Informed Investor Winter 2025 by Informed Investor

TIPPING POINT

Are we on the edge of a new global economic order?

FINALIST IN THE MINDFUL MONEY AWARDS 2025 Best media reporting on ethical and/or impact investment

HISTORY LESSON

Looking back (and forward) at tariffs

MOVING ON UP

Growing small business from the ground up

FUTURE OF WORK

Integrating office design and technology

BABY BMW

New BMW 1 series hatchback will turn heads

Dame Lisa Carrington, canoe sprint gold medalist

Finn Butcher, kayak cross gold medalist

some of our contributors

What we like Cool camera, pink gin and a skincare power trio.

the winter Winter is far more enjoyable when coupled with lovely home comforts.

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New investor for a new world (order)

We are in a “hinge” moment, and the old rules of investing may no longer work, writes Shamubeel Eaqub. 20 Are tariffs really so bad?

Andrew Kenningham takes us on a journey through the history of tariffs.

Tariffs, investment and opportunity

Oliver Mander of NZ Shareholders’ Association explores what Trump’s tariffs may mean for Kiwi investors.

on up

Two local businesses who have gone global.

of luxury

Turning high-end accommodation into a thriving business.

Sound advice for the self-employed

Martin Hawes on lessons he’s learned over 50 years of self-employment.

HR in an AI world

How do small and medium businesses navigate the brave new world of digital HR? 38 The bold, the brave and the burnt out

Victoria Bahadoor and Charlotte Clark, co-founders of Empower Her Community, on what it really takes for female founders to build a business.

The social science of skincare

Social media can be a powerful tool for marketing beauty products – even outside the sphere of glam influencers.

Market volatility is challenging, but staying invested and focusing on long-term goals is the clearest path to wealth creation.

It is essential to adapt how we teach young people good money habits in a cashless world.

Jason Choy from InvestNow explores the volatility of the market.

moves in uncertain times

Generate’s new retail funds are aimed at helping investors reposition for long-term growth.

Liv Lewis-Long looks at the best strategies for investing.

Forces affecting business, investment and the economies across the globe.

The year is speeding along, but the housing market isn’t.

Logitech partnered with Datacom to create an office space that seamlessly integrates with cutting-edge technology.

Andrew Nicol from Opes Partners didn’t achieve success overnight.

Liz

History repeats

A Good Time for Reflection

ROGER DOUGLAS’ NEOLIBERALIST

in the world’s economy. London-based commentator Andrew Kenningham states that while economists are often an argumentative bunch, when it comes to free trade, they tend to be fully aligned. They all believe it works.

Everyone has a different attitude to money, but to make it work for us it’s important to explore how we relate to it.

economic reforms of 1984 opened up New Zealand to global free trade. While controversial at the time, the removal of trade barriers was pursued by subsequent governments; Helen Clark’s facilitation of a free-trade agreement with China in 2008 possibly the zenith of our economic liberalisation.

It’s nearly holiday season (the year has flown by) and a good time for reflection. I’m not one for new year’s resolutions, but I do love a bit of soul searching during the spacious summer holidays.

The protectionist policies undertaken before the mass liberalism of the global economy have long been seen as a vestige of a less enlightened age. Tariffs are the ultimate outworking of these archaic policies – scoffed at by economists and politicians alike.

Tariffs were old news – until this year. And history hasn’t been kind to those who put their faith in them.

and develop over our life, and explains how people can develop better relationships with money.

Informed Investor PO Box 40128, Glenfield, Auckland 0747

Informed Investor 33 Federal Street, Auckland Central, Auckland.

Published by: Opes Media www.informedinvestor.co.nz

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But under US president Donald Trump, the rules of global economic engagement are being rewritten, the clocks turned back.

This year I’m going to take a long, hard look at my predisposition to spend. I love shopping (books, clothes and music are my obsessions), but this has got me into a lot of trouble in the past. Now I’m older (and a little wiser) I make sure saving comes before spending, although my current house renovations are certainly stretching the family budget.

Money is a potent force. It can be used for good or evil and without doubt profoundly influences the trajectory of our lives.

At the time of writing, president Trump has just agreed to extend the deadline for negotiating tariffs (which he had said would be 50 per cent) with the European Union until July 9. The 145 per cent reciprocal tariff, imposed on goods from China, was paused on May 13, to be revisited on August 12.

Everyone has a different attitude to money. Some (like me) see it as a ticket to good times; others scrimp, save and fear to touch it. Our attitudes are based on a raft of factors – upbringing, financial history, pessimistic or optimistic outlooks – but to make money work for us it’s important to explore how we relate to it.

New Zealand (and the rest of the world) is still subject to his 10 per cent tariff, introduced on April 10. But given his capriciousness, anything could have happened by the time you read this.

In our lead story this issue, economist Shamubeel Eaqub, surmises the current state of play.

“The last 80 years was an aberration, not the norm. Investors need to plan for a return of less recent history.”

The lead story this issue, written by “money mentalist” Lynda Moore, delves into our “money personalities” – the way in which we relate to money.

He posits that we are on the verge of a time-slip; free trade’s ideological stronghold is crumbling. And the implications for investors are, at this stage, undetermined.

Kenningham discusses the “infamous […] Smooth-Hawley tariff […] passed by the US Congress in 1930. Ironically, this tariff made things worse, hastening a collapse in exports and production, and the rise in unemployment.”

We’ve also modified a quiz taken from Lynda’s website (moneymentalist.com) so you can discover your own “money personality”. It’s quick, easy, and a bit of fun, but it should also get you thinking. This is a great Christmas holiday activity to share with friends and family over a glass (or bottle) of bubbly.

Small business is also a theme of this issue. New Zealand punches above its weight when it comes to small-business success –we meet a number of small business owners who have achieved great results through clever ideas, great timing, and the boldness to stay true to their vision.

We hope you enjoy this, our second issue of Informed Investor under the ownership of Informed Media. It’s been a joy to produce!

Amy Hamilton Chadwick delves into another sort of money personality this issue: the financial pessimist. If you’ve been stung before, it makes sense that you’d be cautious around investing. But as Amy explains, fear of doing anything (or “analysis paralysis”) can prevent you from embracing a brighter financial future.

Informed Investor is an investment magazine published quarterly by Informed Media. You need Informed Investor ’s written permission to reproduce any part of the magazine.

Informed Investor is an investment magazine published quarterly by Opes Media. You need Informed Investor’s written permission to reproduce any part of the magazine.

Advertising statements and editorial opinions in Informed Investor reflect the views of the editorial contributors and advertisers, not Informed Investor and its staff.

Advertising statements and editorial opinions in Informed Investor reflect the views of the advertisers and editorial contributors, not Informed Investor and its staff.

We continue on the topic of tariffs with an excellent historical analysis of their role

Based on extensive research and the contents of her excellent book, Conversations with Money: A Love Story, she digs deep into our histories, explores how our attitudes change

Managing editor

Editor Joanna Mathers

Joanna Mathers – joanna@informedmedia.co.nz

Design director

Art Director

Sally Fullam – sally@informedmedia.co.nz

Mark Glover

Account manager

Account Manager

Joanna Mathers – joanna@informedmedia.co.nz

Stephanie Bryant – 021 165 8018

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We are been delighted to have been nominated for an award at the Mindful Money Awards in the Best Media Reporting on Ethical and/or Impact Investment category so early in our ownership. But it is an outworking of my commitment for many years to ensure investors understand that ethics must play a role in their decision-making.

We also check out the new convertible Mini, the importance of goal setting, and how electric cars are changing transport economy worldwide.

We really hope you find inspiration in the pages of our magazine and wish you all the very best for this festive season.

Winners will be announced in late May, so by the next issue, we will know the result. Fingers crossed!

Take care and happy holidays.

Stay warm and safe

Informed Investor ’s content comes from sources that Informed Investor considers accurate, but we don’t guarantee its accuracy. Charts in Informed Investor are visually indicative, not exact. The content of Informed Investor is intended as general information only, and you use it at your own risk: Informed Investor magazine is not liable to anybody in any way at all. Informed Investor does not contain financial advice as defined by the Financial Advisers Act 2008. Consult a suitably qualified financial adviser before making investment decisions.

Informed Investor’s content comes from sources that Informed Investor considers accurate, but we don’t guarantee its accuracy. Charts in Informed Investor are visually indicative, not exact. The content of Informed Investor is intended as general information only, and you use it at your own risk: Informed Investor magazine is not liable to anybody in any way at all. Informed Investor does not contain financial advice as defined by the Financial Advisers Act 2008. Consult a suitably qualified financial adviser before making investment decisions.

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DIGITAL ISSN 2744-6093

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Meet some of our contributors

SHAMUBEEL EAQUB

Shamubeel is chief economist and head of policy at Simplicity, and a thought leader who is unafraid to take a contrarian view.

TIMOTHY GILES

Timothy Giles is our wine enthusiast. For 30 years he has been sharing his enthusiasm for fine and funky wines as a writer, trainer, list curator and podcast host. To build up a thirst he enjoys open water swimming, triathlons and is a football referee in Auckland. Dad-of-one goal is to share more of his wine cellar with his daughter than is left to her.

JASON CHOY

Jason Choy is a senior portfolio manager with InvestNow.

BRIDGETTE JACKSON

Bridgette Jackson is a CDC-certified divorce/separation coach with a postgraduate dispute resolution qualification. She is also a trained divorce mediator (AIMNZ), a relationship coach (Institute for Life Coach Training), and a member of the Institute of Executive Coaching and Leadership (accredited by the ICF –International Coaching Federation).

OLIVER MANDER

Oliver is the CEO of NZ Shareholders’ Association. He is as a strategic thinker, focused on transformative solutions, developing and implementing business strategies so that they come to life for organisations. He believes that a strategy means nothing without delivery.

CHARLOTTE CLARK & VICTORIA BAHADOOR

Charlotte, a branding strategist and alignment coach, and Victoria, a personal brand photographer and ADHD coach, empower women to build impactful businesses with confidence. Through their global community, they create opportunities for connection, growth, and visibility in a space where women feel truly seen and supported.

Meet Some of Our Contributors

CAMERON BAGRIE

KELVIN DAVIDSON

Cameron is the managing director of Bagrie Economics, a boutique research firm. He was previously chief economist at ANZ, a position he held for over 11 years.

Kelvin joined Cotality in March 2018 as senior research analyst, before moving into his current role of chief economist. He brings with him a wealth of experience, having spent 15 years working largely in private sector economic consultancies in both New Zealand and the UK.

Sam Bryden is Head of Distribution at Nikko AM NZ. With over 18 years’ experience in investment management and financial markets, the last six of these at Nikko AM, he is responsible for leading the firm’s sales, marketing and client servicing.

Kelvin joined CoreLogic in March 2018 as senior research analyst, before moving into his current role of chief economist. He brings with him a wealth of experience, having spent 15 years working largely in private sector economic consultancies in both New Zealand and the UK.

MARTIN HAWES

ANDREW KENNINGHAM

Martin is the chairman of the Summer KiwiSaver Investment Committee. He’s an authorised financial adviser and offers his services throughout New Zealand.

Martin Hawes is a well-known New Zealand financial author, conference speaker, and TV and radio commentator.

Martin is the chairman of the Summer KiwiSaver Investment Committee. He’s an authorised financial adviser and offers his services throughout New Zealand.

Andrew is the chief Europe economist for Capital Economics.He was previously an economic adviser for the United Kingdom Foreign Exchange.

CAMERON BAGRIE

KELVIN DAVIDSON

LIV LEWIS-LONG

Cameron is the managing director of Bagrie Economics, a boutique research firm. He was previously chief economist at ANZ, a position he held for over 11 years.

Liv is a passionate finance educator, writer and podcaster, and set up Simplicity’s Money Made Simple podcast to help level up financial literacy in NZ. She also heads up its marketing team, with over 15 years’ experience in brand, communications and storytelling.

Kelvin joined March 2018 analyst, before his current economist. a wealth of spent 15 years in private sector consultancies Zealand and

MARTIN HAWES

ANDREW KENNINGHAM

Andrew is the chief Europe economist for Capital Economics. He was previously an economic adviser for the United Kingdom Foreign Exchange.

Andrew is the chief Europe economist for Capital Economics.He was previously an economic adviser for the United Kingdom Foreign Exchange.

Martin is the chairman of the Summer KiwiSaver Investment Committee. He’s an authorised financial adviser and offers his services throughout New Zealand.

Mike has been InvestNow launch, March past 20+ years senior management some very well-known international brands – TAB, Reuters and

ANDREW NICOL

STEPHANIE WHITTAKER

SAM STUBBS

Andrew is an authorised financial adviser and the managing partner of Opes Partners. He has more than 15 years’ experience in banking, finance, and property.

Andrew is an authorised financial adviser and the managing partner of Opes Partners. He has more than 15 years’ experience in banking, finance, and property. Oyster’s

Stephanie is a Generate adviser specialising in KiwiSaver and managed funds. Along with her Level 5 Certificate in Financial Services, she has a degree in Education and more than 13 years’ teaching experience in NZ and the UK. Her passion is financial literacy and translating complex financial concepts into clear, personalised advice.

Sam is the founder and MD of Simplicity, New Zealand’s only low-cost, nonprofit funds manager. Previously from the banking world having worked for Goldman Sachs and NatWest Markets in London and Hong Kong, Sam believes the finance industry should be as much a force for good as a source of profit.

ANDREW NICOL

SAM STUBBS

Andrew is an authorised financial adviser and the managing partner of Opes Partners. He has more than 15 years’ experience in banking, finance, and property.

ANDREW NICOL

MIKE HEATH

SAM BRYDEN

SAM STUBBS

Sam is the founder Simplicity, New low-cost, nonprofit Previously from having worked and NatWest and Hong Kong, the finance much a force of profit.

KELVIN DAVIDSON

What we like

Cool camera, pink gin and a skincare power trio for winter.

Picture perfect

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Pink as a posy

Posy – Pink Gin from Hastings Distillers is a playful floral blend combining the freshness of citrus and raspberries with sweet, spicy notes. The gin is batch distilled in its 150L Arnold Holstein still and cut to strength with Kaweka spring water. The gin has top notes of raspberry, citrus and juniper, with flowering lemon myrtle; lavender and lime bring lifted citrus and floral notes. Added after distillation, organic raspberries and hibiscus flowers give Posy a delicate pink hue and subtle sweetness. Serve long with tonic or soda. $80 from hastingsdistillers.com

London calling

Power trio

Skinsmiths has just dropped a new skincare trio powered by biotech-fermented vitamin B12 and antioxidant-rich SauvigNZ – an extract from Marlborough sauvignon blanc grapes. The range is all about calming, hydrating, and restoring stressed-out skin – perfect for winter barrier support. The range includes:

• B12 Multi-Cleanser, RRP $65

• B12 Hydra-Cream Mask, RRP $124

• B12 Ceramide Cream, RRP $90

Each formula is designed to soothe and strengthen, with SauvigNZ clinically proven to protect against environmental stress and support collagen production. Available at Caci Clinic Stores nationwide, or skinsmiths.com

Jo Malones London’s English Pear and Freesia is a scent that opens with the juicy freshness of ripe pear, wrapped in the soft floral of white freesia. Add a touch of patchouli for warmth and depth, and you have a perfectly balanced blend of fruit and florals. The fragrance is light, elegant and effortlessly wearable – a modern classic with timeless charm. 100ml is $282.

Resene Scoria

Resene Tarzan

Resene Yogi

Resene Seaweed

Resene Time Traveller

Business

biz-nəs

“a commercial or sometimes an industrial enterprise”

Merriam Webster dictionary

“Business opportunities are like buses, there’s always another one coming”

– Richard Branson

New investor in a new world (order)

We are in a ‘hinge’ moment, living through a major regime shift, says economist Shamubeel Eaqub. Old ways of investing, especially using the rules of thumb learned over recent decades, may no longer work.

THE NEXT GENERATION of successful investors will likely look very different to what we see today. They will have to grapple with a complete rewiring of the global economy. Investment is fundamentally a bet on rising economic prosperity and managing uncertainties. For active investors, this also means betting on specific sectors and/or businesses – a tough ask in the face of increasing uncertainty.

Return of history

The peace-driven global order established after the world wars – which has defined geopolitics, trade, economics and investing – is ending. The last 80 years of this regime was led and held together by the USA, who are now walking away from it under the Trump administration. This administration is also actively undermining the very beliefs that underpinned it (closer cooperation and shared prosperity), and the institutions that enforced the regime.

The new order, what it will look like –

and if any one country or one group of countries will dominate –is very uncertain. The last 80 years was an aberration, not the norm, and investors need to plan for a return of less recent history.

This means adopting a more zero-sum mentality where one nation’s prosperity is believed to sap another, even though theory and experience shows that should not be the case.

This “us vs them” mentality is leading to a more nationalist and imperialist approach to national and international policy in many countries, and a lack of coordination and coherence in how policy is made around the world. This is what matters the most – a shift in fundamental norms.

Old grievances

The new zero-sum mentality has not emerged in a vacuum. The experience of the last 80 years shows many benefits, especially in the education, urbanisation and industrialisation of many poorer nations that are enabled by globalisation.

‘The last 80 years was an aberration, not the norm, and investors need to plan for a return of less recent history’

It’s progress that has lifted billions of people out of poverty. The sheer breadth and scale of increased economic prosperity is unprecedented. But it has come with two key costs.

First, climate change – which is not the focus of this article, but an issue that investors will need to grapple with.

