About Fusion investing and Martin Jago
Fusion Investing is the trading name of GoodWill Broking Ltd (FSP719111). GoodWill Broking is registered as a Financial Advice Provider (FAP). Martin Jago (FSP395446) is the Financial Adviser providing financial advice on behalf of Fusion Investing. Fusion investing has no other advisers working under the FAP umbrella.
52A Deep Creek Road
0274 973 687
Bio – Martin Jago BSc AFA
Originally from the UK, Martin’s earlier career was as a Mining Engineer in the UK, Australia, New Zealand and the US. At 28, he left the mining industry to enter the world of Financial Planning and Investing. Martin has introduced hundreds of clients to the world of portfolios, pensions, KiwiSaver and property investing, with many $Millions invested and managed. In 2015, Martin founded Fusion Investing, a boutique Financial Planning company where the philosophy is one of embracing all the expertise in the industry, and every planning tool, to achieve his clients’ objectives, rather than working for one source of expertise, as per the majority of advisory services.
Martin has developed a simple and cost-effective financial planning service where anyone can build a plan to achieve their goals, using the entire spectrum of investment types, but especially residential rental property and managed funds. Each client receives a written plan and a personalized video that gives them all the knowledge they need to have the lifestyle they want.
Martin can be contacted at firstname.lastname@example.org, by phone on 0274 973 687, or via his website www.fusioninvesting.co.nz.
What is Fusion Investing?
Fusion Investing is an independent financial planning and investment advisory service. Our activities tend to be divided equally between these two primary roles. We do not offer advice on:
• Insurance products
• Lending products and strategies
• Offshore pension administration and repatriation
• Investment wrap services
• Investment DIMS services
• Direct asset investments such as shares or bonds
Firstly, all advice is given in writing and in most cases, supported by a personalized video explaining our rational and solutions. In our planning strategies, our objective is to show our clients whether they can achieve their given objectives or not, and the best way of doing so. Our financial planning advice is not product or service oriented. It provides each client with an idea of where they are currently heading, whether they can achieve their objectives with their current strategy, and if not, what can be achieved using all the available planning tools. We map out their “strategy of least risk and effort”, which is the simplest and safest way of achieving their objectives whilst planning prudently with prudent rates of growth and return. Only when we have identified their strategy of least risk and effort, will we look at the maximums that can be achieved. If there is no way to plan prudently and still achieve their objectives, we explain this and then suggest ways of achieving the best possible outcomes.
We analyse our clients’ estate and insurance planning, to identify any areas which need improvement or fixing in order to ensure nothing untoward can derail their strategy toward achieving their objectives. We also advise on whether they need to change their ACC strategy. The final advice we give involves their PIE tax situation, but this is the only tax advice we give. This analysis includes no product or service comparisons or advice. This part of the clients’ needs is referred to a third party or the client is advised to seek their own professional help.
The result is a “State of the Nation” snapshot of where clients stand and what needs to be done to achieve their objectives. This advice is client-biased. The solutions don’t depend on Fusion Investing or Martin Jago. The client pays for their advice, it is theirs and if they wish to take it elsewhere to be executed, that’s their prerogative. The best solutions the industry has to offer will be identified, with no personal bias from Fusion Investing, or influence from product providers. It is the clients’ best solution, not a sales tool to influence their decision regarding choice of adviser. The advice will be robust enough to work anywhere.
Fusion Investing will analyse a client’s intended property investment strategy. This gives them a likely outcome from their property project and also informs them of the other actions they need to take, such as estate and insurance planning changes. This analysis usually forms part of a full financial plan.
Fusion Investing has a strictly Multi-Manager approach to investing. We are not influenced by, paid by or obliged to recommend any particular investment vehicle or provider over another. We believe that the expertise found at manager level in retail, off the shelf providers, is greater than we or any other adviser could offer a client. Therefore, we research and analyse suitable retail managers for our clients and then advise the client to invest directly, equally and simultaneously across multiple investment providers, both in KiwiSaver and portfolios. We analyse our clients’ best investor profile and then choose a number of non-correlated managers whose philosophies, styles and methods encompass all the major philosophies, styles and methods that can be found in the industry. That way, our clients have investments that provide median industry results in any investment environment. Unlike the majority of the investment advisory industry, we don’t expose our clients to just one preferred style. Nor do we make ourselves part of the investment process. Once a clients’ portfolio is established, all investment outcomes are provided by how the world of investment markets, from a New Zealand perspective, perform. Providing we’ve identified the correct investor profile and selected the right managers, there is little for us to do apart from monitoring and reporting on progress.
We believe the above strategy will provide a reliable and low-risk outcome for the clients. We do not try and “beat the markets”. If a client wants us to provide above average results we will decline to work with that client. We do not believe, on a long-term basis, that is predictable, so we don’t try.
This enables us to provide reliable outcomes at a low cost, as we’re not asking the clients to pay for our investment expertise. That cost is paid at fund manager level where it buys “more bang for your buck” as it’s spread across many clients. This way, the fees tend to be lower. We only charge a small admin and reporting/monitoring fee which keeps investors costs at a minimum whilst giving them the opportunity to invest with many of New Zealand’s top fund managers.
More is written about multi-manager investing in our website and literature.
As an independent adviser, we have agencies and can place funds with many fund managers and Providers, such as:
• Milford Asset Management
• AMP Capital
• Fisher Funds
• Hunter Asset Management
• Booster Funds management
• Nikko Asset management
• ANZ Investments
• IOOF Britannia MT
As we give unbiased advice and don’t accept incentives from any providers to recommend their products, we may also advise a client to use their bank and have clients who hold funds with Westpac and ASB. The process is a little more complex, but if those managers are the best option, we’ll recommend them.
