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October Update from our Chief Executive

28 Sep 2015

We have been reminded how powerful photojournalism can be with the image of the young Syrian refugee being carried out of the water and the resultant attention of the international media to the Syrians' plight. At the same time, here in New Zealand there continues to be much commentary around the Auckland housing market, the milk pay out for dairy farmers, the devaluation of the NZ dollar and reduction in interest rates.

It's times like these some investors look for better returns on their money. Sometimes this involves placing funds in riskier investments. As we all know the higher the risk (i.e. is our capital at risk?) the greater the return should be. Often investors in these types of economic times are focussed on the returns rather than fully understanding the associated risks. It is important that we don't forget what has happened in the past and we look to understand the lessons learned and apply them to our investment thinking today.

Since 2006 there have been 67 finance company failures in New Zealand with an estimate of losses for retail investors in excess of $3 billion. When you are looking for the best returns on your money it just makes sense for you to fully understand the risk profile of the investment that are about to make - whether that be in banks, property, finance companies or the share market and everything else in between. Taking professional advice from a suitably qualified adviser may help you identify the level of risk you are prepared to take.

Some of my team had the privilege of being in Christchurch for a week in September where they spent time in different stations across the city helping our existing members and encouraging new members to join us. They were made to feel very welcome and I'd like to thank all the people involved in making this "roadshow" successful. We are committed to getting out from our office in Wellington whenever possible and connecting with our members in their place of work. Presently we have a programme across Auckland, Wellington and Christchurch. If you feel it would be worthwhile us coming to your area, please let me know.

As always, if you have any feedback, please contact me directly on 04 471 4850 or email helen.hatchard@policecu.org.nz.

Kind regards

Helen