2025 Annual Review Letter for Membership Fee Clients

2025 is a year that will be studied in the history books. 

Much of that is being driven by what has been happening in the United States. Under the Trump administration, policies have been announced quickly, changed just as quickly, and often without much warning. One example was “Liberation Day” in April, when tariffs were announced and then repeatedly adjusted. This unsettled global markets and changed the way countries and businesses interact with each other.

The US has also shifted how it behaves on the world stage. Long-standing international relationships have been disrupted, and we have seen actions that would once have been considered unthinkable, from pardoning convicted criminals to aggressively targeting perceived enemies. As a result, America’s role as the main global power looks very different to how it did even a few years ago.

Rules and expectations around corruption, fraud and corporate behaviour have also been weakened. Support for developing countries has been pulled back, causing real disruption, and some of the most vulnerable people within the US have lost important forms of financial support. Money and power have again become the main drivers of decision-making, backed by wealthy tech leaders and other billionaires. Renewable energy, diversity and inclusion, and anything described as “woke” are now openly criticised in that political environment.

That all sounds bleak, but it isn’t the full picture.

There are positive things happening elsewhere in the world, and even in small pockets within the US. One example was JPMorgan’s CEO, Jamie Dimon, refusing to take part in a high-profile political fundraising event, saying businesses need to think not just about how decisions look today, but how they will be judged in the future.

More importantly, some of the big forces shaping the future are moving ahead regardless of politics. The rapid growth of AI has created huge demand for electricity, which is driving renewed investment in renewable energy around the world. At the same time, many people are working on how governments and institutions can be strengthened to push back against authoritarian movements and modernise how countries are run.

Against all of this, your investments have been doing well.

There have been ups and downs along the way. Markets fell sharply around April, then recovered strongly as enthusiasm around AI took hold. Toward the end of the year, there was increasing talk about two possible bubbles: one around AI, and another around private credit.

The AI bubble is most likely to affect smaller, speculative companies trying to cash in on the hype. While AI will clearly change how we live and work over time, the companies you are invested in are large, established businesses. That means your portfolio may wobble from time to time, but it is not built on the riskiest parts of the market.

Private Credit is a bigger concern. For several years we have been encouraged to invest client money into this area, usually with promises of higher returns. Our experience, and our memory of the Global Financial Crisis, makes us cautious. These investments tend to be hard to get out of, carry more risk, and don’t always offer enough extra return to make that worthwhile. We have not recommended private credit to you, and we won’t. While problems in this area could affect markets more broadly, you do not have money invested directly in it.[1]

We are currently reviewing the fund managers in your portfolio and expect to make some changes this year. We are also likely to increase your exposure to fixed interest at your annual review. Overall, we are comfortable with how your portfolio is structured and positioned.

Investment platform change to NZX Wealth

This change is now complete, unless you still have term deposits on the old OneAnswer platform. If so, Millie will move those funds across as each deposit matures, and your adviser will reinvest them. Once everything has moved, the OneAnswer account will be closed. You don’t need to do anything.

If you would like online access and don’t yet have a login, just let us know.

Project 2026

As part of our annual focus on helping you understand how your investments are managed, this year we are looking at the Pengana Emerging Companies Fund, which invests in smaller Australasian companies.

We are also highlighting a few practical items that may be useful for you, including rates rebates, deposit guarantees and recent changes to KiwiSaver.

Marlow transcription

Marlow is our AI transcriber. She takes notes during meetings and produces a summary, allowing us to focus more on the conversation rather than writing. Millie will share this summary with you after the meeting. Over time, this will replace our written wrap-around notes once everyone is comfortable with the process.

We have updated our Contract of Engagement to reflect this. All information stays within the Moneyworks environment and is not shared publicly.

Contract of Engagement

With the introduction of Marlow, we no longer need you to sign the wrap-around or Contract of Engagement each year. Instead, you will receive the Contract of Engagement with your Annual Review. Any changes will be clearly highlighted in red and noted in the Steps to Take Now section. We are always happy to talk through anything you would like clarified.

If you know someone who could benefit from long-term, values-aligned financial advice, we are always happy to have a conversation. And just as a reminder, from 1 January 2026 we are moving to a four-day working week, with the office closed on Fridays except in emergencies.

We look forward to seeing you at your annual review meeting. Please don’t hesitate to contact us if you have any questions before then. We look forward to continuing our work together this year.

How to use this Annual Review

This document brings together information we’ll use in your annual review meeting, along with supporting detail that is included for reference.

Some sections are designed to be read more carefully before our meeting, as they form the basis of our discussion. Other sections are included to provide background, context, and to meet regulatory requirements, and can be skimmed if you wish.

We’ll focus on what matters most for you at your meeting, you don’t need to fully understand every section before we meet.

Yours sincerely

Moneyworks NZ Ltd

[1] There may be a very small exposure in some of the funds, but it is negligible.