Rebecca Thomas on the Taylor Swift inflation phenomenon

Rebecca Thomas, founder and chief executive at Mint Asset Management.

Rebecca Thomas, founder and CEO of Mint Asset Management Limited, is a professional director, entrepreneur, lawyer and investor. With a mission to give New Zealanders unfettered access to professional investment expertise and the tools to be financially independent, Rebecca founded the substantial wholesale fund management business Mint in 2006. In 2021 she founded Amplifi Group, of which she is a director.

What are your hopes for the new government?

That things really get done. I feel the country has been in limbo for the last three years. Policy promises have not been fulfilled. We need a focused agenda for the long-term benefit of New Zealand and a laser-like focus on execution.

How would you describe 2023 for your business?

Historically, very high interest rates are a real challenge for growth investment strategies. Getting investors to hold their course has been a major challenge in the face of persistent volatility. Keeping employees engaged and productive is the new norm for business owners.

What will be your biggest business challenges in 2024?

2024 will likely see the negative impact of high interest rates and high inflation fully hit home. Personal balance sheets are strained and there isn’t a lot of fiscal scope for the Government to act as a counterbalance to this. For talented people, New Zealand is losing its shine as an attractive place to live and work and given the scarcity of resources in our sector this is an increasing challenge.

What opportunities do you see in 2024?

Hopefully, financial markets look forward to lower inflation and a resumption of growth even as the real economy is under pressure. Investors have suffered the worst downturn in 30 years, and we badly need a) a resumption in investment confidence and b) balanced portfolios to do the job they are designed to do. We need a feel-good factor to lift our collective spirits as a nation and create more cohesion. The news in late November that SailGP will not be coming to Auckland is not what I was hoping for.

What was the most interesting news story of 2023?

On the inflation theme, that Taylor Swift, Beyoncé, and Bruce Springsteen were the cause of higher inflation as their tours had a significant effect on ticket prices, travel costs, and the cost of accommodation in cities with scarce resources. Stockholm was evidenced as a great example of this impact.

What are your predictions for 2024?

That we (New Zealanders) will get a rude awakening about the task ahead in terms of infrastructure replacement and futureproofing. That Biden will need to stimulate the US economy to improve his chances of re-election, and in doing so will let the inflation genie out of the bottle again. Russian interference in the world order will get even easier. AI, cyber-attacks, and the potential for Trump to return to the White House.

What’s the worst mistake you have made in business?

Underestimating how long change takes. Because I have an energetic and “can do” personality, I usually overestimate the velocity of potential change in the business environment.

What would you rate as your greatest success?

Starting my investing journey at an early age, including investment in both financial assets and businesses.

Where and how are you holidaying this Summer?

I will be in New Zealand with relatives visiting in swathes from the UK. Hoping for some fine boating weather to showcase our beautiful marine environment, fine wine, and food. Hopefully, everyone can get some well-deserved R and R.

What would you recommend as a good book to read over Summer?

Prophet Song by Paul Lynch and Going Infinite by Michael Lewis.