Kiwi investors have the chance to make the most of foreign interest in the country’s capital markets, says Andrew Bascand, director of Harbour Asset Management.
Thursday, July 11th 2013, 7:41AM
by Susan Edmunds
He said New Zealand was starting to figure a lot more in international investors’ plans because of its credit rating and strong yields. “New Zealand has come on to the global radar because our equity markets have been performing strongly and bonds are still offering reasonable yields.”
Strong marketing around Fonterra and Mighty River Power had also attracted attention to this country, he said. Growth prospects from the Canterbury rebuild and the free trade agreement with China were other drawcards. “It’s a small market but there are some good opportunities.”
That meant local capital markets were likely to be quite vibrant, with more liquidity and more interesting opportunities, Bascand said. “People see it as a good place to raise more capital. New Zealand investors can get the advantage of that vibrancy.”
World Finance magazine this year added New Zealand to its list of countries eligible for the annual Investment Management Awards, started in 2007. Harbour was named the best investment management company in New Zealand for 2013. There were two other finalists but Bascand said he was not at liberty to name them. He said the fact New Zealand was included in the awards this year proved that it had become a member of the global investment community, and a good prospect for many investors.
“New Zealand is one of only a few developed countries to have weathered the global financial crisis with a strong credit rating intact. As a result, global investors are showing unprecedented interest in this country.”
Head of fixed income Christian Hawkesby said investment grade bonds yielding 4% looked very attractive against inflation of about 1%.
