Frequently Asked Questions
How often will I hear from you after I set up a new investment portfolio?
We do six monthly reporting to client’s and like to do a formal face to face review on an
annual basis. We also rebalance the portfolio when the cash account has surplus funds from
interest, dividends or distributions and when we believe that changes to asset allocation are
required as and when required. We do not set and forget portfolio’s, they are actively
monitored. We are also available to meet whenever a meeting is requested or requited over
and above the annual meeting.
What do you charge for your initial advice, and what are the ongoing costs to me?
This is dependent on the amount to be invested and starts at 0.8% of the assets under management. We also make use of an independent custodian to hold your assets and the maximum cost for this is 0.3% of the funds under advice. Both of these costs are tax deductible. Lastly, where we make use of a fund manager they will charge a fund management fee which is deducted from the investment return. All of these costs are fully disclosed in writing as part of the advice process.
Who actually holds my money?
We do not accept any money from our clients nor do we make use of our own trust account to do so. We believe that best practice is to use an independent third party custodian to hold your assets and to facilitate the transactions on the portfolio. We have an arrangement with Aegis, a fully owned subsidiary of the ASB Bank to carry out this function. This provides clients with certainty and security that no-one is able to misappropriate their funds.
What makes you different from most other investment advisory companies?
As we are not aligned to any other company we are able to give advice free of any constraints from a larger parent organisation. This is not the case with Banks or Advice Firms owned by corporate organisations, many of whom vertically integrate so as to control the administrative, fund management and advice functions. We firmly believe that these functions should be independent of each other to provide clients with the best possible outcome.
How do you arrive at your investment recommendations?
I base my client portfolios on an asset allocation developed by Farrelly’s, a Sydney-based research house specialising in Australasian asset allocation research. This is further refined by Professional Investment Associates (PIA) the adviser group my Company belong to. PIA hires an independent consultant to review Farrelly’s asset allocation strategies for applicability to NZ-based advisers and their clients, providing regular updates and recommendations to our group’s twelve independent financial advisory firms. I then bring to the allocation exercise my input as per any client’s individual circumstances to ensure portfolios are suitable for each client.
What happens to my money if something unforeseen happens to you?
As your portfolio is held by Aegis, you would have the option to liquidate the portfolio and to access the funds or you could appoint another advisor to manage your investment portfolio. The security of your assets will in no way be compromised should I no longer be able to advise you due to an unforeseen event.
What is your philosophy around insurance?
We believe that for people who have yet to build up a large enough asset base to support their dependents, appropriate insurance cover is important. This will ensure that an injury, illness or death does not have a catastrophic financial impact on you or your loved ones. We hold insurance contracts with all the major insurance providers in New Zealand so can provide you with the best possible advice. The insurance companies pay us commission for placing business with them so there is no direct cost to you.
Get In Touch
Happy to answer any questions, anytime.
(04) 472 0041