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Prudent Investment Practices >>
WHAT WE DO
We are investment fiduciaries. We are NOT investment advisors. We set investment strategies to comply with standards set Prudent Practices for Investment Stewards.
The strategies we set are based at the asset class level. In other words we would advise on how much property you need and where it might be or how many shares you need and what countries they may be in. We have an in-depth understanding of the risks and returns of asset classes both in New Zealand and overseas (see our research on New Zealand dairy farm returns). You will be directed to a "prudent expert" to implement the strategy.
We have developed a questionnaire for all the the major questions you need to ask an investment advisor. It is comprehensive and will save you thousands. If you would like a copy email Steve.
WHY WE DO IT
Working with clients we have been able to assess that
- Only 12% of people have written investment strategies and half of those are in adequate.
- At least 50% have poor liquidity problems with no emergency access to their capital.
- The probability of achieving their long-tern goals is only 30% (average).
We have helped them mitigate these issues and
- Increased their success probability to 78% (average)
- Reduced their investment risk by at least 50%
PRUDENT PRACTICES
We undertake 4 steps that will enable you to safeguard and grow your wealth:
STEP 1 ORGANISE
- We organise your paperwork to ensure your assets are protected from a legal perspective
- We ensure everybody knows their responsibility so there are no excuses for disappointment
- We identify and mitigate any conflicts of interest...more
STEP 2 - FORMALISE
- We define your risk profile
- We establish your cash flow needs using TRUE NORTH analysis
- We determine what asset classes you need
- We do "probability of success" analysis so you understand the consequences of any long term strategy you believe are best for you...more
STEP 3 IMPLEMENT
- We identify the best investment advisor to suit your needs
- We prepare an investment scoping report for the advisor to prepare an Investment Policy Statement.
- We ensure the advisor can deliver your objectives through our due diligence procedure
STEP 4 MONITOR
- We ensure the advisor delivers what is expected.
- We monitor fees and returns.
- We check the advisor's performance against the industry benchmarks.
- We sign off on whether the advisor is protecting your wealth and follows prudent procedures...more
A sample report is available here
Why we are not investment advisor
- We do not advise on particular products.
- We do not handle investment capital.
- We are paid for the advice we give not the value of your capital.
How do we get paid
- We do not get commissions, monitoring fees or brokerage fees.
- We do not get kick-backs or soft-dollars from investment advisors or brokers.
- We are paid by the hour for the advice we give to you.
- We are truly independent.
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