From time to time over our working lives surplus funds come to us and the opportunity to invest outside our business presents itself. Where these funds should be invested depends very much on our appetite for risk, how long the investment is to be, the amount of money to be invested and what other investments we may already have. By discussing these questions (and a few more!) with us we can help you in the right direction. Overall, a balance in types of investment (real estate, shares, fixed interest etc) is generally desirable and we have contacts in a number of areas that could be used to your advantage.
The degree of personal management of investments is something that needs to be thought about realistically. Each person’s circumstances should be carefully analysed so as to achieve an acceptable level of involvement. This should also be matched to their abilities and time availability. Can the management be safely delegated to others?
Many New Zealanders prefer to have investments in real estate. Often this takes the form of a residential property because more are familiar with this and the outlay is less than for most commercial or industrial properties. The associated risks and returns should be carefully evaluated. We have clients with a wide range of investment properties from perhaps $150,000 to $60,000,000. The experience gained here over the last forty years is extensive.
More and more of our clients have established share portfolios and these have generally produced good returns although they are subject to a degree of volatility depending on the nature of the investments chosen. Our share brokers produce a number of reports on the client’s portfolio but we also have access to their research papers on most listed NZ companies. In addition to this we like to analyse the performance on a portfolio over the financial year looking at income return, non-assessable income as well as capital gain. We believe that our analysis is unique in that it manages to be very comprehensive and yet it is made simple with our clear presentation. Knowing how well a portfolio is performing is critical in creating the best returns for your risk profile.
Needless to say, income tax also intrudes into this activity. Our skilled staff can guide you through many of the decision making processes. Minimising tax is important but investment decisions should never be tax driven.
We at Koller & Company, together with our trusted colleagues, will be happy to assist you with your decision–making.