Latest News from Newealth

Market Metrics: Global Listed Companies

• Posted by Dejan Pekic BCom DipFP CFP GAICD

We were just reviewing performance numbers and this caught us by surprise.

The NZX (New Zealand Stock Exchange) has failed to deliver a positive total cumulative return over the past 5 years to 31st May 2025.

Click for charts.

This talks to the benefits of diversification and why you do not have all your wealth concentrated in one investment, even if that single investment is a country.

Things can go wrong.

Our business is based on referrals, so if you have family, friends or colleagues that want advice please ask them to contact us.

American Exceptionalism: R&D Investment

• Posted by Dejan Pekic BCom DipFP CFP GAICD

Despite President Trumps bests efforts, spending on R&D (research and development) is the real power behind American exceptionalism and it is not fading anytime soon.

American businesses continue to outspend everyone on R&D and this is the reason why EPS (earning per share) are significantly higher for American businesses compared to the rest of the World.

Click for charts.

Important to note that the Chinese are also being smart by spending big on R&D.

The reason is simple, the more money businesses spend on researching new technologies, testing ideas and developing prototypes the more they will keep innovating and improving existing products, services, processes which creates sustained wealth.

This is also the reason why PMs (Portfolio Managers) who invest in overseas businesses have a bias to buy American businesses, they want a piece of this EPS growth.

Our business is based on referrals, so if you have family, friends or colleagues that want advice please ask them to contact us.

Friday Tidbit

• Posted by Dejan Pekic BCom DipFP CFP GAICD

This is tremendously disappointing.

The Federal Labor Government is demanding to tax unrealised capital gains in superannuation for individuals with a superannuation balance exceeding $3 million.

Labor has a majority in the House of Representatives and together with the Greens they have a majority in the Senate which means that Federal Labor Government will be completely and solely to blame for this violation of public trust.

The bill to make Division 296 law has still not been presented which means that we still do not know the details of how it will work. One way it could work is as follows-

Click for chart.

To act on speculation however is almost always a waste of time and so we will wait for the detail and the passing of the legislation.

Once law we will take the necessary steps to help our clients to minimise the impact of taxing unrealised capital gains.

Our business is based on referrals, so if you have family, friends or colleagues that want advice please ask them to contact us.