Markets riding high, despite all the noise
As Mike explains, the strength of the world’s major equity indices has continued over the past month. As at 22 July, the ASX, NASDAQ and S&P 500 have all reached fresh highs. Despite elevated tariffs remaining in place, the market appears largely unfazed - buoyed by a resilient US economy and a strong start to the corporate earnings season.
Staying on the sidelines can be costly
Trying to time the market is a flawed strategy, says Simon. He notes that during periods of uncertainty, many investors choose to stay in cash, waiting for the “right time” to re-enter. But history – and real data - suggests that markets are positive 70% of the time on an annual basis. Over a medium-to-long-term horizon, staying invested tends to result in better returns.
Simon introduces the concept of dollar cost averaging - investing gradually rather than all at once - as a method for nervous or first-time investors to build exposure without trying to predict short-term market movements.
He also compares the real (post-tax) returns of term deposits - currently around 2.6% - to the long-term performance of equity markets, reinforcing the importance of having some portfolio exposure to shares to reduce the effect of inflation.
Mike’s perspective on deploying cash
Mike builds on Simon’s insights by offering another perspective: keeping some cash aside and adding to investments during market pullbacks. While most investors shy away during downturns, history shows that adding capital during these periods can meaningfully enhance long-term returns.
He notes, however, that waiting indefinitely for a perfect entry point risks missing years of compounding - markets can rise significantly while investors remain sidelined. A hybrid approach, such as investing the majority now and reserving a smaller portion to deploy during dips, can offer a balance.
Celebrating a decade of growth
Finally this month, the team also celebrates a major milestone: the Pie Australasian Growth Fund reached a $10 unit price earlier in July, marking a tenfold increase since its inception in 2007. Over 17½ years, the fund has weathered global financial crises, pandemics, trade wars, and more - yet has delivered outstanding long-term returns. Mike reflects on the lessons learned, including:
- Embracing market corrections as opportunities
- Accepting volatility as part of the journey
- Recognising the importance of teamwork in delivering results
He credits not just the process, but the team - acknowledging the leadership of Portfolio Manager Michael Goldsman in recent years as the fund’s unit price grew from $5 to $10 under a collaborative investment approach.
If you have any questions, please feel free to reach out to the team.
Information is current as at 23 July 2025. Pie Funds Management Limited (“Pie Funds”) is the issuer and manager of the funds in the Pie Funds Management Scheme and the Pie KiwiSaver Scheme (“Schemes”), the product disclosure statements of which can be found at www.piefunds.co.nz. Any advice is given by Pie Funds 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 Schemes, 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 disclosure statement, please visit www.piefunds.co.nz. Please let us know if you would like a hard copy of this disclosure information. Past performance is not a guarantee of future returns. Returns can be negative as well as positive and returns over different periods may vary. The information is given in good faith and has been derived from sources believed to be reliable and accurate. However, neither Pie Funds nor any of its employees or directors gives any warranty of reliability or accuracy and shall not be liable for errors or omissions herein, or any loss or damage sustained by any person relying on such information, whatever the cause of loss or damage. No person, including the directors of Pie Funds, guarantees the repayment of units in the Schemes or any returns of units in the Schemes.