Our Philosophy

What really matters for successful investing

Diversification

Returns from investments don’t come in a straight-line fashion. Returns are random and in the short-term is it impossible to make accurate predictions. 

Diversification helps to reduce risk, take the guesswork out of investing, smooth out some of the variability (or ups and downs) in returns and prevent you from missing out on opportunities.

Effective diversification is about spreading your investments across tens of thousands of different holdings. Across different asset classes, industries and geographic regions. Not just in New Zealand but offshore as well.

Markets work

People trust market pricing every day in many aspects of our lives, yet when it comes to investing, many people believe that they can ‘beat the market’. Trying to outguess investment markets works on the notion that an ‘expert’ can process market information faster than ALL the market participants combined.

In 2015, on average, 98.6 million sharemarket trades were completed every day (worth some US$447 billion). That’s the number of times that sellers and buyers agreed a price. In short, the market price is the best guess that we have for the value of any security.

Watch this short video that helps to illustrate this concept. 

Investor discipline and planning

Returns from investment markets don’t come in a linear fashion, and while diversification helps to smooth out volatility, no-one can predict what will happen in the short term. 

Investors need to tune out from the noise, ignore the hype and media headlines and get on and enjoy life. If your portfolio is built around achieving your long-term goals, a short-term change in markets shouldn’t matter.

Scientific implementation and management

We apply decades of academic research and evidence in our investment portfolios. We consider what drives investment returns and invest in ways that increase the reliability of outcomes for clients over time. 

We don’t follow investment gurus or make predictions. We avoid market timing, speculation and other common investment notions.

Costs matter

In any investment, you need to consider all costs, including management and advice fees, fund expenses, trading costs and taxes.

In New Zealand, investment providers have numerous layers of fees and conflicts of interest abound. We believe in total transparency and will tell you the full facts about all the fees and charges. What matters most is your investment return after all fees and taxes. 

Transparency and ownership security

We don’t handle cash, nor can we arrange for funds to be paid anywhere other than your nominated bank account. Investments are either held in your own name or via a secure custodial service on your behalf.

All clients can view their investment accounts online and receive independently verified reports of their investments from the provider/custodian.