Talking intergenerational investments
*Watch the full interview in the player above*
Short-term investors were reminded last week that profits can disappear quickly when the New Zealand share market had its biggest one day fall since 2008.
For longer-term investors it was either a buying opportunity or something to be observed from safety of the sidelines.
The Commission for Financial Capability advised KiwiSaver members to “sit tight, ride out the low patches and know that when the market rises again, so will your balance”.
Holding their nerve is something New Zealand’s biggest long term investors have become used to.
At a recent panel discussion hosted by legal firm Bell Gully, long term investors Ngāi Tahu, Tainui and the New Zealand Super Fund discussed their investment strategies.
Chief executive of Ngāi Tahu Holdings Ltd. Mike Sang pointed out that its investments had to be intergenerational.
“All our planning is long-term – it is ingrained into everyone’s thinking what is the impact on the next generation. It is that reinvestment for growth I think that we are prepared to invest in assets that will grow over time instead of getting an immediate return.”
Sang said the iwi favoured tourism assets because it had a desire to host people in the South Island.
Ngāi Tahu owned the Shotover and Dart river Jetboating operations and was working constantly to improve those assets, “because we are going to own them for a long time'.
Tainui Group Holdings CEO Chris Joblin said his iwi favoured investments based around land ownership.
“It is about the future generation. 1.2 million acres of our land was confiscated in 1863 and we waited 100 plus years to get that back.
In our context land is very important because of that loss. So for us we have been blessed with an endowment that is land based. It’s all about looking for opportunities to maximise that.”
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