Both seasoned investors and market newbies could be forgiven for feeling less than optimistic about the financial world right now. In a volatile year for the stock market, and as inflation soars across the globe, planning for your financial future is difficult in 2022. With stubbornly high inflation and interest rates rising, it’s important to make the right long-term decisions.
Scott McKenzie, chief executive of unlisted commercial property investment firm PMG, says it’s a challenging environment for Kiwi investors as they consider 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 equity markets have been incredibly volatile.”
As investors weigh up 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 to investing,” he tells Kiwis. “Don’t get overly concerned about short-term blips in the market. When you’re investing, spread your risk across multiple asset classes. Then, over time, your investment portfolio will look after you.”
PMG is a New Zealand commercial property investor with a 30-year track record. The firm operates five unlisted real estate funds for Kiwi investors, and McKenzie says commercial real estate has been a strong and steady performer over the years.
“We’re underpinned by bricks and mortar, and commercial property is often viewed as a defensive asset class as well as a great investment option. People feel comfortable investing with us as they know real estate is a long-term investment strategy.
“Provided you stay the course and put it in your bottom drawer, a commercial real estate investment could look after you,” he adds.
In uncertain times, commercial property can be a sensible addition to a portfolio, he says.
“Despite the movement of property valuations, cash flow is really consistent in commercial property over a market cycle,” he adds.
PMG ensures that each of its funds is diversified. Each offering investments in different types of New Zealand property, from office buildings to warehouses and manufacturing sites. The firm’s property management team actively manages the investments, ensuring a close working relationship with tenants across the country, and high occupancy.
“We are diversified around multiple geographies, buildings, tenants, and sectors. Irrespective of where property values move, we have a consistent earnings profile and can provide investors with regular cash returns. That’s one of the main reasons people invest with us — they want cash returns for their income or retirement,” McKenzie adds.
Regulated by the Financial Markets Authority as a licensed commercial property fund manager, PMG provides access to the commercial real estate market for everyday investors. Kiwis can buy as little as 1,000 units to get started. While the funds aren’t listed on the stock market, PMG provides liquidity through a secondary market, allowing investors to buy and sell twice a month.
As New Zealanders consider the shape of their portfolios, PMG has made its funds easily accessible. The firm has an investor relations team across the country, while people can also invest through DIY platform InvestNow during fundraising periods.
It comes as PMG gears up to raise further capital for its flagship fund, Pacific Property Fund Limited. As one of New Zealand’s largest unlisted commercial property funds, the Pacific Property Fund already holds 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 shortly raise capital for the fund as it looks to buy further properties in Hamilton and Whangārei. The offering will be open to all investors.
“We try and make it as easy as possible for New Zealanders to talk to us and invest with us,” McKenzie says. “We want as many people as possible to participate in commercial real estate and hopefully build a pathway towards financial freedom.”
As Kiwi investors review their financial plans for the year ahead, McKenzie says it’s 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 taking a long-term view. It’s a fairly simple philosophy, but if you look through the short-term headwinds, the approach will look after you.”
Find out more about PMG’s upcoming offer here.
Pacific Property Fund Limited is seeking preliminary interests for an offer of shares in Pacific Property Fund Limited. Expressions of interest can be made by contacting the PMG Investor Relationships Team. Currently, no money is being sought and no shares can be applied for or acquired. No expressions of interest will involve an obligation or commitment to acquire any shares that may be offered.
Any offer that is made will be made in accordance with the Financial Markets Conduct Act 2013. This article is not, and none of Pacific Property Fund Limited, its related entities, or their personnel provide, financial or investment advice. Prospective investors are recommended to seek professional advice from a Financial Advice Provider who takes into account an investor’s personal circumstances.