CANOPUS INVESTMENTS Limited


Investment Advice - Authorised Financial Adviser - KiwiSaver Advice

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Investment Advice

Proven Investment Performance

Invest with Canopus. Canopus delivers proven investment experience and performance to build you a fully personalised investment portfolio designed to meet your own unique financial objectives.

Authorised Financial Adviser

Canopus offers an alternative approach to portfolio construction, serving investors who want to be involved in looking after their own savings. Working together we build you an investment portfolio of shares, bonds, fixed interest, managed funds, property and commodities. Your Authorised Financial Adviser is licensed to provide the full range of broking and investment services needed to build your portfolio. Diversifying a portfolio across a broad range of asset classes can increase profits through accessing higher yielding investments while decreasing portfolio volatility as gains from one sector often do not coincide with those from another.

Canopus offers a flexible approach to investment advice - a full investment, monitoring and reporting option for those requiring a total investment planning service or a brokerage-only service for those who prefer to manage their own investments.

Under the full investment plan option, any commission or brokerage that may be received by Canopus from a financial product provider, in respect of an investment product used in the portfolio, will be fully rebated to the investor - eliminating any conflict of interest in portfolio construction.

For each investor a personal ASB Securities sharetrading account and associated Cash Management Account are established as the operating base for the portfolio.

Each Canopus investor is treated as an individual with a personal customised portfolio being assembled to suit the investor's own needs, based on factors such as financial goals, age, risk profile, investment experience and financial capacity. Investments will be carefully selected. Your savings won't just be lumped into a "Bit of Everything" fund along with everyone else's. Minimise costs - Canopus does not use "wrap accounts", "custodial holding accounts" or "nominee holding companies" - all of which can add significant management fees to your portfolio and reduce returns. Canopus does not pool investor funds.

Key advantages of investing with Canopus:

  • Superior returns. Proven history of performance and experience. Don't pay for "advice" where you would be better off just putting your money in the bank.
  • Lower fees. Direct ownership of investments cuts out custodial management fees. Canopus does not use "wrap platforms", "custodial holders" or "nominee holding companies" - all of which add more fees.
  • Investments are registered in your own name providing security of ownership, transparency of holding and peace of mind.
  • Registerd ownership of securities provides direct access to valuable rights issues, special purchase plans and high quality Initial Public Offers.
  • No "Hard Sell". You won't be hassled to hand over all your savings as quickly as possible to a fast talking investment product salesperson whose bonus depends on extracting as much of your money as possible for placement in his or her employer's proprietory managed fund.
  • No "establisment fees" just to get you started (up to $1400 or more in some cases) and no "transaction fees" when you add to or sell from your portfolio (although you will pay third party brokerage for secondary market trades).
  • No "excess performance fee" - commonly charged by managed funds, taking up to 20% of "excess returns" over some arbitrary manager determined benchmark. All the gains in your Canopus portfolio (after your agreed standard fee) are yours.
  • No "cross-selling" pressure to buy additional services and products you don't want or need.
  • No long term "lock-in" advisory contract. Effectively leave when you like - if you want to!
  • Low volatility. Diversification of investments across different asset classes provides steady capital growth and steadily increasing income returns.
  • Unbiased advice. Any portfolio commissions or brokerage received by Canopus is rebated to the full advisory client, eliminating any conflict of interest in asset selection.
  • No pooling of investor funds. Canopus does not hold your funds at all. You do.
  • Keep it simple. Your portfolio won't be scattered across a myriad of impossible-to-track investment fragments.
  • You retain voting rights (where applicable) to the investments you own, enabling you to have a say in your company's mangement, attend general meetings and question directors.
  • Quarterly reports given on your portfolio valuation, performance and outlook, including itemised schedule of income received. Updates may be requested at any time.
  • An individual brokerage account at a major New Zealand brokerage house and a separate registered bank cash management account with online facilities form the operating base for each personal portfolio.
  • Liquidity of investments enables easy access to funds if needed.
  • Multi-currency banking facility allows cash holding in any major currency.
  • Personal attention. Your Authorised Financial Adviser is easily accessible and will keep in touch.
  • Ultimate control of the portfolio remains with you, the investor.

Returns

Investment returns are important. Even in today's low interest rate environment, good investment returns are possible. The chart below shows real returns from a real client portfolio, net of all fees and after tax on portfolio gains at the investor's prescribed rate. This portfolio has been designed to provide both income and growth with high security and low volatility. Unit value includes a cash income yield of about 6% p.a. net of fees and tax, based on the amount saved. This portfolio is diversified across high quality issuers - blue chip NZ and Australian equities, smaller company shares, international equities, listed property, floating rate notes, debentures, bonds and cash. All investments are registered in the investor's own name, providing maximum security, transparency, access to valuable rights issues, lower fees and ultimate control of the portfolio by the portfolio owner. Because this is an individual portfolio tailored to the investor's own needs, portfolio composition can be adjusted to produce additional income yield or greater growth as required.

