Monthly, we update our wholesale investors on what’s happening in the market. Running what’s probably the only late-night trading desk from New Zealand, we’re well-positioned to feel the pulse of the market’s direction.
‘Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.’
Using the power of money and investing, we work on doubling funds every 4 to 5 years.
This is what that target could look like:
- For an investor who begins with $1 million, this soon becomes $2 million.
- Over the longer term, $4 million.
- And in around a decade and a half, $8 million.
About the time it takes to build and achieve great returns from a successful business. Which is exactly what we invest in via globally developed financial markets. For our esteemed Wholesale and Eligible Clients.
Well, this year, things have been rough. It’s been one of those years where, as an investor, you go defensive and try to protect wealth.
Essentially, we’ve operated as a hedge fund. Protecting wealth and maximising passive income generation for our clients. With a typical running yield of around 5% to 6% across our portfolios. Enabling compound reinvestment.
As a result, we’ve done comparatively well:
|Vistafolio year-to-date return (as at 1 December, 2022)||–0.28%|
|MSCI EAFE Index [Benchmark] (as at 29 November, 2022)||–14.48%|
|NZ urban property markets (to 30 November, 2022)||–5.10%|
|Top KiwiSaver growth fund (as at 31 October, 2022)||–12.35%|
|Global equity fund (as at 31 October, 2022)||–14.73%|
|Australasian growth fund (as at 31 October, 2022)||–31.43%|
(Past performance is not an indicator of the future.)
Overall, for the month of November 2022, we were up 3.38% across the composite portfolio (total aggregate return across all portfolios following the strategy). This brings our overall return for the year tracking at –0.28%. And our average annualised return since inception at 15.19% p.a.
Please see our performance chart for more details.
Going forward, it is our assertion that most of the bad stuff (inflation, higher interest rates, recessionary fear) have already been priced in.
As global central banks start easing the pace of rate hikes in an attempt to engineer a soft landing, it is possible that the bear market will switch to a bull market.
Investors deploying cash now could do well as we look to capture the next cycle of growth and income.
And we retain our target of achieving over a 15% annualised return over the long run, potentially doubling money every 4 to 5 years.
Should you agree with our assertions and wish to join us in capturing the next growth cycle we foresee, I encourage you to add funds to your account — or join us in setting up an account (for qualifying investors).
At this time, we can certainly say: the best is yet to come…
Editor, Wealth Morning
Past performance is not an indicator for future performance. Your actual portfolio will differ from the composite portfolio mentioned. The information contained in this document does not constitute an offer to sell or a solicitation to buy an investment, nor should it be construed as investment advice. Vistafolio investment services are available to Eligible Investors and Wholesale Investors (not to Retail Investors) as defined in the Financial Markets Conduct Act (2013).