We typically ask people 4 questions about whether to manage their own investments:
Another consideration is if you are a Trustee of a Trust in which case you will have some fairly onerous legal obligations with respect to following a prudent investment process.
We leverage off an investment management committee process to ensure our investment solutions are robust‚ monitored and constantly improved
While we have ascertained that risk is the source of return, not all risks pay the same. There is strong empirical evidence that three risk factors explain a significant portion of investment returns (up to 95%) They are:
The essence of proper investment management is assembling a large number of poorly correlated assets. In other words you want to hold investments that (to the greatest extent possible) do not rise and fall together.
Quartz portfolios include over 8,000 underlying investments from:
By way of comparison New Zealand represents less than 0.05% of the world economy.
But what portfolio is right for you? This is a highly important question and one that Quartz considers carefully for each client we work with. Important considerations include:
Once we know which how much risk you have the capacity to hold‚ we should evaluate that portfolio in terms of your needs? Certain clients go through a comprehensive needs analysis where we address questions such as:
This analysis is about you and how your investment management portfolio needs to serve your interests. It’s in this process that our expert advisers help you form a vision of what you can achieve and just what it’s going to take to get there.
Regular reviews of your investment management portfolio can lead to higher returns and ensure that your portfolio remains best fit for you.
Your circumstances‚ investment experience‚ risk and return objectives and financial constraints change over time. Regular reviews ensure that this information is updated when it changes. This allows us to help you stay the course and make adjustments as necessary.
Even the best investment management strategy needs to be adjusted to stay on track. To ensure your portfolio continues to provide you with the highest probability of success we will recommend trades for you to approve in order to rebalance your portfolio.
Working with you to establish the appropriate investment strategy including developing an Investment Policy Statement(IPS)‚ formalising how your investment assets are managed by us.
Designing the optimal mix of asset classes (NZ Fixed Interest‚ Global Fixed Interest‚ NZ Equities‚ Global Equities‚ NZ Listed Property and Global Listed Property) for your portfolio.
Selecting the securities with which to implement your asset allocation using robust selection criteria that is regularly reviewed. As a Quartz client‚ you will have access to premium investment funds at wholesale rates‚ including the highly regarded funds managed by Dimensional Fund Advisors (DFA).
Ensuring the securities selected are behaving as expected for each asset class including comparing against the market benchmark.
Your portfolio’s actual allocation will‚ over time, naturally drift from its target mix. Quartz assists you in making any needed changes to your portfolio holdings‚ enabling you to keep your investment strategy on track.
Undertaking all investment administrative tasks and providing you with regular reporting including providing a client portal with 24/7 access to your portfolio.
Meeting periodically to review your circumstances and ensure your investment strategy is appropriate and suitable for your current needs.
Investment management and behavioural finance is an evolving discipline. As we learn, you will learn.