• Investments
• Personal Risk Covers
• Finance Broking
• Employee Benefits

Investments

• Direct Investments
• Managed Portfolios via Wrap Platform
• Superannuation
• Currency Investments

Direct Investments

Direct investments (shares and fixed interest options) play an important role in the construction of our portfolios for those clients looking for tax and fee efficient options.

Strategic Planning Group Limited are able to transact purchases and sales for our clients of shares (NZ, Australia, UK and US) and bonds via a relationship with Goldman Sachs JBWere (NZ) Ltd.

We have arranged a discounted brokerage rate for our clients (lower than if you approached the broker directly).

Strategic Planning Group Limited is able to provide our clients with latest research, buy and sell recommendations and proactive management of the shares within a portfolio.

Contact Andrew Robinson for further advice.

Managed Portfolios via Wrap Platform

Strategic Planning Group Limited is Auckland's representative in the dealer group 'Prospero' which gains our clients access to the investment platform administered by Grosvenor Investment Services Limited.

What are the benefits of a client using a Prospero Adviser?

Your Prospero Adviser is able to provide you with a comprehensive range of financial services. The standards in which the Prospero Group adhere to include:

Professional Reputations
All Prospero Advisers are members of professional associations, the Financial Planners and Insurance Advisers (FPIA) or LBA

Professional Education
All Prospero Advisers have a commitment to continually meet on-going education requirements in order to keep abreast of new developments in the financial planning industry

Best Practice Standards and Compliance Regulations
All Prospero Advisers have to follow the best practice standards set by the Trustees of the Prospero Trust whose role is to protect and enhance the reputation of the Prospero Group

Transparency
The fees charged by Prospero Advisers are fully disclosed, largely tax deductible and are competitive

Personalised and Committed Service
Creating an environment Prospero Advisers act with honesty, integrity and loyalty in order to assist with achieving clients financial independence.

Leading edge Technology
All Prospero Advisers are required to adopt new technology and use to maximise operational efficiency in servicing our clients.

Communication and Reporting

• Detailed regular and adhoc reporting
• Clear and concise reporting
• Comprehensive reporting in financial and tax reporting
• Client internet access to portfolio reporting

The Prospero System brings to retail investors the systems, flexibility, and purchasing power usually only available to very large investors or Funds. Use the Prospero System to adopt an investment plan that fits with your needs.

You will probably already have a number of existing investments, many of which you will want to retain. This may be because there are costs in getting out of those investments, you may have special reasons for wishing to retain them, or they may simply fit very well into the investment plan that your Prospero adviser will prepare for you. Using the Prospero System, many of your current investments can be integrated into your new plan.

Security of ownership
You remain the beneficial owner of the securities or funds in which your portfolio is invested. You may, if you wish, give your adviser Power of Attorney to authorise transactions between investments on your behalf, but all investments and income will still be maintained on your account.

Tax advantages
Your portfolio will be specifically designed with tax issues in mind. Using the Prospero System, you can hold directly a professionally managed portfolio of New Zealand and Australian shares. As an individual you don't pay tax on capital gains (unless you are deemed to be a trader). New Zealand Unit Trusts, in contrast, pay taxes on capital gains (unless they track an index and have a tax ruling confirming their passive status). Investing directly in New Zealand equity investments also means that it is more likely that you can utilise all of the imputation credits available to you from your investments.

Understanding the costs We believe you deserve to know what fees you are paying. Not just the up-front fees, but also those other less transparent "expenses" that may be deducted from your portfolio. Your Prospero System reports will clearly detail fees charged by your adviser and Prospero Investment Services.

Maximising your return Returns from securities perform differently as market conditions change. By holding a carefully designed mix of securities, the overall variation in returns from a portfolio can be reduced without losing out on earning very good long-term returns. The following graph illustrates the expected long-term returns from typical diversified portfolios (1 - 5) offered by Prospero, compared to some historic returns from the individual asset classes.

The following graph illustrates how the returns even from aggressive portfolios can be moderated over time. This is why your investment timeframe is important when designing your portfolio.

