12/12/2021 11:00:00 PM

Is your portfolio strategy set up for 2022?

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CEO + Founder Mike Taylor explains how to plan for performance in 2022.

As we look ahead to 2022, two things concern me the most. Firstly, are we done with Covid-19 and lockdowns, or are there more variants and greater health concerns still to come? Secondly, and importantly for investors, is inflation really transitory? And if it’s not, how and when will Central Banks act or react to inflation readings of 5-7%+ for sustained periods? Will they kill the goose that lays the golden egg (low interest rates) to stamp out inflation or will they be happy to let inflation stay elevated? Only time will tell.

At Pie Funds, we have been managing the Australasian Dividend Growth Fund for over a decade and during that time, investment markets have navigated all kinds of scenarios, such as the European debt crisis, trade wars and Covid-19, to name a few. As investment managers, when in work mode we are realists more than optimists. We let the numbers and the data do the talking. And so far, these are saying the jury is still out.

So what does this mean for investors? How can you plan for performance in 2022? Be adaptable, because no two situations are the same. History rhymes, it doesn’t repeat. Have a strategy and a plan. Enlist a qualified expert to help if you need to. Be prepared for market highs and lows, but remember that investing is for the long term. Ensure your portfolio is diversified and its risk level matches your risk tolerance. The start of the new year is a great time to do a review and check everything still aligns, to help you stay on track to reach your goals. 

Our Australasian Dividend Growth Fund could be part of your strategy for 2022 and beyond. Its portfolio favours companies exposed to structural growth tailwinds, led by founders or management with skin in the game. The fund has a risk rating of 5 out of 7 (high risk).

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Pie’s Australasian Dividend Growth Fund:

+ Aims for long-term capital growth
Diversify your investments through exposure to Australasian opportunities, as we aim to deliver long-term capital growth.

+ Six-monthly distribution payments
For investors seeking a regular source of income, the fund pays six-monthly distributions. Investors can be paid these directly, or have them reinvested back into their fund to benefit from future returns.

+ Hand-picked smaller high growth Australasian companies
Invest in quality companies hand-picked by the investment team. Our specialised researchers use analysis and experience to identify opportunities that might not be so readily apparent to retail investors. 

+ The fund has been one of Pie’s best performing funds
The Dividend Growth Fund has significantly outperformed its market index over the past 10 years. The fund has a 10-year annualised return of 19.1%*, compared to its market index return of 4.9% for the same period. It is a result we are very proud of. The fund has returned 482.68% since inception in 2011. (Figures are after fees and before tax as at 30 November 2021).

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Past performance is not a reliable indicator of future performance. Returns can be negative as well as positive and returns over different periods may vary.  

*Figures are after fees and before tax as at 30 November 2021, showing annualised 10-year return. Market index used is XSOAI S&P/ASX Small Ordinaries Accumulation Index 

View the Product Disclosure Statement (including details of the risks associated with this fund) plus our duties and complaints process, at www.piefunds.co.nz. Information is current as at December 2021. Pie Funds Management Limited is the manager of the funds in the Pie Funds Management Scheme. Any advice is given by Pie Funds Management Limited and is general only. Our advice relates only to the specific financial products mentioned and does not account for personal circumstances or financial goals. Please see a financial adviser for tailored advice. You may have to pay product or other fees, like brokerage, if you act on any advice. As manager of the Pie Funds Management Scheme investment funds, we receive fees determined by your balance and we benefit financially if you invest in our products. We manage this conflict of interest via an internal compliance framework designed to help us meet our duties to you. For information about how we can help you, our duties and complaint process and how disputes can be resolved, or to see our product disclosure statement, please visit www.piefunds.co.nz. Please let us know if you would like a hard copy of this disclosure information.