Balanced Capital Return Portfolio

Comparison with Benchmark Indices

31, March 2010

This type of portfolio has a low tolerance for loss and is used as a primary or secondary source of income for most clients. We strategically tailor this fund to have low volatility and perform consistently through any market conditions. The portfolio is ideal for a retired couple seeking a fixed monthly return. We employ an investment strategy that limits position sizes in a highly diversified field creating a balanced portfolio that incorporates all asset classes.

Risk management is of utmost importance and we use three tools to keep levels low, namely, option trading, short selling and liquidity. In this portfolio clients will have access to their investments within three to five business days. The minimum investment is $100,000.

Interpreting the chart above it is clear that the client is making gains well above all the average indexes. The NZX provides a 15.3%2 return per annum where this client has had a 72.6% return from April last year.

Capital Gains Portfolio

Comparison with Benchmark Indices

31 March, 2010

We tailor this portfolio to the exact risk/return ratio you are comfortable with and use your investment horizon as a guideline to achieve your goals. Capital preservation is a main focus and all accounts remain highly liquid with access to investments within three to five days. In order to achieve the maximum benefit from this portfolio, withdrawals should be infrequent.

As you will notice in the chart, this portfolio has higher volatility than the Capital Return Portfolio, but because the investment horizon is longer, this portfolio has the ability to ride through market downfalls capitalising on higher returns over time. We employ all asset classes in this portfolio and manage risk through short selling, options, and flexible position sizes. The minimum investment is $100,000.

The chart above illustrates the function of a Capital Gain Portfolio through and coming out of a recession. Capital value one year ago rested at about NZ $82,000, today this portfolio is worth about $220,000, achieving a 146.31% return this year. This portfolio has more risk than most but we have managed it closely especially through the recession and re-growth periods. If you were invested in the NZSX Gross Index at this time you would have achieved a 15.3% return this year.