When you need to invest in the market, check out Wellington fund
As we approach the end of the year, the Wellington Fund is giving you a new opportunity to take advantage of the rising prices of some of the market’s most popular stocks.
The fund has created a new asset allocation which will give you a range of stocks which it believes are among the best-performing in the world and which will put you in a position to profit from any price drops in the future.
The funds latest asset allocation, created by a team of experienced fund managers and market professionals, is based on the idea that there is a good chance that one of the most profitable markets in the developed world is going to end up outperforming its peers in the near future.
“It’s not about a ‘buy’ or ‘sell’ but about finding the best stocks in the universe to invest on,” said CEO and founder of the Wellington fund, Michael Smith.
“We have invested over $1 billion in the Wellington index, which is the largest single investment in New Zealand stocks.”
The Wellington index is one of Wellington’s largest market indexes, with a value of over $100 billion, which we believe will be around $50 billion over the next few years.
“There are two broad categories of stocks that the Wellington funds picks for its investment portfolio: those that have been around for a long time and those that are rising in value.
The Wellington Fund has also created an investment fund for the New Zealand stock market, which has an average price of about $45 per share, compared to $26 for the average market index.”
As a result of this, we believe that the stock market in New York will become the world’s most valuable stock market over the coming years, which will drive our long-term investments in the New York market,” Mr Smith said.”
This means that the NZ Stock Market Index is now worth around $1 trillion.
“The Wellington fund’s index, the New Wellington Fund Index, is set to rise by a total of about 3 per cent to about $62.2 billion by the end-of-year.
While the Wellington Index is expected to outperform the index over the year ahead, the index itself is not necessarily the only reason why Wellington is a great investment for investors.”
While New Zealand has some of New Zealand’s strongest infrastructure and the world leading pharmaceutical companies, the financial sector is not performing as well as it could, so we expect this to improve over time,” Mr. Smith said, adding that he expects Wellington to continue to outpermark its peers over the medium term.”
Our fund managers believe that Wellington’s stock market will continue to grow in value as the rest of the world adjusts to the global financial crisis.
“While the stock markets are likely to continue their steady ascent over the longer term, the average price per share is also expected to decline over the period, as investors take advantage and look for bargains.”
Over the next 10 years, we expect Wellington to experience an annual rate of decline of around 3 per-cent,” Mr Sjodin said.
The money invested in the funds fund has also enabled them to add a new fund to their portfolio: the Wellington Wellington Fund Fund.
The new fund, which was launched on Monday, is a mix of assets which they believe will provide investors with better than average returns over the long term.
For example, the fund is comprised of the New Stock Index, which includes a range which include the NZX-20 and the New West Australian Index.”
New Zealand stocks are up more than 20 per cent this year and the Wellington ETF is an alternative to index funds, which typically have lower returns over a shorter period,” Mr O’Brien said.
There are also two types of stocks in this fund: NZX, the world leader in NZX index funds and the global leader in Australian-listed stocks.
Both of these fund types have an average annual return of 4.3 per cent, which represents a large upside potential for the Wellington Funds fund.”
A Wellington fund will have a higher return than NZX or Australian-linked funds, but we think Wellington has the best return potential in the portfolio,” Mr Curnoe said.
All in all, Mr Coughlan said the Wellington Investments team has invested over 10 billion dollars in Wellington stocks over the past five years, and he is very proud of the fund’s performance.”
I have worked in the investment industry for more than 30 years, so I know a thing or two about investing,” he said.
Read more about the Wellington Investment Fund: