Investing | Diversified Portfolios | Income / Growth Portfolio | The Consultative Process

Investing is all about putting your money to work in order to create income or grow your wealth. Once we understand your financial needs we can work with you to develop a personalised strategic plan designed to help you

•       Build wealth and accumulate assets;
•       Maximise and protect your wealth; and
•       Reap the rewards and enjoy the life you want.

All of our investment advisers are members of the Institute of Financial Advisers. They will work with you to help:

•       Define your specific goals and requirements;
•       Implement your personalised investment strategy; and
•       Monitor and manage your portfolio.

Our managed portfolio options include

•       Diversified portfolios based on “buy and hold” principles;
    
•       Income/growth portfolios

We  provide and manage diversified portfolios using the principles of strategic asset allocation. This relies on relatively  constant percentage allocations to each of the main asset classes, based on historical rates of return for each asset class.

This approach implies a buy-and-hold strategy, notwithstanding the fact that any change in the value of assets will result in a drift away from the initial mix. In turn this requires the investor to periodically re-weight the portfolio to maintain asset percentages at their required levels. Therefore if, for instance, the value of an investor’s NZ share portfolio is declining we would buy more NZ shares; whereas if the value of NZ shares increases then they would be sold.

Our rule of thumb with diversified portfolios is that they should be rebalanced when any given asset class moves more than 5% from its original value.

Our income /growth portfolio is designed for those investors who primarily require income from their portfolio, while having some potential for growth in order to help preserve their capital.

On this basis, the income/growth portfolio has exposures to both income and growth assets.

Our typical allocation is 35-50% NZ commercial property, 35% bonds, 10-20% in shares and 10-20% in alternative assets such as capital protected funds. The objective is to deliver positive returns at all times for clients who want income and some growth potential.

You and your TFG investment adviser follow a six-step consultative process

•       Discovery
•       Commitment
•       Recommendations
•       Implementation
•       Follow-up
•       Review

Discovery

Step one, the discovery meeting, is all about getting to know you, and you getting to know us. We’ll work with you to clarify your goals and attitude towards investing, as well as your expected income/capital needs. The discovery meeting is a crucial step in the process of developing your personalised strategic plan.

Commitment

Step two is where we present our initial findings based on what you’ve told us. At this point we’ll present you with a brief proposal outlining

•       Your current financial situation, goals and needs;
•       Key issues to be covered in your strategic plan;
•       Estimated benefits from addressing these issues;
•       Plan preparation and implementation costs; and
•       An outline of the next steps

Once you’ve confirmed that you want to proceed beyond this stage, we ask you to provide a comprehensive summary of your financial position so that we have the information we need to provide detailed, meaningful recommendations.

Recommendations

Step three is where we present our recommendations for helping you to achieve your financial goals. Your strategic plan includes a set of key points for action—a roadmap for the future.

Implementation

What use is a plan if you don’t act on it? Step four is all about translating theory into action, by putting agreed recommendations into place.

Follow-up

Step five comes six weeks later: a practical session on managing the paperwork, practical pointers, tools and tips, and the opportunity to ask questions about how it all fits together.

Review

At regular intervals you’ll meet with your TFG adviser to update him or her on your situation. In turn your adviser will

•       Update you on recent developments as they relate to your investment portfolio;
•       Review portfolio performance and outlook; and
•       Identify any areas where action or further planning is required.

Disclosure Statement

A disclosure statement  is available on request and free of charge

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