When you succeed, we succeed

When you succeed,
we succeed

 

We are professional advisers

FANZ Private Wealth is an operating division of FANZ, a subsidiary of SBS Bank. FANZ Private Wealth has some of New Zealand’s most experienced investment and adviser professionals. Our advisers are remunerated on a salary plus bonus basis. They have no incentive to place you into particular investment solutions as any commissions and brokerage are rebated back to you, the client. We also carry professional indemnity insurance, to help protect you in the unlikely event that something goes wrong. For further details about these matters, refer to your adviser’s latest disclosure statements (copies are available on request and free of charge).

 

Understanding investment risk

All investments carry some degree of risk. Through our investment philosophy of diversification across asset classes we actively seek to manage those risks. When your portfolio is invested in funds managed by FANZ, or comprises standalone investments held on your behalf, your risk exposure is further managed through our commitment to investment in high quality fixed interest investments and use of a ‘best of breed’ multi-manager, multi-style investment approach.

However, the investments of your portfolio are not guaranteed or secured in any way, and could be subject to delays in realisation and the loss of some or all of the amount invested.

A usual principle of investing is that the lower the investment risk you take on, the lower the expected level of return. Conversely, taking on a little more investment risk in your portfolio usually increases the level of the potential returns – as well as the risk of negative returns or returns at a level less than you’d targeted. A key philosophy for us is making sure that any investment risk of a portfolio is commensurate with the expected level of return. However, the reality is that the more growth assets you have in your portfolio, the greater the likelihood that you may receive a negative return, and that this return may persist for some time, especially in severe market downturns.

Investment risk encompasses the chance of losing some or all of your investment, as well as the possibility that investment returns may be negative as well as positive. This potential up and down movement of investment value is called ‘volatility’, which generally increases where you have a higher percentage of funds invested in growth or equity investments.