Second, the same forces that lifted billions out of poverty around the world did not improve inequality and poverty within richer countries.

While inequality between countries diminished, inequality within countries became entrenched … or worsened. If improving economic standards leave too many people behind, then their grievances against the current economic system are understandable and perhaps justified.

These are old grievances, renewed.

The experience of inequality within advanced economies follows a similar pattern. After WWII, inequality fell sharply with the widespread adoption of the welfare state and remained low until the 1970s. Then the neoliberal reforms of the 1970s and 1980s increased inequality – the hope was that after an initial increase, renewed economic dynamism would reduce inequality.

Unfortunately, inequality just became entrenched or rose.

Much of this inequality had a weird quality: many things became easier and cheaper (think phones, entertainment, fast food), but many of the basics became more expensive or rationed (think housing, health and fresh food).

The frivolities of life are now much more affordable, but the basics of life and dignity are not. For those less fortunate, this erodes peoples’ satisfaction with life, their trust in each other, their community and their institutions (like courts, politicians, and democracy).

It’s a breakdown of social cohesion that moves us towards polarisation.

New Zealand is not immune. While not as polarised as the USA, recent comparison with Australia (in the Helen Clark Foundation Social Cohesion report) showed we are less cohesive than in Australia. The biggest fracturing is explained by the rich-poor divide, as well as political alliances, ethnicity and age. The more entrenched inequality and poverty become, the bigger the risks to the foundations of national economic prosperity.

‘The frivolities of life are now much more affordable, but the basics of life and dignity are not’

Political events

The current polarisation in politics around the world can seem sudden, but is actually a slow rot that has been spreading for decades.

In the USA, polarisation of political views has been hardening for around two decades. The current tariff wars and attacks on American institutions by the Trump administration is a crystallisation of these long-running forces. It reflects other expressions of similar discontent, such as Brexit in 2020 and the current rise of the far right in Europe.

For investors, it is about understanding and adapting to immediate investment consequences of policy changes like tariffs.

It’s also a general step shift upwards of uncertainty and risk, because politics has become polarised. This leads to more frequent changes in governments, rapid implementation (and reversal) of unorthodox and less credible policies, institutions under attack to do the bidding of the government of the day, increasing civil and global conflict, ongoing fiscal pressures and a desperate lift in defence spending.

Keys to prosperity

What describes economic prosperity? Capital, labour and technology. These are the proximate drivers; that is, they describe and drive economic growth but do not explain why. So, what causes economic prosperity? Culture, institutions, geography and luck. Luck can’t be managed, but the others can.

Today we are observing a rejection of the previously seen closer economic and defence cooperation between countries. A large group of these countries had been reshaping geography, becoming the dominant geopolitical norm of the last 80 years.

‘The more entrenched inequality and poverty become, the bigger the risks to the foundations of national economic prosperity’

This rejection is happening because of fraying social cohesion in many countries, which reflects changing culture in these nations. The resulting upheavals are changing the institutions who have upheld previous norms.

The future: uneven and unpredictable

It seems the three fundamental drivers of prosperity are less assured: geography, culture and institutions. The future need not be bleak, but progress from here is likely to be less predictable and more uneven.

For investors, this matters. The risks

that were moderated in the last 80 years, will return with a vengeance, which means understanding new risks.

Importantly, there may be wild gyrations depending on political climate in and between countries, meaning the need to either be more aware and nimbler, or more disciplined at staying calm and investing with a long-term perspective. The critical qualities for investors in this environment will be humility and curiosity. T

Shamubeel Eaqub is chief economist and head of policy at Simplicity, and a thought leader who is unafraid to take a contrarian view.

Informed Investor is New Zealand’s only dedicated investment magazine. Every quarter we dive deeply into the world of investing, economics, ethical investment, small business, world events and property – with a dash of fashion, luxury goods and cars thrown in for good measure. Subscribe today and receive the spring issue, released in early September, straight to you letterbox.

Are tariffs really so bad?

Support of free trade has been called ‘the economists’ creed’. As Trump champions tariffs, Andrew Kenningham explains why economists tend to universally reject them.

ECONOMISTS TEND TO disagree on pretty much everything. Often called the dismal science for its gloomy outlook on the world, the discipline could just as well be called the argumentative science.

But there is one area on which economists are unusually aligned: trade policy. Indeed, the Nobel Prize winner and New York Times columnist Paul Krugman once joked that if there were an economists’ creed it would end: “I believe in free trade”.

The re-election of President Trump has brought the issue of tariffs back to centre stage.

So – the most beautiful word in the English language, according to President Trump, or a scourge on prosperity, as suggested by economists?

What is a tariff?

A tariff is a tax on trade. So, it has the unhappy effect of shifting production towards less efficient locations. As an illustration, suppose Iceland imposed a tariff on tropical fruits, it could possibly grow mangoes and pineapples in greenhouses. But that would plainly be less efficient than importing them from abroad.

But what about manufactured goods and services, which can be produced in any climate? The same logic applies. Certain areas of the world have fostered particular skills, such as textile workers in Vietnam or machine engineers in Germany. It’s better to take advantage of these learned specialisms.

Even if a country is more efficient at producing every single product it consumes, economics suggests it would be better off to specialise in those goods at which it is “relatively more efficient”. All countries will be better off if they specialise and trade – this is a theory known as comparative advantage.

It’s similar to professions. We could be

a jack-of-all-trades, but it makes sense to specialise. When I learnt economics back in the 1980s, the textbook suggested that even if an author is faster at typing than her secretary, she should still focus on her writing and pass it to the secretary to type it up.

How tariffs harm growth

For those still not convinced, what about the impact of tariffs on economic growth?

By hampering foreign competitors with taxes, tariffs allow inefficient or out-ofdate companies to survive. In former communist East Germany, factories made basic consumer goods but survived. As soon as reunification took place they had to close because West Germany products were far superior.

What’s more, international companies learn from each other, and competition raises the bar for everyone. So, in this way, too, tariffs stifle the economy.

But at this point, I should concede that there are some arguments in favour of tariffs.

Perhaps the oldest defence of tariffs is the so-called “infant industry” argument. This is the idea that firms need protection when they’re starting out. The theory behind this view is a bit hazy but some countries – including the US in the 19th century – saw industries develop behind protectionist taxes.

Tariffs have also been justified for the opposite reason – to support declining or “sunset” industries. The idea is to allow an economy and society time to adjust when an industry is in terminal decline – like coal or steel in western countries these days.

Another justification for tariffs is as a defence against foreign firms if they threaten to undercut domestic business with very low prices – a practice is known as predatory pricing. Tariffs to prevent this happening are called anti-dumping duties. For example, the European Union imposed tariffs on Chinese solar panels after finding that Chinese companies were selling them below their cost of production in Europe.

‘Ironically, this tariff made things worse, hastening a collapse in exports and production, and the rise in unemployment’

Foreign policy considerations are also used to justify tariffs. The US aims to be less dependent on China for anything from semiconductor chips to rare earths used in EV batteries and personal protective equipment such as medical masks. High tariffs are one means of reducing those imports.

Also, governments may choose to pay a price in material terms to protect a way of life that they value. Farmers often argue that they need protection to preserve the countryside. Many small farms in Europe and Japan survive only because of tariffs.

It would be cheaper for British consumers to import all their lamb from New Zealand, where the conditions for sheep farming are much better. But many Brits want sheep on the Welsh hills for aesthetic or sentimental reasons.

An archaic tax

Before reaching a conclusion, it’s worth taking a quick look at history.

Tariffs have been around for millennia because they are a relatively easy tax to collect.

and objected to tariffs because they kept food prices high to support the landed gentry. The urban middle classes also wanted foreign markets to sell to. So, in 1846 the British parliament abolished the Corn Laws that kept tariffs high.

Around that time the first modern economists – like Adam Smith and David Ricardo – developed key economic theories demonstrating that free trade is the most efficient system. Before long, the British government was promoting the idea of free trade and pushing other governments to remove their trade barriers. And in due course, export markets were opened up for British manufacturers.

The inter-war period saw a resurgence of tariffs around the world due to nationalism and economic insecurity. The most infamous example is the SmoothHawley tariff that was passed by the US Congress in 1930.

Ironically, this tariff made things worse, hastening a collapse in exports and production, and the rise in unemployment.

After the end of the World War II, countries dismantled their tariffs. Following a flurry of trade deals, the World Trade Organization was eventually established with the aim to keep trade as free and easy as humanly possible. When China finally joined the WTO in 2001, trade rose exponentially – as did global GDP.

And that pretty much brings us up to date and the latest swing of the pendulum back towards protectionism.

The verdict

So, let’s take stock.

Most of the arguments in defence of tariffs are not really economic arguments – they’re more to do with politics.

But even if you think the political objectives of protectionism are valuable, there are often other ways to achieve them. A direct subsidy for farmers would be more transparent and less costly for the economy than a tariff, for instance.

And tariffs may be justified if a foreign government sets very low tax rates to attract business. Ireland, for instance, has set a very low corporate tax rate and enticed US pharmaceutical firms to manufacture drugs like Viagra and Botox. President Trump is perhaps right to argue that more of that tax should be paid in the US.

The earliest recorded tariffs were in Mesopotamia in around 2000 BC while the Egyptians, Greeks and Romans also used them. And the very first act of the US Congress in 1789 was to introduce a tariff in the Hamilton Act – named for a character you may well be familiar with.

But after the industrial revolution things began to change in England. The urban industrial class was getting stronger

Ultimately, tariffs are widely disliked by economists for very good reasons. The current “trade war” risks substantially dampening growth in some countries – notably the US, Mexico and China – although President Trump’s recent decisions to row back on previous tariff announcements suggests that we can hope a global recession will be avoided.

So, true to my economists’ creed, I think the balance of arguments is strongly in favour of free trade. T

Tariffs, challenges and opportunities

Oliver Mander, CEO of NZ Shareholders’ Association, looks at the effect Trump’s tariff may have on Kiwi investors.

THE LATEST ANNOUNCEMENT came on Saturday May 24, NZ time.

“Trump threatens 50 per cent EU tariff as talks hit wall” screamed the Fox News headline, quickly echoed on all major news networks in the US and around the world.

It’s the latest in a blizzard of announcements from President Trump in his second term, all creating a deep sense of uncertainty for investors and disruption across investment markets.

Of course, it wasn’t the “latest” announcement. That actually came late yesterday (May 25) as Trump announced a reprieve, to allow time for further negotiations.

Trump’s tariff rollercoaster

Trump’s tariff playlist is a bit like a tour of my personal Spotify account – eclectic, random and difficult to keep track of. But just like any good music playlist, there is a common theme to it all – Trump has believed in the value of interventionist

economics, in the form of tariffs, for a long time. In fact, US trade actions implemented during his first term as president (20172021) acted as a clear warning of his likely actions during his second term.

In late January 2018, Trump slapped duties on large residential washing machines and on imported solar panels.

Just over a month later (March), steel and aluminium were hit with 25 per cent and 10 cent tariffs respectively, with a later announcement of a detailed probe into China’s trade practices.

By June 2018, this had led to a 25 per cent duty on US$50 billion of Chinese goods, later increased to an additional 10 per cent spanning US$200 billion.

During 2019, Trump’s focus swung back to Canada and Mexico – with the threat of a 5 per cent tariff. This was never implemented, in favour of a security investigation into the supply of car parts.

While this was an interesting backdrop for New Zealand investors, our lack

of exposure to those tariffs mean that they never captured the imagination of local investors. Nonetheless, the moves offered a directional signal for the global economy – reflecting increasing policy shifts to protectionism and even economic isolationism, bucking the prevailing economic wisdom of the last 40-odd years.

Fast-forward to 2025

Three months after his election, Trump made his intentions plain.

On February 10, 2025, steel and aluminium tariffs were re-imposed at a flat 25 per cent on all countries—no more exemptions. This was a mere appetiser to the main course, however, with “Liberation Day” on April 2 unveiling a 10 per cent universal tariff on virtually everything across all countries and territories around the world, plus bespoke “reciprocal rates” for some 60 trading partners.

Sadly, these “reciprocal rates” appear to have been based on some unusual calculations.

Rather than tariff rates, the objects of Trump’s ire appeared to be those nations who operated a trade surplus with the US.

This is significant for New Zealand; our little nation recorded a $7.8 billion trade surplus with the United States in the year to April 2025, including a record monthly surplus of $1.4 billion in April itself.

As consumers, we make similar decisions. I maintain a significant trade deficit with my dentist; given his capability at dentistry compared with my own, it’s a trade imbalance I am happy to encourage. There is no “tariff” levied by my dentist, other than the cost of his time and materials.

However, there is GST. Fair enough – at a macro level, it diversifies New Zealand’s tax base away from a sole reliance on income tax and also means that those who spend more, pay more. The benefits of different forms of tax are indeed a whole different conversation.

Unless you are President Trump. His view appears to hold out that New Zealand’s GST is indeed a “tariff” unfairly levied on US companies.

Tariffs crank up

Shortly after “Liberation Day”, Trump cranked up China-specific duties to 145 per cent in response to Beijing’s countermeasures. On May 12, Trump removed all “reciprocal rates” for the next 90 days.

While offering a short-term reprieve, eventual outcomes will be dependent on what can be negotiated by August 12.

New Zealand has unashamedly embraced the core tenets of economic liberalism since the mid 1980s.

While controversial at the time, the reforms started by the fourth Labour

government, and followed by subsequent governments, formed a core foundation for our economy in the decades that followed.

Free-market principles mean that New Zealand imports products that it cannot produce efficiently – most products are imported duty-free to New Zealand. Conversely, we export the goods and services that we are really good at producing, which include primary sector goods (ie, agriculture).

A free market-led economy is now the cultural norm in New Zealand. New Zealand punched above its weight in global free-trade leadership, with a leading position in the interminable General Agreement on Tariffs and Trade (GATT) rounds that concluded in 1993.

It is telling that much of the local business commentary that has covered the events of the last 60 days has relied on anecdote and evidence dating back to the 1970s. If the world continues down a path of economic isolationism, New Zealand will be forced to reshape its own economic identity to adapt to the new reality.

Which Kiwi companies might be impacted?

From a local investor perspective, as an export-led economy, many of our companies are likely to be directly affected, either by reduced demand or increased costs.

The examples of direct impacts below are just that – examples. Investors will be looking for evidence that their management teams are minimising the impact.

Note that companies operating solely within New Zealand (or with limited US exposure) may also be indirectly affected, as companies domiciled in other countries affected by the US tariff regime compete more vigorously in other markets.

Fisher & Paykel Healthcare (NZX: FPH) With around 45 per cent of its manufacturing in Mexico (of which 60 per cent heads to the United States), FPH has warned that while FY25 profits will dodge a “material impact”, its path to a 65 per cent gross margin could be delayed by up to three years as tariffs bite into costs.

Mainfreight (NZX: MFT) In its May 2 “Trading Conditions Update”, Mainfreight noted a slowdown in forward sea-freight bookings on the Transpacific lane as customers adopt a “wait-and-see” posture until tariff talk turns to action.

Tourism Holdings (NZX: THL) THL’s April trading updates flagged uncertainty in North America’s RV market – don’t forget Canada’s tit-for-tat potential – and by midApril warned FY 2025 net profit would undershoot consensus amid a US travel

‘Rather than tariff rates, the objects of Trump’s ire appeared to be those nations who operated a trade surplus with the US’

slump and tariff headwinds, with the share price subsequently falling to near five-year lows.

Factors to consider

Capital markets are famous for valuing certainty, with relative economic stability reflected in share price valuations and investor sentiment following the global financial crisis right up until the onset of Covid-19. Things have been more volatile since then – a slew of factors including government monetary policy, increasing interest rates, inflation and lower global economic growth have made for a complex investing landscape.

Risk: The on-again, off-again nature of Trump’s proclamations on tariffs are not helping create certainty in the market.

While global markets reacted negatively to “Liberation Day” and have (mostly) recovered following Trump’s May 12 announcements, it is clear that short-term market movements are being determined by both the pace and volatility of Trump’s tariff policy.

While it’s the long-term that matters for most investors, increasing volatility in share price movements should make investors pause for thought.

Increasing volatility in share price movements is a reflection of increasing risk for asset values and operations – leading to an increase in structural risk. An investment strategy may aim to generate a defined level of long-term return for the lowest possible risk. In this situation, an investor is likely to be taking on an increase in risk, with no commensurate increase in return.

Pricing power: Tariffs imposed on goods coming into the US are paid by the consumer or the importer. For goods manufactured in NZ and exported to the US, consumers may be willing to bear a 10 per cent increase in price if a product commands strong pricing power. However, where a NZ product has to compete with many other products, the company may choose to absorb the tariff, thereby reducing its gross margins. Both scenarios have negative impacts for shareholders: if the

consumer price increases, the company may sell less, while a company taking a haircut on its margins will likely have a profitability impact. The same applies for investors in US companies – to what extent are they able to pass on tariffs to their domestic customers?

Regulatory whiplash: We’ve already seen investment markets react to Trump’s announcements. Regardless of the day-today announcements, there are a few key dates that investors should be aware of. August 12 is looming large, as the expiry of the 90-day stay of execution for the reciprocal tariffs. Keep on expecting the unexpected – and think hard about the level of risk you are prepared to accept.

Conscious decisions: Investors who have a long-term outlook may decide that the best move is to sit this out. Others will take advantage of “peak prices” in the volatility cycle to crystallise long-term gains and maintain an oversize cash position. Yet others will decide to trim their long-term allocation to US-exposed companies. All actions might be valid for different styles of investor. Whatever you do, however, make conscious decisions that make sense for your investment strategy and reflect your own risk profile.

