A Look into Local Markets

After what has been a very good month for the Devon Funds we thought it would be useful to acknowledge how well the local market has done over recent years and indicate where we see the potential opportunities in the future.
Since the end of the GFC the New Zealand equity market has delivered extraordinary returns to investors with the S&P/NZX50 Gross Index up almost 250% in that time (over 14% p.a.). This performance has been sponsored by a range of factors including accommodative global monetary policies, a recovery in economic growth, the support of Kiwisaver, a near insatiable appetite for our high-yielding stocks by offshore investors, and in more recent times the performance of growth stocks. Given these returns, some people could be forgiven for assuming that the opportunity set in our market was exhausted. While we acknowledge the length and strength of the bull market, we believe the reality is different to this…Read More