NZ Capital Strategies is a boutique investment management firm based in Christchurch, New Zealand. The firm was established to provide offshore and domestic investors with an experienced local partner to access the highly attractive and largely untapped investment opportunities that New Zealand offers. NZ Capital’s current operations evolved from a private capital investment program run by its principals alongside a multi-billion dollar global institutional investment management firm.
NZ Capital Strategies currently manages four funds, the Rutherford Innovation Fund, Rutherford Innovation (100% NZ) Fund, the Aoraki Absolute Return Fund and the Asia-Oceania Incubation Fund.
NZ Capital is a member of the NZCA, the industry body for venture capital and private equity professionals in NZ and the NZ Absolute Return Association, which represents the hedge fund, commodity trading advisor, and absolute return equity industry.
It's Good News for Consumers and Savers, 18 July 2012
James Weir Reports.
While bears stalk the global economic woods, New Zealand is enjoying Goldilocks inflation - not too hot, not too cold.
At 1 per cent, annual inflation is touching the bottom of the Reserve Bank's target band - good news for consumers and savers.
Just a modest pay rise, say, 2 per cent, means people are slightly better off than a year ago.
The strong currency is giving everyone an effective pay rise by keeping living costs down. Imports are cheaper, with items like televisions and stereos down a massive 19 per cent in the past year, while phones are down 28 per cent.
The other factor keeping prices down in the shops is a simple lack of demand. In tough times Kiwis have full-price phobia. Don't buy unless you get a bargain. That means retailers need to offer deals to get sales through the door.
And for savers the low inflation picture is good, too.
High inflation can erode the value of savings in the bank when interest rates are low, but now term deposits on a decent sum can earn 4 per cent or so, a good margin above inflation. It is the after-tax and after-inflation returns that really matter.
Low inflation is also an important signal for borrowers. It means the Reserve Bank is likely to keep the official cash rate lower for longer and hence floating mortgage rates should remain cheap well into next year.
While inflation in the past year has been low, it could go even lower, just under 1 per cent in the September year.
So is there a risk of “deflation” - generally falling prices?
While that might sound like a good thing for consumers, deflation can be nasty. People put off buying things, waiting for prices to fall even further. The same applies to business investment, and banks sit on their cash and the economy grinds down.
Japan has been through 20 years of low growth and falling prices and it can make debts unbearable. Deflation is no fun.
But New Zealand should avoid that deflation bear trap. We have a floating currency, so if things turn sour, the dollar will drop and import prices will rise.
Inflation in New Zealand is also likely to be near a trough, with the economy gradually picking up and the Canterbury rebuild slowly getting under way.
So the Reserve Bank is not expected to cut rates in fear of deflation.
N.Z. Budget Deficit NZ$1.1 Billion Narrower Than Forecast |
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New Zealand’s budget deficit was NZ$1.13 billion ($908 million) narrower than forecast in the 11 months through May as tax revenue exceeded expectations, according to a Treasury Department report. The government’s operating deficit before gains and losses on investments was NZ$5.91 billion in the period ended May 31, compared with a NZ$7.04 billion gap forecast in the budget published on May 24, the Treasury said in monthly financial statements released today in Wellington. New Zealand’s government is cutting non-essential spending and selling assets to speed up a return to surplus by 2014-15. Finance Minister Bill English presented a budget with very little new spending over the next four years, and forecast a deficit of NZ$8.44 billion in the year ending June 30, 2012. The result “is encouraging, but the global environment remains uncertain, leading to a number of fluctuations in the tax take from month to month,” English said in an e-mailed statement. “These fluctuations reinforce the need for the government to keep a firm control on its costs, so it can stay on track to surplus by 2014/15.” Read the full article on Bloomerg's website here.
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Japan Financial Times Ad, 20 April 2012
NZ Capital's book rated top 3 best seller at Maruzen Book center |
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Financial Japan features launch of book authored by
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Opalesque Round Table Series 2011 |
Representing NZ Capital Strategies, Kenji Steven recently attended the Opalesque New Zealand Round Table Series. Attached below is commentary from the New Zealand meeting. This document is available in Japanese as well as English. |
Aoraki Fund Features in the New Zealand Business Review |
NBR Article Jan 21 - Building New Zealand's financial reputation. |
