The following article is written by Jeremy Henderson from Henderson International Ltd the pension transfer specialist used by Hamilton Hindin Greene Ltd. I can advise that KiwiSaver Schemes have lost their QROPs status, which has been back dated to 6th April 2015. They have been removed from the HMRC list of QROPS schemes QROPS Schemes must not allow any withdrawals prior to age 55 apart from ill health. As Kiwi Saver schemes do allow withdrawals for financial hardship, permanent emigration...
Overview: Arvida listed late last year, becoming the 4th retirement village operator on the NZX. They are also currently the smallest such provider, with 17 villages and aged care facilities around the country. As with its listed peers, Arvida is looking to expand, and this week announced the acquisition of three Auckland villages. Pros: The $62million Auckland purchase is instantly earnings accretive due to the high occupancy levels of 97 percent in the acquired villages, and the “strong care focus”....
Overview: The ‘Big Four’ as they are colloquially known consists of Commonwealth Bank, Westpac, ANZ and NAB. All four have their respective strengths and weaknesses, and all four have a heavy presence in New Zealand. Today we are going to bypass the conversation over which bank will offer investors the best bang for their buck and look at the Australian banking sector as a whole. Pros: The Big Four boast some of the highest net interest margins in the world,...
Overview: Technology companies in the growth phase need two things; a high demand product, and plenty of cash. Wynyard has both of these items in abundance after successfully raising $40 million in a private placement to institution’s this week. Wynyard has also offered New Zealand registered shareholders the chance to participate in a Share Purchase Plan. The $5 million set aside for “Mum & Dad” investors is unlikely to be enough to satisfy their demand for the stock. Pros: The...
Overview: The exit of Chevron from the NZ fuel market was flagged last week when the company sold their holding in the New Zealand Refining in a block sale to institutions and broking firms. This complete exit was confirmed when Z Energy announced an agreement to purchase Chevron’s downstream fuel business, principally the Caltex brand and the associated assets. Pros: The $785 million acquisition will be earning accretive from the get go, with earnings per share expected to rise by...
Overview: SkyCity is rolling the dice with approximately $1 billion of investment over the next few years. This includes the controversial New Zealand International Convention Centre (NZICC), the associated hotel and carpark, and a major redevelopment of their Adelaide property. The Company has also allowed $50 million for “internal building works and the purchase of additional gaming product.” Pros: The additional gaming product noted includes 230 gaming machines and 40 tables which were part of the deal made with the...
Introduction The Health and Safety Reform Bill (The Bill) is expected to come into power in the second half of this year (2015). The Bill is a result of the Pike River disaster (2010) and is the “biggest change to health and safety in 20 years” Hon. Simon Bridges (MP). Mr Bridges claims in his press release “Good health and safety is good for business. It is an investment in improved productivity.” In this essay I will critically analyse the topic...
CHINA: PAST, PRESENT & FUTURE by Jeremy Sullivan The rapid progression of the Chinese economy over the last 30 years has turned the nation into a world superpower, with a population of 1.39bn (2013) and GDP of 8.2tn USD (2012) which is still growing at a rate of 7.7% p.a. (2014). The future of China will have ramifications for not only wider Asia; but the world economy as a whole. In this essay I will firstly look at the rise of...
Make hay while the sun shines, is a saying well known to many New Zealanders; unfortunately the dairy industry is caught in a supply and demand storm. The Dairy industry has been suffering from depressed milk prices since the boom of 2013/2014 when a kg of milk solids (kgMS) was selling for $8.40, with a 10 cent dividend. There are a number of factors that have led to the fall in dairy prices; these include political events, geographic factors, and...
Written by Jeremy Sullivan for the University of Canterbury Executive Development Programme. Jeremy Sullivan|Free Ph: 0800 10 40 50|DDI: (03) 353 0797| Investment Advisor (AFA) | BCom. Finance. Mgmt. NZX Dip| Level 1, 83 Victoria Street, CBD, Christchurch, 8013 E-mail: jeremy@hhg.co.nz Unless we collectively focus more capital on disruptive innovation, efficiency gains will lead to higher unemployment and stagnant or negative economic growth (Christensen, 2013). In this essay I will be addressing the topic question "What is technology disruption and...