In the short-term, navigating Trump’s tariff rollercoaster requires vigilance and agility – because in this trade war, the only thing you can count on is that nothing will stay the same for long.

Longer-term, there is nervousness surrounding global investor appetite for US-based investments.

A stable, certain and rational market environment with quality companies underpins investor confidence in any stock market. Depending on what happens later this year, it may be that investor confidence in US equities will be further shaken. T

This content contains general information only and should not be construed as financial advice. Prior to making any investment decision, you should seek professional advice from a licensed financial advice provider. To the maximum extent permitted by law, New Zealand Shareholders’ Association Inc. will not be liable (whether in tort, including negligence, or otherwise) to you or any other person for the information provided in this commentary.

Moving on up

Small New Zealand businesses often punch above their weight when it comes to international success. Joanna Mathers meets the owners of two businesses who’ve smashed boundaries and grown their ventures from the ground up.

NEW ZEALAND IS a country enamoured by DIY. And it’s not just in the home improvement sector; according to Statistics New Zealand data, of the 612,417 businesses registered here, 97 per cent are small and owner-operated.

Interestingly, 448,233 of these businesses have zero employees – they are one-person or one-family businesses, powered by number-eight-wire ingenuity and effort.

While some small businesses happily tick along – paying the bills and funding the occasional holidays – others are set to scale. It’s not hard to find Kiwi success stories in this space – Xero, Serato, or video games studio Ninja Kiwi, which sold to a Swedish company for $203 million in 2021.

Identifying a niche, perfecting your product, marketing to the right audience, and a good dollop of good luck (and timing) are key ingredients for transforming small businesses into major players.

We meet the founders of two home-grown businesses who have utilised creativity, clever marketing, and the power of the internet to exponentially scale up.

Clever Poppy

During Covid lockdowns, we had a lot of time on our hands. Stuck at home we yearned for ways to busy ourselves outside of Netflix and endless walks around the block.

Fuelled by a desire for “simpler times”, the need for distraction from monotony, and the mental health benefits of working with our hands, crafting underwent a renaissance during this time.

Shares in DIY crafting site Etsy almost

quadrupled during the pandemic. And Julie Stuart, co-owner and founder of Clever Poppy, was in the right place at the right time to capitalise on this trend.

Her embroidery-kit business has morphed from start-up to smash-hit in less than 10 years, with Covid providing the momentum for its growth.

While Julie is the creative brains behind the business, her husband Matt – a mechanical engineer by trade – has been the force behind the company’s impressive scaling.

He’s spent hundreds of hours perfecting the art of Meta advertising, and his understanding of the algorithms has launched Clever Poppy into the highly lucrative US market. So successful has this targeting been, that they sold a whopping 100,000 kits last year – the vast majority to buyers in the US.

Creative pivot

Julie has a background in commercial law but moved away from this “really dry” discipline after the birth of her two children. Auckland-based (at the time,) she became interested in DIY when she was pregnant with her first child in 2014.

“I wanted nice things for the house, so I started making them myself –upholstered headboards, other small DIY projects. I launched Clever Poppy on Instagram to share what I was doing with others,” she explains.

Her first attempt at monetising her crafty creations came in 2015, when she began selling kits for painted baskets at a local market and sharing online.

Her Instagram timing was perfect – in the middle of last decade it wasn’t proliferated with influencers, and her content stood out.

Julie Stuart created her embroidery kit business, Clever Poppy, during lockdown when she had time on her hands and the motivation to learn new skils.

members in the first membership, which quickly grew to 200-300.

Learning together

While Julie was a lover of arts and crafts as a child, she learned embroidery, punch needle and weaving through trial and error as an adult.

She was shoulder-tapped by Warehouse Stationery and 3M to create content using their products, which was very helpful for bringing in money for the family.

But embroidery, punch needle, and weaving were increasingly capturing her attention, and when Covid hit in 2020, the corporate gigs dried up, and she had the space to work out how to monetise her current passion.

“Matt suggested a membership model, in which people paid a small fee for me to teach them embroidery via video. I had 20,000 followers on Instagram at the time; I went to the audience and asked if this was something they would be interested in.”

For a fee of $10 a month, Stuart offered her followers a monthly project, access to a library of downloadable patterns (that she created herself) and all the information about what you would need for the project. They started with 170

“I had made mistakes and learned, and I could share this with others via tutorials.”

She was professional and articulate; her legal background meant she was able to distil complex information and share it with others: “basically, I could explain without waffling,” she laughs.

In the early days of Covid, she had a good solid membership with people paying their monthly fee.

Initially the supplies weren’t part of the package, but she realised that it would be great for members to have “everything they needed handed to them on a platter,” she says.

So, by November 2020, they started selling kits. Finding suppliers who had high-quality products was complex and time-consuming, but they eventually sourced (from China) all the components, which were sent to New Zealand, packed, and sent to customers.

By 2022, Matt realised that they needed to enter the US market. The joy of Meta advertising is that it can be targeted to different global markets; his investigations led to a highly effective sales strategy, which utilised Julie’s most successful videos, as the basis for targeted campaigns.

“We targeted the ads to people in the United States, and it was extremely successful,” says Matt.

Initially the orders from the States were shipped from New Zealand, which was “super expensive”.

So, they started to use a third-party logistics (3PL) operator in the US, who would receive the packs which had been kitted in New Zealand. This evolved to shipping the kits from China straight to the consumer in the US; now the USbased orders are compiled in the States and sent direct to customers.

Clever Poppy now has over 500,000 Instagram followers, and nine staff. The Stuarts have moved to their family to Kerikeri, where they both work full-time on the business.

Bump in the road

Things were going swimmingly, until

ABOVE Clever Poppy sold over 100,000 embroidery kits last year, most of them to the United States market.

RIGHT Julie and Matt Stuart.

Trump’s return to power this year.

With Trump’s tariffs policies in a state of constant flux, and China a particular target, Clever Poppy has had to be cautious and strategic about how they distribute the goods that are turned into kits in the States.

At the time of writing, there is a 30 per cent tariff on goods import from China, which is a significant increase from the pre-Trump, when tariffs hovered between the 10-20 per cent mark.

It is, however, a significant drop from the 145 per cent retaliatory tariff Trump announced on April 10 but subsequently

dropped to 30 per cent on May 12. If this is reintroduced, Julie says “we just have to think on our feet and be really adaptable.”

When asked if they ever would consider selling Clever Poppy, Julie and Matt’s answer is considered.

“We have thought about it, but as we love what we do, we would only sell for a very high figure,” Julie says.

A number in the $20-million zone has been discussed: “but it is unlikely that anyone would pay that,” says Julie.

But given the lightning-fast trajectory of their business thus far, nothing would be surprising.

‘We targeted the ads to people in the United States, and it was extremely successful’

Easy Crypto

In 2014, Bitcoin was either: a dodgy esoteric scam that existed in the digital netherworld, and best avoided; or, a presage of our digital monetary future, highly likely to handsomely reward early adopters.

Those who tended towards the latter option have been proven correct. When Bitcoin peaked at an all-time high of US$111,000 ($184,707) in late May this year, you could almost see the crypto OGs rubbing their hands with glee.

Janine Grainger, co-founder of Easy Crypto, was firmly in the latter camp. The finance and economics graduate, who started her career in banking, had a crypto epiphany that year.

In an increasingly digital world, it made a lot of sense to her – an unregulated, global currency that superseded the strictures of traditional banking.

She started researching and was soon the expert on crypto at Westpac, where she was working: “I became an overnight expert on blockchain,” she laughs. “I was asked to give talks about it to the staff.”

At the time, it was hard for cryptocurious Kiwis to get their hands on Bitcoin or any of the other cryptocurrencies on offer.

Most crypto trading platforms were located overseas and it was hard to access them. And while there were few small New Zealand-based platforms, the price was highly inflated.

“There was about a 15 per cent price difference buying in New Zealand compared to overseas. It was really unfair,” Janine shares.

Janine’s brother Alan, felt the same –and decided to do something about it.

While he worked in IT, he had no coding experience, but he saw the potential for an exchange that allowed Kiwis to trade without the headaches and, in 2017, decided to create one. Researching the appropriate coding language on Google, he created the exchange that was to become Easy Crypto in just five days.

But while he had the tech savvy, he needed someone who was able to turn the platform into a business – this person was Janine.

Soft launch

After a soft launch in 2017, Easy Crypto (named because it was intended to make buying crypto easy) was taken offline for a time so Janine could get all the regulatory ducks in a row.

“There is a misconception that crypto is completely unregulated,” says Janine.

“But any crypto exchange in New Zealand is regulated, in a general sense, by a number of acts,” she says.

“Crypto exchanges are considered financial services providers and are covered by rules around that. They need to adhere to the rules of the Anti-Money Laundering and Countering Financing of Terrorism Act (AMLCFT). And there’s the FMA Act, and the fair-trading standards, that need to be adhered to.”

Janine ensured the boxes were ticked and that Easy Crypto adhered to all the appropriate regulations before relaunching in early 2018.

Search, check out, pay

Easy Crypto instantly differentiated itself from the competition. The traditional model of a crypto exchange is clunky: funds are sent to the exchange to facilitate a trade, assets are purchased, and if a sale takes place withdrawals need to be made from the online “wallet”. The process can take days.

Easy Crypto had a different model, acting more like online shopping: search for a product, check out, and pay. And this happens in seconds.

While the model was simple, setting it up as a business was not.

Crypto was not something bankers or insurers wanted to touch; they struggled to find a bank and they weren’t allowed to advertise on places like Google or Facebook because they had “no-crypto” policies.

But even at this early stage, there were plenty of Kiwis hungry for crypto. Janine was networking like crazy, putting herself in the midst of the local crypto community.

And they liked what Easy Crypto offered: old-fashioned word-of-mouth saw the advanced digital platform record $200 million-plus in sales by 2020. Then, as with Clever Poppy, Covid saw the platform’s performance skyrocket.

Covid boom

What could have been a catastrophe ended up a boon for Easy Crypto and crypto assets in general. People were forced to work from home, and connecting online became the norm. Zoom took the place of work meetings and the world went virtual. This familiarity with digital meant people were more comfortable with crypto as a concept.

As Janine explains, 2020-2021 were massive years for Easy Crypto. The success reflected the explosion internationally: between March 2020 and October 2021, Bitcoin rose in value from just over US$6,000 to US$61,800, but it wasn’t going to last.

In 2021, Easy Crypto raised $17 million in a Series A funding, led by sovereignbacked Nuance Connected Capital. The funding round was significantly oversubscribed (by 50 per cent), with Easy Crypto having far more interest from investors than what was hoped for –and setting a new record in New Zealand, as the largest first funding round ever completed by a New Zealand firm.

It wasn’t all good news. Crypto is volatile: the “crypto winter” of 2022 saw prices plummet. Triggered by the United States inflation surge, and the sell-off of risk assets by spooked investors, crypto currencies LUNA and TerraNova collapsed, Bitcoin dropped by nearly 70 per cent, and then FTX happened.

For Janine, FTX’s collapse was “really disappointing”, but she doesn’t view the scam as related to crypto. Instead, she sees it as a Bernie Madoff-style Ponzi scheme, motivated by greed and hubris.

“But it gave the industry a bad name,” says Janine.

It was a terrible time for the business. After the exponential growth during Covid, the bottom fell out of the crypto market. They had fundraised and scaled up, then the wheels fell off – she remembers being called into a meeting by the board and being told that they had to bring the company back to cash neutral.

“We had to make half of the team redundant,” she says.

“It is something I never want to do again, but I feel I managed it with integrity.”

International reputation

But despite the hardships, Easy Crypto’s reputation was growing. In 2023, they were approached by an (unnamed) international firm with an interest in buying the company. “I started thinking, ‘is this a good time for me to look for an exit strategy’?” says Janine.

This was coinciding with a period of increasing costs, which were becoming harder to manage. And there was an awareness that if they were to partner with a larger, international firm, this could make sense.

While it took over a year to facilitate, on March 31, Easy Crypto announced that Brisbane-based exchange Swyftx had taken ownership of the company, for an undisclosed sum.

The Easy Crypto brand would be retired and the Swyftx name used.

“They are bigger than us and have similar values,” says Janine. “There is a real alignment, which they can offer to customers.”

Janine is currently still with Easy Crypto, facilitating the transfer of ownership. Once this is complete (there is no fixed ETA for this) she plans to “have a bit of downtime and pick up again next year”.

“But I really don’t know what I will be doing at this stage,” she shares.

Janine’s nutshell tips for business success are simple.

“I really believe in the power of using networks. You are only one step away from anything if you use your network, reach out and then you can pay it back.”

She says she couldn’t have done any of this without her brother Alan: “we have both struggled through hard stuff and have been through it all together”. T

‘You are only one step away from anything if you use your network, reach out and then you can pay it back’

JANINE GRAINGER

The art of luxury

Stay Luxe is creating an elegant niche in the luxury short-term accommodation space, as Joanna Mathers discovers.

WITH BACKGROUNDS IN highperformance sport, Greg Owen and Scott Unsworth are uniquely placed to understand the needs of those at the top of their field.

Greg was formerly the highperformance director at Canoe Racing New Zealand and Scott is a former a world-class triathlete and founder of internationally successful sports brand Orca.

Together, the friends have transferred their skills into an equally demanding sector, the provision of luxury accommodation.

Their business, Stay Luxe, offers discerning travellers ultra-luxe accommodation options when they are visiting New Zealand; and providing owners of the properties a means by which to monetise their mansions.

Natural progression

Greg and Scott’s journey into luxury short-term accommodation has been a natural outworking of a major renovation they’d undertaken previously.

Scott owned a block of four units on a corner site in Mission Bay, Auckland. But he was aware that residential or commercial tenancies didn’t have the power to generate the yields he was looking for: short-term holiday rentals could attract two or three times the income achieved with long-term rentals.

Scott asked Greg to help to project manage the transformation of the properties into charming coastal getaways. The four units turned into eight; targeted at the middle sector of the market, they soon started paying their way.

The returns immediately leaped from 3 to 15 per cent; the units’ amazing location, next to one of Auckland’s best-loved beaches, attracting much tourist interest.

Scott also owns a property on Takapuna Beach; this was also renovated and targeted at the upper end of the shortterm market.

In the process of converting Scott’s properties to short-term rentals, the pair became aware of a notable gap in the luxury accommodation space.

High net-worth individuals coming to Auckland didn’t have a dedicated platform on which they (or more likely their assistants) could source properties of the quality they expected.

Instead, they would need to set strict search criteria and scroll through the likes of Airbnb to find what they needed.

Scott and Greg had contacts with luxury apartments and properties in Auckland that weren’t being used – many that had been taken off the market because they weren’t selling.

So, last year, the pair decided to launch a dedicated luxury short-term accommodation website, which they called Stay Luxe.

Invest in luxury

Greg was the brains behind the Stay Luxe website and has been active in growing the business. And since its inception, the business has grown to incorporate 30 properties, mainly in Auckland, but also in Taupo and Nelson.

The properties range from $500 a night for one or two-bedroom dwellings, to $20,000 a night for penthouse apartments.

There’s the clifftop mansion with Hamptons’ style architecture, a pool and a spa, in Auckland’s East Coast Bays ($8,000 a night); and Kinloch Manor on Lake

With Stay Luxe, Scott Unsworth and Greg Owen bring luxury short-term rental management to NZ.

Taupo, located on 254 hectares of land.

Stay Luxe utilises Google Ad Words and Airbnb Luxe to market their properties: 60 per cent of the bookings they receive go directly to their site.

Accommodation scouts who source luxury properties for the rich and famous have taken notice already: “We had Pink lined up to come and stay when she was touring, but the swimming pool in the property she was looking at wasn’t ready, and her children wanted a pool, so sadly that fell through,” says Scott.

Attention to detail is key in this space. One of the most important aspects of luxury accommodation is ensuring the homes maintain an extremely high level of cleanliness.

“We have very stringent standards for

cleaning our properties,” says Scott.

“This is extremely important; when you are paying large amounts of money for short-term accommodation, everything needs to be perfect.”

Another important component of the business is creating networks with others in this space.

Scott and Greg are members The Luxury Network New Zealand, an international luxury marketing group that helps creates new business partnerships through strategic alliances, endorsements and B2B networking. It’s ideal for them and they have been able to create great connections through this platform.

Greg and Scott are very much still the early stages of the brand; they are looking to grow their portfolio of properties and further their reach into the international market.

“The majority of our guests come from the United States, so we really want to increase our visibility in that market,” says Greg. T

Sound advice for the self-employed

Martin Hawes considers the lessons he’s learned over 50 years of self-employment.

FEW IN PERSONAL finance take much account of the self-employed. Whether banks or KiwiSaver providers, articles or websites, the examples and advice that they give is on the basis of a knowable income with a similarly knowable surplus after living costs have been paid. Such assumptions do not describe the position of the self-employed.

Often the self-employed do not have the same reliable cash flow as those with salaries and are, in fact, constantly juggling so that they can pay their bills and have something left over to live on.

In difficult times like these, that juggling may be tricky as customers are slow to pay their bills and suppliers want their money sharp on time.

And yet, most of us run our businesses in the hope that we will at some point achieve financial freedom. We need to save and invest like everybody else, manage our mortgages and budget. We are just as much in need as those with salaries.

