means the funds could be used for anything as opposed to investing in line with investors instructions.. This is particularly important if the company who is providing the solution  gets into […]

Commentator – Chris Di Leva, Multi Asset Specialist

Summary

A noticeable feature of markets in the ten years since the GFC has been the unusually low amount of market volatility. Buoyed by stimulus from central banks, which kept interest rates at artificially low levels, this created a positive environment for all asset classes. Indeed, the rising tide lifted all boats with both passive and active strategies enjoying strong returns over this period. However, market movements in recent months could be a signal that this prolonged period […]

Commentator – Will Low, Head of Global Equities – Edinburgh

Q1: What’s driving the recent market volatility?

We would suggest that volatility is typically driven by uncertainty and often tends to reveal a shift in the underlying environment. With this in mind, the most likely drivers are the impact of a shift in policy from the Federal Reserve and the emergence of global trade wars following many years of globalization and falling tariffs.

Q2: How long do you think it will continue? Why?

Being stock pickers […]

Commentator – Geoff Wood, Head of Macro & Risk

Q1: What’s driving the recent market volatility?

In early December the market was concerned by three fears, two of which have receded materially in our view

1. Global growth weakening
The most substantial risk for markets as there is no easy fix. Many global growth indicators have slowed and the US which has the strongest growth momentum is likely to recede as the Trump led fiscal pulse wanes and the monetary tightening continues to push through the system.

2. […]

Commentator – Trent Loi, Portfolio Manager

Q1: What’s driving the recent market volatility?

The positive investor sentiment was spooked by hawkish comments made by the Fed Chair Jerome Powell on interest rate in US, lack of progress in trade talks between China and US, and concerns of a slowdown in global growth. Investor sentiment soured and resulted in a rush to exit equities positions. The sell down in equities was broad based in Q4 2018, however, the market was probably oversold hence a rebound in […]

Commentator – Thom Bentley, Client Director- Institutional

Q1: What’s driving the recent market volatility?

Markets dislike uncertainty. Among the issues contributing to equity market volatility at the end of 2018 were worries about the US/China trade war, political uncertainty in Europe around Brexit, and concerns about the global economy slowing.

Q2: How long do you think it will continue? Why?

Volatility has already abated significantly. The VIX index (which measures US equity market volatility) rose from a level of 11.6 at the start of October 2018 to a […]