Diversified income portfolio unit value


The portfolio below is another real client portfolio, this one designed to produce capital growth rather than income, but still with relativly low volatility and high security. Compound rate of growth from 31 December 2011 to 30 September 2017 has been 10.50% p.a. Returns are shown net of all fees and after tax on portfolio gains at the investor's prescribed rate. This portfolio has a greater weighting towards shares and property than the income portfolio above. Again, all investments are registered in the investor's own name, providing greater security, transparency, access to valuable rights issues, lower fees and ultimate control of the portfolio by the portfolio owner.

Growth portfolio unit value


Handling of Client Funds

In the normal course of business, investment monies will be passed directly to the securities issuer for the purchase of new issues. All Canopus sharetrading account holders are issued with an individual true bank account from which share purchases and other investments are funded and to which dividends, interest and investment sale proceeds are deposited. Your personal bank account is held at a major New Zealand bank offering full online access and transaction facilities, providing maximum security and transparency. Canopus Investments Limited does not bank or hold investment monies received on behalf of clients unless by special request or arrangement. When held on behalf of clients through special request, client funds will be held on trust in a separate special purpose account. Canopus does not pool client investment monies.

Risk, Reward and Volatility

Our objective is to construct a diversified portfolio producing a total return, after fees and tax, well above bank deposit rates but with very low volatility and with low risk - providing steady growth and income over the long term. Investment theory calculates absolute risk in terms of standard deviation of actual returns dispersed above or below the expected return on an investment over time. Large dispersion of returns therefore, theoretically, equates to "high risk". In practical terms the theory is virtually useless as it uses volatility (dispersion or variability of returns) as an absolute measure of risk. For the practical investor, "risk" and "volatility" are quite different. "Risk" to most investors represents the probability that part or all of one's capital could be lost or the probability that the expected return will not be achieved. Any return above that expected should surely be considered a "bonus", not a "risk". For the great majority of specific investments, the historical return information required to calculate a useful risk factor based on probability of returns over time is most likely non-existent.

Some investments can exhibit relatively high volatility of returns but low risk, a classic example being the Man Investments OM-IP managed futures funds featuring a capital guarantee from a major Australian bank. Risk of loss of capital is thus very low and long term gains have been consistent, but volatility of returns from month to month can be high. Investment theory would therefore classify these funds as "high risk" owing to the volatility of returns, but the inherent low risk has been amply demonstrated over time through a rising capital guarantee, and survivability of every one of these funds through the Global Financial Crisis which oversaw the collapse of so many alternatives. Holders of these OM-IP funds through the GFC would be very happy with their theoretically "high risk" investment. A number of capital protected Liontamer funds invested across commodities, interest rates and equities, possess similar characteristics of low risk to capital but a potential high volatility of returns from one month to another.

Fees

Canopus will provide an initial advisory interview, lasting up to one hour, free of charge. The initial interview is aimed at assessing your investment needs and determining in which manner Canopus may be best able to assist. Should you decide to invest through Canopus, a comprehensive, written, investment plan can be produced for you at a cost of $300+GST. A full investment plan, including implementation, monitoring and reporting will incur an annual fee of 1.2% of total funds under management, charged quarterly, for investment portfolios up to $200,000. Portfolio management fees will be scaled down for portfolios greater than $200,000 as per the following table:

  • $200,000 - $299,999   1.0%
  • $300,000 - $399,999   0.8%
  • $400,000 - $499,999   0.6%
  • $500,000 - $699,999   0.5%
  • $700,000 - $999,999   0.4%
  • $1,000,000+   by arrangement
Under the full investment plan option, any commission or brokerage that may be received by Canopus from a financial product provider in respect of an investment product used in the portfolio, will be fully rebated to the investor.

Other investment plan options may be tailored to meet your needs with fees subject to negotiation.

An Investment Adviser Disclosure Statement is available on request, free of charge.

For more information contact Canopus:
info@canopus.co.nz


Investment Advice

Investment, Speculation and Gambling - Know the difference!

Few important topics are less understood and more confused than the differences between investment, speculation and gambling. Even Wikipedia isn't much help! But knowing the difference is important - and can dramatically effect your portfolio returns.

After much research and thought I believe the following definitions allow clear classification of activities according to the following criteria:

Investment: The outlay of capital in expectation of receiving a return on that capital through ownership of, or loan for, productive enterprise e.g. purchase of shares with intention to hold for dividends and possible capital growth; deposit in a bank, on-lent by bank to industry via loan or house buyer via mortgage. Investment success requires skill and knowledge.

Speculation: Taking of position in a market with the intention of profiting from movement in market price of the underlying asset, e.g. purchase of agricultural commodity futures contract with the intention of closing out the position before delivery or purchasing a property (perhaps on negative gearing) with the intention of profiting from capital gain. Underlying asset is usually a normal product or by-product of the real economy such as a commodity, property, currency, share index or interest rate. Skill and knowledge required for success.