Lumpy incomes

Perhaps the biggest difference between the self employed and those who earn salaries is that the self-employed tend to have lumpy income and lumpy outgoings.

The salaried can meet their mortgage payments and buy the groceries with some confidence – the self-employed have another job, which is to manage their uncertain cash flow.

Sometimes that’s a big job! Take real estate agents as an example of the self-employed. They may make a decent income annually, but they never quite know where their next sale will come from – nor when. They may have a flutter of sales one month, but that may be it for a couple of months … or longer.

The self-employed may also have lumpy

tax to pay. Both GST and income tax requirements can come in big dollops and catch out those who do not allow for them. People who are self-employed cannot simply take each payment and spend it – they have business costs that need to be met, tax to pay, and they ought to save for the future.

Managing cash flow

I have been self-employed since I left teaching in 1977. Over that period (nearly 50 years) I have found that the easiest way to manage cash flow is to run several different bank accounts, each with its own purpose. At its most simple, these accounts may be named something like:

• My business costs

• My tax

• My living costs

• My future

Each payment I receive is split to each account at a different percentage. Each account will get a set percentage so that I know how much of each payment that I receive will go into each account.

Figuring out these percentages will take a bit of work (and possibly some help from your accountant). It may take a few goes to get the amounts right but it is well worth persevering so that you are never taken by surprise when any bill appears. The important thing is that each category is properly catered for as the money comes in.

I have run this system personally for 30 years or so and it has become almost second nature for me. My business has mostly had a small number of larger payments each month and that makes it easier. If your business has a lot of small payments (eg a retailer or in hospitality), you can easily take a week’s turnover and split your takings into the accounts accordingly.

By way of example, my own percentages and the amounts that I would put to each account if I received a $5,000 payment would be like this:

My business costs: 10 per cent $500

My tax: 35 per cent $1,750

My living costs: 45 per cent $2,250

My future: 10 per cent $500

You should note that I am starting to become a bit older and, therefore, not working or earning as much as I was. This means I have less requirement to put money aside for the future. There are three main advantages of the system.

1. You have money put aside to meet bills (including tax) when they come in. If you are struggling to meet bills, the chances are your percentages might need some adjusting.

2. Assuming these bank accounts are interest bearing, you should receive some interest income. It may not add up to a big amount, but you may as well have the interest rather than the bank.

3. You are treating your future seriously and not simply leaving it to chance. Having a bank account labelled “My future” should serve as a reminder of why you are trying to grow your wealth.

Although the “my future” category is last on this list, it is not least priority. Like everyone else, the self-employed need to be sure that they have their futures funded – after all, it is the future where you will spend the rest of your life! T

Martin Hawes is a financial author and presenter. He is not a financial adviser. To find out more, visit martinhawes.com

HR in an AI world

The HR function has changed forever — so how do small and medium businesses keep up with the pressure? Sanam Ahmadzadeh Salmani, New Zealand employment law compliance lawyer at Employment Hero, investigates.

NOT

TOO LONG ago, HR was seen as a back-office function by business owners. It was a department responsible for paying people on time, tracking annual leave and (hopefully) keeping employment contracts somewhere safe in the filing cabinet.

Fast forward to 2025, and the picture is now radically different. HR teams are now expected to lead engagement, drive culture, help plan career pathways, manage onboarding, retain top talent and navigate a maze of ever-shifting regulations – often all at once. The brief hasn’t just expanded; it’s exploded.

So how can businesses, especially small and medium-sized ones, keep up with

the pace and pressure? The answer lies in recognising that HR is no longer just about administration – it’s all about strategy. What’s more, tapping into the power of technology to streamline systems and unlock greater efficiency, insight and resilience is key.

Expanding role of HR

In this new era, HR is charged with creating environments where people can thrive. This means driving employee engagement through recognition, feedback and well-being initiatives.

It’s evolved to be about managing career trajectories, not just filling roles. Winning the war for top talent, in a global,

digital-first labour market, is increasingly important when it comes to building a competitive team.

And once you’ve hired top talent, speeding up onboarding, without compromising on culture or compliance, helps drive better business performance.

In addition, staying compliant, even as regulation becomes more dynamic and demanding, is also a central responsibility of modern HR functions.

It’s a tall order and to do all of this as the demands on HR teams increase, businesses simply can’t afford to keep relying on disconnected tools, manual processes and reactive workflows.

What’s needed is a modern operating

system – one that centralises, automates and empowers.

Put simply, in today’s environment, strategic HR is powered by smart technology and to meet rising demands and stay ahead, businesses are embracing tools that do more than just automate admin – they enable smarter, faster and more resilient HR operations.

Here are three critical tech shifts shaping how modern HR teams work and win.

Shift 1: Smart companies are centralising their HR systems

The concept of an employment operating system (eOS) is rapidly changing how businesses approach workforce management. Think of it as the “central nervous system” for all things employment – a single, cloudbased platform where everything from recruitment to payroll, performance reviews to compliance tracking, lives under one digital roof.

Instead of juggling multiple subscriptions and logins, agencies or spreadsheets, an eOS brings it all together:

• onboarding becomes seamless and consistent

• payroll syncs automatically with hours, leave and entitlements

• engagement tools like surveys and shoutouts help track morale in real time

• compliance is maintained with live updates, templated policies and alerts.

More importantly, an eOS turns scattered HR data into real-time, actionable insights and having a unified view means leaders can spot trends, address gaps and make better decisions based on data a lot faster.

When businesses consolidate their HR systems into a unified eOS, they don’t just save time; they save money as well as reduce errors and free up their people to focus on high-impact work.

Shift 2: Tech is becoming an essential tool for managing the compliance burden

In New Zealand, recent employment law changes have made headlines – including long-awaited updates to the Holidays Act, the introduction of a more prescriptive personal grievance process and expanded health and safety obligations for directors and managers.

Employers are now required to navigate hours-based leave calculations, tighter documentation standards for misconduct and a more complex migrant visa framework – all while adapting to rising minimum wage thresholds. While these reforms are welcome and overdue, many HR teams are feeling overwhelmed by the sheer pace and volume of compliance demands and without the right tools, even well-intentioned businesses risk falling behind, or worse, making expensive compliance mistakes.

That’s why smart firms are treating HR tech as a safety net – not a luxury. With the right platform, when parliament tweaks an entitlement, the system updates it overnight. When an issue arises, HR teams can access the right template or call a virtual adviser instantly. This is real resilience.

Shift 3: AI is already changing the hiring game

Hiring in 2025 also looks nothing like it did even five years ago – it’s faster, more competitive, and increasingly powered by AI.

Modern HR platforms now include AIenabled hiring tools that:

• match candidates to job descriptions more accurately

• automate CV screening and shortlisting

• support inclusive and bias-aware hiring decisions.

In a tight labour market, where every great hire counts, these tools can be a game-changer.

Think of them as “always-on” job tech, constantly scanning the candidates that match roles that you’re hiring for.

This approach reduces friction for job seekers and has also proven to shave two weeks off the traditional recruitment process, because companies don’t have to wait for candidates to come to them; and candidates are automatically presented for suitable opportunities.

Unsurprisingly, this new tech is currently being used by 300,000 companies and 1.14 million job candidates across Australia, New Zealand, Singapore, Malaysia and the UK.

Case in point: Kate Shuker, HR lead at consulting firm Eliot Sinclair, manages up to 14 roles at once across HR and marketing and says SmartMatch saves her four to five hours a week in peak periods because it puts the best-suited candidates at the top so she isn’t scrolling through hundreds of CVs.

Tech-driven HR is the new competitive edge

The HR function has moved from the backroom to the boardroom. It’s no longer just about tracking leave – it’s about planning for the future, driving growth and navigating change. These shifts aren’t just about efficiency –they’re about using technology to build stronger teams, fairer systems and more agile organisations.

For Kiwi firms feeling the pressure –from rising costs to rising expectations – the best way to stay competitive is to modernise your HR function now. That means embracing integrated, cloud-based, AI-enabled systems that give you visibility, flexibility and peace of mind.

Because in today’s world, doing right by your people is no longer just good practice – it’s a smart business move. T

You can learn more at employmenthero.com

The bold, the brave, and the burnt out

Victoria Bahadoor and Charlotte Clark, co-founders of Empower Her Community, on what it really takes for female founders to build a business.

SUCCESS IN BUSINESS doesn’t arrive with a bow on top. It doesn’t follow a clean, linear path, and it definitely doesn’t come from playing small.

For women starting businesses, there is a mix of magic, madness, and many, many moments of self-doubt. But it’s also one of the most liberating, transformative things we’ll ever do. Not just for our careers, but for our identities, our families, and our futures.

We know, because we’ve lived it.

We’ve cried over spreadsheets, celebrated the tiniest wins like they were gold medals, fought off imposter syndrome, navigated motherhood and mental load while building our dream

from the ground up. We answered emails at midnight and questioned everything at 3am.

So many women delay starting their business because they think they need to have everything figured out. The perfect plan. The perfect niche. The perfect mindset. But the reality is no one starts a business feeling ready. We start because we’re done waiting. Done waiting for permission. Done waiting for flexibility. Done waiting for a life that feels like ours.

For many women we work with, the pull to start a business doesn’t come from wanting more, it comes from needing different. A different pace, a different kind of success, a different way to show

up in the world that feels aligned, purposeful, and free.

The struggles are real

Women face systemic challenges in accessing funding, visibility, and mentorship. We’re often balancing caregiving, running a household, and building something from scratch. All while fighting centuries-old narratives that tell us to “be realistic.”

Starting a business isn’t always empowering at first.

There’s a narrative floating around that entrepreneurship equals instant empowerment. That launching your own business is like flipping a switch

HAYLEY

Victoria Bahadoor (left) and Charlotte Clark (right).

from powerless to powerful.

You heard it here first – it’s not.

The reality? It often feels overwhelming, uncomfortable, and full of doubt. You question yourself constantly. You make decisions without certainty. You wonder if you’re even cut out for it.

Empowerment doesn’t arrive overnight. It builds slowly, in the moments you keep showing up, especially when it feels hard.

It’s writing a pitch with one hand while holding a baby with the other. It’s trying to build an empire between lunchboxes, laundry, and learning how to price your offer without underselling yourself. It’s real. It’s raw. And it’s absolutely worth it.

‘The reality is no one starts a business feeling ready. We start because we’re done waiting. Done waiting for permission. Done waiting for flexibility.

Done waiting for a life that feels like ours’

Because somewhere in the chaos, you start becoming more you. When women start businesses, they’re not just creating brands.

They’re unlearning years of peoplepleasing, overworking, and secondguessing. They’re stepping out of systems that weren’t designed with them in mind. Traditional workplaces often expect women to parent like they don’t work and work like they don’t parent.

Entrepreneurship becomes the loophole. Where we get to write the rules, even if we’re scribbling them in between school drop-offs and snack negotiations.

Slowly something shifts

From “I hope I can do this” to “I was made for this”.

Yes, there are the obvious hurdles, funding gaps, childcare challenges, juggling nap times, the tug of war between being present and being productive.

It’s the guilt that creeps in when you’re replying to emails during a trip to the park, or worse, when you don’t have the capacity to reply at all.

It’s trying to build something bold while still being the glue that holds a household together. And yet, amid the overwhelm, women rise. We rise not because it’s easy, but because we know our lives deserve more than clocking in and zoning out.

Of course, we celebrate the big wins – the launches, the clients, the new team hires. But the joy isn’t only found in the milestones. It’s found in the shift.

The shift from “I have to do this” to “I get to do this.” The shift from asking for permission to leading the way.

The first time someone tells you that your work changed something for them.

The day you look back and realise you no longer second-guess every move. The moment you catch yourself saying, “I was made for this”.

It’s seeing your kids play “business” and pretend to be just like mum. It’s knowing you’re building something that doesn’t just pay the bills but expands what’s possible for the next generation. That’s the joy. It’s layered, loud, and sometimes laced with exhaustion, but it’s also legacy.

We’ve seen women build empires from kitchen tables. We’ve seen them pitch ideas from playground benches. We’ve seen them step into rooms they never thought they belonged in and realise they do. And what we’ve learned through all of it is this.

Women don’t just need capital and strategy. They need connection. They need safe, powerful spaces to talk about the messy middle. They need other women to remind them that they’re not too late, not too much, and not alone.

So, to the woman reading this who’s building something from scratch or dreaming of something more, this is your sign. You don’t have to have it all together to start. And you don’t have to do any of it alone. You’re not behind. You’re just getting started. And you’re right on time. T

Instagram: @empowerhernetworking

Co-Founders: Charlotte Clark & Victoria Bahadoor

Email: welcome@empowerhercommunity.com

The social science of skincare

Social media can be a powerful tool for marketing beauty products – even outside the sphere of glam influencers.

IN TODAY’S BEAUTY economy, what’s inside the bottle is only part of the story. Equally important is how that bottle gets into your cart and, more crucially, why.

In the wake of the pandemic, the beauty landscape has undergone a profound shift. Consumer discovery, once grounded in glossy counters and magazine ads, is now driven by digital connection. Modern beauty buyers are informed, intentional, and increasingly immune to traditional advertising.

The influencers they trust are no longer exclusively celebrities; they are real people, sharing real stories, on the platforms where they spend their time. And rather than chasing the next viral moment, smart brands are building credibility through consistency and community.

One brand embracing this shift is

Boost Lab – a skincare company born in Australia, with deep ties to New Zealand. Known for its range of targeted serums, Boost Lab has carved out a niche by focusing on what matters most to its customers: effectiveness, simplicity, and a genuine dialogue between brand and buyer.

Measured approach

While many beauty brands are sprinting after TikTok trends and influencer flash, Boost Lab has taken a more measured, and arguably more sustainable, approach. Its success offers a fascinating lens on how digitally native brands are rewriting the rules of skincare marketing.

Launched by retail veterans Lisa and Craig Schweighoffer, Boost Lab was created with a clear goal: to provide high-performance, affordable skincare

that speaks directly to women navigating midlife and beyond.

While the brand is headquartered in Sydney, many of Boost Lab’s hero products – its single-focus serums – are developed and manufactured in New Zealand, giving the brand a uniquely trans-Tasman identity.

That approach has paid off. Boost Lab has built a loyal following among women aged 45+, a demographic often overlooked in the age of Gen Z-driven beauty marketing. These women aren’t chasing fads. They’re seeking skincare that fits into their lives, works with their skin, and respects their intelligence. And they’re not discovering it in the pages of glossy magazines – they’re finding it online.

For Boost Lab, digital was never just a sales channel, it was a way to build

‘The brand’s strategy from the outset was to meet its customer where they already spend time’

community from the ground up.

The brand’s strategy from the outset was to meet its customer where they already spends time: online, but not necessarily on trend-focused platforms like TikTok. Instead, Boost Lab invested heavily in platforms like Facebook and email – channels where its core audience feels confident, heard, and engaged.

Constant conversation

Co-founder Lisa Schweighoffer describes their strategy as a constant conversation.

“We’re not here to push product,” she says. “We’re here to listen, learn and build something useful and relevant. When you create those spaces online, people show up, and they stick around.”

This philosophy led to the creation of Boost Lab’s private Facebook group – a

digital space that attracted thousands of members within its first 24 hours. More than just a marketing tool, the group has become a vital source of customer insight and brand direction. Members share personal skincare journeys, offer feedback on packaging and formulas, and support each other in ways that feel more like a community than a comment section.

“It’s not just about promotion,” Lisa adds. “We use the group to test ideas, gather insights, and really listen to what our customers are asking for. It’s become a core part of our product development process.”

Relatability is key

Boost Lab’s commitment to relatability has become one of its greatest strengths, which was clear in its campaign with New Zealand media personality Jay-Jay

Feeney. Feeney shared her unfiltered skin journey with her followers – a move that resonated powerfully with Boost Lab’s target audience.

“The success of the partnership was a reminder that relatability beats perfection,” Lisa notes. “Jay-Jay is an absolute force and what really stood out was the trust her audience places in her… she has a way of sharing that feels honest, relatable, and real.”

User-generated content (UGC), peer reviews, and ambassador campaigns have all become pillars of the brand ecosystem. And with the lines between content, commerce, and community continuing to blur, this human-first approach is proving to be more than just a trend – it’s a competitive advantage.

The rise of “real” beauty content reflects broader shifts in consumer behaviour. Rather than relying on in-store advice, today’s skincare shopper arrives at the shelf having already watched a tutorial, read a review, and chatted with others online. The path to purchase now spans screens and stores, and brands that integrate their storytelling across both are the ones capturing attention.

Despite their digital-first model, Boost Lab isn’t anti-retail. In fact, their retail partnerships, particularly with New Zealand stalwart Farmers – are central to their strategy.

“What’s been surprising is how well DTC and retail work together,” Lisa says. “Some customers discover us online and choose to buy in-store. Others spot us at Farmers and then visit our website to learn more or join our community. The key is making sure our messaging and tone are consistent, no matter where she finds us.”

Online/offline interplay

This interplay between online and offline is becoming increasingly important. Today’s beauty buyers don’t follow a linear path. They bounce between content and commerce, influenced by what they see, hear, and feel across multiple platforms. That means creating an ecosystem where every touchpoint – from a Facebook ad to a Farmers counter – reinforces the same story.

The brand’s future plans reflect its continued focus on meeting the needs of its community. The brand is currently expanding into new international markets, while also working on product innovation – including a line of skincare designed specifically for menopausal skin, a category historically underrepresented in mainstream beauty.

