New Zealand’s foremost financial advisersEnduring client relationships that span generations; a wealth management team that is passionate about serving you, supported by a cohesive team of financial advisors and investment experts; a company without ownership ties to product suppliers, institutions or third-party investors, and with a single focus on achieving your financial goals: that's Bradley Nuttall.
Established in Christchurch in 1994, we are passionate about the value financial advice and integrated wealth management services bring to our clients - high net worth individuals and families with complex needs. Our mission as a firm, simply stated, is to improve the quality of our clients' lives...resulting in greater satisfaction, peace of mind, and freedom for them to achieve more in life.
We serve a nationwide, and often global, clientele whom we expect to remain clients forever.
Why we started Bradley Nuttall - Andrew’s Story
I got into the industry in 1986 partially because I was always interested in business and money. I had an inclination to read the business pages and had become involved in a number of businesses in the previous three or four years.
I found it fascinating how normal, ordinary, people could be so successful and yet those who had frequently gone through university and gained a number of tertiary qualifications didn’t necessarily have that same financial success.
I started by joining National Mutual. When I look back on it, I was completely trained by fund managers and, to a lesser degree, a research house known as the Financial Planning Group. The training led me to completely believe that fund managers and managed funds were the best solution for clients. I believed that returns were everything. I can recall on one occasion a fund being promoted that had earned 365% in the year before. The fund manager said ‘look we can’t make promises, but next year we should be able to do at least half that’. Well in some ways they were right. The next year the fund was worth half its previous value.
I believed you could pick the best managers, and perhaps worse, I believed that there was no point in worrying about tax or fees because returns would solve these problems.
Around the mid 1990s I became disillusioned for a number of reasons. Chief among these, was that the promises of fund managers were often very different to what was delivered in both returns and volatility.
Fund managers were very quick to promote funds that had achieved fantastic returns in the previous 12 months and they were equally fast in getting rid of funds that were significant under-performers. They would often merge the poorly performing funds into better perfoming funds which would conveniently drop the fund, and its ugly performance, from their records.
I also recognised that fund managers weren’t interested in what was best for the client. Instead they promoted products they thought they could sell. A great example of that was during the technology boom, BT promoted their Time Fund on the basis that growth over the next 5 – 10 years would be in technology, information and media. One year later the fund was worth 50% of its previous value.
After some rigorous research, including travel to North America I realised that less than 30% of all fund managers achieved market returns. In fact, once you took fees and tax into account you’d be lucky to find 25% of fund managers that outperformed their benchmarks. Of coruse you never hear about the 75% of funds that underperform their benchmarks. Naturally you’d conclude that we’ll just invest in the 25% that do outperform. The problem was that that the managers that outperformed in one year didn’t necessarily repeat in the next year. Sure some would repeat, but no more than you would expect by chance.
In simple terms, I realised the industry’s products are not client centred.
Also the fees were very, very, high and tax was a problem with many products. Fund managers couldn’t, or didn’t want to, answer my questions or concerns or would privately acknowledge them but could offer no real help.
Another major issue for me was that commissions and margins were taken on top of fees. There were a number of financial planning firms in the market place claiming they were independent but there was non-disclosure all over the place. How could they say they were independent when they were getting paid by the products they were advising clients to invest in? Was their advice “independent” or coloured by the size of the commissions?
In short, I reached the conclusion that clients weren’t being rewarded for the risks they were taking.
As a business Bradley Nuttall decided there had to be a better way. We spent some time overseas, both in Australia and North America researching the best options and discovered that there were advisory firms that had made a stand in the market place and did not succumb to the stories that were told by sharebrokers, fund managers, financial institutions and research houses. We decided in 1998 that we would be fee only, that way our interests were completely aligned with our clients and there is no temptation to take a large commission paying product.
We decided that it was impossible to pick tomorrow’s best fund managers today and in fact a better option was asset class investing. In New Zealand all of our investment options at the time were unappealing from a fee and tax perspective, so we developed direct portfolios of NZ shares and direct fixed interest portfolios enhancing both returns and also reducing fees and tax. Since then tax laws have changed and I’m pleased to say, better fund options have emerged.
We decided fund manager fees were an issue. The fees many fund managers charged ranged from 1.5 – 5%. We decided we would only deal with fund managers that were low cost and had the integrity to do what they said they were going to do. Transparency was key. Our clients would need to know exactly what they were investing in, and the associated fees and costs.
We also realised that academic theory formulated and developed since the 1950s provided a proven theoretical basis for asset class investing. A model, now known as the three factor model, showed that investment returns were based on exposure to risk, not ability to pick shares and managers.
But it wasn’t just about managing money for clients. We also wanted to be a financial coach for clients. That meant we would become a confidante and guide for them in the areas of estate planning, family issues, retirement planning, risk management and so on.
So we developed a process that focuses on rewarding clients fairly for the risks they take when investing. In addition, we reduce unnecessary risks, minimise taxes, and put our clients' financial houses in order. We find our process particularly suits prudent investors rather than speculators.
So who is Bradley Nuttall and what are our values:
Selecting the right financial advisor is a very individual decision
At Bradley Nuttall we don't expect to be a perfect fit for every prospective client. We strive to be, and then remain, the best choice for individuals, families and institutions with substantial resources and complex needs, who embrace our values and approach. Our clients include successful professionals, corporate executives, business owners, entrepreneurs, individuals and families and charities. Individuals who have recently sold a business or received a substantial inheritance or settlement choose us for our fresh perspective on articulating and achieving their goals.
Truly independent financial advisers
We believe our point of difference is in being ethical operators:- our fee-only, commission free approach delivers objectivity and independence.
Intelligent financial advice
It has been proven that 99% of stock pickers can't pick trends. Markets may be volatile, but our scientific approach is one we share with a select group of international firms passionate about best practice to long term performance.
Because of this, many funds we have access to are not available to the retail public. We do not wish to be influenced by "hot money" (money that goes in and out, is volatile and therefore requires a fund to have a high cash holding). Once you take the heat factor out of the equation, you can commit to a specific, long term investment philosophy generating higher returns, without the distraction and cost of chopping and changing characteristics of many retail funds.
Our clients tell us that the factors that set us apart from others in our field are:
At Bradley Nuttall we believe these characteristics are the direct result of the talented, professional team that we have built, the skills and expertise that we bring to our clients, and our unwavering focus on our clients' needs. It is these hard-won, and possibly all-too-rare, qualities, consistently applied over many years, that have made Bradley Nuttall today's leading independent wealth management firm. Meet our wealth management advisors to appreciate the breadth and depth of talent at Bradley Nuttall.
Substantiated financial advice
As an independent firm Bradley Nuttall has invested heavily, over many years, to develop a world-class investment solution and deep expertise in every facet of wealth management, from retirement planning and philanthropy, to complicated estate planning.