WHAT’S YOUR RISK APPETITE?
When it comes to investing, you know not to put all your eggs in one basket – but where should you put them?
In simple terms, answering this question is what Hobson Wealth Partners does for its clients.
Spreading your eggs around is known as asset allocation, and getting that right based on where you’re at in life and your appetite for risk is key, says Hobson Wealth managing director Warren Couillault. Locally owned Hobson Wealth Partners (formerly Macquarie Private Wealth) is an investment advisory and wealth management rm that empowers its clients by creating bespoke investment portfolios. Using sophisticated data and risk analysis, knowledge of international markets and an understanding of its clients’ risk pro les, Hobson designs the optimal combination of assets for each person. It’s a science, but it’s also an art, Couillault says. An asset is anything from cash and bonds, through to shares and real estate, and it’s possible to invest in all these assets across the globe. “Picking the best investments for you comes down to a range of factors, including how comfortable you are taking on risk and your age,” Couillault says. For example, cash is a lowrisk but low-return asset, suited to a conservative investor. Shares, on the other hand, are much more volatile and may drop in value at times, but in the long run will provide greater returns. An investor with a taste for more risk and seeking capital growth will probably want a greater proportion of their portfolio in shares, he says.
It’s tempting to think you can make a big gain by picking what the market is going to do
Likewise, life stages are a key consideration. A 42-year-old at the peak of their working life has time to wait for more variable assets to produce returns, whereas a 72-year-old retiree needs a much more stable investment income. Working in long-term partnership with its clients, Hobson tailors portfolios to meet their individual risk and life-stage needs, right down to single investment products if required. Accessing Hobson Wealth’s research, strategy and compliance knowledge is not just for people you would think of as rich. For the rst time in history New Zealand has millions of people with long-term savings – many via KiwiSaver but also in other investments. “ e need for good advice is increasing,” Couillault says. “Financial markets are di cult. We’re in a world now where we have low yields and high asset prices. People need to make sure they have a portfolio that’s properly balanced for them and that they’re not chasing returns.” It’s tempting to think you can make a quick gain by picking what the market is going to do, but experience shows that’s really di cult, he says. “It’s not about timing the market, it’s time in the market. at’s why asset allocation is so important.” Hobson Wealth’s shareholders bought the rm from Australian investment bank Macquarie Group last year. Macquarie retains a minority cornerstone stake – an alliance that gives Hobson access to extensive international research resources. Meanwhile, its independent ownership allows it to be nimble and responsive to Kiwi clients’ needs, Couillault says. Hobson Wealth is named a er New Zealand’s rst Governor, Captain William Hobson, and like the early navigator, administrator and visionary, the rm sees itself as quietly shaping futures. If you would like to know more about how Hobson Wealth Partners can help you, please visit www.hobsonwealth. co.nz