Financial Principles

When making any investment decisions in today’s uncertain climate, the following financial principles should be followed:
  • You should have appropriate risk investments
  • You want the highest returns possible commensurate with your level of safety
  • You want maximum flexibility
  • You want to minimise your tax.
Modern Portfolio Theory shows us that in order to obtain potentially improved rates of return and reduced risk, you need to spread your investments. In other words 'Don’t have all your eggs in one basket'. You can spread your investments (called diversification) as follows:

  • Geographically with money invested both in New Zealand and offshore
  • By using different fund managers
  • By investing in different investment areas such as fixed interest securities, property, shares, and cash.
  • By investing in different industry sectors.

Please note that diversification will not completely eliminate capital losses from investments.

Risk Profile

Correctly identifying your risk profile is critical for determining your investment asset allocation and selection of products. There are numerous techniques and tools available to us to assist you wit htis process.

Our definitions of the various risk profiles are:

  1. Defensive: Investors requiring capital values to be protected and a regular source of income, and who are willing to accept below average returns in order to minimise volatility.
  2. Conservative: Investors requiring minimal volatility in capital values and a regular source of income, and who are willing to accept average returns for average volatility.
  3. Balanced: Investors requiring a relatively low level of income and above average long-term growth from a portfolio that maintains a balance between ‘income’ and ‘growth’ assets, and who are willing to accept moderate volatility.
  4. Growth: Investors requiring minimal income, and who are willing to accept higher levels of volatility in return for potentially higher returns over the long-term.
  5. Aggressive: Investors requiring little or no income and who are willing to accept very high levels of volatility in return for the potential to achieve very high returns over the long-term.

Asset Allocation

In the long run the bulk of investment performance is based on asset allocation as opposed to purely investment selection. Investments require regular review in case changes need to be made. Therefore, asset allocation is vitally important to the future continued good performance of your investment portfolio.
We use the five risk profiles (mentioned above) and asset allocations developed by Tim Farrelly. Tim Farrelly brings a unique combination of analytics, understanding of financial markets, knowledge of capital market history and insight into the practical requirements of asset allocations for financial planners' clients.

What is the best investment?

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What is best?There is no shortage of magazines, media articles, internet-based guru’s and so on that suggest “best” investments. There are also thousands of advertisements that at least imply a particular investment is the best thing for you...

Each of these sources may be quite right in pointing out “good” investments, but none of them can tell which is the best investment for you as they know nothing about you and what you need.

What is best in an investment for any individual will be determined by many variables, including:

  • The investors age
  • The investment time frame
  • The amount of money being invested
  • What is the money going to be eventually used for?
  • The level of income the investor receives from other sources
  • Does the investor require income from the investment along the way?
  • Locked or unlocked requirements?
  • The investors attitude to risk
  • Current investments already held by the investor
  • The investors goals and objectives
  • The investors current financial position, how much debt do they have?
  • Unique personal circumstances (e.g. special needs children; dependent family members, etc)

Some Facts about New Zealand

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The pictures scrolling below give you a few facts about our favourite country - New Zealand!


Please don't take too much risk!

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linedownThe Reserve Bank has dropped the Official Cash Rate - again, and the banks have followed with reductions in the amount of interest they will pay depositors.

Cash rates are down below 2% and today you'll get less than 4% for a five year term deposit with any of the big banks.

If you are relying on your investments to provide you with income you might be starting to feel the pinch.

Please be careful, you seldom get higher than bank returns without taking on extra risk.

But what does that actually mean, and how much extra risk can you really afford to take? Many people don't realise that they can afford a little extra risk and many people don't realise they can't!


Enterprise Angels

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enterprise-angels-logoEnterprise Angels is a membership-based investment network.

Enterprise Angels Members make individual investment decisions but do so together drawing on each other's experience and expertise.

This approach potentially increases the returns from and success of investments. Their objective is to connect experienced investors with entrepreneurs and innovators.

Angel investors are typically experienced business people seeking investment opportunities in early stage, as well as established businesses. Angel investors may also provide business expertise to companies that seek capital. Members range from young business professionals to wealthy, retired ex-business owners. To be eligible to invest, an individual must qualify as wealthy or experienced (Securities Act 1978, see Investor Eligibility for more details). Find out more about angel investing by reviewing some of the Angel Association of New Zealand's videos.

To become a member visit