Award-winning fund manager Milford saw its offshore currency investments fuelled this week and is keen to buy more shares of New Zealand companies, after the Reserve Bank of New Zealand strongly signalled it was done hiking interest rates.
Deputy chief investment officer Jonathan Windust told Markets with Madison he was keen to “pull the trigger” and look to swap some of its cash and fixed income assets for equities, after receiving the most certainty from Governor Adrian Orr he’d had in recent years.
“In terms of the New Zealand market, we can look at things with a slightly more positive light. It does make companies more attractive.”
He believed a turning point in the rate cycle could benefit companies tied to the housing market such as retirement village operators and dividend paying stocks, but many New Zealand companies were still overvalued, especially Mainfreight and Fisher & Paykel Healthcare.
