While many of the challenges from 2022 will continue into this year, there are reasons for investors to be optimistic.
To begin with, following a year of declines, equity market valuations have fallen back to more attractive levels. It means that, as an active manager, there are opportunities for us to invest in quality companies at attractive prices. Meanwhile, in fixed interest markets and with the majority of interest rate hikes behind us, bonds now offer a more attractive outlook than they have for many years.
From an investment standpoint, 2023 may once again test investors’ nerves, but we would remind you to stay focused on your long-term goals. Market falls, such as those we saw last year, are part and parcel of investing. Nevertheless, whatever the year brings, we believe our approach to investing – with an emphasis on diversification and investing in high quality and highly liquid investments – will help smooth out any bumps along the way and allow us to capitalise on any opportunities.
Finally, we continue to place importance on our approach to responsible investing. One of the most significant developments recently was the launch of the Stewardship Code Aotearoa New Zealand. ANZ Investments is proud to support the code, and is one of the founding signatories. The good news is there’s strong alignment with our existing practices and approaches. Last year, we also published our inaugural stewardship updates, and took steps to provide even greater transparency on how we’ve engaged with companies.