FirstCape reposted this
How to save our shrinking stock market... New Zealand’s savings pool is growing thanks to consistent KiwiSaver contributions and better returns earned, but the amount of money being deployed domestically is shrinking, with the biggest wealth managers choosing to increasingly invest offshore instead. “We’ve got great returns overseas, we’re getting okay returns here in New Zealand.” FirstCape CEO Malcolm Jackson told me. “As our savings industry grows, we need our capital markets to grow as well.” FirstCape invests about $51 billion on behalf of 800,000 New Zealanders directly and indirectly – making it one of the largest wealth firms in the country. Jackson said more than half that amount was invested offshore, where returns had outperformed, especially in the United States. In this interview we discussed: - Listed liquidity constraints and how the Govt could help. - How to make listing attractive (and why it may never be to some of NZ's best companies). - Balancing regulation & the impact of over-refereeing on performance. - Concessions for small to mid-cap companies. - Public v private capital. - Investing in infrastructure. I'm so pleased MJ was bold enough to have this conversation publicly and state that change is required to save our stock market. As he's told me before, "If it wasn't awkward for them to hear, they didn't hear you." Watch on YouTube: https://lnkd.in/gMCpn8hF On the New Zealand Herald: https://lnkd.in/giPR5uhv Wherever you get your podcasts: https://lnkd.in/gN7bDipk & on TVNZ+ MarketsWithMadison@nzme.co.nz
I think we should consider a slightly different tax rate for companies that are listed with a certain level of true liquidity. This will help stimulate listings in NZ for the large caps that are currently only listed on the ASX and may even help with local bank operations also.
Capital goes where it is appreciated.
My daddy was a miner, and I'm a miner's son (Pete Seeger reference).
1moArguably if your income and your home is in New Zealand, that's already massive exposure to this country's productive output/lack thereof, so deploying capital overseas in other countries and other industries is a good way to diversity and spread one's risk.