Gambling: The placing of a wager on an event specifically created or selected to create a game of chance such as a horse race, game of cards or table game in a casino, the outcome of which is otherwise usually inconsequential. In some cases skill may assist a gambler in the short term but, longer term, odds are largely pre-determined by probability theory.


KiwiSaver Advice

This article has been moved to a dedicated KiwiSaver page. To access the KiwiSaver page click here.



Retirement Income Planning

Irrespective of KiwiSaver, comfort in retirement demands additional and individual retirement income planning by everyone. Declining government resources, increasing numbers of retired and longer, healthier life expectancies all mean direct Government Superannuation must decline in future.

With access to a wide range of proven investments including:   international mutual funds, New Zealand and Australian unit trusts, capital guaranteed funds, secured debenture stock, high yield capital notes, listed shares, bonds, securitised property and hedge funds, Canopus can chart a private savings programme designed to deliver the lifestyle you want in retirement.

Canopus offers the flexibility of private portfolio management or specialist investment advice. Structured investments also arranged, enabling drawdown of capital plus interest.

Contact Canopus for an initial consultation now. A Financial Adviser Disclosure Statement is available on request, free of charge.

For more information contact Canopus: info@canopus.co.nz



Personal Finance Budgeting

Saving for retirement, that overseas trip, education costs or perhaps that dream car?

Canopus investment advice can help make the task so much easier.

Canopus can assist in building an investment portfolio tailor made to suit your requirements, delivering maximum returns with minimum risk and volatility.

For more information contact Canopus: info@canopus.co.nz


Conditions of use of this website

Use of this website denotes agreement to the following conditions:

Disclosure

"Canopus Investments" is the registered trade mark of Canopus Investments Limited, a privately-owned New Zealand investment company.

Canopus Investments Limited, its directors, officers and associates, may hold or apply for investments mentioned on this website for their own investment purposes.

A Financial Adviser Disclosure Statement is available on request, free of charge.

Disclaimer

Information provided on this website does not constitute a recommendation or advice to purchase any investment, product or service listed or mentioned on this website. Information displayed on this website is not intended as specific investment advice and should not be relied on for making investment decisions. Investments mentioned on this website may not be appropriate for individual investment objectives or individual financial circumstances. Investors requiring specific investment advice should consult Canopus Investments Limited.

To the maximum extent permitted by law, neither the owners, managers, employees nor associates of Canopus Investments Limited accept any liability whatsoever for any loss or damage resulting from the use of information obtained from this website or from any other publication produced by the owners, managers, employees or associates of Canopus Investments Limited. Neither the owners, managers, employees nor associates of Canopus Investments Limited guarantee the expected return or any other return from investments mentioned on this website or purchased through Canopus Investments Limited.

Information provided on this website is compiled from information believed to be accurate at the time of publication but no guarantee as to the accuracy of information displayed on this website is given, intended or implied.

Information provided on this website is not intended to create, nor does it create, any legal obligation, responsibility or contract between the owners, managers, employees or associates of Canopus Investments Limited and any other party.

Handling of client funds

Canopus Investments Limited does not bank or hold investment monies received on behalf of clients unless by special request or arrangement. When held on behalf of clients through special request, client funds will be held on trust in a separate special purpose account. In the normal course of business, investment monies will be passed directly to the securities issuer. All Canopus sharetrading account holders are issued with an individual true bank account from which share purchases are funded and to which share sale proceeds are deposited. Canopus does not pool sharetrading account funds.

Applications

Information on this website does not constitute an offer of primary issue securities as such offer can only be provided through delivery of the formal offer document. Application for primary issue securities will only be accepted when made on the application form accompanying the investment statement or other formal offer document.

Restrictive jurisdictions

No investment, product or service referred to on this website is, or will be, knowingly offered to any person or entity residing in, or subject to, a restrictive jurisdiction where the offer of such investments would be unlawful. Any person or entity requesting information about, or making application for, any investment, product or service referred to on this website, will be deemed to have declared that the person or entity making the request or application is free to receive such offers and is not subject to any restrictive jurisdiction where such action would be considered unlawful.

Copyright

Information published on this website is provided strictly on a non-predjudicial basis only. It may only be used for the purpose for which it is intended, that is, the obtaining of financial services information. International copyright to the material published on this website is held by Canopus Investments Limited. Unless specifically authorised by Canopus Investments Limited in writing, all copying, forwarding or alternative use of information obtained from this website, by any individual, entity, corporate, state or representative of such entities, in any manner whatsoever, is prohibited and may be deemed to constitute breach of copyright.


Privacy Policy

Canopus, brilliant southern star of the constellation Carina (The Ship's Keel), navigational beacon to traders and explorers over centuries, from sailing ships to spacecraft, now lends its name and aura to an enterprise dedicated to providing investors with the same basis of security and direction.