The right approach to investing as inflation soars

Seasoned investors and market newbies alike could be forgiven for not being optimistic about the financial world right now. In a volatile year for the stock market and with inflation soaring around the world, planning your financial future is difficult in 2022. With inflation stubbornly high and interest rates rising, it’s important to take the right long-term decisions.

Scott McKenzie, managing director of unlisted commercial property investment firm PMG, said it was a difficult environment for Kiwi investors as they considered where to put their money.

“It’s certainly natural for investors to feel a bit of anxiety in the current environment,” he says. “There are various headwinds ahead and stock markets have been incredibly volatile.”

As investors weigh their investment options, McKenzie believes Kiwis will be best served by seeking professional financial advice and building a well-diversified portfolio.

“Take a long-term view when investing,” he tells Kiwis. “Don’t worry too much about short-term jitters in the market. When investing, spread your risk across multiple asset classes. Then, over time, your investment portfolio will take care of you.”

PMG is a New Zealand commercial property investor with 30 years experience. The company operates five unlisted property funds for Kiwi investors, and McKenzie says commercial property has shown strong and consistent performance over the years.

Scott McKenzie, managing director of unlisted commercial <a class=real estate investment firm PMG.” style=”width:100%;display:inline-block”/>

PROVIDED

Scott McKenzie, managing director of unlisted commercial real estate investment firm PMG.

“We are backed by bricks and mortar, and commercial real estate is often seen as a defensive asset class as well as a great investment option. People feel comfortable investing with us because they know that real estate is a long-term investment strategy.

“Provided you stay on course and put it in your bottom drawer, a commercial real estate investment could take care of you,” he adds.

In times of uncertainty, commercial real estate can be a smart addition to a portfolio, he says.

“Despite the movement in real estate valuations, cash flow is really constant in commercial real estate over a market cycle,” he adds.

PMG ensures that each of its funds is diversified. Each offering investments in different types of New Zealand properties, from office buildings to warehouses and manufacturing sites. The company’s property management team actively manages investments, ensuring a close working relationship with tenants across the country and high occupancy.

“We are diversified around multiple geographies, buildings, tenants and sectors. Regardless of changes in property values, we have a consistent income profile and can provide investors with consistent cash returns. one of the main reasons people invest with us – they want cash returns for their income or retirement,” adds McKenzie.

PMG is a New Zealand commercial property investor with 30 years experience.

PROVIDED

PMG is a New Zealand commercial property investor with 30 years experience.

Regulated by the Autorité des Marchés Financiers as an approved commercial real estate fund manager, PMG provides access to the commercial real estate market for everyday investors. Kiwis can buy as few as 1,000 units to start. Although the funds are not listed on an exchange, PMG provides liquidity through a secondary market, allowing investors to buy and sell twice a month.

As New Zealanders consider the shape of their wallets, PMG has made its funds easily accessible. The company has an investor relations team across the country, while people can also invest through the DIY platform InvestNow during fundraising periods.

This comes as PMG prepares to raise additional capital for its flagship fund, Pacific Property Fund Limited. As one of the largest unlisted commercial property funds in New Zealand, the Pacific Property Fund already owns 20 properties for 64 different tenants with a total portfolio value of $437 million.

The Pacific Property Fund targets well-located industrial, office and retail properties across New Zealand. PMG will soon raise capital for the fund as it seeks to purchase further properties in Hamilton and Whangārei. The offer will be open to all investors.

“We try to make it as easy as possible for New Zealanders to talk to us and invest with us,” McKenzie said. “We want as many people as possible to participate in commercial real estate and hopefully chart a path to financial freedom.”

As Kiwi investors consider their financial plans for the year ahead, McKenzie says it has never been more important for New Zealanders to look beyond the noise and focus on the long term.

“Get advice and make a decision,” he adds. “Investing is all about timing and having a long-term view. It’s a pretty simple philosophy, but if you look through the short-term headwinds, the approach will take care of you. “

Learn more about PMG’s upcoming offering here.

Pacific Property Fund Limited is seeking preliminary interest for an offering of shares of Pacific Property Fund Limited. Expressions of interest can be made by contacting PMG’s Investor Relations team. Currently, no monies are sought and no shares can be requested or acquired. No expression of interest will imply an obligation or a commitment to acquire any shares which may be offered.

Any offer made will be made in accordance with the Conduct of the Financial Markets Act 2013. This article is not, and none of Pacific Property Fund Limited, its related entities or their staff provide, financial or investment advice. It is recommended that potential investors seek professional advice from a Financial Advice Provider who takes into account the personal situation of the investor.

Comments are closed.