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Fund managers back banks, value in tapering cycle

Fund managers back banks, value in tapering cycle
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Milford Named Consumer NZ People s Choice In KiwiSaver For Record Fourth Year Running

Thursday, 1 July 2021, 9:10 am Milford’s active investment philosophy and focus on high quality client service has helped it to again top the rankings in this year’s Consumer NZ People’s Choice Award for highest KiwiSaver customer satisfaction. Milford’s Head of KiwiSaver & Distribution, Murray Harris, said Milford’s investment approach and keeping members informed enabled it to focus on the things that mattered most to KiwiSaver investors. “People want a good return on their investment, but increasingly they also want to know their money is being invested in a way that matches their values,” says Harris. “By analysing individual

Expert warns massive interest rate hike could make housing market fall over

Expert warns massive interest rate hike could make housing market fall over Newshub 4 hrs ago © Video - The AM Show; Image - Getty Images Mark Riggall on The AM Show. A financial expert doubts the Reserve Bank is going to raise interest rates too much despite growing inflation, because it ll destroy the housing market. Interest rates are at record lows, driving up house prices and making it cheap to borrow. They were already relatively low, encouraging spending in the post-global financial crisis years, but fell to 0.25 percent as COVID-19 hit last year. As a consequence, house prices skyrocketed - Kiwis seeing it as a safe investment as stock markets fluctuated. 

Fee reduction for flagship Milford fund | Money Management

Head of Australian business, Kristine Brooks, said: “I want to ensure that our offer reflects our commitment to support financial advisers and their clients, as well as our desire to expand our adviser client base. Advisers will now have access to the same performance and team, at a fee that is more accessible”. Brooks had previously spoken about how the New Zealand firm was looking to target financial advisers after having spent time getting the funds rated and on nine Australian platforms. The Milford Australian Absolute Growth fund had returned 24.3% over one year to 31 May, according to FE Analytics, versus returns by the Australian Core Strategies absolute return sector of 15%.

Reserve Bank won t hike interest rates massively as it d make housing market fall over - expert

Riggall said with prices so high, many recent buyers are stretched to their limits already. If interest rates rise, if you re borrowing against the median home in New Zealand and rates rise 1 percent, that could cost you more than $4000 a year in extra repayments. For some people it s going to be difficult - bear in mind that other costs are going up as well. Based on long-term fixed mortgage rates, Riggall said the banks appear to be expecting a rise of about 0.4 percent in the next 12 months. But whether the Reserve Bank will go further than that remains to be seen. 

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