Frequently Asked Questions
Why use a boutique investment company like Lyford Asset Management?
We restrict our client base to ensure that you do get personalised service directly from the director and continuity of adviser.
What makes you different to other investment companies?
We continually question, analyse and review. Our financial advisers use high quality investment research from different sources. All fees are fully disclosed and tax deductible to the investor. Please refer to the section Our Investment Allocation Philosophy
What are your fees?
Clearly explained and very transparent.
What we find is that most investment advisers charge an investment plan fee and then an implementation fee. The implementation fee is usually a percentage of the amount you are investing. We, on-the-other hand, charge a one off flat fee. Please refer to our financial advisers Disclosure Statement.
How can I fairly compare your fees with other financial advisers?
Wow ... are we passionate about this. Refer to our Disclosure Statement and compare it with other advisers. Feel free to come in for a meeting to discuss fees. Please also refer to our comments above under "what are your fees?".
Do you review, or give second opinions on existing investment portfolios?
YES. Please refer to Investment Portfolio Second Opinion
Will my money be safe?
YES. Your investments are held in an custodial company and only you can withdraw funds from your private investment account. Please note that the capital value of your investment portfolio will fluctuate with market movements.
How do you determine how I should invest?
We start by accessing your attitudes to investment risk and return using a psychometric risk profiling tool and matching your income and investment objectives. Please refer to Our Investment Philosophy.
Do you use research?
YES. We use a variety of resources. Using Morningstar research (an internationally recognised research company) we can access research on more than 46,000 investment products. For asset allocation we have chosen to use 'Farrellys research', an Australian company specialising in robust, proactive asset allocation modelling.
Do you recommend only managed funds?
NO. We do recommend direct bonds and shares. Managed funds do allow great diversification both from underlying investments and sub asset sectors. While there is a place for index funds like Vanguard, ishares etc in the investment environment post the Global Financial Crisis of 2007/2008 financial markets remain volatile. A good active fund manager is a better option than simply using an index tracking fund.
There has been much debate that by using an active fund manager you end up paying higher management fees than you would with an index tracking fund resulting in below market returns. These studies were done in mid to late 1990's, in the middle of a bull market. It is our opinion that these studies do not apply in today's environment and that a good active fund manager can add return in excess of the general market return. In technical jargon a good manager will add "alpha" over the market "beta" return.
Can I view my investments at any time on the web?
YES. You will be given access to a secure 128 bit encrypted web site where you can see how your investments are going. Your investment portfolio can be viewed at any time by you.
How often do you review my investments and the funds in my portfolio?
The underlying investments selected are reviewed quarterly. Your investment portfolio is reviewed six monthly with an annual face-to-face meeting, or if you prefer a telephone call. We also may review your risk/return profile and investments goals at this annual review to check that you are on track.
I see you are based in Wellington, does this mean you only have clients living in Wellington?
NO. While we are Wellington based investment and financial advisers we travel regularly (generally 6-8 weeks) to Auckland and Christchurch. We communicate regularly to our clients by phone and email. We do have New Zealand clients who are currently living overseas. Our clients find distance is not an issue especially with email and being able to view their investments at any time directly via a secure web site. Any portfolio changes are agreed before they are implemented via email.
Do you offer a full financial planning service? I would like help with insurance and retirement planning and a full financial planning review.
Yes. Please refer to our web site www.lyfords.co.nz which covers full financial planning services including insurance, retirement projections, estate planning and a UK Pension Transfer service.
Please contact Alison Renfrew CLU,CFP (Certified Financial Planner, Chartered Life Underwriter)
Click here to email Alison
What fund managers do you use?
We use research mainly from Morningstar to filter the more than 18,000 investment options available in the Australasian markets to give a recommended list of between 45-60 investment funds. The Investments selected are reviewed quarterly. Where available we use mainly wholesale fund managers utilising lower fee structures. If retail investment funds are used all commissions and brokerages are rebated back to the client's cash account. This is the key reason we are able to claim independence.
What is Occam's razor approach?
Occam's razor is a logical principle attributed to the mediaeval philosopher William of Occam (or Ockham). The principle states that one should not make more assumptions than the minimum needed. It underlies all scientific modelling and theory building. In other words often when there are several options available, often the simplest option is the best.
In any given model, Occam's razor helps us to "shave off" those concepts, variables or constructs that are not really needed to explain the phenomenon. By doing that, developing the model will become much easier, and there is less chance of introducing inconsistencies, ambiguities and redundancies. Refer to Investment Asset Allocation.
How are the changes in the financial adviser regulations going to affect you?
The director, Richard Renfrew (PhD, CFP) is fully qualified by examination as a financial planner and is qualified to use the international designation CFP - Certified Financial Planner. From July 2011 financial advisers need to be registered by the Financial Markets Authority, www.fam.govt.nz . Financial Advisers who offer anything other than simple investment products (such as term deposits) need to be Authorised Financial Advisers (AFA) and abide by the Code of Professional Conduct for Authorised Financial Advisers. We do acknowledge experience is also relevant. We have both. Refer to qualifications and experience.
What questions should you ask your investment adviser
We believe there are 7 key questions you should ask your investment adviser (financial adviser) please refer to investment adviser questions
Is there some general information about investing that I can read?
We recommend reading Investing Between the Flags produced by ASIC. Please note that this has been written for Australian investors, but many of the principals and concepts also apply to New Zealand investors.