The brand is possibly a glimpse of what the future of beauty looks like: audiencefirst, and anchored in trust. T

Riding out the storm

Market volatility is challenging. However, staying invested, keeping emotions in check, and focusing on long-term goals is the clearest path to wealth creation, says Stephanie Whittaker.

FOR EVEN THE most seasoned investors, market volatility can be unnerving.

Recent market fluctuations – driven by US tariffs, inflation, and geopolitical instability – have once again tested the resolve of Kiwi investors. While all these changes make daily headlines, a fundamental truth remains: volatility isn’t a bug, it’s a feature of all financial markets.

Markets are inherently cyclical. Periods of expansion are usually followed by contraction, driven by economic data, interest rates, earnings surprises, and geopolitical developments.

While it’s tempting to try to respond tactically to each market movement, holding firm is often the price of long-term gain.

Volatility: a byproduct of uncertainty

The current wave of volatility comes from many sources – President Trump’s changing tariffs, supply-chain issues, inflation and several global tensions such as the war in Ukraine and the war in Gaza.

This has led to increased daily price swings, a hallmark of uncertain economic environments. However, these conditions,

while distressing aren’t unprecedented.

History offers countless examples – wars, recessions, pandemics – when markets eventually rebounded afterwards, often stronger than before.

For example, the S&P 500 has returned over 9 per cent per annum (on average) since 2007, through the global financial crisis (GFC), Covid-19 pandemic and the 2022 inflation spike. Each of those crises may have felt like the end of the world at the time, but the markets recovered strongly each time.

Don’t confuse volatility with risk

Volatility often triggers a gut reaction: fear. But it’s important to distinguish between volatility – the temporary up-and-down movement of asset prices – and risk, which involves the permanent loss of capital.

Moving to cash or switching to a conservative fund during a downturn may feel safe, but it can mean you unnecessarily crystallise losses and miss out on the eventual recovery. In most circumstances we’d advise our clients against this.

As an example: even if your KiwiSaver account balance or managed fund balance

is down, the number of units or shares you hold remains unchanged. What fluctuates is the market value of those units. Selling during a downturn converts a paper loss into a real one, while holding steady allows for the possibility of recovery and compounding returns.

Timing the market vs time in the market

Almost everyone feels the temptation to try to time the market by moving in and out based on short-term trends. Yet this strategy is notoriously difficult to execute successfully.

Analysis of the markets post the GFC and Covid-19 lockdowns has shown that the benefit of rebalancing your portfolio at the “perfect” time isn’t worth the risk of missing out on a market recovery, compared to just holding on to equities. What’s more, as time goes on, the probability of picking that “perfect” time decreases.

Markets tend to recover quickly and unpredictably. Missing just a few of the best-performing days can significantly impact long-term returns. The good news

Examples of what happened when investors changed their contributions during the Covid 2020 lockdown.

Why it pays to stay the course

$20,000

$10,000

Keeps contributing 3 per cent and stays in Generate Focused Growth Fund

Option 2

Keeps contributing 3 per cent but moves to Generate Moderate Fund Option 3

Starts contributing 6 per cent and stays in Generate Focused Growth Fund

Assumptions

• Investor has a starting balance of $7,000 at 1/9/2016 in the Generate Focused Growth Fund.

• Investor remains employed with a salary of $80,000 pa with a salary increase of 3.5 per cent p.a.

Speak to your adviser to learn more about staying the course.

• Investor receives the full government contribution.

• Includes employee and employer contributions less employer superannuation tax (ESCT).

• The Generate Focused Growth Fund returns have been used for each scenario.

is that staying the course doesn’t require special investment skills, just discipline!

During downturns, investors with long time frames may even consider increasing exposure to growth assets – buying into the market at depressed valuations can enhance returns when the cycle turns.

To help investors understand this concept, Generate created the eyeopening graph above. It shows that significant gains could have been made by those who invested more in Generate funds during the downturn that followed the Covid-19 lockdown in 2020.

Fund choice and the risks of switching

Within KiwiSaver, the right type of fund plays a key role.

Aggressive and growth funds, with higher exposure to equities and international markets, are inherently more volatile, but offer higher return potential over the long run.

Conservative or defensive funds are

designed more for capital preservation, so offer lower returns.

The graph clearly shows how switching to a more conservative fund meant the investor made significantly less over the long-term, than they would have if they’d simply stayed in their growth fund through the market sell-off and recovery.

For investors still 10 or more years away from withdrawing their balance, staying in a more aggressive fund through market dips could be beneficial.

And while it may sound like a counterintuitive approach, buying more units at lower prices during downturns increases the potential for greater gains during the recovery – this is shown as Option 3 on the graph, which yields the highest returns over the long-term.

The

track record of long-term investing speaks for itself.

As Warren Buffet put it so well: “In the 20th century, the United States endured two world wars and other traumatic

and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.”

KiwiSaver members and other longterm investors should draw confidence from history and focus on fundamentals: time, diversification, and strategic patience. Short-term underperformance is not a failure of the strategy; it’s simply a normal part of investing.

Stephanie Whittaker is an advisor for Generate KiwiSaver Scheme.

Disclaimer: No part of this article is intended as financial advice; it is intended as general information only. To see Generate’s Financial Advice Provider Disclosure Statement or Product Disclosure Statements, visit generatewealth.co.nz/disclosures. The issuer of both schemes is Generate Investment Management Limited. Past performance is not indicative of future performance.

Forestry: investing in the environment

New Zealand pine is a sound investment with solid sustainability credentials. Investors are increasingly aware of the importance of partnering good returns with environmental responsibility.

FORESTRY IS UNIQUELY positioned to provide both. And a new offering from Forest Enterprises, Blairlogie Pine, gives investors the chance to grow their wealth while contributing to a cleaner world.

The 888ha second rotation forest is based in Wairarapa, and over 80 per cent of the land is registered in the emissions trading scheme, which earns carbon credits.

It is an investment that literally grows. Value is created in two ways – via carbon credits that can be sold as New Zealand Units (NZUs) in the New Zealand Emissions Trading Scheme (ETS), and harvesting of trees when they reach maturity if economic to do so.

As Bert Hughes, CEO of Forest Enterprises explains, Blairlogie Pine is one of a limited number of production forests in New Zealand eligible to earn carbon credits throughout the investment term.

“As the forest grows, it stores carbon and earns carbon credits that can be sold annually to cover the investment costs and generate income for investors,” he explains.

“Initially these carbon credits will contribute to the establishment costs of the investment with surplus income available for distribution to investors annually from 2034.”

He explains that forestry is the only recognised means of sequestering carbon under the ETS and is an important piece of the puzzle in meeting our international climate-change obligations.

Even the minimum Blairlogie Pine investment (200 shares, for $13,538) captures an average of 48 tonnes of CO2 annually; that’s more than 10 times the

average greenhouse gas emission of a New Zealand household.

While Blairlogie Pine is primarily a carbon investment (the primary source of income is the sale of carbon credits), harvesting the timber is a potential secondary income source for the investment.

“This means the investment value should not fall below the value of the timber crop. The timber production provides a hedge against volatility of carbon markets over the investment term and the forest will be thinned and tended to preserve harvesting options,” says Hughes.

Trusted guardians

Forest Enterprises has been a safe and steady steward of forestry for over 50 years. They have also helped thousands of retail and institutional investors grow their wealth, through direct investment in sustainably managed forests.

Forests have social, economic and environment values and are essential in promoting and protecting biodiversity; they are home to shade-tolerant plants and aquatic organisms, insects, carnivorous snails, other invertebrates, lizards, frogs, birds and bats.

They also naturally mitigate soil erosion, especially on hill-country sites. Tree roots stabilise the soil, reducing slips and sediment run-off into waterways.

Risk mitigation is an essential component of Forest Enterprises’ stewardship; their harvest and environmental management practices are certified to the highest standards.

This includes implementation of natural and man-made slash management systems, and planting alternative species such as poplar, willow and native species along riparian margins, which mitigates slash migration and sedimentation. Use of mechanised harvesting practices, such as remote-controlled tethered systems, also helps reduce risk to the natural environment from harvest operations.

Investment details

Gordon Wong is the legal services director for Forest Enterprises. He explains that the investment opportunity has a 30-year term through to 2054.

“Over this investment period the investment of under $15,000 is projected to return approximately $115,000 of gross income,” he says.

“Good things take time and annual income distributions to investors are projected from 2034. These will continue through until the investment term ends in 2054, when the land will be sold and proceeds distributed.”

He understands that 30 years is a long commitment and that some investors may need to sell their shares before the investment term ends.

“Forest Enterprises operates a secondary market to facilitate the sale and purchase of our established investments,” he says.

The projected internal rate of return (IRR) is 9.8 per cent, with projected annual distributions starting from 2034. T

For more information, visit forestenterprises. co.nz/blairlogie-pine/

Get real

Real asset

Blairlogie Pine is an 888-hectare forest in the Wairarapa with over 80% of the land registered in the Emissions Trading Scheme and eligible to earn carbon credits Diversify your investment portfolio while retaining the assurance of a land-based investment.

Real returns

Projected Internal Rate of Return (IRR) 9.79% - that means your initial minimum investment of approximately $15,000 compounds to $115,000 over a 30 year investment period. Annual distributions from carbon credit sales begin from 2034.

Real impact

Each 200-share investment in Blairlogie Pine will sequester an average of 48 tonnes of CO2e annually over 10 times the average annual greenhouse emissions of a New Zealand household.

Real experience

You can have confidence that your Blairlogie Pine investment is being managed by a team of professionals. For over fifty years, Forest Enterprises have been

Pros and cons of becoming cashless

As cash is becoming less common, it is essential to adapt how we teach young people about good money habits, as Bridgette Jackson from Equal Exes explains.

LESSONS ABOUT MONEY uses to start with physical cash: such as earning pocket money, saving coins in a piggy bank, and handing over notes at a shop.

Today children observe adults making payments by tapping a card or phone, which makes money feel “invisible” and free. This digital shift offers new opportunities while presenting challenges in helping children understand the value of money and the concept of budgeting and saving.

Here are some pros and cons of a cashless society.

Pros

Convenience and speed.

Digital payments make transactions quick and easy in a tech-driven world.

· Better tracking and budgeting.

Apps and online banking tools allow young people to monitor spending, set savings goals, and track where their money goes in real time. This makes the transition to investing apps and advanced money management easier.

Security and fraud protection. Unlike cash, which can be lost or stolen, digital payments are more secure, with bank protection and fraud detection improving all the time.

Encourages saving with automation

– Many apps allow users to round up transactions or set automatic savings, helping young people build healthy financial habits without much effort.

Cons

· Less awareness of spending. Without physical cash, it is easier to

lose track of spending. Swiping a card or tapping a phone doesn’t create the same sense of loss as handing over cash.

· Limited understanding of budgeting basics. Handling physical money teaches key lessons about budgeting, such as counting money, saving change, and physically setting aside cash for different needs.

Increased risk of impulse spending. The ease of contactless payments and “buy now, pay later” services can lead to poor spending habits, debt accumulation, and a lack of financial discipline.

Vulnerability to digital fraud.

Young people may be more susceptible to online scams, phishing attacks, and data breaches, especially if they don’t fully understand cybersecurity risks.

But there are ways to overcome these challenges. It’s important to teach young people to check their balances regularly – encourage them to review their spending history in their banking app as often as they would count physical cash.

Use budgeting and savings apps –sorted NZ, PocketSmith, and banking apps such as ASB’s Save the Change can help young Kiwis visualise their finances.

Set digital allowances: parents can transfer a set amount into a child’s account weekly or monthly to encourage budgeting without relying on cash.

And introduce pre-paid debit cards: Mymo or Spriggy enable young people to practice digital spending within set limits, helping them learn money management

before having full access to bank accounts. Helping children transition into adulthood isn’t just about life skills like cooking or driving. It is about ensuring they can confidently navigate their own financial future.

While parents may be financially astute, many young adults enter the workforce without understanding credit scores, loans, KiwiSaver, or retirement planning. They can make costly financial mistakes that impact their long-term security without guidance and may see them returning to the bank of mum and dad.

Parents can ensure their next generation is prepared for financial success by equipping children with financial independence strategies early on. Teaching them about money in the digital age is a great starting point. T

Bridgette Jackson is a CDC-certified Divorce/Separation Coach with a postgraduate dispute resolution qualification. She is also a trained divorce mediator (AIMNZ), a Relationship Coach (Institute for Life Coach Training), and a member of the Institute of Executive Coaching and Leadership (accredited by the ICF - International Coaching Federation). Bridgette is also a Certified Organisational Coach, Level One with IECL (Institute of Executive and Leadership Coaching) and an enrolled barrister and solicitor of the High Court of New Zealand.

‘Parents can ensure their next generation is prepared for financial success by equipping children with financial independence strategies early on’

Market volatility

RECENT MARKET TURBULENCE

– sparked by geopolitical tensions, shifting trade policies, and economic uncertainty – has left many investors uneasy. While volatility can be unsettling, it’s important to remember that market fluctuations are a normal part of investing. Even well-diversified, long-term portfolios experience short-term swings.

The key to navigating these periods isn’t reaction – it’s discipline. By focusing on time-tested investing principles, you can avoid costly emotional decisions and stay on track toward your financial goals.

Why volatility happens (and it’s normal)

Markets move in response to countless factors: economic data, geopolitical events, and shifts in investor sentiment.

While today’s headlines focus on tariffs, investors have already weathered similar storms – pandemics, inflation surges, and global conflicts – each triggering temporary pullbacks before markets eventually recovered.

History shows that despite short-term turbulence, markets have consistently rebounded and reached new highs over time. The challenge isn’t predicting volatility – it’s resisting the urge to react to it.

How to navigate market turbulence

When markets swing, fear-driven headlines can tempt investors to make impulsive moves. But successful investing isn’t about timing the market – it’s about time in the market.

With that in mind, here are three essential InvestNow Investing Principles to keep at the forefront and help you stay the course.

1. Stay informed, but don’t react to the noise

During periods of volatility, fearmongering headlines and emotions can tempt investors to make reactive decisions. However, attempting to time the market – by selling during downturns or waiting for the “perfect” moment to reinvest – more often than not leads to missing out on the market’s eventual recovery.

Just ask the investors who switched to cash or more conservative investments during the initial Covid-19 market volatility. Rather than sheltering

Jason Choy from InvestNow on why staying invested is a wise strategy.

their portfolio, many simply ended up crystallising losses and missing out when the market roared back up just months later.

What to do instead:

Stick to your strategy unless your personal circumstances (goals, timeline, or risk tolerance) have changed.

Remember: An investment chosen for long-term growth should remain fit for purpose, regardless of any short-term volatility.

2. Have a plan (and stick to it)

Investors need discipline to ride out any market volatility, and having a plan in place will help with this immensely. A wellstructured investment plan – based on your goals, timeline, and risk tolerance – helps

you tune out emotional decision-making. Automating contributions (such as setting up a Regular Investment Plan at investnow.co.nz/invest/regularinvestment-plans/) enforces discipline, and ensures you keep investing and making progress towards your investment goals regardless of market conditions.

The proof? KiwiSaver’s success is built on this principle. By automating contributions and removing emotion out of the equation, many everyday New Zealanders have become successful, disciplined investors and built meaningful nest eggs for their retirement.

3. Diversification is essential

A diversified portfolio – spread across asset classes, sectors, and geographies – can help

cushion against extreme swings. While individual stocks may fluctuate, a wellbalanced portfolio smooths out volatility, making it easier to stay committed.

Key benefit: A well-diversified portfolio generally has less swings and roundabouts (particularly during volatile times), which should reduce stress and limit knee-jerk reactions.

Volatility isn’t a roadblock– it’s part of the journey

No one can predict when markets will stabilise, but history shows they always do. For disciplined investors, short-term pullbacks aren’t a signal to retreat – in fact investors who stay the course during pullbacks often benefit – temporarily lower prices mean more value for every dollar invested, setting the stage for stronger long-term return.

The bottom line?

Investing is a marathon, not a sprint. Market volatility isn’t a detour – it’s part of the journey. By staying informed, sticking to your plan, and maintaining a long-term perspective, you’ll be wellpositioned to weather any financial storm and emerge stronger on the other side. T

Disclaimer: This information is provided by InvestNow Saving and Investment Service Limited (“InvestNow”). The information and any opinions in this publication are based on sources that InvestNow believes are reliable and accurate. InvestNow, its directors, officers and employees make no representations or warranties of any kind as to the accuracy or completeness of the information contained in this publication and disclaim liability for any loss, damage, cost or expense that may arise from any reliance on the information or any opinions, conclusions or recommendations contained in it, whether that loss or damage is caused by any fault or negligence on the part of InvestNow, or otherwise, except for any statutory liability which cannot be excluded. All opinions and market commentary reflect InvestNow’s judgment on the date of this publication and are subject to change without notice. This disclaimer extends to any entity that may distribute this publication. The information in this publication is not intended to be financial advice for the purposes of the Financial Markets Conduct Act 2013, as amended by the Financial Services Legislation Amendment Act 2019. In particular, in preparing this document, InvestNow did not take into account the investment objectives, financial situation and particular needs of any particular person. Professional investment advice from an appropriately qualified adviser is recommended before making any investment. All Investments involve risk.

Smart moves in uncertain times

Generate’s new retail funds are aimed at helping investors reposition for long-term growth.

WITH GLOBAL MARKETS unsettled so far in 2025 and investor confidence being tested, many New Zealanders are taking a closer look at how their investments –including KiwiSaver – are positioned for the long term. Rather than stepping back, some savvy investors see this volatility as an opportunity to reset, diversify, and actively position their portfolios for future growth.

