The NZX has started 2012 on a positive note with the NZX50 Gross Index recording a positive return of 1.5% for the January-February period. This was a relief because the first two months of recent years have been fairly rocky.

NZX50 Gross Index



(2 months)


(10 months)

Full year

(12 months)





















The good news for Milford investors is that all of their PIE funds have had a positive start with January-February 2012 performances as follows;

Trans-Tasman Fund                +5.0%

Active Growth Fund               +3.3%

Balanced Fund                          +3.2%

Income Fund                             +2.1%

The first few months of the 2008, 2009 and 2010 years were particularly poor for the NZX as the Global Financial Crisis had a negative impact on economic activity and investor sentiment. Last year got off to a much better start but the NZX had a negative return in the March-December period.

Although global economic conditions stabilised in January and February we continue to see some uncertain times ahead. The European crisis has not been resolved and China is experiencing a slowdown.

The February reporting season has just come to an end in Australia and New Zealand with a large number of companies reporting “challenging” economic activities. Stock selection will be important in this environment as some companies will respond positively to challenging conditions whereas others will flounder.

We are reasonably confident that the NZX50 Gross Index will achieve a positive return of at least 5% for the full 2012 year and Milford’s objective is to continue to outperform this benchmark index.

Brian Gaynor