Like most advisers, we understand and believe in the principle of diversification. Not only to help reduce the volatility (Risk) of an Investment Portfolio but to help achieve better returns. However what makes us different is we don’t focus just internationally, but here at home. Often, the promise of greater returns and better diversification leads to a large exposure to international assets, so here at Avenue Advice, we pride ourselves in a portfolio diversification strategy which has a New Zealand and Australian Bias.
Modern portfolio theory dictates that you should have only a small exposure to this area, however there are a range of factors that make a home bias more enticing, including the fact that both the New Zealand & Australia economies are strong, diversified and stable. Compared to many other countries our Government Balance sheets are well managed and central banks independent, so the safe haven of Australasia in times of volatility cannot be discounted. The added result of this is also removal of a large part of currency risk.
We focus on managers with a proven track record of investing in well run listed companies, have a history of active management and apply a degree of ECG overlay on their process. ECG (Environmental, Social, and Governance) refers to the three central factors in measuring the sustainability and societal impact of an investment.