More expertise, less risk
A Smarter Concept
If you rely on one manager, investment style or philosophy, and it fails, your investment outcome fails with it. That's not a smart way to plan for your future or provide a retirement lifestyle. Fusion Investing clients have the advantage of a Multi-Manager Strategy (MMS). Instead of relying on just one manager or adviser, MMS spreads and reduces your investment risks across multiple managers so no single manager can derail your outcome.
How do we achieve this?
- First, we put multiple styles and experts into every strategy, equally and without bias. Every fund manager wants to excel and we harness that competetiveness, aspiration and drive. Our managers don't collaborate with or defer to each other. We choose them for their individual philosophies and styles, then put them side by side, with each given the same amount to manage (eg. 5 managers = 20% each). Imagine the expertise of Milford, BT Funds, ANZ, IOOF and others, working simultaneously on your behalf, instead of just one at a time!
- Second, it changes your investor behaviour. Studies have shown investors often make less than the industry does, because everyone reacts to the inevitable ups and downs in returns, with several advisor or manager changes during their lifetimes. This results in leaving funds when you should be staying and joining when you should be leaving, falling further behind each time. Using multiple managers is a truly lifelong strategy which eliminates the need for this behaviour.
This diagram shows the difference between your current single-manager/adviser reliance, and a Multi-Manager Strategy.
A Stronger Outcome
Our Multi-Manager Strategy (MMS) is very unlikely to be "number one", but it does mean you won't get to retirement and find your one manager has let you down. If you use just one manager and style, and they've performed below average, it could cost you dearly. MMS eliminates this risk. In addition, by changing your behaviour to a long term "buy and hold" strategy, you'll eliminate behaviour risk from your outcome. When you add these advantages together, they can increase your outcome by tens, if not hundreds of thousands of dollars.
A Safer Experience
With multiple managers looking after your savings and investments, you won't have to worry about having chosen "the right" manager or adviser. That's an impossible choice anyway, but spreading your money further, across more assets, countries and economies, with more expertise working on your behalf, has to be safer than concentrating your retirement hopes in just one place.
Martin Jago is an Authorised Financial Adviser, with over 30 years of financial and investment planning experience, having worked in companies such as Merchant Investors in the UK, AMP in Australia, Spicers Portfolio Management and Plan B in Auckland. Martin has worked in virtually every sector of the financial services industry and managed hundreds of portfolios with tens of millions of dollars under his care.
Martin has adopted a collective, multi-style approach to investing after seeing many investors starting out with hope and expectation, to wind up with disappointment, and even capital losses, because they placed their faith in one adviser, or one approach to investing.
Martin is able to invest through virtually all New Zealand's major investment firms. In every case, his due dilligence takes him to the experts within those companies, at the "coal face", where he drills down into the investment strategies used. Those managers are only utilised where they show clear differences in styles so your savings and portfolios can be constructed with multiple, non-correlated managers, giving you the most reliable outcomes.