| Welcome to the September issue of the Select Wealth Management Dashboard Newsletter. As I sit in my office sipping on my take away coffee, having dropped the kids off at school, I find myself feeling desperately sorry for all those Aucklanders still stuck in Level 4. I feel particularly for all those business owners who are still paying all their business expenses, but unable to operate. In some cases, this is a lifetime's work being eroded through no fault of their own (or anybody else's), but simply through unfortunate circumstance. I notice that the iconic Prefab Café in Wellington is the latest victim of Covid, announcing recently that they will be permanently closing their doors. I find it difficult to reconcile how such a well established, well run business can be decimated in such a short period of time. It certainly heightens my sense of gratitude that, through good fortune alone, I happen to be in an industry that was relatively unaffected by lockdowns.
Having gone through a short lockdown of our own in Wellington, and observing the frustration in Auckland, it re-ignited my interest in the future of working from home. Since the pandemic broke out, working from home has been hailed as the new normal and the way forward for employers and employees alike. But I've never been convinced. Sure, there are certain jobs that can be done perfectly well from home, and there are certain efficiencies to be had (no travel time, less office space required, etc.), but I still believe there is a lot to be said for in person office spaces. Humans are social creatures and we need interaction. And in person physical interaction is still better than virtual interaction. I've been doing some reading on what big global companies are expecting from their employees now that offices around the world are re-opening. Whilst there is no "one-size-fits-all", there is a common trend that employers want their employees back in the office for at least some of (in fact the majority of) the time. The common theme for this rational is the belief that company culture, collaboration and mentorship are best achieved in the office, and difficult to replicate virtually. You could be forgiven for assuming that this thinking only applies to "old school" industries (think banking, insurance, law, etc.), but even the big tech firms are doing the same. Tech giants like Apple, Google and Uber expect their employees to be back on site at least 3 days a week (allowing the other 2 days to be worked from home if the job description allows). Apple CEO Tim Cooke recently emailed all staff "For all that we've been able to achieve while many of us have been separated, the truth is that there has been something essential missing from this past year: each other. Video conference calling has narrowed the distance between us, to be sure, but there are things it simply cannot replicate". Working from home can also be a lonely battle at times, with many distractions. Mary Erdoes of JPMorgan Chase & Co summed it up nicely saying "It is fraying. It is hard. It takes a lot of inner strength and sustainability without the energy that you get from being around other people." Barclays's CEO Jes Staley said it was "remarkable" that remote working had worked as well as it had, and that going forward, he had concerns. "It will increasingly be a challenge to maintain the culture and collaboration that large financial institutions seek to have and should have." So where does that leave Isaacs Financial Planning in terms of working from home? Well, my starting point is we're trying to get the balance right, both from an employee perspective, but more importantly a client perspective (after all - you pay our wages...). But rest assured that the nucleus of our business is 65 Waterloo Road, and there will always be a team of people working from here (I, for one find I am far more productive when I'm in the office). We can offer virtual meetings for clients who want them, but will still encourage meetings in person (my experience is that in person meetings are still far more effective and valuable). Like all other businesses, we are learning and adapting along the way, but the core principals remain unchanged, and I refuse to compromise on quality and service. So a hybrid model for us, with a strong bias towards being in the office for now. No doubt this will evolve over time, and I encourage you to let us know if you feel we need to make changes or can improve. In terms of the markets, the past month is a great reminder of why diversification is so important. Most markets are down 1% to 2%, whereas the New Zealand share market was up 3.5% and Japan's Nekkei was up a staggering 8.5%. The NZ$ was stronger against all trading partners, a function of the expectation that our interest rates are likely to go up soon. Longer term (3 year) mortgage and term deposit rates increased a bit again. Here are the numbers for the past 30 days: |
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In terms of your Select Wealth Management portfolio, there is not a great deal to report over the past month. Performance reports are due out as at 30 September, and failing anything untoward, performance for the quarter will be sound. Remember to register for the online portal if you haven't already - it is the most efficient way to receive your performance reports. Finally, a quick update on our Giving Back program. Thanks to your wonderful support and generous referrals, I am pleased to say that our campaign for Leukaemia and Blood Cancer New Zealand is romping along well. I am confident that we will be able to make a meaningful contribution to their great cause, and you can follow the progress of our campaign at https://mifinancialplanning.co.nz/giving-back.html As always, thank you for your continued support and referrals of friends and colleagues that makes this program possible. I really appreciate it. Warm regards Dave and the team at Isaacs Financial Planning dave@mifinancialplanning.co.nz |
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This newsletter is intended for general distribution and does not constitute personal financial advice.