Moneyworks NZ Limited Investment Philosophy

Investment Objectives and Risk Management
Investment Cash Flow Objectives

At Moneyworks, we aim to build portfolios that will maximise the chance that clients will meet their long term cash flow objectives. In other words, we aim to minimise the risks that our clients need to take.

Investment Capital Preservation 
In terms of risk management, the key aspect is to ensure capital is preserved in the medium term.

Investment Risk Management

Investment Risk Profiling:
The first step to risk management is to determine the level of risk that is appropriate for any particular investor. We do this by using risk profiling tools and having a discussion with each investor about those results.

Investment Diversification:
After that level of risk is adopted, it is important to make sure that the portfolio is appropriately diversified at all time.

Investment Monitoring:
By monitoring market valuations, we expect to be able to avoid some, but not all major market downturns by reducing portfolio exposure to risk assets when they appear overpriced.

Investment Asset Allocation

At Moneyworks we believe that broad swings in markets can be anticipated and use Dynamic Asset Allocation to add value and reduce the risk of portfolios. In order to successfully implement active asset allocation, we access a range of information including research such as Farrellys, Morningstar and Lonsec, in addition to our experience.

Investment Asset Classes and Currency Management, Active
Investment Management

At Moneyworks we believe that markets are not efficient and it is possible to beat index returns after fees. We believe that superior active managers that will beat the index can be identified. This is as a result of the strategy, conviction, active management, skills of individuals and philosophy of the investment manager.

Currency Management

At Moneyworks we believe that currency on individual portfolios should be fully unhedged, as it is difficult if not impossible to predict currency movements and because being unhedged provides the optimal level of diversification. However, individual fund managers may elect to add hedging of currency to their investment strategy within their fund.

Investment Liquidity

A small exposure to relatively illiquid assets is fine if the investment opportunity is attractive enough. In a long term portfolio it is unnecessary for all assets to be liquid at all times.

Alternative Investments

Advisers at Moneyworks will only recommend investment in alternative investments if we really understand the opportunity including the risks, what is likely to drive sustainable returns, the fees, and potential for illiquidity. Few investment offerings pass these tests.

First and Second Tier Debt Issues

A core belief of advisers at Moneyworks is that having secure debt (first tier debt) in a portfolio is necessary to provide stability in a downturn and a guaranteed source of income. We do not take risks with this part of the portfolio.

At Moneyworks we do recommend securities with credit risk (second tier debt) in portfolios to take advantages of the high premiums over and above the secure debt (first tier debt) from time to time. When the premiums are insufficient, we will ignore this asset class.

Taxes and fees

At Moneyworks we believe that no investment should be made for tax optimisation reasons only. But, if all else is equal and we are comparing two options where one has a preferable tax environment, we will most likely choose the option with the best tax situation for the investor.

Advisers at Moneyworks consider after fee outcomes. Fees should not drive decisions as long as they are more than offset by the value created by active management.

Getting your unclaimed Australian Super back to NZ

For a number of years, you have been able to bring your Australian Super back to New Zealand IF you are retired and past the age to access the super OR if you put it into your KiwiSaver. The processRead more

Elder Abuse - help your family hold on to their money

A recent Stuff article reminded us about how invasive and destroying elder abuse can be.  Read more here about the 92 year old who was 'cleaned out' of $500,000 - ‘She cleaned him out’: FamilyRead more

The Great Wall of Trees

A giant wall of trees that is being built across Africa is making a huge contribution to the UN’s Sustainable Development Goals. The 16 km wide wall of trees, bushes and shrubs crosses Africa’sRead more

Welcoming a new team member - Grace

Grace joined Moneyworks as our Administration Manager in 2021 and works part-time.  While Millie Moneybot (our robot) does most of the routine administration, there are still a number of things thatRead more

Sustainable Investing - Climate Change and human activity and how investing can help slow down change

At Moneyworks we use the shorthand terminology 'Ethical Investing' to cover a range of investing styles that can also be referred to as 'Sustainable', 'Responsible', 'ESG (Environmental, Social,Read more

​ Banks being held responsible for fees, conduct and lending practices

Our banks are an integral part of our lives and pretty much hold us hostage with their fees and decisions, unless we choose to be part of the barter economy, or become self sufficient, we will alwaysRead more

How to retire - well, how to get ready to change your life

Our byline on our logo is 'Helping you get to and through retirement - ethically'. Yes, this is mainly about making sure that you have enough money to enable you to retire, and that if somethingRead more

Should New Zealand Superannuation continue to exist as it is?

Moneyworks was established in 1997, which was the same year that the referendum on compulsory superannuation was held as a result of Winston Peters negotiations to form a Government.  ThisRead more

Should adult children be able to challenge their parents wills?

You will have seen the headlines in the media about families at war over their parent’s wills.  The arguments of the Green familyRead more

The Dow Jones turns 125 years old

If you have been investing for some time - even it has just been in KiwiSaver, you will know that markets go up and down in value depending on market events, but over time they do increase.  This isRead more

Cyber Security issues and protections are getting far more important

As your financial adviser, we work with you to reach your goals, in particularly to get you to and through retirement - ethically (for those who want ethical investments).  But a big risk to yourRead more

Abuse of people knows no limits

We all know the stories of people being abused within closed doors, and New Zealand has the Family Violence Act (was Domestic Violence Act) to recognise the harm that abuse incurs. Email and socialRead more
 

This product has been added to your cart

CHECKOUT