To support this mindset, Generate –one of New Zealand’s leading KiwiSaver and wealth providers, with over $7 billion funds under management, has launched six new retail funds, expanding its total product suite to 17. These additions give investors greater flexibility to tailor their portfolios with fund types that align with their goals, time horizons, and appetite for risk and growth.

As Henry Tongue, CEO of Generate, puts it: “Kiwis are becoming more financially savvy and are seeking investment options that support their long-term goals without the complexity of managing investments themselves. These new funds provide greater variety, strategic diversification, and access to expert fund managers.”

Playing the long game: Generate’s most aggressive KiwiSaver funds

KiwiSaver is designed as a long-term investment, with most members unable to access their savings until the age of 65. For growth-focused investors, this time horizon allows for a higher tolerance for market ups and downs – and can make an aggressive investment approach more appealing.

“Because KiwiSaver is a long-term investment, it gives investors the ability to ride out short-term volatility,” says Nick Zwi, wealth adviser at Generate.

“For those focused on growth, increasing exposure to equities – especially when combined with regular contributions and compounding returns – can significantly boost long-term outcomes.”

Generate’s three new KiwiSaver funds are built for investors actively seeking that kind of long-term growth. With a 98 per cent allocation to equities, they’re Generate’s most aggressive funds in the scheme.

These new single-sector funds include the Generate KiwiSaver Australasian Fund, Generate KiwiSaver Global Fund and the Generate KiwiSaver Thematic Fund.

While the Generate KiwiSaver Australasian Fund focuses on companies across New Zealand and Australia, the Generate KiwiSaver Global Fund invests in 40–50 equities spanning regions and sectors. It targets high-quality businesses with strong growth potential and compelling valuations – from household names like Amazon to lesser-known opportunities such as Western Alliance.

Thematic investing: high growth, long-term focus

Generate’s KiwiSaver Thematic Fund takes a future-focused approach –investing in long-term global trends such as technology, climate change, and demographic shifts, rather than being confined to traditional sectors or regions.

Thematic investing is not new to Generate. The Generate Thematic Managed Fund was first launched in July 2023 and quickly attracted over $12 million in funds under management. Since inception, it has delivered strong results –including an average annual return of 17.5 per cent (as at April 30, 2025).*

On the back of this performance, demand grew from long-term KiwiSaver investors looking to incorporate thematic exposure into their retirement strategy. In response, Generate has now introduced a version of the fund for the Generate KiwiSaver Scheme.

Building long-term wealth with managed funds

For investors looking to build wealth beyond KiwiSaver, Generate’s managed

funds offer flexibility, diversification, and expert management – all with a minimum investment of $1,000 and an easy online sign-up.

“We’ve seen growing interest from investors who want to build wealth outside of KiwiSaver but still value the guidance and structure that comes with professional fund management,” says Nick Zwi, wealth adviser at Generate.

“Our managed funds give people the flexibility to invest according to their goals – whether they’re looking for growth, income stability, or a more diversified long-term strategy.”

Generate now offers eight managed funds, recently expanding its range with the addition of the CashPlus, Fixed Interest, and Global managed funds. The Global Managed Fund follows the same investment strategy as its KiwiSaver counterpart, while the CashPlus and Fixed Interest

‘Kiwis are becoming more financially savvy and are seeking investment options that support their long-term goals’

funds provide more conservative options – focusing on cash and bonds, respectively.

These new funds join Generate’s existing Conservative, Balanced, Focused Growth, Australasian and Thematic Managed funds, offering a comprehensive suite of options to help investors build well-rounded portfolios with confidence.

Meeting investor demand

With over 165,000 members, Generate is one of New Zealand’s fastest-growing KiwiSaver providers – driven by strong long-term performance and awardwinning service. Its recent Consumer NZ People’s Choice Award win – the fourth in a row – reflects its ongoing commitment to customer satisfaction.

The new funds give investors and advisers more ways to navigate market volatility, tap into global growth, and

tailor portfolios to individual goals and risk profiles.

As many of these funds are more aggressive, Generate recommends speaking with a financial adviser before investing or changing your strategy. Its team is on hand to help you understand the risks and make informed decisions. T

To learn more or book a chat, visit generatewealth.co.nz/letschat

*To see the latest Generate Thematic Managed Fund performance see www.generatewealth. co.nz/managed-funds/performance. No part of this article is intended as financial advice; it is intended as general information only. The Generate FAP Disclosure Statement and the Product Disclosure Statements for Generate KiwiSaver Scheme and Managed Funds are available at www.generatewealth.co.nz/disclosures. The issuer of both schemes is Generate Investment Management Limited. Past performance is not indicative of future performance.

Active vs passive

What’s the best strategy for investing in a challenging economy? Liv Lewis-Long, head of marketing at Simplicity, explores the debate around active versus passive investment.

AT ITS CORE, investing is about making your money work harder for you over time. But when it comes to smart investing, there are some key decisions to make. How much should I invest versus save? Which fund manager or platform should I choose? What exactly to invest in? How often should I invest?

And is now even a good time to invest, given the current global economic uncertainty? Trump tariffs, inflation, interest rates, recession – what a time to be alive.

Before making some of these key decisions, it’s important to properly understand the two primary approaches to investment management – active

and passive. Hotly debated by seasoned investors and fund managers alike, they both have their strengths and weaknesses. But I suspect there may also be plenty of misunderstanding around the realities of active versus passive investing, partly thanks to dramatic movie storylines depicting wildly successful and rich Wall St moguls, and partly via cleverly worded marketing extolling the virtues of an active approach.

Defining the approaches

With active investment, fund managers or individual investors aim to outperform the overall market by picking and choosing individual shares and/or other

assets such as bonds, cash and property. They may try to identify undervalued assets (aka those they deem “on sale”), time the market to take advantage of particular (often short-term) opportunities or follow themes or ideas about which specific investments will outperform the broader market.

Passive investing is a more handsoff approach. Investors and investment managers build a diversified portfolio using a particular “index” such as the S&P 500 that tracks the broader market. Instead of attempting to beat the market, they seek to match its overall performance. This approach, while sometimes being

insinuated as the “lazy” option by those advertising active management, is based on the theory that over the long-term markets are efficient and go up in line with economic growth. Essentially, by closely tracking the market using an index, passive managers can harness that growth in the most efficient manner.

Here are some of the key differences I would highlight between the two approaches, specifically as they apply to managed funds.

Broader diversification

Passive funds typically provide broader diversification across an entire market or broad sector, reducing the risks

associated with individual asset selection – for example being reliant on one or few specific investments. Active funds can absolutely be highly diversified too, but their portfolios tend to hold fewer investments – given each asset is individually selected, bought, and managed within the fund or portfolio.

Costs and fees

Passive funds generally have lower expense ratios compared to active funds. They tend to trade in a more automated manner and less frequently, which leads to lower transaction and management costs for the fund manager. This in turn allows the manager to keep fund fees low – so

‘With regular contributions and dollar-cost averaging, you’re effectively buying into the market at lower prices, which can boost long-term returns once the market recovers’

investors can retain a higher proportion of their net returns. Active funds usually require continuous research, analysis, and decision-making about which assets to buy, sell, and hold – often leading to higher research and management costs. The cost of this effort will usually be passed on to the investors in the form of higher fund charges, regardless of the performance of the fund.

Performance

The performance of a passive fund should be very similar to the performance of the index it’s tracking, which means that the fund will reflect both the ups and the downs of that index. Passive funds are unlikely to outperform the market, given they are designed to closely track it. Because active fund managers choose specific investments, they have the potential to outperform the market on the upside and limit losses when the market declines, relative to the index. On the flip side though, they also have the potential to underperform the market depending on the decisions the fund manager makes.

So isn’t active investing better when the market is volatile?

This is a fair question, especially in the current economic situation. Markets globally have already seen some big swings in 2025, with plenty more uncertainty expected in the short-term future.

We’ve had a combination of Trump’s re-election and proposed tariffs, slowing economic growth, inflation proving stickier than expected, and investor sentiment taking some serious dives –in just four months! All these factors contribute to ongoing high volatility, as the VIX Volatility Index (a global measure of stock market volatility expectations) has shown so far in 2025.

Some will argue that this is where active managers shine – naturally, they talk about being able to adjust quickly, minimise the impact of downturns, and pick short-term winners. And sure, some active managers might do well in any given year.

But global data shows that very few consistently outperform the market (or even stay in business) over the longer term, especially after fees are taken into account.

Looking at the long-term data

SPIVA, the research arm of S&P Global (which runs the US-based Dow Jones

indices), has been providing critical insights into active vs passive fund performance for over two decades. It specifically tracks how active funds perform against their benchmarks over time. According to the latest SPIVA report, more than 91 per cent of US large-cap active fund managers underperformed the S&P 500 over the last 10 years*. That trend is echoed in smaller markets like Australia and New Zealand, where 85 per cent and 75 per cent of active managers respectively have consistently delivered below-market returns after fees and taxes**.

The NZX 50 has lagged behind its international peers due to our smaller economy and limited sector exposure. But none of that changes the long-term data: staying invested in a low-cost, indextracking fund has historically had a higher chance of performing well than investing in an actively managed fund.

If anything, market downturns can be an opportunity for long-term passive investors, especially those still in the accumulation phase (like many KiwiSaver members).

With regular contributions and dollar-cost averaging, you’re effectively buying into the market at lower prices, which can boost long-term returns once the market recovers.

And we’ve seen time and time again

over history, it inevitably does. It’s clear that no one (not even super-smart professional investment managers) can predict exactly when and how markets will move, for the better or worse.

In my humble, and of course biased opinion (note the emphasis here), the SPIVA data, alongside differences in cost and the dependence of active management on consistently good decisions/skill, provide substantial evidence in favour of passive investing.

While active strategies certainly can and do have their moments of success, the consistency, cost efficiency, and long-term performance of passive investments make them an attractive option. As always though, it is essential for investors to understand their risk tolerance, objectives and time horizon, and consider seeking advice before making any investment decision.

In uncertain times, it can be tempting to change your investment strategy, and jump into something that sounds smarter, faster, or more reactive. But long-term investing isn’t about the short game. It’s about staying the course, keeping calm and carrying on. T

The information provided and opinions expressed in this article are intended for general guidance only and not personalised to you. These materials do not take into account your particular financial situation or goals and are not financial advice or a recommendation. This article is not intended to convey any guarantees as to the future performance of any of the investment products, asset classes, or capital markets mentioned. Past performance is no guarantee of future performance. Information is current at the time of posting, and subject to change without notice.

*The SPIVA US Scorecard Year-End 2024 showed underperformance rates of 91.54 per cent of all large-cap US Equity Funds compared to the S&P 500 based on risk-adjusted return, over the 10-year period ending Dec. 31, 2024. Over the 20-year period, this underperformance rate increased to 95.48 per cent.

**The SPIVA Australian Scorecard Year-End 2024 showed underperformance rates of 85.01 per cent for Australian Equity General compared to the S&P ASX 200 over the 10-year period to Dec. 31, 2024. The New Zealand Scorecard reported the percentage of NZ Domestic Equity funds underperforming the S&P NZX 50 index over the 10-year period to Dec-31 2024 at 81.25 per cent. All numbers are based on risk-adjusted return. For the full reports go to spglobal.com/spdji/en/ spiva/article/institutional-spiva-scorecard

World snapshot

Forces affecting business, investment and the economies across the globe.

British Retail Consortium (BRC) data, released in May, showed retail sales in the UK rising 7 per cent year on year in April. This is significant as 12-month average growth is just 1.4 per cent. The UK retail trade association said the sunny weather in April led to strong consumer spending; the fact that Easter also fell in April also helped boost retail sales

French President Emmanuel Macron announced at the Choose France Summit that €20 billion (NZ $382 billion) had been raised to fund projects in AI, renewables, and defense. France has been leading international investment in these areas for the past six years; but many French companies have continued investing outside of France. The summit was intended to encourage local businesses to invest locally instead of offshore.

Ukraine’s much vaunted rare earth minerals are currently in zones occupied by Russian forces or near active combat zones, the Institute of Economics and Forecasting at the National Academy of Sciences of Ukraine has identified.

Ukraine currently lacks the infrastructure or investment to extract and process these elements, with just one available deposit needing a $300 million investment to extract and process.

SOUTH AFRICA

A Xero small business survey in South Africa reveals continued resilience in challenging times, with 83 per cent growing their revenue over the past year and 90 per cent optimistic about their future growth. Despite nearly two-fifths (39 per cent) having concerns over political or economic instability and more than a quarter (27 per cent) expecting challenges with service delivery, South African small businesses are showing optimism for the year ahead, with 40 per cent planning to hire more staff and 39 per cent planning to develop skills in new technologies.

India’s economy is growing apace, with S&P Global’s latest report indicating accelerated growth in May. Insights from the manufacturing and service sectors pointed toward substantial expansion, and there was a slight uptick in manufacturing, driven by increased demand, technological enhancements, and larger production capabilities.

According to a report from China Daily, Central and Eastern European countries (CEEC) are set to attract more Chinese businesses seeking trade and investment opportunities across the region. Wan Zhe, a professor specialising in regional economic development at Beijing Normal University, said CEEC countries offer a combination of manufacturing capabilities, innovation potential and access to the broader European market.

Investment Boost, announced at last month’s budget, will reward businesses who make new investments by reducing their tax bills in the year they purchase new assets.

The Beehive website gives the example of an advanced manufacturing firm that purchases a $200,000 environmental test chamber. Under Investment Boost, this would reduce its tax bill by more than $10,000 in the year of purchase.

There’s no cap on the value of eligible investments and the policy is expected to cost an average of $1.7 billion per year in reduced revenue across the forecast period.

Google has confirmed that it is committed to investing in Thai data centres and cloud services, citing Thailand as a significant production base for technology components. Commerce minister Pichai Naripthaphan has encouraged Google to expand further, emphasising the country’s infrastructure, energy reliabiliT y, and skilled workforce as advantages for digital industry development.

NEW ZEALAND

THAILAND

CHINA INDIA

KELVIN DAVIDSON

Mixed bag

ANDREW KENNINGHAM

Andrew is the chief Europe economist for Capital Economics.He was previously an economic adviser for the United Kingdom Foreign Exchange.

The year is speeding by, but not the housing market, Kelvin Davidson writes.

IT’S STAGGERING THAT we’re already pushing towards the halfway mark of 2025 and there’s obviously been a lot to track, not least of which has been the global tariff shenanigans and potential knock-on effects for New Zealand’s inflation path and economic growth.

SAM STUBBS

So far (whisper it quietly) we don’t seem to have been too badly impacted, with a number of timely economic indicators still creeping higher.

However, even though the year is speeding by, there’s still a distinct lack of impetus in the housing market, although the previous downturn does at least seem to have come to an end.

Ups and downs

Indeed, the Cotality (new company name for CoreLogic) Home Value Index shows that median property values have edged up by around 1 per cent in the past 3-4 months, with most parts of the country seeing a similar sort of story. The Auckland and Wellington regions are both up by 0.9 per cent since January, with Waikato at 1.1 per cent. Canterbury stands out with a 1.7 per cent lift in the past three months, although Bay of Plenty has only edged up by 0.2 per cent, while Otago has dropped a bit.

It’s early days yet for this emerging upturn, and the patchiness in areas such as Tauranga, Rotorua, Dunedin, and Queenstown don’t necessarily mean they’re weaker than other parts of the country; just that in this slightly uncertain economic environment there will always be a bit of natural variability from month to month and across regions.

Still a buyer’s market

30/11/23 4:46 PM

The fact that listings remain abundant is also another factor tilting the pricing power in favour of buyers in many areas and dampening any value growth. To be fair, agreed sales volumes at the other end of the pipeline are also rising, but it may still be several months before sellers regain a more noticeable bargaining position.

One thing to note is that we’re not seeing the mass sell-off by investors that some feared might happen in the aftermath of the bright-line test being shortened back down to two years for all properties last July (and hence some investors getting off the hook for capital gains tax sooner than they thought). We’ll never know if it would have happened had mortgage rates stayed high, but in the event the falls over the past 9-12 months

will have improved the cash-flow positions for investors and reduced any pressure or appetite to sell.

Conflicting forces

Lower interest rates have not just helped investors, they’ve also been beneficial for first-home buyers, as well as those households previously on rates above 7 per cent, who have now repriced their existing loans back down towards 5 per cent or less. We’ve all seen before the upwards influence that lower interest rates can have on property values.

However, there are quite a few factors pushing in the opposite direction too. For a start, the labour market remains relatively soft, which will be limiting buyers’ confidence and/or ability to secure finance. In addition, the debt-toincome ratio limits for mortgage lending are lurking in the background too, not necessarily shutting people out, but just keeping a light touch on lending.

All in all, a rise in property values this year of around 5 per cent remains on the cards. Such a muted outlook might be disappointing for some. But there are always two sides to the housing coin, and those aspiring to buy a property will be happy with flatter prices for a while. T

House Price Index

Seamless integration

Logitech partnered with Datacom to create an office space that seamlessly incorporates cutting-edge technology to create the optimal people-first work environment.

THE WAY WE work has transformed significantly over the past decade. Work is more mobile than ever, with teams collaborating across various locations, both in-person and online, and often spanning cities ... and even countries.

Our work roles and tasks have become more fluid, driven by rapid developments in technology and shifting markets, prompting organisations and customers alike to pivot. And all of these changes have fueled an ongoing discussion around the future of work.

