Research & news

06.09.2024

Term deposit rates are falling: Where now for income investors?

Borrowers received the first glimmer of much-wanted relief when the Reserve Bank cut the Official Cash Rate (OCR) by 0.25% to 5.25% at their meeting on 14th August.

The RBNZ had earlier noted that its estimate of the long-term neutral OCR was 2.75%, so the August cut appears to be the start of a much-needed easing cycle likely to run through to late 2025 or early 2026.

This outlook for a cut of 2.75% from the highs of the past year is great news for borrowers but may require a change of strategy for savers.

Market Insights

10.11.2023

Congratulations Rachel Baker

Congratulations are in order for yet another of our own. Portfolio Manager Rachel Baker has been added to the tidy list of Nuffield New Zealand Farming Scholars within the MyFarm Investments team.

Media release

06.10.2023

Forestry, carbon and the general election

We are just over a week from the general election, and it seems the day can’t come quickly enough. If the election had occurred earlier in the year, Cyclone Gabrielle and climate change would have been more in our minds. Nearly eight months down the track, the electorate has downgraded climate change to number six on the list of concerns.

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29.09.2023

Carbon and the ETS

As part of our carbon market series, this article reviews the events of 2023 so far, with a particular focus on the involvement of agriculture and forestry in the Emissions Trading Scheme (ETS). The first nine months of the year have seen uncertainty and price volatility; however, the market looks to be closing the year on a stronger note. Before we look at what’s happened this year, it’s worth reflecting on the role of the ETS and why having an efficient ETS and market for carbon is vital for New Zealand and our climate ambitions.

Market Insights

21.09.2023

Invest in the Macro: Carbon Sequestration

One clear Macro trend is climate change. The impacts of climate change are being felt more frequently and more severely around the globe, resulting in pressure to decarbonise our society and economy – with demand for change coming from governments, business, and consumers.

For investors, this creates a new horizon of opportunity – how to create value and economic benefit from these macro changes, whilst also helping to address the root problem, levels of CO2e in the atmosphere.

Market Insights

15.06.2023

Forestry, carbon and our future

Warren Parker, Chair of Pāmu and Forestry Ministerial Advisory Group, joined us to lead a broad discussion on some of the issues facing New Zealand from a climate and forestry perspective.

Although a controversial topic among some, planting trees doesn’t need to take from our sheep and beef farming, it can be complimentary for land owner income and for climate change mitigation.

Watch the webinar here.

Market Insights

03.03.2023

Rural Leader moving to MyFarm

New Zealand’s largest rural land syndicator MyFarm has appointed the CEO of Rural Leaders NZ, Chris Parsons as its Chief Commercial Officer.

Prior to joining Rural Leaders NZ in 2020, Chris Parsons was a decorated officer in the New Zealand Army. His record of leadership in the NZ Defence Force traverses tough special forces missions, for which he was decorated three times, and leading multiple organisational transformations. He established New Zealand’s first Special Operations headquarters in New Zealand and he was the inaugural commander of the 1st (NZ) Brigade (a multifunctional team of 3,300). As the brigade commander and then the Deputy Chief of Army, Chris championed the Army’s transformation from analogue to digital communications

23.02.2023

Carbon Markets - Webinar

Recently we were very fortunate to be joined by Nigel Brunel, who provided a valuable introduction to the New Zealand and Global Carbon Market and the New Zealand Emissions Trading Scheme.

He also gave insights into the dynamics driving the New Zealand carbon price.

Nigel’s first-hand experience in the industry and his knowledge about carbon markets was on display with a formal presentation followed by an interesting Q&A segment with investors.

We felt this was a “must see” webinar for anyone interested in learning more about the New Zealand carbon market.

Market Insights

25.11.2022

What last week’s RBNZ announcement means

Ticking both boxes in today’s environment of decade high inflation and increasing interest rates is challenging. Over the long-term, investors want to maintain the purchasing power of their savings and need positive real returns to achieve this. The challenge is that with inflation hitting more than 7% in the last year, the investment return currently needs to be high to fully compensate for this.

This is in an environment where most asset prices and business valuations are being tested. For many equity investments, it was a one-way bet higher since the 2007-2008 global financial crisis, with an extra kick of exuberance through Covid until around this time last year.

Market Insights