Articles
- Introduction to Index Funds and Asset Class Investing:
Understand this method that uses a broad mix of passively managed funds (such as index funds) to construct a broad portfolio that exhibits a return and volatility associated with various levels of risk.
- A Simple Lesson From Bradley Nuttall on How to Avoid Financial Ruin.
At times Bradley Nuttall (bnl.co.nz) has been fairly accused of being too left-brained in it's presentation of investing. We dig down into the nuances of risk-factor modelling, Nobel-prize winning investment methodologies and published academic studies.
Of course, we'd argue that the more an investment adviser tries to appeal to your trust using pictures of active seniors strolling on the beach, the more sceptical you should be of their advice.
- Questions you should ask your financial adviser
How do you know if your financial adviser is really top-notch? We find that several people instigate relationships with their financial advisers based on very little solid information. Advisers are famous for appealling to trust. And while trust is a wonderful thing, trust without dilligent research can lead to unexpected outcomes.
- BNL Dividend Policy: should investors prefer dividend yields or capital gains?
New Zealand investors have a longstanding obsession with portfolio income, and their bias is exacerbated in a low interest rate environment.
- Get independent advice before settling your claim with insurers.
A number of our staff and our clients' homes were badly damaged by the September 2010 and February 2011 earthquakes. It can be confusing trying to ascertain exactly what is covered by insurance – and what an insurer is obliged to pay. Part of the confusion is simply caused by the stress of uncertainty, changes to every day routines, loss of community, loss of jobs and on-going aftershocks.
- The 10 Most Important Investment Management Decisions You Can Make
Consciously or not, all investors make a decision on the ten investment management questions. Of course, sometimes it's by default when they hire an adviser to decide for them. Unfortunately, we find investors are almost always on the wrong side of each decision; the side where they are most disadvantaged. Why?
Frequently Asked Questions
What investment philosophy will be adopted to manage our funds?
What type of investments do you use to build portfolios?
How do you manage fixed interest in terms of credit and maximum exposures?
What structures do you use to minimise tax?
Will you tailor the portfolio to our needs?
What fees do you charge for the ongoing management of our portfolio?
What other fees/costs will I be charged?
What is the total cost of delivery for managing our money?
Do you or your firm receive any commission, fund manager fee rebates, or any other inducements from providers?
What performance based fees are received by any of the investment managers?
What analysis and reports do you provide comparing investment performance against appropriate benchmarks, peer groups and our objectives?
What control procedures do you have in place to ensure best execution?
How are investment assets protected from theft and embezzlement?
Are there any potential conflicts of interest?
Are service agreements and contracts in writing?
What returns have your strategies delivered?
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Resources
