October 2023 - Quarterly Investment Update

Good afternoon,

We hope you are looking forward to the warm weather as Christmas approaches.

We are pleased to enclose our Spring update covering the reporting period from July to September 2023.

Global equities were mostly lower over the third quarter as rising bond yields and the likelihood that interest rates would stay higher for longer weighed on most growth assets.

Within the update, the lead market commentary article provides an overview of the quarter and highlights several drivers of the recent returns, with a snapshot of weakened key commodity prices, decline in house prices and stabilised interest rates, while reinforcing the value of diversification.

A more detailed summary of the various market returns through the quarter and over longer time horizons is covered in the key market movements section.

The feature article by Consilium titled ‘Lessons for investors in an AI future” takes a look at how the share market responds to technological innovations, proving that the emergence of AI can be a volatile but also a potentially rewarding experience. And finally emphasises the importance of disciplined investment principles, diversification, and patience for long-term success in this ever-evolving landscape.

Looking ahead, inflation remains at the forefront of policymakers decisions both in New Zealand and overseas. Central banks are cautious about further rate hikes, with New Zealand's central bank likely to follow the global trend unless we see a sharp rise in unemployment, and the overall economic outlook suggests slowing growth with the potential for a mild recession if tight monetary policy persists.

We look forward to keeping you informed on the performance of markets and investments throughout the coming months.

We are only a phone call or an email away should you wish to discuss anything. Please get in contact with your adviser or contact us at 0800 NO STRESS (0800 667 873) or email info@foxplan.nz if you have any questions or would like your adviser to talk through your current investment plan.

Kind Regards,

The FoxPlan Team