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[GRTV] Sam Dickie's 2020 outlook

Monday 24th of February 2020

Valuations are elevated – but not too unrealistic levels, one fund manager says.

Sam Dickie, a senior portfolio manager at Fisher Funds, said the team was “super focused on beating the market”.

Despite strong growth over recent years, he said equity valuations were not cause for alarm.

“I think we're always worried about valuations. It's one element of our investment process, our steep process that Carmel set up 21 years ago. Headline multiples are stretched. We all know that. I'm sure a lot of your listeners will think that as well. I guess the only point I'd make there is you've got to look at equity valuations in the context of the prevailing level of interest rates, and when you compare bond yield earnings, yield gaps, or whatever you want to do to compare equity valuations to interest rates, valuations are not super elevated.”

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Paul Flood: The danger is that the 'goalposts' (regarding what is acceptable or unacceptable adviser conduct) may be susceptible to change. Our 'Principles based' legal/regulatory environment lends itself to “prevalence-induced concept change” over time, perhaps not so much in the written laws and Code, as in the interpretation of the prescribed principles.
2 days ago Steve Wright
FMA outlines its latest expectations for advisers
Just a tip, if you use more than six, six letter words in a sentence you lose most Kiwi's. So avoid client/adviser confusion when writing your post or article if you would like it read and understood. Ironically, my last sentence was not likely read.
2 days ago Backstage
FMA outlines its latest expectations for advisers
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To correct errors in my previous post: "policies, templates, and controls" should read "policies, processes, systems and controls", and "is more conductive" should read "is more conducive".
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