Information technology firm Datacom has become an important voice in this conversation. Their research has explored the evolving work environment through a people-first lens, transcending physical space, and exploring how humans feel, receive and create value in an increasingly machinedriven world.

Though this thought leadership was initially intended as a resource for its own customers, when Datacom needed a new office space, it presented a unique opportunity to put theory into practice, using the findings as a blueprint for its office design.

For Datacom, the desire was to design and create a workplace that was responsive to these different ways of working and supported people to do their best work. The aim was to create spaces that would enable people to thrive in a flexible, purpose-driven environment and encourage collaborative ways of working both in the office and remotely.

‘Logitech’s focus on flexible, people-first design aligns seamlessly with Datacom’s approach’

the opportunity to leverage Logitech’s cutting-edge technology and solutions to reshape how employees connect, collaborate and perform.

Focus on flexible

Datacom’s managing director Justin Gray posed: “How do we fundamentally shift the concept of what collaboration in the workplace looks like?”

Logitech’s focus on flexible, peoplefirst design aligns seamlessly with Datacom’s approach, where empowering employees and fostering collaboration are central to its strategy.

To this end Logitech’s Rally Bar was paired with the Logitech Tap, to provide intuitive, easy-to-use video conferencing that enhanced virtual collaboration. The Logi Dock brought simplicity and efficiency by consolidating multiple functions into a single connection.

The goal was to design spaces that could easily adjust to the diverse needs of the people who use them.

“[We wanted to have] a space that could change, morph and adjust with the needs of our team as their complicated work lives demand,” Justin explains.

At the heart of its research are four mindsets – learn, clarify, focus and create. The design of office spaces and experiences would need to position people where they needed to be, support how they needed to work and allow them to do what they wanted to do.

This insight became a chance for Datacom – and its key build partners, including Logitech and Futureworks – to radically rethink office design and technology application. And with Whai, its new headquarters, Datacom had

Both companies share the belief that it’s people – not physical assets – that drive business success, and this shared vision laid the foundation for creating workspaces that are not just functional, but transformative.

Justin asked: “How can we leverage technology to support the hybrid way we work, overcoming traditional challenges like feeling disconnected – whether in the room or online – and not being fully engaged in the conversation?”

He believed that there needed to be seamless integration in its workspaces; and this insight shaped a solution, where technology became the bridge that kept teams connected, no matter where they were.

Logitech’s product range has allowed the office environment to become more adaptable.

When there are quieter moments, the Brio Webcam and Logi Dock allows employees to instantly switch into highquality video calls without disrupting their workflow. For collaborative moments, the Rally Bar offers crystalclear audio and video quality, ensuring everyone in a meeting, whether in-person or remote, feels truly connected.

Employees can use Logitech Scribe to share whiteboard content during video meetings with a single button push, ensuring that ideas can be shared in real-time without disruption, offering a new level of interactivity and innovation during video meetings.

The tech that powers Whai

Logi Dock

For hybrid and remote workers, juggling devices, cables and software can quickly turn a desk into a distraction. Logitech’s Logi Dock offers a streamlined solution – combining a docking station, speakerphone and meeting control hub into a single, compact unit.

Designed to reduce desktop clutter, Logi Dock supports up to five USB peripherals, two monitors and delivers up to 100W of laptop charging – all through a single connection. Integrated meeting controls and calendar syncing make it easy to join calls with a tap, while built-in enterprise-grade audio ensures clear communication and crisp sound for both meetings and music.

Certified for platforms like Microsoft Teams, Zoom and Google Meet, Logi Dock is built to support the tools professionals already use. Whether in a home office or a shared workspace, it helps bring order, clarity and simplicity to the modern workday.

Logitech Scribe

In the evolving landscape of hybrid work, ensuring that all participants – whether in-room or remote – have equal access to visual content is crucial. Logitech Scribe addresses this need by seamlessly integrating whiteboard content into video meetings, enhancing the collaborative experience.

Designed for platforms like Microsoft Teams Rooms, Zoom Rooms and Google Meet Rooms, Scribe utilises AI to enhance whiteboard visuals. Its features include presenter removal, content enhancement and sticky note detection, ensuring clarity for all participants.

Logitech Scribe exemplifies how thoughtful integration of technology can bridge the gap between in-person and remote collaboration, fostering a more inclusive and effective meeting environment.

The

Rally Bar is an all-in-one video conferencing system built for medium to large-sized meeting rooms.

Logitech Rally Bar and Rally Bar Mini

As hybrid work continues to reshape the modern workplace, meeting room technology is evolving to keep pace. Logitech’s Rally Bar and Rally Bar Mini offer a streamlined approach to video collaboration, with solutions suited to different room sizes but built on the same core principles: simplicity, scalability and high-quality performance.

The Rally Bar Mini is designed for small rooms and huddle spaces, delivering clear audio and video in a compact form. Features like motorised pan and tilt, AI-driven framing and clean cable management help minimise setup friction and maximise usability.

·For larger spaces, the Rally Bar brings added power with a more robust lens system, enhanced microphones and cinema-grade speakers. Both models can run conferencing applications directly on the device or connect via PC or Mac, and they integrate with Logitech Sync for remote monitoring and management at scale.

Logitech Tap

Consistency and ease of use are key to making hybrid collaboration work across a range of meeting spaces –Logitech Tap helps deliver both. As a touch controller for video conferencing, Tap provides a unified interface for joining meetings, sharing content and managing calls –designed to work across platforms and room types.

With a 10.1-inch touchscreen, a low-profile design and flexible mounting options, Tap fits naturally into a wide variety of meeting room layouts. It supports one-touch join, calendar integration and content sharing via HDMI or wirelessly, depending on the conferencing solution in use. Features like silent operation and a motion sensor for always-on readiness further support a smooth, intuitive meeting experience.

Tap is more than just a control panel – it’s a central part of building a consistent, user-friendly collaboration environment at scale.

Logitech

The tech that powers Whai

The meaning of Whai

The word whai is Māori for stingray. The shape of the building, with its north-oriented curved aspect, suggests the shape of a whai caught in a moment in time. Not a static shape burrowed in the sea floor; rather a whai in the action of turning, one of its fins and its tail hidden from view. The whai concept connects strongly with Aotearoa identity, in that Te Ika a Māui, the fish of Māui commonly referred to as the North Island, is also a whai.

Measuring success

The success of Datacom’s new workspace was measured not only by its usage, but by the tangible ways in which it enhanced collaboration and engagement with team members, wider partners and networks.

Ease of use and accessibility underpins a tech environment that fosters enhanced connection, with associate director of optimisation and innovation, Tracey Cotter-Martin saying, “Logitech technology is so simple and intuitive to use; it does exactly what it says on the tin and provides a really simple way for people to connect with each other”.

Since the move, Datacom has seen a significant increase in customer interactions, with three times the number of client visits compared to their previous office space.

Logitech Scribe seamlessly integrates whiteboard content into video meetings, enhancing the collaborative experience.

These increased interactions have helped build stronger business relationships and have positioned Datacom as an even more relevant and dynamic partner in the eyes of their customers.

On average, Whai plays host to nearly 50 offsite visitors each week, and in just three months since opening has seen the executed more than 110 events, including 69 customer events, 18 workshops and nine community events, further cementing Datacom’s reputation as a hub for collaboration and innovation.

The success of the workspace is also evident in how it is used by employees. Feedback indicated that the tech-enabled spaces were actively sought out by teams who valued the ability to work seamlessly across locations.

The integration of advanced tech into the workspace became a draw not only for Datacom employees but for clients as well, who leverage the spaces for their own meetings.

On average, more than 230 people use Datacom’s offices every day, demonstrating the space is not only well-designed but also highly valued by those who choose to work there. T

‘Logitech technology is so simple and intuitive to use; it does exactly what it says on the tin’

TRACEY COTTER- MARTIN

Investment backed by property

Select Invest provides wholesale investors with access to private real-estate debt via mortgage-backed loans.

ESTABLISHED IN 2022 by Fico Finance – a Nelson-based property finance lender with nearly 40 years’ experience in financing business, investment and property development – Select Invest provides approved wholesale investors access to private real estate debt via mortgage-backed loan investments.

New Zealanders understand the power of property to generate wealth. Under the right conditions, property can offer both capital gains and steady cash flow.

Like all investment classes, property has its cons. Traditional direct property investment can be very hands-on – it can be a lot of work managing tenants and navigating the inevitable legislative changes brought in by different governments.

Select Invest offers investors access to property-backed investments, but without the need to be hands on. Their termloan investments underpinned by first

mortgage security, allowing investors to choose from a range of loan profiles and target returns.

First mortgages

First mortgages provide property-related security, while offering targeted fixed returns, without the effort required for self-managed investments.

Key investment features include:

• target returns from 8 per cent, per annum (net of fees, before tax)

• investment terms between 6-18 months

• flexible distribution options (returns paid monthly or at end of term)

• the ability to fund an entire loan or invest alongside other investors.

“Investment duration and return structure are linked to the terms of the underlying loan, which allows investors

to select investments that align with their specific investment criteria and cash flow needs,” explains Finn Brooke from Select Invest.

Select Invest works in partnership with Fico Finance, leveraging a network of over 600 financial advisors nationwide, to originate and assess loan applications and loan investment opportunities. If a loan application is approved, a conditional loan offer is issued.

Select Invest works with its legal team and borrowers to ensure all conditions can be met. Borrower applications need to meet credit and security assessments, followed by a due diligence process.

“Select Invest requires stringent conditions to be met, placing a strong emphasis on good-quality property securities, appropriate loan-to-value ratios and borrower creditworthiness. Our thorough due diligence process assesses

the borrower’s ability to repay the loan within the agreed term in the manner intended,” says Brooke.

Once conditions are met and the loan settles with funds disbursed, Select Invest manages the loan and monitors adherence to terms and conditions. Select Invest charges a fee for this services.

Investment opportunities

Approved wholesale investors can select from a range of loan investments underpinned by first registered mortgages against residential, commercial or industrial property. Select Invest does not provide funding for property developments or construction, which can be inherently higher risk.

Investors earn a return via the interest rates borrowers are paying. Investors have a range of loan investment options to choose from, according to risk

Fully Managed First Mortgage Investments

Average Investor Return

9.1% p.a.

Average Loan Term

11.35 months

Minimum Investment

$150,000 or $750,000 (depending on investor type)

Interest Distributions

Monthly or end of term

appetite, location preference and other investment criteria.

“Private real estate debt is a growing asset class and Select Invest’s platform is designed to offer approved wholesale investors transparent and tailored access to the non-bank property finance sector,” Brooke explains.

Select Invest is able to provide potential investors with detailed information about investment options.

“Our experience is that investors often prefer specific regions or property security types and appreciate being able to access curated investment opportunities which have a set duration and clear exit strategy,” Brooke continues.

Prior to investment in a specific loan, approved investors are provided with a fact sheet and information memorandum which contain key loan and investment specifics. If they wish to proceed, the next step is to review the investment agreement and sign an application form.

Once approved by Select Invest, investors fund some or all of a loan by transferring funds to Select Invest’s ANZ trust account for disbursement on loan settlement.

Interest is paid monthly to investors’ nominated bank account (net of fees and before tax). Interest is based on the target return of each specific investment.

Capitalised investments are also available (with interest paid in a lump sum at the end of the term). When the

Average Loan-to-Value Ratio

46%

Average Loan Size

$1.17 million

Target Return Range

Between 8-10% p.a. (net of fees, before tax)

Security Types

First registered mortgages, general security agreements, guarantees (to Nov 2024)

underlying loan is repaid, investors receive return of principal and interest to their nominated bank account (net of fees and before tax).

“Select Invest offers investors the ability to access, evaluate and choose individual investment opportunities tailored to their unique risk appetite. The underlying assessment and ongoing investment management is supported by an organisation with close to 40 years’ lending experience, which provides additional comfort that investments are managed effectively and responsibly,” says Brooke.

Investments are not guaranteed by Select Invest or Fico Finance. All investment involves risk including the risk that security is not enough to fully cover a borrower default. T

See selectinvest.co.nz for more information.

* Investments are only available to certain categories of wholesale investors as defined under the Financial Markets Conduct Act 2013, specifically those investing $750,000 or more and large investors as defined in the FMCA. Select Invest does not offer investment opportunities to retail investors.

The next move for capital

Why now could be the time to lean into property – but not in the way you think.

WHEN INTEREST RATES surged and markets wobbled, holding cash felt smart. Term deposits were paying 5 to 6 per cent. Sitting still was strategic.

But that window is closing. Rates are easing. And cash, while useful, is no longterm plan. With deposit rates now around 4 per cent and inflation at 2.5 per cent, real returns are slim. After tax, they’re barely there.

Historically, this is when capital starts

to shift – away from cash, toward assets that offer both income, long-term growth and act as a hedge against inflation. Not for quick wins, but to redeploy it into opportunities designed to perform over time.

Unlisted commercial property funds offer a viable alternative. They provide access to large-scale, institutional-grade assets – without the mortgage, the deposit or the complexities

of direct ownership. And with comparatively low entry points, they’re more accessible than many investors assume.

So what happens when you’re ready to reallocate - but want stability, not short-term swings? Commercial property has long held a place in diversified portfolios. Unlisted funds offer a simple way in. Here’s what to know – and where they might fit.

A two-engine return: income and growth

Commercial property generates returns in two ways: rental income and long-term capital growth.

What sets it apart from residential investments is structure. Leases are typically long-term, often with builtin rent increases, which help create consistent, contracted cash flow.

You’re not just relying on the market to lift the value. You can earn and grow income along the way, with the potential for capital growth over time.

Steady across cycles

Commercial property has felt the pressure. Over the past two years, higher interest rates pushed up borrowing costs. Insurance and operating expenses rose. Like most asset classes, valuations dipped and there was pressure on nondistributable income.

And yes, the “For Lease” signs are still out there. But that’s not the whole story.

‘You’re not just relying on the market to lift the value. You can earn and grow income along the way, with the potential for capital growth over time’

You’re not betting on the next 12 months. You’re investing in what comes after.

This is a long-term asset class – and that’s where its strength lies. Property moves in cycles. It doesn’t need perfect timing to perform. Long leases and gradual valuation growth typically back these investments.

Time smooths out volatility, supports compounding returns and reduces the noise of short-term sentiment. And right now? Recovery is still early, but momentum is building. Valuations have stabilised. Demand for quality property is picking up. And in many funds, income distributions are building again.

You don’t need a mortgage

There’s still a perception that property investment means a big deposit, a mortgage and taking on the role of landlord. But that’s not the only way in.

Unlisted commercial property funds let you invest alongside others in largescale, income-generating assets – with less barriers to entry and without the debt or the day-to-day responsibility.

You’re not just buying into property. You’re buying into a strategy, managed by seasoned experts, with built-in diversification, structure and scale.

Inflation not always the enemy

Inflation is top of mind for switched-on investors – and for good reason. But in commercial property, it’s not always a threat. In some cases, it helps.

Many leases include fixed annual increases or CPI-linked reviews, so rental income doesn’t just hold its value – it often rises with inflation. It’s one of the few asset classes where inflation protection is built in, not bolted on.

Listed doesn’t mean direct

Not all commercial property investments behave the same. Listed property trusts (REITs) trade like shares and often move with market sentiment. Their value can

swing on headlines, investor flows or broader market shifts.

Unlisted funds work differently. Their value is tied to what’s happening on the ground – rent collected, leases renewed, tenants retained – not to daily market movements. A fully leased property doesn’t stop earning just because the market has a bad week. For investors seeking steadier, asset-backed returns, that difference matters.

Tax advantages

Unlisted commercial property funds often sit within PIE (portfolio investment entity) structures – and that can come with meaningful tax benefits, especially for long-term investors:

• a capped tax rate of 28 per cent, often lower than personal income tax rates

• only part of the return is taxable –unlike term deposits, where 100 per cent of interest is taxed

• interest costs are still deductible, unlike most residential property.

The result? A tax position that stacks up well against many other income-focused investments – particularly over time.

Built to hold, not to chase

Like any investment, unlisted commercial property funds are not without risk – and they’re not for everyone. Liquidity is more limited than listed assets, though secondary markets can offer flexibility if an investor needs change. They’re also not designed for quick wins, because value is built gradually over time.

But for investors building a diversified portfolio and seeking long-term exposure with built-in resilience, they offer something rare – real assets, real income and a strategy built to keep earning through the cycle.

This isn’t about timing the market. It’s about owning a piece of it. T

To learn more, visit oystergroup.co.nz

A hundred small decisions

Andrew Nicol from Opes Partners didn’t achieve success overnight – it took years of small, smart decisions – and a lot of late nights, to get there.

BY THE TIME Andrew Nicol had 40 investment properties under his belt (and a thriving business to match), he’d already endured years of near-misses, tight margins, and long nights.

Today, Andrew is the managing director of Opes Partners, one of New Zealand’s leading property investment companies. He’s also one of the voices behind the country’s number one business podcast, The Property Academy Podcast, and co-author of Wealth Plan: How To Invest In New Zealand Property and Retire on Real Estate

But despite the polished image and the success he enjoys now, Andrew is the first to admit: “It wasn’t always this way”.

There was a time when he had to put staff wages on his credit card just to keep the business moving.

Rather than shy away from these moments, Andrew chooses to share them.

Because success doesn’t happen overnight – and when it does, it’s often built on the back of sleepless nights, scraped-together cash, and sheer determination to get through.

In the early days of Opes Partners, there were no plush offices or salaried staff – just a few guys, and a lot of late nights.

