NZSX50 - Good News!

[blackcap]

I am still confused with this. Simplicity and Smartshares offer NZ top 50 funds. Simplicity has a management fee of 0.1% cf 0.5% for smart shares. But the funds use different indices. Smartshares use the portfolio index which limits any company to 5% of total holding. Which would you recommend?

It all depends on your risk profile and what you the investor want. You cannot say one is better than the other (fees excluded). NZ50 from smartshares will be more concentrated to lower cap stocks whilst the Simplicity one will have a greater range in its stocks. If you want accurate reflection of the index then the Simplicity one is for you. If you want the bigger stocks capped (meaning smaller stocks will be overweight) then the NZ50 from Smartshares is for you.

[sb9]

https://www.interest.co.nz/business/...-below-1-later

With this and appalling business confidence numbers y'day, most likely another cut by RBNZ in Nov.

[Tronald Dump]

It all depends on your risk profile and what you the investor want. You cannot say one is better than the other (fees excluded). NZ50 from smartshares will be more concentrated to lower cap stocks whilst the Simplicity one will have a greater range in its stocks. If you want accurate reflection of the index then the Simplicity one is for you. If you want the bigger stocks capped (meaning smaller stocks will be overweight) then the NZ50 from Smartshares is for you.

The Portfolio Index has outperformed the NZX 50 Gross over the last 1, 3, 5 and 10 years with lower volatility. This is probably because it has a higher weighting to mid/small cap due to limiting the largest stocks to a 5% weight.

[bull....]

Aussie interest rates: Reserve Bank cuts OCR to 0.75%

And the cuts are expected to keep coming from Reserve Bank governor Philip Lowe, with another reduction predicted this year and again at the beginning of 2020.

https://www.nzherald.co.nz/business/...ectid=12272740


keep the pressure on the RBNZ to keep dropping ocr rates and banks to follow with lower mortgage rates and deposit rate cuts.

[bull....]

just out

Kiwibank predicts 0.5% OCR cut

Kiwibank economists believe the Reserve Bank will cut the Official Cash Rate to just 0.5%, with the possibility of a major cut in November.

https://www.goodreturns.co.nz/articl...5-ocr-cut.html

[winner69]

just out

Kiwibank predicts 0.5% OCR cut

Kiwibank economists believe the Reserve Bank will cut the Official Cash Rate to just 0.5%, with the possibility of a major cut in November.

https://www.goodreturns.co.nz/articl...5-ocr-cut.html

Recent cuts have had little impact eh ....why have more

But then bank economists are gaming the system with ulterior motives and hoping Orr will play along.

[bull....]

Recent cuts have had little impact eh ....why have more

But then bank economists are gaming the system with ulterior motives and hoping Orr will play along.

catch 22 for some of it if you dont cut and your neighbours cuts your exchange rate will make you uncompetitive.

anyway asb predicting the same too

DEEPENING BUSINESS GLOOM LIKELY TO PUSH ANNUAL GDP BELOW 1%

ASB Bank chief economist Nick Tuffley says the survey flags the risk that the economy lost further momentum in the September quarter and "with inflation indicators also softening, the need for further stimulus is greater" and increased his expectations for official cash rate cuts."We now expect a further 50 basis points in total of OCR cuts, 25bp in November and now 25bp in February, taking the OCR to a fresh record low of 0.5 percent," Tuffley says.

http://www.sharechat.co.nz/article/8...p-below-1.html

those gentailers look pretty good

[dobby41]

catch 22 for some of it if you dont cut and your neighbours cuts your exchange rate will make you uncompetitive.

We were above Aussie for some time before to little effect.
Big cuts seem to sppok the punters - they think more must be wrong than is so stop spending.

[bull....]

We were above Aussie for some time before to little effect.
Big cuts seem to sppok the punters - they think more must be wrong than is so stop spending.

too true , but what you do when caught in a catch 22. anyway hope they direct credit everyone money to spend instead of doing QE with bonds

[dobby41]

too true , but what you do when caught in a catch 22. anyway hope they direct credit everyone money to spend instead of doing QE with bonds

Well they waited a long time before matching the Aussies before.