Financial Advisers Advised to Adopt Evidence Based Approach
Financial Advisers Advised to Adopt an Evidence Based
The Financial Markets Authority has sent a strong message to New Zealand’s investment advisory community: poor advice practices and unsubstantiated advice will not be tolerated.
Guests at a private function in Auckland this evening gained valuable insights into the unique approach one New Zealand firm is taking to help advisers deliver high quality investment advice.
The event, hosted by Consilium NZ Ltd, was attended by some of the sector’s leading advisers and proponents for increased responsibility among financial advisers.
Previously known as NZ Wealth Adviser Services, Consilium NZ Ltd is spearheading the move towards independent, evidence based investment advice.
Consilium’s carefully engineered diversified investment models provide investors with low cost access to proven sources of higher long term expected returns. Consilium, on behalf of their partner firms, manage close to $1billion NZD.
“Our approach is built on the premise that risk is the basis of return. Differences in average portfolio returns can be explained by differences in risk. Portfolio management becomes an issue of asset allocation across the dimensions of risk, rather than an issue of perceived money manager merit,” says Scott Alman, Managing Director of Consilium.
Consilium’s investment solution is audited annually to meet the requirements of the Centre for Fiduciary Excellence (CEFEX), which establishes global best practice standards for investment selection, monitoring and reporting.
“There is overwhelming evidence that most investment strategies based on forecasting and market timing fail to add sufficient return to justify the additional cost. From a risk adjusted return perspective, evidence based strategies typically provide a more rewarding investment experience,” says newly appointed member of Consilium’s investment committee, Dr Bart Frijns. Dr Frijns is a Professor of Finance at Auckland University of Technology and Director of the Auckland Centre for Financial Research.
As the only New Zealand company certified for support services by CEFEX, Consilium provides critical investment and adviser support to the New Zealand investment community.
Consilium’s clients include independent Authorised Financial Advisers, financial institutions and not-for-profit organisations charged with the responsibility of protecting and growing the financial assets of their clients.