Asset Classes & Strategies

• We have a natural bias towards managers who invest in equity markets. We understand equities and like the transparency that this asset class provides us. We invest in equity funds where the fund manager’s strategy is based on their proven superior stock-picking capability.
• Our equity managers primarily utilise either long/short strategies or have the capability at times to move to large holdings of cash. Long/short strategies enable the manager to reduce risk in their portfolios by shorting stocks or indexes, especially during market corrections. Any long-only managers that we choose to invest with must have the ability and demonstrable inclination to move to large holdings of cash during times of market stress as an aggressive defensive stance to avoid capital loss.
• We can also allocate up to 30% of the overall portfolio to trading and macro strategies. These managers seek capital appreciation from the short and medium term movement of a range of commodities, currencies, fixed interest securities, and equity market indices, based on their macroeconomic views. Their returns tend to be less correlated with global equity markets, offering valuable protection and positive returns during periods of equity market weakness. These managers help to lower portfolio volatility whilst maintaining long-term attractive absolute rates of return.
• Overseas exposures are generally denominated in US dollars, Euros or Australian dollars. Strong underlying investment performance can be eroded by currency movements. We employ a dynamic currency hedging model that allows us to mitigate the impact of the volatile New Zealand dollar on underlying returns.

Income

• Where clients require a regular income stream this can be paid monthly, bi-monthly or quarterly by direct credit to the client’s account.
• When it is appropriate we are able to hold a portion of the investment capital in direct fixed interest holdings. We only invest in investment grade New Zealand fixed interest rated “A” or above.