Where possible, every manager will be visited, and the investment team or manager will be interviewed to ensure we know as much as possible about their philosophy, style and methods. We hold each of their Statement of Investment Philosophy and Objectives on file and this document is referred to at all times to ensure the manager is adhering to the SIPO and there is no “style drift”, a common problem as personnel come and go in the industry.
Fusion investing and Martin Jago receive remuneration in two ways:
Financial advice and portfolio management fees
A fee for service is charged for giving advice. The standard fee for a Financial Plan is $375 plus GST and any subsequent work is charged at the rate of $150.00 plus GST per hour.
Fusion Investing uses only Multi-Manager, direct-to-fund-manager investments. There is no Wrap or DIMS service. We have no nominee account and do not handle/process clients’ money. If a client invests based on our advice, they have the option to engage us to administer the portfolio set-up. Each manager must be invested with directly, so we charge $150 plus GST per manager to execute this request and establish the investment, with any investment funds paid directly to the managers by the clients. Typically, 6 managers are selected so the total establishment fee charged directly to the client is $900 plus GST. Clients apply for investments with a provider at a retail level and there will be no establishment charges from the providers.
We have a three-tier system for charging monitoring fees;
Basic (<$60,000 invested) No contractual service and monitoring fee but any requested work charged at $150 plus GST per hour. Standard (>$60,000, <$200,000) $400 p.a. plus GST but no extra charge for other work done, providing that work is portfolio related. This service gets one formal report per year and snapshot valuations upon request. Premium (>$200,000) $600 plus GST p.a. but no extra charge for other work done. This service gets two formal reports per year and snapshot valuations upon request.
We strongly recommend all investor clients use the Premium service for the first year or so to get used to our reporting format. It is their choice though.
No commissions or other incentives are accepted from product providers to select their products. This way, we remain independent and un-biased as product providers are chosen on their suitability only.
If the client wishes Fusion Investing to monitor and report on the portfolio, the client is charged 0.2% plus GST of the portfolio value, capped at $700 plus GST, per year to perform this duty.
Fusion Investing only uses InvestNow and AMP as KiwiSaver Providers but a general migration to InvestNow is underway. AMP pays Fusion Investing 0.2% p.a. of the total funds brought in by and maintained by Martin Jago. No GST is deducted on trail-commissions. With InvestNow, the fee structure is simpler and in most cases, less than AMP’s. The fees with InvestNow are capped at $200 plus GST p.a., irrespective of account value. This is a benefit of the migration but not the main reason. Full fee details are given in our Switch Proposal, which is a necessary step in introducing KiwiSaver clients to our multi-manager strategies.
Fusion Investing only uses AMP and Booster as a Pension Provider. This is because AMP has the only viable Multi-Manager KiwiSaver on the market in our opinion, and Booster holds funds for clients where Fusion Investing has other investments to monitor. AMP pays Fusion Investing 0.2% p.a. of the total funds brought in and maintained by Fusion Investing. No GST is deducted on trail commissions. Booster pays Fusion Investing 0.3% of the total funds brought in and maintained by Fusion Investing.
Conflicts of interest
Neither Fusion Investing nor Martin Jago perceives any conflict of interest in the advice and services provided.
The KiwiSaver, pension and portfolio fund managers are selected on their merits and suitability alone. No incentives to place this business are accepted.
A trail commission is paid by AMP to Fusion Investing for KiwiSaver funds, but AMP was selected at the time as there was no other Provider which offered a suitable Multi-Manager service. The migration to InvestNow will provide a better service and there are no commissions as we see this way of remuneration as redundant. With InvestNow, a direct fee is charged to the investor and is based more on work done, rather than value of account. This is a more ethical and fairer way of charging fees.
The trail commission paid by Booster and AMP on Pension funds is paid in lieu of monitoring those investments and ensuring Booster and AMP provide a suitable service for the clients who hold funds there. At present, there is no alternative way of charging.
No incentives or commissions are accepted from portfolio fund managers, especially at establishment. Any unavoidable trails or other commissions are generally given to a charity such as Hospice. Any perceived benefit for placing clients’ funds with any manager, apart from their suitability for purpose, are therefore avoided. Fusion Investing and Martin Jago are proud to be independent and all advice is unbiased.
Neither Fusion Investing, nor Martin Jago have ever received any complaints about services provided. We endeavour to deliver timely, appropriate advice in all cases.
Neither Fusion Investing nor Martin Jago have been accused of or charged with any offence whatsoever, related to financial advice or not. (couple speeding tickets ☹)
In the unlikely event that you are unsatisfied with or compromised in any way by the advice or actions of Fusion Investing or Martin Jago, the first thing to do in all cases, is to contact us and explain why you feel you’ve been disadvantaged. We will respond within 48 hours. We will review your complaint and discuss with you how we can resolve it. If it’s our fault, we will seek to redress the situation in a timely manner. Please ensure you have as much information as possible so we can anlayse where the break down has occurred. Martin Jago (0274 973 687 or email@example.com) is your first contact to make. Please be sure to let us know how you would like to be communicated with (telephone, email etc). There will be no charge made to you for this process.
If our response is unsatisfactory, or we are unable to redress the situation, your next step is to contact the Savings and Insurance Ombudsman (0800 888 202) where we subscribe to their adjudication process. They will act as an unbiased mediator and we will of course abide by their decision. We carry $2 Million of Professional Indemnity cover with BizCover (0508 249 268) so there shouldn’t be any situation we cannot rectify.
If that doesn’t provide a suitable outcome, you should contact your legal adviser.