Many Kiwi's don't seek out financial advice. Not everyone needs to have an adviser, or would even benefit from one, but many would, who currently aren't. New Zealand is young in this area but growing up fast. Whilst our adviser workforce is of an older, mono-cultural generation, this is changing. Increasing regulation is the big stick, but real motivation will come from new blood coming into this space armed with new technology to add greater value - the future is bright.
When seeking financial advice? What should you know before you start shopping around for an adviser to work with?
Some of it comes down firstly to you: What's your expectation/what outcome would you like to get after an interaction with a financial adviser? Are you keen to get your 'hands dirty' also or do you want to allow that adviser all or some of the decision making in relation to your portfolio?
Some of us will never use an adviser and that's totally fine. Many who do use and pay (either directly or indirectly) for this are actually paying for something that may not make a meaningful difference on the return on a portfolio. Others, more likely the newbie or self-directed investor, save on costs but are they missing out on something important?
If using a financial adviser and an investment adviser specifically, is something you're going to do, then it pays to do a bit of groundwork first in order to understand what makes them tick.
On the topic of adviser regulation, unfortunately, it's the ambulance at the bottom of the cliff. Real change will be ushered in by a new breed of adviser armed with new technology and the aim: Provide a higher standard of qualified advice that you'd expect from a reputable firm, but with the personalised touch of someone you have a real relationship with.
Essential reading for this episode: https://www.myfiduciary.com/fiduciary-perspectives.html
Aaron Drew joins us today for the last part in a broad discussion on this theme of ‘conflict of interest’
Aaron is an experienced investment professional and consultant.
He is a Principal at MyFiduciary and Fi360 Pacific and provides investment support to a range of Adviser groups and Investors.
Aaron serves as a Trustee for the Fairground Foundation and the Investment Committees for Foundation North, Metis Research Group and Taupo Moana Investments. He is also an Associate of the NZIER and leads the Sovereign Funds research program at the New Zealand Institute of Pacific Research.
Aaron is an economist and his experience includes seven years for the New Zealand Superannuation Fund where he was a member of its Investment Committee and helped establish its passive Reference Portfolio governance benchmark, dynamic asset allocation strategy, and thematic investment strategies. He’s worked as a principal economist for the NZIER, at the OECD in Paris, as a consultant for the IMF. In addition to that he’s also worked as a CIO for the Stewart Group, and at the Reserve Bank of New Zealand where he led the research division as was a member of the Bank's Monetary Policy Committee.
This is going to be an interesting discussion and a must listen if you want to learn more about potential conflicts of interests in the world of investing. Note that this is a two-part recording, be sure to subscribe to the show next week.
To get a hold of Aaron Drew please check out https://www.myfiduciary.com/
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Where to find Darcy Ungaro:
Ungaro &Co (registered) financial advisers https://www.ungaro.co.nz
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