Doing it better

Before launching Opes, Andrew worked at BNZ. That’s where he started noticing something unusual: many of the bank’s wealthiest customers weren’t earning high salaries.

They were everyday people – dairy workers, church leaders, labourers.

“I remember a guy named James who earned $26,000 and owned three rentals,” Andrew says.

“He had a million in property, barely any debt. And I thought: ‘This man is rich’.”

That was the lightbulb moment: wealth wasn’t about how much you earned, but how well you used your

money. Andrew became obsessed with helping regular Kiwis build wealth through smarter investing.

If people like James could do it, others could too – with the right support and education.

That’s how the idea for Opes began. Andrew saw a clear gap in the market. New-build properties were being sold in ways that felt, as he puts it, “loose”. There was no regulation, no real oversight – and no long-term thinking.

“I remember thinking: ‘I can do this way, way better’.”

First property

By that time, Andrew was no stranger to the realities of investing. His first property purchase, at 19, was a tired four-bedroom house in a rough part of town for $200,000.

The owners were divorcing, which gave him an edge – he negotiated a delayed settlement with early access. That meant he could start renovations before paying for the property.

By day, he worked at BNZ. By night, he and his girlfriend picked up Thai takeout, sat cross-legged on the floor, and painted into the early hours.

“Whether it’s your first rental or your first hire, the early moves are always the most uncomfortable,” he says. “But they’re also the most important.”

And that, he believes, is where business and property investment mirror each other. Both start small. Both demand sacrifice. Both feel slow at the beginning. You pour in time, money, and energy –and it can feel like nothing’s happening.

That’s the unsexy truth most people don’t talk about. In the early years, your investment might not make much money. Not because you’ve done something wrong, but because wealth-building takes time.

If you compare yourself to someone who’s been in the game for 10, 20,

even 30 years, you’re always going to come up short.

“You might buy that first property and feel like nothing’s changing,” Andrew says.

“But the gains show up later. This is about the long-term.”

Advice for beginners

For those just starting out, Andrew’s advice is simple: start. Don’t overthink it.

One of the biggest mistakes new investors make is trying to analyse every detail to the point of paralysis. Yes, be

informed, but if you stay in research mode forever, you’ll never make a move.

Surround yourself with people who’ve done it before, like mentors, advisors, or peers who understand the journey. Learn from their experience, lean on their mistakes. But eventually, you have to take that first step.

Because success (whether in business or property) rarely comes from one big, bold move. It comes from a hundred small, smart decisions made over time.

That’s the secret. T

‘Success (whether in business or property) rarely comes from one big, bold move. It comes from a hundred small, smart decisions made over time’

Fashion update

1. Timberland men’s overshirt – $200 2. COS mini woven crossbody bag – $165

1. Birkenstock Arizona in natural leather/concrete grey – 3. Kowtow Desert pants – $299 4. Ahlem Victoria in brown light – $905

COS stripe sequin slip dress

CAMILLA AND MARC Balsam pant – $660

Aēsop Aurner eau de parfum – $275

adidas Taekwondo

$170

Passion portfolio

Wine is an asset class turning profits, with an added return of pleasure. Timothy Giles says it’s time to add a little passion to your portfolio.

INVESTOR, FINANCIAL

ECONOMIST and wine-lover Gertjan Verdickt, has the passion to have drilled deep into the data and discovered that drinkables (wine and whisky) outperform stocks.

In his book, Passion Portfolio: Investing in Style, he has delved into 20 years of data around alternative assets.

“Wine is particularly attractive for me as an asset.” Verdickt, an assistant professor, lecturing in finance at Auckland University, told me.

“It has an emotional dividend, it’s collectible. Other collectibles I looked at that performed well are whisky (17 per cent return) and Lego (around 8 per cent), which is very

reliable and steady. Adding these to an existing stock portfolio can reduce overall risk.”

“To me, wine is an infrequently traded asset resembling classic securities, such as corporate bonds,” he says.

“It’s infrequently traded, has a limited supply, and companies have multiple bonds (multiple wines one producer), buy-and-holder investors are similar to buy-and-consumer for wine, and both have a maturity and rating.”

Bringing passion into a portfolio

So how do you insert this asset in your portfolio, profitably? Wine funds are emerging worldwide as an easy, indirect means of access. Verdickt is on the board of two. But where’s the passion in funds?

Direct investment has traditionally and most reliably been through the En Primeur (EP) of France’s Bordeaux region. This enables investors, usually wine-lovers, to buy wines of a new vintage, before bottling.

Scott Gray of specialist French wine merchant Maison Vauron is a source I seek for advice. Last year he emailed me a caution “the gloss has gone a wee bit for investment as

Chateaux have ramped up their prices”. I love frank admissions. So EP23 came and went. Rather than invest, I bought to drink.

For me, the Brane Cantenac 2021 $199, an elegant seductive bargain and for Scott, “Carmes Haut Brion, 2023 ($167), high cab-franc and the biggest over-performer in Bordeaux.” He won that round.

However, EP24 is now underway, and Scott is enthused: “prices are down anywhere from 15 per cent to 30 per cent. Even with our exchange rate, there are prices not seen since 2014: Mouton Rothschild 2024 is at $580!” Get in while you can.

But you don’t need spend that much to enter the world, or asset-class, of wine. In New Zealand we are well-positioned to find some potential over-performers.

You want a winery that is wellestablished: proven to manage even challenging vintage conditions. One growing a global reputation. A decade or two earning accolades and admirers internationally, translates into acquisitive markets exponentially larger than Kiwi-sized production could ever hope to match.

I have a few in mind and share them

Winery profile

Kumeu River

For 80, years the Brajkovich family has been producing wine. They are a world-class chardonnay producer, based in Kumeu on 30ha vineyards, plus 10ha contract grown. Just 250,000 bottles are produced annually.

The most sought-after wines are their three Kumeu single-vineyard chardonnays:

•Maté’s Vineyard Chardonnay $100

• Hunting Hill Chardonnay $95

• Coddington Chardonnay $75

Their recent innovation is a fourth single-vineyard chardonnay, Rays Road Chardonnay, from a Hawke’s Bay vineyard the family purchased in 2017. So far it’s just $45.

Single-vineyard wines available on allocation, via their CRU subscription club, which has a waiting-list.

Kumeu River has many admirers, including master of wine Paul Tudor, who gave me this view.

“In late 2024, I earned the ire of some high-profile international wine critics when, on social

media, I posted a photo of the company’s 80th-anniversary tasting with the comment: ‘Kumeu River are now undoubtedly the finest producer of chardonnay outside of its spiritual home of Burgundy, in France’.

“I make such a bold claim as a longtime fan of chardonnay, in all its personas and representations.

“When I was learning about wine, dry, white, burgundy was never that easy to track down, but it set the benchmark for the variety around the world to which all other chardonnay-makers aspired.

“I still enjoy these wines: the linearity and poise of chablis, the fascinating, multi-dimensional wines of Meursault and the Montrachet villages. Lush, generous chardonnays of the south, in Macon and Cote Chalonnaise. Nowadays, not only is white burgundy starting to be out of my price range, there is so little of it available for our market.

“I stand by my view that, outside of Burgundy itself, Kumeu River is now setting the pace for Chardonnay. Kumeu River has slowly built up a portfolio of wines that are truly world-class, and done so in a quiet, understated fashion.”

(amongst emerging and import picks) in our wine of the week on informedinvetor.co.nz. But one stands out. Kumeu River Estate, this year celebrates 80 years in business. Decades of accolades and importantly, listings in fine (and distant) dining rooms. In my view, there is no better place to begin your wine passion portfolio. T

ABOVE Kumeu River tasting guide.

RIGHT Some of Kumeu River’s excellent wines.

LEFT Economist and wine lover Gertjan Verdickt.

Baby BMW a fan favourite

Liz Dobson of Automuse.co.nz is feeling clucky about the 2025 BMW 120 hatchback.

THE 2025 BMW 120 hatchback may be the baby of the family, but the latest iteration offers a blend of premium features, dynamic performance, and everyday practicality.

While the fourth-generation 1 Series typically attracts a mix of buyers who pick this as their first car, or empty-nester vehicle, the premium brand doesn’t forget that it still has sporty driving dynamics and a compact luxury experience.

This latest model takes the best elements of its predecessor and introduces significant updates to ensure it remains

competitive in the crowded premium hatchback segment.

Competing against models like the Audi A3, Mercedes-Benz A-Class, and the Volkswagen Golf GTI, the 2025 BMW 120 brings notable advancements in design, technology, and driving dynamics.

Latest enhancements

The 2025 BMW 120 model introduces several enhancements over the outgoing model, starting with the exterior. It has sharper lines and a more aerodynamic silhouette. The kidney grille has been

‘This latest model takes the best elements of its predecessor and introduces significant updates to ensure it remains competitive’

slightly reshaped and now features active air vents to improve efficiency. Slimmer LED headlights and updated taillights lend the car a sophisticated, modern look.

Priced from $68,900, the all-new 1 Series has the addition of a 48-volt hybrid enhancement paired to its 1.5-litre, three-cylinder petrol engine. The engine produces 125kW of power and 280 Nm of torque and has a seven-speed automatic transmission.

It also has a new iDrive 9 infotainment system, displayed on a 12.3-inch curved touchscreen, which is more responsive and offers wireless Apple CarPlay and Android Auto as standard. Improved voice commands and over-the-air updates make the system future-proof.

The interior has more sustainable options like vegan leather and recycled plastics. Ambient lighting, new colour schemes, and customisable trims enhance the cabin’s premium feel.

It also has new safety features including updated adaptive cruise control, improved lane-keeping assist, and traffic jam assist.

This was especially noticeable when I took the 120 for a road trip outside of Auckland to a favourite weekend lunch destination, Kaiaua, on the Firth of Thames for the best fish and chips.

The route included city driving, motorway, and then rolling country roads.

Not only did it prove to be a quiet ride, but I was impressed with the handling of the small car, and its power output was all that was needed for a road trip.

With a round trip of two hours, and an enjoyable hour of eating fish and chips

beach-side, I wasn’t tired when I got home, even after dealing with a jammed motorway heading back into the city.

I was assisted by the adaptive cruise control (ACC), with which I could set the speed and distance between the 1 Series and the vehicle ahead. It’s not a new function in vehicles, but each interaction of ACC makes driving safer.

In urban settings, the BMW 120 shines with its compact dimensions and light steering.

The mild hybrid system ensures smooth stop-start transitions, reducing fuel consumption in heavy traffic. The suspension is well-tuned to absorb minor bumps and potholes, maintaining passenger comfort. Features like a heads-up display and parking assist make navigating busy streets a breeze.

Engineering prowess

Priced from $68,900, the all-new 1 Series has the addition of a 48-volt hybrid enhancement paired to its 1.5-litre, three-cylinder petrol engine.

BMW’s engineering prowess is evident in the 2025 120’s handling and performance. While it prioritises comfort, it still delivers engaging driving dynamics that set it apart from rivals.

The BMW 120’s chassis is perfectly balanced, allowing for confident cornering without sacrificing ride comfort. The steering is precise and responsive, with just the right amount of feedback to make winding roads enjoyable. For added grip and stability, BMW’s xDrive all-wheel-drive system is available as an option.

The 2025 BMW 120 hatchback successfully builds on its predecessor’s strengths, offering a well-rounded package that appeals to both driving enthusiasts and those seeking everyday practicality.

Its updated design, refined powertrains, and cutting-edge technology make it a strong contender in the premium hatchback market. While it’s not the most spacious option in its class, its engaging driving dynamics and premium feel set it apart from competitors.

For those looking for a compact car that delivers luxury, efficiency, and a bit of fun behind the wheel, the 2025 BMW 120 is a compelling choice. With its combination of modern features and BMW’s signature driving experience, it’s poised to remain a favourite in its segment. T

Liz Dobson is the founder of AutoMuse.co.nz and has been a motoring writer for more than 25 years.

Revisiting Rotorua

New Zealand’s most celebrated holiday destinations is best explored from behind the wheel of the luxury campervan, as Joanna Mathers discovers.

LAKE NGAKORO IS revealed in a flash of green. At the topmost curve of a steep, winding path, it emerges incrementally, framed by native trees. Myself, my partner and our nine-year-old son are transfixed. We trot off towards the mirage, past sulphurous pools, to the lake’s edge.

The lake is the final stop on a trail that takes 75 minutes to complete and is entirely worth the effort. Fed by a beautiful waterfall, the lake is breathtaking – dark green, surreal.

My family and I are visiting Wai O Tapu, the well-known Rotorua thermal park, and the top of our “to do” list for a brief holiday.

Rotorua is a tried-and-true family destination – this is our fourth trip in as many years – but this time we are doing things differently.

No hotels or Airbnbs for us – our home this time is a luxury TrailLite campervan.

I’ve never driven a campervan before (neither has my partner) so it’s a journey of discover (literally) for all of us. The

campervan is large, luxurious and built atop a Mercedes Benz Sprint base, which drives beautifully – seamless cornering, smooth handling.

TrailLite campervans are New Zealand-made, bespoke, luxury holiday homes on wheels. New Zealand craftspeople create magic in their Pukekohe factory – each campervan is made to order. And we are lucky enough to take one on the road for a weekend.

Lakeside luxury

Our base for three nights is the Blue Lake Top 10 Holiday Park. I’ve camped in holiday parks a few times in my life, and while I enjoyed it, the wet tents, lack of nearby toilet facilities and shared kitchen space did get a little irksome.

The holiday-park-plus-luxurycampervan equation is very different. Smart TV, check (two actually). Hot water, check. Oven, microwave, toilet, plush furnishing, super soft bed, check. We arrived at the park after dark on the

Thursday night and tentatively navigated our way to our site. A warm cup of tea, and an early night reading books on the comfy bed, was the ideal antidote to the frustration of holiday traffic.

You don’t get this level of comfort in a tent.

The Blue Lake holiday park is located on the edge of the Blue Lake (unsurprisingly), nestled into pristine native forest. Nights bring the call of birds, the stars are bright through the skylight above the bed, and the quiet is blissful. We all sleep soundly.

The next day dawns slightly drizzly, so the Polynesian Spa is a must (that thermal water is blissful on cold days. First we trundle into town in our home on wheels to get a pizza for the hungry child’s lunch, before parking next to the spa.

It’s rather surreal, eating lunch in what feels like a luxe hotel while parked up on the side of the road. But that’s part of the joy – luxe comes with you when you travel in a glam campervan.

‘But that’s part of the joy –luxe comes with you when you travel in a glam campervan’

TOP Wonders of Wai O Tapu.

ABOVE A TrailLite on the road.

RIGHT Steaming pools at Wai O Tapu.

DENIZUNLUSU ISTOCK

Polynesian Spa ticked off, we decided to spend a lazy afternoon in front of the smart TV, drinking wine (the adults). It was raining and there weren’t many options, so we chose the simplest – quite frankly, I was delighted to have an excuse to laze.

Time to explore

Saturday was action day. We drove into Rotorua and had breakfast at Lime Café –a favourite for many years and somewhere we always visit. The chocolate lamingtons are a must – brick-sized, oozing with cream, they are a classic Kiwi delight.

ABOVE One of the pools at Waikite Valley hotpools.

LEFT Lady Knox geyser, which reaches 20m when it goes off at 10.15am each morning.

There is an unwritten rule that trips to Rotorua must involve thermal parks. As mentioned earlier, Wai O Tapu was our choice for this road trip. Located a little out of the city, it’s a firm favourite with visitors. Heading there of SH5, the campervan behaves perfectly.

I admit to being a bit of a snob and I really enjoyed playing the “my campervan is bigger than yours” game when looking for parking. And at 8m long, the campervan WAS bigger than most.

Wai O Tapu is one of the district’s true wonders. Bubbling and broiling, brimming with psychedelic colours, one of its key attractions is the Lady Knox geyser, which reaches up to 20m when it goes off at 10.15am every morning.

We miss the lady in action, but there are many other delights.

The renowned Champagne Pool is 65m in diameter and has a high level of CO2, which creates bubbling similar to a glass of champagne. It was formed around 900 years ago by a hydrothermal eruption; and with its orange edges and bubbling blue waters, it’s one of

the district’s best thermal attractions.

There’s the Devil’s Bath – filled with yellow/green water and reeking of sulphur. On the longest walk (there are three options) you will come to Lake Ngakoro, where we started this story.

We spend three hours at Wai O Tapu. As we are leaving, my nine-year-old asks if we can have a swim in another hot pool. We consult Google and discover that there is a lovely spot only a few minutes away –Waikite Valley Hot Pools.

Located in the Waikite Valley, the pools are sourced by of pure geothermal mineral water from the Te Manaroa Spring, which can be viewed via a five-minute walk along a scenic trail.

There are six bathing options here –with pool temperatures ranging from 35-40°C. It’s a gem of a place and somewhere we’ve not been before – great value for money and obviously celebrated by locals, who are regular visitors.

After a quiet evening watching more television we wake early on Sunday and head home.

We have grown very attached to the TrailLite – it’s provided us with transport and shelter (and made us the envy of half or Rotorua).

It’s a joy to be able to explore this special slice of Aotearoa in such style –hopefully we will be able experience luxe on wheels again one day. T

8.0 % pa Monthly Returns from (Less RWT)

Through our private credit platform specialising in property funding, our wholesale investors have access to credit approved, standalone first mortgage investments.

Secured over property. Terms 12 to 24 months.

Interest paid monthly (less RWT).