Andrew Gawith, Director at Gareth Morgan Investments
It's been a tough time for investors lately with the world's major sharemarkets struggling to produce any meaningful capital gain over the past five years.
The disappointment, though, goes deeper: since the start of this century the US sharemarket, measured by the S&P 500 Index, has fallen by 13 per cent, and that's before taking into account the erosion in value caused by inflation over that time.
In contrast to shares, world bonds have performed spectacularly well (up over 100 per cent) since 2000. The yawning gap in returns between bonds and shares doesn't depend on the starting point being 2000 either; you have to use more than two de...
Susan Easton, senior equity analyst at Gareth Morgan Investments
Video Transcript
Interviewer: Susan, there has been discussion in the media this week about the upcoming Facebook IPO, can you tell us what an IPO is?
Susan: IPO is just a fancy way of describing a company that was private and it’s about to go public and list its shares on the stock exchange. And the acronym actually stands for initial public offering.
Interviewer: Why do organisations like Facebook need to do an IPO?
Susan: Well in particular for Facebook, the owners Mark Zuckerberg and co just want to get rid of their shares, and that’s an easy way of doing it...
Gareth Morgan, Director of Gareth Morgan Investments and author of The Big Kahuna
In its election campaign Labour promoted a capital gains tax. That at least recognises that we have a terrible hole in our tax base, and what results is a misallocation of capital to the detriment of the economy.
Investors quite rationally invest to maximise their after-tax returns, and when you have a hole in your tax regime they will gravitate to opportunities where tax can be avoided totally. That is seldom the same place where the benefit for the economy as a whole can be maximised. It is in the interest of policymakers then to ensure these effects are minimised.
In New Zealand over recent years there has been a gross over-in...
Morgan Online January 2012 GMI: Business as Usual after Sale to Kiwibank
Markets: European Recession Effect on NZ
Investment: Facebook – The Coolest Stock on the Block?
Conservation: Our Far South Crew Set Sail
Fisheries: Hook, Line and Blinkers
Money: Free Investment Review
GMI: Business as Usual after Sale to Kiwibank Last Wednesday (18 Jan) Gareth announced the sale of Gareth Morgan Investments (GMI) to Kiwibank. The change of ownership takes effect from 1 April 2012.
However, it will be business as usual for our clients and members.
On the day of the announcement we published a couple of articles:
The press release Interview with Gareth on the sale Markets: European Recession Effect on NZ ...
Last week’s announcement of the sale of Gareth Morgan Investments (GMI) to Kiwibank was big news. But it won’t mean big changes to the way we manage your investments.
While there will be a change of ownership at GMI from 1 April 2012, it will be very much business as usual for our clients and members. Over the medium term, we believe the sale will enable us to deliver an even better level of service.
Gareth Morgan remains a key member of the investment strategy team as well as a major client. The sale will mean that Gareth has more time to devote to investment strategy.
“To be honest I’m relieved to hand over the duties of ownership. My passion remains investment strategy, the standard of client service, and innovation. Now that ...
Chris Worthington, Senior Economist for Gareth Morgan Investments
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Nathan Field, Senior Equity Analyst at Gareth Morgan Investments
In case you hadn't heard, one of the most anticipated floats in recent history is likely to come to market this year. And no, it's not Mighty River Power. Facebook, already the stuff of Hollywood movies, is gearing up for an initial public offering (IPO) that will add a new chapter to the social network's story.
It's easy to see why investors are excited. Along with Google, Apple and Amazon, Facebook is at the forefront of the consumer revolution on the internet. Early guesstimates put the company's value at as much as US$100 billion ($124 billion). That would make it bigger than established corporate giants Disney, Goldman Sachs, Visa, e...
Kiwibank Group Press release
Kiwibank and Gareth Morgan Investments (GMI) confirmed today that the Kiwibank group will purchase GMI’s business, including the high profile Gareth Morgan KiwiSaver Scheme.
GMI currently manages over $1.5 billion, of which $650 million is KiwiSaver related, on behalf of more than 57,000 clients.
GMI will operate as a stand-alone entity under the Kiwibank Wealth and Insurance line of business. Gareth Morgan will remain a major client of the business and member of the investment strategy team. Both GMI principals, Gareth Morgan and Andrew Gawith, will remain directors of GMI alongside two Kiwibank-appointed directors.
Kiwibank Chief Executive Paul Brock described t...