We typically ask people 4 questions about whether to manage their own investments:

  • 1. Do you have the desire?
  • 2. Do you have the time?
  • 3. Do you have the knowledge?
  • 4. Do you have the temperament to do it?

Another consideration is if you are a Trustee of a Trust in which case you will have some fairly onerous legal obligations with respect to following a prudent investment process.


  • Investment Principles

    • understand the that risk and return are related and must be considered together
    • understand that good investment management begins with the right principles. We believe that is asset class investing for most investors.
  • How we manage wealth?

    • we begin with the end in mind
    • we put our clients first
    • we recognised that investment returns are the result of holding investment risk. It’s all about how much risk you are willing to take
    • We have a long-term objective – it’s not speculation
  • Investment Management Committee

We leverage off an investment management committee process to ensure our investment solutions are robust‚ monitored and constantly improved

  • Selecting Appropriate Investments

    • The investment must be low cost.
    • The investment must not speculate.
    • The investment must diversify our risk exposure.
    • It must be liquid.
  • Which Risks Pay?

  • While we have ascertained that risk is the source of return, not all risks pay the same. There is strong empirical evidence that three risk factors explain a significant portion of investment returns (up to 95%) They are:

    • Market Risk:
      This is the risk of capitalism that affects all businesses including political stability, interest rates, credit availability‚ etc. Market risk cannot be diversified and thus investors are compensated for holding it. This conclusion helped Bill Sharpe win a Nobel Prize in 1990.
    • Size Risk:
      This is the risk associated with small businesses. Small businesses must pay potential investors higher rates of return because they are more likely to fail. However‚ because these businesses are small they have a greater upside if they succeed. We measure size risk using market cap. Market cap is the total value of the firm’s shares.
    • Value Risk:
      This is the risk associated with businesses that appear to have poorer prospects or are out–of–favour with investors. To raise capital‚ these out–of–favour businesses must offer investors higher returns because investors are not convinced about their long term profitability. However‚ since these businesses are out–of–favour‚ they have a greater upside if they turn their businesses around.
  • Constructing Diversified Portfolios

The essence of proper investment management is assembling a large number of poorly correlated assets. In other words you want to hold investments that (to the greatest extent possible) do not rise and fall together.

Quartz portfolios include over 8,000 underlying investments from:

  • 23 developed economies‚ such as North America‚ Europe, Japan and Australia
  • 18 emerging economies‚ such as China‚ India‚ Brazil and Eastern Europe
  • All global business sectors from healthcare to manufacturing‚ from commodities to financials

By way of comparison New Zealand represents less than 0.05% of the world economy.

  • Which Portfolio Is Right For You?

  • But what portfolio is right for you? This is a highly important question and one that Quartz considers carefully for each client we work with. Important considerations include:

    • Do you have the income and wealth to ride our short-term market movements?
    • What are your preferences for when you begin using your wealth?
    • How much of your portfolio would you like to spend each year?
    • Do you feel comfortable with the idea of losing portfolio value over the short–term in order to grow more wealth in the long–term?
    • Do you have the investment knowledge to keep focused in good and bad markets?
  • Needs Assessment

    Once we know which how much risk you have the capacity to hold‚ we should evaluate that portfolio in terms of your needs? Certain clients go through a comprehensive needs analysis where we address questions such as:

    • What are your goals‚ dreams, and aspirations?
    • How can your portfolio help you achieve those goals?
    • What actions are necessary now to prepare for your future?
    • How much income can you comfortably take a year out of your portfolio?

    This analysis is about you and how your investment management portfolio needs to serve your interests. It’s in this process that our expert advisers help you form a vision of what you can achieve and just what it’s going to take to get there.

  • Regular Review and Rebalancing

Regular reviews of your investment management portfolio can lead to higher returns and ensure that your portfolio remains best fit for you.

Your circumstances‚ investment experience‚ risk and return objectives and financial constraints change over time. Regular reviews ensure that this information is updated when it changes. This allows us to help you stay the course and make adjustments as necessary.

Even the best investment management strategy needs to be adjusted to stay on track. To ensure your portfolio continues to provide you with the highest probability of success we will recommend trades for you to approve in order to rebalance your portfolio.


Working with you to establish the appropriate investment strategy including developing an Investment Policy Statement(IPS)‚ formalising how your investment assets are managed by us.

Designing the optimal mix of asset classes (NZ Fixed Interest‚ Global Fixed Interest‚ NZ Equities‚ Global Equities‚ NZ Listed Property and Global Listed Property) for your portfolio.

Selecting the securities with which to implement your asset allocation using robust selection criteria that is regularly reviewed. As a Quartz client‚ you will have access to premium investment funds at wholesale rates‚ including the highly regarded funds managed by Dimensional Fund Advisors (DFA).

Ensuring the securities selected are behaving as expected for each asset class including comparing against the market benchmark.

Your portfolio’s actual allocation will‚ over time, naturally drift from its target mix. Quartz assists you in making any needed changes to your portfolio holdings‚ enabling you to keep your investment strategy on track.

Undertaking all investment administrative tasks and providing you with regular reporting including providing a client portal with 24/7 access to your portfolio.

Meeting periodically to review your circumstances and ensure your investment strategy is appropriate and suitable for your current needs.

Investment management and behavioural finance is an evolving discipline. As we learn, you will learn.