What I’ve been investing in is a monthly series covering what investments I’ve made during the month, and any investing related news that I’ve found interesting. June 2019 has been a busy one – I’ve made new share purchases, and there’s been some new listings on the NZX!
The below is not financial advice, nor a recommendation to invest in the following. Please do your own research before making any investment decisions.
What I’ve been investing in
Infratil, the part owner of Wellington Airport, Trustpower, and Canberra Data Centres, was the second company I ever invested in back in 2015. They recently announced that they would be acquiring a 50% stake in Vodafone NZ, and would raise $400m to fund the acquisition. Part of this money would be raised from current shareholders, offering them a chance to buy 1 additional share for every 7.46 shares they already held, at a discounted price of $4 per share.
I was happy to accept the offer to buy my additional shares in Infratil. I think Vodafone is a solid acquisition, in a world where telecommunications is becoming more and more ingrained into our lives. The Infratil share price is currently at $4.65, so my purchase of additional has already been profitable.
Summerset Group Holdings
Summerset is a retirement village operator and developer. Their share price has been struggling recently, dropping from a high of almost $8 to currently around $5.50 – the main reason for this being slower housing markets in Auckland and Christchurch causing weaker sales.
I took this opportunity to buy shares in Summerset while they’re “on sale”. While this company might perform poorly in the short-term, the long-term prospects are great – we have an ageing population that will increase demand for Summerset’s products, and the company has a fantastic track record of developing and expanding their villages.
In my post 5 things to know about investing in Peer to Peer Lending, I noted that it was often difficult to get loans to invest in. This month there was higher than usual demand for loans on Squirrel Money, so I took this opportunity to increase my Peer to Peer Lending portfolio. I feel like Peer to Peer Lending is an attractive option right now, with interest rates offered by bank deposits and bonds declining.
I have a small Australian investment portfolio, where this month I continued to drip feed money into Ratesetter, an Australian Peer to Peer lending platform.
Weed stocks come to NZ
Weed stocks have been a massive hit around the world, as decriminalisation and legalisation increases, and the medicinal cannabis industry gains traction. This month we got our first medicinal cannabis company listed on the New Zealand sharemarket, with Cannasouth conducting an IPO at 50 cents per share. Investors in this IPO won’t be feeling very high though, as the share price has now dropped by a third to 33 cents.
New SmartShares ETFs
SmartShares has listed eight new Exchange Traded Funds on the NZX. Most of these funds have a focus on ESG investing (avoiding any companies that aren’t environmentally or socially responsible), and there’s a couple of thematic funds as well, investing in healthcare and robotics. It’s always good to see more solid options for New Zealand investors.
Bitcoin goes through the roof
The Bitcoin price has exploded, going up from around $8,400 at the beginning of the month to over $13,000 at one point (Now $11,700 at time of writing). I’m always sceptical when the price rises so rapidly, as these rises are often followed by steep drops back down. If you’re keen to invest, do so with caution.
Sharesies joins the big boys
Sharesies announced that they’ve become an NZX participant. They’re preparing to offer users the ability to buy and sell shares in individual companies listed on the NZ sharemarket. Sharesies will join established brokers like ASB, Jarden, and Forsyth Barr, bringing much needed competition to this area. I recently wrote an article about the pros and cons of investing in individual companies compared to funds.
Money King NZ news
Money King NZ has been live for two weeks now! The most popular article has been How to choose which fund to invest in on InvestNow. Coming up I have articles on Property Crowdfunding, funds, and the different types of investments you can make in NZ. I’d also be keen to hear if you have any topics you’d like me to cover. Thanks for reading!
The content of this article is based on my personal opinion and should not be considered financial advice. The information should never be used without first assessing your own personal and financial situation, and conducting your own research. You may wish to consult with an authorised financial adviser before making any investment decisions.