Portfolio rebalancing and creating a well-designed portfolio is important. Regular monitoring of your portfolio is also important. Your Prospero plan will set ranges for your holdings of shares, bonds, etc. Your portfolio will then be regularly monitored. When it moves outside the desired ranges you will be advised of the transactions required to rebalance your portfolio. Maintaining your portfolio within the desired parameters can make a significant difference to returns over time. It is also important that you are not hit by high transaction costs when your portfolio is rebalanced. When you use the Managed Investment Account within the Prospero System, there are no additional fees for rebalancing, no matter how often this occurs It is also important that you are not hit by high transaction costs when your portfolio is rebalanced.

Contact Andrew Robinson for further advice.

Click here to show Prospero advisers throughout New Zealand.

Superannuation

Strategic Planning Group Limited has access to a Superannuation Plan that offers the following benefits to both clients and companies:

• Low total costs
• 3 portfolio models (low risk, medium risk, higher risk)
• Can accept transfers from registered New Zealand based superannuation plans
• Tax efficient (the NZ and Australian equity exposure and a proportion of overseas shares and NZ Fixed Interest exposure is made via directly held investments rather than managed funds. This removes capital gains tax issues), resulting in higher returns
• Six monthly reports
• On-line access
• Automatic re-balancing (no paperwork required)
• Research support if any major changes within the portfolio's holdings are made
• Dynamic asset allocation - this approach will actively sell out of equities and transfer to fixed interest in extreme downside conditions.
• Can accept regular contributions
• Competitive accessibility

Contact Andrew Robinson for further advice.

Currency Investments:

There are times that investment into foreign currency investments is prudent (when we expect the $NZ to decline).

Strategic Planning Group Limited will offer on advice on investments that are influenced by the movement in the $NZ. These investments will be tailored to meet your timeframes and tolernce to risk.

Strategic Planning Group Limited will also offer our clients the opportunity to exchange monies at the wholesale exchange rate ($A, $US, GBP, EUR, YEN) at no cost.

Background on rise in $NZ:

The $NZ has dramatically risen in strength against all currencies (to different degrees) over the last two years, the reasons for this have been:

• Strong growth in commodity prices have driven up the strength in the Kiwi Strong numbers of immigrants (demand for $NZ goes up, the $NZ reacts like any rationally priced good i.e. demand goes up, price (exchange rate) also rises)
• Strength of NZ economy. There is a very strong correlation between the strength of the $NZ and NZ's GDP growth rates. When the NZ economy is performing well, the Kiwi rises (and vice versa) Interest rates.
• The relatively high level of NZ interest rates compared to other Western countries has caused a huge inflow of foreign investment monies purchasing NZ government bonds. Offshore investors are receiving around a 3-5%pa premium on NZ government bonds compared to the US or European domiciled government bonds and therefore many investors have believed this premium is worth receiving although NZ is thought of as being a fairly high risk country to invest in (export driven, agriculture base). Once again this has pushed up the 'price' of the currency.

Prospects for the $NZ going forward:
We expect a substantial fall in the $NZ (particularly against the $US and $A) over the next 18 months, the consensus of currency analysts is for the Kiwi to fall to around 60-62 US cents over this time period (a 19% decline) and to around 85 Aus cents over the same period (a 10% decline). Reasons:

The interest rate differential between NZ and the US (and Europe to a lesser extent) will narrow as the US has signaled an intention to increase interest rates over the next 18 months. This will cause an outflow of $NZ and hence exchange rate will decline (excess supply of $NZ).

The economy in NZ will decelerate in terms of GDP growth, the Reserve Bank has signaled its intentions to control inflation which will be detrimental to the NZ economic growth scenario (interest rates may remain high for sometime to come).

A slowing economy equals a weaker $NZ as seen in recent weeks. The NZ economy can not survive with high exchange rates, high interest rates and high inflation.

Immigration has slowed dramatically due to changes in government policy.

Exporters are suffering and this may force the Reserve Bank to control exchange rates (downwards).

Contact Andrew Robinson for further advice.