Certus Market Update 25 March 2020

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CERTUS MARKET UPDATE 25 MARCH 2020

Good Morning <<First Name>>
NZ TAKING POSITIVE STEPS IN FIGHTING COVID19

As you will know the New Zealand Government has moved NZ into “Level 3 Restrict” Alert category of the Covid-19 situation moving to “Stage 4 Eliminate” tonight.

 

The Global Covid-19 situation has significantly escalated over the last 3 weeks with Europe, US and UK being struggling to contain the outbreak. I personally think the NZ Government’s response by moving into Level 4 Eliminate is a positive step in trying to restrict and eliminate this Covid-19 disease.

 

TRY TO KEEP CALM AND BE PATIENT 

The financial markets including the NZ Share market has been very volatile over the last 2 weeks due to the escalating situation. The Covid-19 outbreak has been a very unpredictable and rapidly moving situation.

 

I can understand clients being nervous and concerned about the capital value of their investment portfolio’s dropping since February 2020. Please try to keep calm, be patient and review your investment portfolio each week or month rather than looking at it daily.

Certus Financial Group really appreciate clients’ patience and understanding during these difficult times.

 

I have included some graphical information of the Global Share (S & P 500) market crashes of more than 10% and the significant recovery afterwards.

After each Global Share market correction there has been a strong recovery after 12 month and 36 month periods.

I have also included a more “optimistic” investment update from Greg Fleming, AMP Capital Head of Investment Strategy titled “Value rapidly building in Markets?”

AMP Capital Income Generator and Harbour Income Fund Update

 

  • The AMP Capital & Harbour Income Funds will continue to make income distributions
  • The AMP and Harbour managed funds are professionally managed by experienced Portfolio Managers
  • The capital value (unit price) can move up and down, however this doesn’t affect the income payment
  • Both the AMP & Harbour Income funds have some Cash holding in which the fund managers will purchase good value assets/securities in the current market
  • These funds hold a majority of quality Local Government Corporate Bonds, NZ Bank Bonds, high Dividend NZ shares (Spark, Fisher & Paykel Healthcare, Genesis Energy, Goodman Property Trust, Contact, Infratil), smaller holdings in Global Property and Global Infrastructure

 

Please see the AMP Capital Income Generator Fund and Harbour Income Fund information, top ten holdings as at December 2019 (AMP Income Generator) and February 2020 (Harbour Income Fund:

 

AMP Income Generator Fund

Harbour Income Fund

Certus Business Operations Remain Open

 

Certus Financial Group will be still open for business and will be operating from home until further notice. Our office is now closed.

 

For Investment Advice Questions
please contact Brendon White and Chloe Robertson

 

Brendon White:

Email: brendon@certusnz.co.nz

Phone: 09 365 5904

Mobile: 027 271 7464

 

Chloe Robertson

Email: chloe@certusnz.co.nz

Mobile: 027 523 1914

 

For Administration queries please email Robyn Freeman @robyn@certusnz.co.nz , 09 377 0951

 

Please visit our Certus Financial Group website for more information www.certusnz.co.nz

Kind Regards
Brendon White
The Certus Team

for the latest market updates visit us  at
www.certusnz.co.nz 
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