We wrapped up the end of the financial year (seriously, where did the time go?) at the end of March with the usual tax admin. For those who need them, our Resident Withholding Tax certificates are now available. To find them, log in to your Squirrel account, click on ‘Reporting’ (if you're in the app, hit ‘More’ first), then look for the ‘Tax Certs’ tab. For those investing in our managed funds, PIE Tax certificates will be available in the same place at the end of April.
Understanding credit risk - webinar recap
Earlier in March, Dave ran a webinar diving into credit risk. The Q&A was top-notch, and I really appreciated the thoughtful questions. If you missed it (or just want to rewatch it), you can access it here. It’s about 30 minutes of Dave explaining the ins and outs, followed by a Q&A. If you have any follow-up questions, feel free to reach out at dave@squirrel.co.nz
Banks and their 'bonus saver' gimmicks
On the topic of deep dives, Dave has written a blog post about the so-called ‘Bonus Saver’ accounts some NZ banks are offering. Spoiler alert: Dave thinks they’re doing a pretty lackluster job with these products. The comparison to the Australian market is even more eye-opening. If you’re keen to see how they stack up (or don’t), have a read on our blog. It’s not that the product itself is bad, it’s just that the interest rates are dismal, despite being marketed as some sort of golden goose.
Loan portfolio and reserve funds update
The loan portfolio is rolling along nicely. As usual, a handful of construction loans are running a little over term, but several will be wrapping up in April. Reserve funds are doing their thing, handling whatever comes their way. We’re also working on getting reserve fund balance graphs onto our website – watch this space. In the meantime, here’s where things stand:
The Home Loan Reserve Fund is building nicely. Credit risk remains low, and as loan balances grow, we’re seeing stronger incremental growth in the reserve fund each month.
The Construction Loan Reserve Fund is growing at a solid pace, with ~$150k being added monthly. With over $3m in the bank, it’s well-positioned to handle the tail end of the economic downturn.
The Personal Loan Reserve Fund is now in a mature state, so we’ve eased back on reserving. For those with a long memory, you’ll recall we also bumped up returns for investors in this category.
