Kia ora Whai Rawa whānau,

Recently we let you know about the fund update for the quarter ending December 2018 and the negative earnings that were processed for the Whai Rawa scheme. The December quarter was a turbulent one for global markets, with all major share markets suffering significant losses. The Whai Rawa Fund reported a -1.2% return for the quarter ending 31 December 2018.

On your individual account statements this was recorded as a ‘Withdrawal’ which concerned some members. We have updated this now to be recorded as a ‘Negative Earnings’ which more accurately reflects the nature of the transaction.

Any pātai please let us know by getting in touch.

For more information on the quarter see our Investment Commentary here.

Kia ora Whai Rawa whānau,

We are commencing a new series of Investment Updates for you. Below you will find the first Investment Commentary for the year and we will update you every month on market conditions, how your investment in Whai Rawa is performing and what this means for you.

We hope you will find it useful and welcome any feedback or pātai.

You can also see all our Quarterly Fund Updates on our website at any time – https://whairawa.com/what-is-whai-rawa/publications/

 

Market Summary

The December quarter was a turbulent one for global markets, with all major share markets suffering significant losses. On the back of concerns over slowing economic growth in China, rising interest rates and continued global trade tensions, share markets suffered from what was widely dubbed “the worst month in ten years” in October. While November brought some relief, even Christmas couldn’t protect share markets in December, as they rounded off the quarter with another large decline. The quarter finished with developed market shares (which include US, UK, Australia, New Zealand among others) falling -13.1%, erasing market gains made earlier in the year and leading to the first negative market calendar year return since 2011. 

What this means for Whai Rawa members

Investors have had a great run since the Global Financial Crisis in 2008. Indeed, global shares have been positive for the last seven years, last recording a loss in quarterly earnings in 2016. Markets have been supported by Central Bank actions (very low interest rates and quantitative easing packages) and growing economies, without the usual threat of inflation. This has led to strong and stable returns for investors, who got used to positive returns, but are now being reminded that prices can go down as well as up.

Market Outlook

The World Bank released a report in January forecasting global economic growth for the medium term to reduce relative to previous forecasts, but to remain positive, projecting global growth of 2.9% in 2019 and 2.8% in 2020-2021. The growth projections are supported by improving employment data across the US and Europe, including evidence of real wage increases in the US. Economic growth is usually a precursor to positive investment returns.

There are, however, risk factors associated with the current global environment. Despite some recent improvements in the relationship between the United States and China, there is still potential for disruption to global trade. Political risks associated with the (partial) US government shutdown and ongoing Brexit negotiations also remain elevated, adding to investors’ concerns. However, despite these risks, we believe global growth remains relatively robust and that shares are still supported by relatively strong fundamentals.

While we expect a general trend of positive returns, this is likely to be interrupted with bouts of volatility (i.e. some short term negative returns along the way).

The Whai Rawa Fund

Whai Rawa members invest in Mercer Investment Trusts New Zealand’s Conservative Fund, which has a mix of defensive and growth assets. The benchmark split is 80% defensive assets, such as bonds (50%) and cash (30%) and 20% growth assets, such as shares (16%) and real assets (4%). The Fund is expected to achieve slightly higher returns over the medium term (at least 3 years) than those expected from investing solely in bank term deposits, but there is a possibility of some fluctuations in returns in any one year.

No one likes negative returns and we know that can make some of our members quite uncomfortable. We’re not comfortable with the negative returns either, but we were pleased that the diversified nature of our fund moderated the falls compared to less diversified portfolios. More information about the Whai Rawa fund can be found in the Product Disclosure Statement.

If you have any pātai/questions please get in touch with David Tikao, Whai Rawa Executive Director on [email protected] or +64 3 974 0132.

Kia ora e te whānau!

Welcome to our new Whai Rawa newsletter – a roundup of everything that is going on around the motu and beyond!

Click below to download (5MB).

 Nā, te tīma Whai Rawa

Kia ora whānau,

You might remember that in late 2017 Whai Rawa started investigating the possibility of a Ngāi Tahu Whai Rawa KiwiSaver product and offering additional risk funds with ‘Investor Choice’. Following extensive research, Te Rūnanga are progressing ‘Investor Choice’, however the potential KiwiSaver is on hold for now and will not be developed in the immediate future.

Whai Rawa Fund Limited are currently working with potential providers to achieve ‘Investor Choice’ for Whai Rawa members and we look forward to updating you on that outcome later in the year.

Kia ora to everyone who participated in our research – tū meke! We are always looking at ways to enhance the Whai Rawa programme for Ngāi Tahu whānau so if you have any feedback, please touch base with us, we’d love to hear from you!

Nā – the Whai Rawa tīma

Kia ora e te whānau!

Welcome to our new Whai Rawa newsletter – a roundup of everything that is going on around the motu and beyond!

Click below to download (5MB).

 Nā, te tīma Whai Rawa

 

Kia ora whānau

The 2017-2018 financial year PIE tax debits are showing in accounts for the 31st March 2018. Aroha mai, unfortunately, the debits have been coded as a ‘Special WD’ (also known as a Special Withdrawal), when it should read ‘PIE tax’. Please accept our apologies for this IT error. We’re obtaining a new file with the PIE tax debits of 31st March 2018 recoded. They should read correctly in accounts by 5th May 2018. Thanks for your patience.

Kā hua o te Kahuru Whai Rawa – celebrating 10 years of success! It’s the Whai Rawa 10-year anniversary and if you’re a Whai Rawa member*, you’re in the prize draw to win some cool prizes. 10 yr poster wh rawa red 13-14 - TPR - FINAL

Whai Rawa has grown considerably in the 10 years of operation, with the first member admitted back in September 2006 and now has more than 22,000 members. Together our members have more than $53M in the fund. To-date more than 2,000 members have collectively used more than $5M in Whai Rawa savings to access tertiary education, home ownership and greater comfort in retirement.

As a Whai Rawa member, you are already in the draw to win some great prizes.

Click on the picture to find out more about the prizes.

Between July and September 2016 Whai Rawa will draw prizes for:

–  10 x $100 Whai Rawa cash vouchers (to be deposited into a Whai Rawa account of your choice)

–  5  x iPad mini’s

– 2 x Pounamu (to the value of $250 each)

–  A whānau weekend in Queenstown, including NZ-based internal flights, accommodation, rental car, dinner voucher and whānau pass to Ngāi Tahu Tourism’s Shotover Jet (2 x adults and up to 2 x tamariki)

– A whānau weekend in Rotorua, including NZ-based internal flights, accommodation, rental car, dinner voucher and whānau pass to Ngāi Tahu Tourism’s Rainbow Springs and the Agrodome (2 x adults and up to 2 x tamariki)

 

All Whai Rawa members* are automatically in the draw to win! Stay tuned to TahuFM or follow Whai Rawa on Facebook to find out more about the prize draw.

*’Whai Rawa 10th birthday prize draw terms and conditions‘.