Lifetime Investment Philosophy (version 2.0)
Lifetime is truly up and running post its 2018 merger and now rolling out new and improved advice and investment training program for our advisers and administration staff.
Giving our clients advice and helping invest for their future is a critical part of what we do at Lifetime (and Camelot prior). With the addition of new advisers from the merger, it was a perfect time for our investment committee to sit down and revisit our investment philosophy to see if there was anything we could refine or better explain to our new advisers and ultimately to you, our clients.
Our Guiding Principles
At Lifetime we understand there is a balancing act between risk and return. It is our belief that short-term market fluctuations cannot be accurately or consistently predicted and therefore look to long-term market characteristics which are measurable and definable. We have decided to remove emotion and use evidence-based academic research to underpin our investment philosophy.
These guiding principles have helped us to identify the pillars to our investment philosophy which we have developed over the years and will continuously do so in the future.
Our Investment Philosophy
An investment philosophy is the theory that acts as the framework that informs and shapes the investment decision-making process. It is something investors need to stick to once they start investing.
Our investment philosophy is therefore based on the following pillars:
- Investment risk can be mitigated with true diversification.
- We understand that to achieve higher returns, volatility is accepted.
- Successful investing requires patience and discipline over the long-term.
- We believe that over the long-term, equities will out-perform cash, term deposits, and bonds.
We then decided to select an appropriate diagram to help explain the key concept for each of the individual pillars:
1. Risk can be mitigated with true diversification
2. We understand that to achieve higher returns, volatility is accepted
3. Successful investing requires patience & discipline over the long-term
4. We believe that over the long-term, equities will out-perform cash, term deposits, and bonds
Conclusion
Having both a sound and proven investment philosophy helps Lifetime provide certainty to you, our clients. Providing certainty is what we strive to deliver and is consistent with how we have structured our client-focused planning process.
By sharing our Investment Philosophy story, we hope this has helped you understand how we try to consistently add value to your experience with Lifetime.
As always, if you have any questions and would like to discuss this further, please speak to your financial adviser.
Disclaimer: This article has been prepared for the purpose of providing general information, without taking into consideration any particular investor’s objectives, financial situation or needs. Any opinions contained in it are held as at the report date and are subject to change without notice. This document is solely for the use of the party to whom it is provided.
Lifetime Book Club: Atomic Habits by James Clear
This month, we’re kicking off the new year with a game-changer for personal growth - Atomic Habits by James Clear. Whether you’re looking to save more, get fitter, or just make life a little easier, this book is the ultimate guide to creating habits that stick.
Debt Detox: Break Free in 2025
Debt. It’s heavy, exhausting, and sometimes feels like a trap you’ll never escape. You’re not alone - 59% of Kiwis say their finances have affected their mental health. But here’s the good news: debt doesn’t have to define your financial future. This year, let’s turn the tide and make 2025 the year you take control.
Here’s your step-by-step guide to detoxing your debt and reclaiming financial freedom.