Whakarāpopototanga mākete / Market Commentary to 31 December 2024
Many central banks around the world, including the RBNZ in New Zealand reduced the Official Cash Rate (OCR) at the end of 2024. Inflation has moderated, returning to the RBNZ target range, enabling the OCR to be reduced to 4.25% in November. This in turn has seen bank mortgage rates reducing, which will represent good news for home-owners.
New Zealand saw consumer and business confidence grow in late 2024 but the GDP release showed NZ was still in a recession based on a 1.0% contraction in economic data. Economists are expecting further rate cuts in 2025 as the economy remains weak and cost of living pressures are likely to keep consumption suppressed.
Equity markets and commodity markets had mixed results in December 2024 as a strong performance during the year trailed off.
As President Trump was re-elected last year markets scrambled with excitement but as we now have Trump in office the market is considering what the next four years might look like especially for international trade. Trump brings both upside (in the form of government spending, less regulation and corporate tax cuts) and downside (due to tariffs and his “America first” stance) uncertainty to growth and inflation. International economic growth is expected to remain resilient in 2025.
All three Whai Rawa funds had positive returns for the quarter to 31 December 2024.
Whakaata Haumi / Investment update video
The Whai Rawa tīma discuss the current market situation.
Hua ahumoni ki Whai Rawa / Whai Rawa Returns as at 31 December 2024
Notes: Past performance is not a reliable indicator of future performance. Where applicable returns include, and assume the full utilisation of, tax credits. Net returns shown are returns after fees and taxes. The benchmark is the strategic asset allocation weighted benchmark index return, where the benchmark indices (which comprise of market indices and peer group indices) are defined in the Statement of Investment Policy and Objectives (SIPO). The benchmark does not include any deductions for tax but does include deductions for some charges. Where applicable returns include, and assume the full utilisation of, tax credits. Numbers are rounded.
This information does not take into account your personal objectives, financial situation or needs. Historical market performance may not be indicative of future market performance. Therefore, you should not act on this information if you have not considered the appropriateness of this information to your personal objectives, financial situation and needs. Before making any investment decision, you should refer to the Product Disclosure Statement and / or consult a licensed financial advice provider.
Whai Rawa Fund Limited is the issuer of the Whai Rawa Unit Trust. A copy of the Product Disclosure Statement is available at www.whairawa.com/pds. All content is subject to WRFL’s financial advice disclosure statement available here www.whairawa.com/financial-advice.
