Over the past 18 months, the financial markets in New Zealand and globally have experienced a prolonged period of uncertainty. While there are indications of a potential recovery, the markets have not yet regained their previous levels. As a result, investors are cautious about the future. In such an environment, it is increasingly critical for individuals and organisations to safeguard their wealth and generate consistent returns.
Market Volatility Impacting Investment Returns
The decline in NZ financial markets can be attributed to a number of local and international factors. These include global economic challenges, geopolitical uncertainties arising from the Russia-Ukraine war, and the lingering impacts of the COVID-19 pandemic. These economic pressures have led to reduced investor confidence and lower market returns.
Protecting Wealth & Achieving Consistent Returns
Achieving consistent returns has become more challenging, particularly for individuals who rely on their investments for income or retirement planning. This situation has created understandable concern and a need for prudent financial decision-making to safeguard long-term financial security and wealth.
Safeguarding wealth and maintaining consistent returns during this challenging market environment is very important. By protecting their wealth, individuals can navigate uncertainties, ensuring their financial well-being and the ability to meet financial obligations and goals.
Consistent returns play a pivotal role in supporting financial security and future aspirations. Although the markets have shown some signs of recovery, the ongoing volatility demands a cautious approach. Generating reliable returns helps investors plan for the future, maintain their lifestyle, and pursue long-term objectives with confidence.
Protecting Wealth with Norfolk Mortgage Trust
Against the backdrop of New Zealand’s economic and inflationary challenges, Norfolk Mortgage Trust offers a trusted partnership for protecting wealth and achieving consistent returns. With its deep understanding of the current market landscape, Norfolk Mortgage Trust is dedicated to addressing investors’ concerns. Through a disciplined investment approach and focus on risk management, Norfolk Mortgage Trust navigates volatility and adapts to changing market conditions, aiming to protect investors’ wealth even in challenging times.
In today’s uncertain market environment, protecting wealth and generating consistent returns are of paramount importance. Norfolk Mortgage Trust rises to this challenge with a diversified, property-backed investment portfolio and risk management strategies designed to help investors navigate market volatility and achieve their financial goals. Investing in a mortgage fund provides greater diversification compared to individual property investors.
Diversification for Wealth Protection
Diversification is an essential strategy for mitigating investment risks and safeguarding wealth. By spreading investments across various asset classes, geographic locations, and property types, investors can reduce the impact of market volatility on their portfolios.
Ray Dalio is a renowned hedge fund manager and one of the most successful investors in the world. His well-known client list includes: Bill Gates, Melinda Gates, Larry Ellison, Sean ‘Diddy’ Combs, Michael Bloomberg, Reid Hoffman, Chris Sacca. He is known for his investment philosophy, which emphasises diversification and risk management. Dalio argues that by diversifying your investment portfolio, you can minimise your exposure to any single asset or market.
Norfolk Mortgage Trust’s investment portfolio is carefully diversified to capture the benefits of geographic and property type diversification. This approach provides a robust risk management framework that aims to protect investors’ capital and generate consistent returns. It helps protect your wealth from sudden losses and ensures a more stable investment return over time.
Diversification ‘Built-In’ to Norfolk Mortgage Trust Approach
Norfolk Mortgage Trust’s diversified investment approach offers several advantages for investors seeking to navigate market uncertainty:
- Geographic Diversification: Norfolk Mortgage Trust invests in properties across multiple regions, providing geographic diversification that helps mitigate regional market risks. This approach ensures that the performance of the investment portfolio is not solely reliant on the conditions of a single market.
- Property Type Diversification: Norfolk Mortgage Trust invests in various property types, including residential, commercial, residential lifestyle and rural properties. This diversification further reduces risk by spreading investments across different segments of the real estate market, each with its own unique dynamics and potential for returns.
- Scale and Portfolio Size: Unlike individual property investors who typically own one or two properties, with Norfolk Mortgage Trust, the risk is spread over all the properties held as security by the fund, and this enhances the potential for consistent returns across the entire portfolio.
- Expertise and Professional Management: Norfolk Mortgage Trust’s team of experienced professionals specialises in mortgage lending, and portfolio management. Their expertise ensures effective risk assessment, individual review of each property secured, and ongoing management, maximising the potential for wealth protection and consistent returns.
Returns from Norfolk Mortgage Trust are paid out monthly, but for the purposes of this table, they are annualised over the period. Please note that past returns do not guarantee future performance.
In summary, diversification is an essential strategy for mitigating investment risks and safeguarding wealth, especially during periods of uncertainty in the market. Spreading risk across different asset classes, can help investors navigate through market volatility and maintain consistent returns. By investing in Norfolk Mortgage Trust, investors can benefit from a robust risk management strategy that is designed to help them achieve their long-term financial goals. The trust’s portfolio is diversified across different regions and property types, including residential, commercial, residential lifestyle and rural properties. This diversification helps to reduce exposure to any one particular market segment or geographical region, which can help to minimise risk.
The Trust’s management team has extensive experience in credit assessment and the New Zealand property market and is committed to selecting high-quality property-back investment opportunities that offer attractive returns to investors. Overall, investing in Norfolk Mortgage Trust can provide investors with a comprehensive and effective way to diversify their portfolio and safeguard their wealth against market volatility, with minimal effort.
Norfolk Mortgage Trust diversifies its investment portfolio through the use of geographic and property type diversification of the security properties,. This strategy reduces risk and enhances the potential for consistent returns.
Norfolk Mortgage Trust’s portfolio offers a significantly larger scale than individual property investors who typically own one or two properties. This scale allows for greater risk spreading and potential returns across the entire portfolio.
Consistent returns provide stability and enable investors to plan for the future, maintain their lifestyle, and pursue their long-term objectives with confidence. In a volatile market, reliable and predictable returns play a crucial role in supporting financial security and aspirations.
Investing in mortgage-backed securities offers a stable income stream and lower volatility compared to equity funds. This makes them an attractive investment option during market uncertainty, as they provide consistent returns while minimising risk.
Norfolk Mortgage Trust’s disciplined investment approach, risk management strategies, and expertise in mortgage-backed securities enable it to navigate market volatility and adapt to changing conditions. By prioritising capital protection and consistent returns, Norfolk Mortgage Trust aims to help investors achieve their financial goals with confidence.