NZ a great place to invest after Covid-19

NZ a great place to invest after Covid-19

During the Covid-19 pandemic, few people know which way to go when it comes to sound investments. According to financial experts in the United Kingdom, however, New Zealand is near the top of the list when it comes to countries that are favourable for investors.

In May, Australia and New Zealand decided that they will ease travel restrictions and allow cross-country tourism. Another country that will be easing travel restrictions due to successfully flattening the curve is Germany. According to the NZ Herald, this may lead investors from the UK who are looking for more internationally diversified portfolios to consider investing in opportunities in New Zealand.

According to an investment director at Fidelity International, Tom Stevenson, the best thing an investor can do – in absence of a crystal ball – is make sure they’re exposed to a range of markets around the world. “In doing so, you can, over time, capture the outperformers and minimise the risk of being overexposed to those markets that lag behind. The trajectory of the recovery is as unpredictable as that from the 1987 crash. There are many variables, not least uncertainty about subsequent ‘waves’ of the virus until a vaccine is found – and the various approaches to testing that have been implemented by different countries. Some economies will recover faster than others, and only by being well-diversified can investors ensure they’re best placed to benefit from any sustained economic and market rebound,” says Stevenson.

Stock market-listed investment trusts and funds are the best options for those looking to invest in New Zealand. Manager of investment trust Aberdeen New Dawn, James Thom, says there is “quite a bit of investment opportunity” in New Zealand and Australia.

“Historically, New Dawn has been relatively light in these markets, preferring stocks in higher growth emerging markets that have more appealing long-term growth potential. But with the abrupt sell-off in equity markets in Australia and New Zealand on account of the Covid-19 outbreak, we’ve seen quite compelling value emerge in these markets and have been able to buy high-quality businesses at attractive valuations,” says Thom.

If you are considering immigrating to New Zealand, you can rest assured that it will be a good place for your future investments. Need help immigrating to New Zealand? Then contact Tri-Nations Migrations today.

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