© 2017 by Munro Financial

What We Do

 

Munro Financial is a Christchurch based financial planning practice, specialising in private investment portfolio construction, implementation and monitoring. We are a boutique advisory business, highly focused on our client's success. We build investment strategies designed to capture the best ideas, often incorporating directly held shares, bonds, managed funds and exchange traded funds; and we subscribe to a variety of research institutions to assist in this.

Our portfolios are built using the best ideas from research we access through a number of leading financial institutions in Australia and NZ. Generally our strategies will not be limited to just managed or index funds. They will endeavour to reflect the personality, risk tolerance and understanding of the investor for whom we act and may therefore include a variety of boutique Managers, direct Shares, Exchange Traded Funds and Bond selections. For some clients we act as “co-pilot”, guiding them as we interact on asset selection. In this way, some clients will want to include certain investments, which may not be a part of our usual recommendations; providing these make sense within the context of the agreed Investment Plan, we’re happy to capture those ideas in the strategy. For the majority of clients, we’ll invest in the options we present - supported by independent research. We attend to all administration and monitoring, via our Discretionary Investment Management Service, working toward the agreed return target and within the boundaries of acceptable risk.

For our portfolio clients, report generation is between six and eight times a year, but more importantly, our clients have complete access to view their portfolio online 24/7. We rebate clients all commissions and margins that might be paid to us by suppliers, meaning it is only our client that pays us. This reinforces our independence, and is another validation that our interests are exclusively aligned to those of our client. We work for them!

There are many ways to manage an investment strategy and we’re always open to new methods. That said, we have found certain investment approaches continue to deliver better outcomes and so we’ll tend to embrace the strategies that have proven themselves historically. Of course, keeping an eye to costs and tax will also assist results in the long term but ultimately, 70% of a portfolio’s gross return will be dictated by the sequence and allocation of capital to different investment sectors. Therefore, in all that we do, this is the most critical consideration. To do it well, we invest the time to know our client.

 Our Style

Good financial advice is complex and good investing can be even more complex. There are so many views and opinions out there. Which one is right?

As consumers, we’re bombarded by messages of excellence. So how do you sift the wheat from the chaff? How can we know, what we do not know? Quality is seldom as variable as returns. What differentiates one portfolio of investments from another? What separates the best advice from just good advice? Do costs matter? What about Foreign Exchange? Is tax a problem? Why invest in Shares? Will using a Managed Fund deliver a better return? What role does a Financial Adviser play? Active or Passive, which is the better option? These are just some of the questions an investor should consider.

The subtle knowledge I’ve gained after 30 years working in Financial Services (26 of them as an Investment Adviser / Financial Planner) is invaluable, as I help our clients avoid some subtle pitfalls and navigate a better course. In all cases, returns are never linear and often the best time to invest is when everyone else is fearful. Good advice is about knowing our client and understanding their tolerance for risk, but more importantly, it’s about giving them the right advice for their circumstance.

 

Sometimes there is a need to take the investor to places that they may not always be happy about. It is the investor’s goals and ambitions that reveal the right advice. I have no sales target, no bonus to achieve. My business thrives when my clients do well, yet even in that, ultimately it is our client that has the right of veto. So in all that we do, context & explanation are essential parts in our advice process. Communication is the river on which progress flows.