The National Bank Investment Race - Just like Investment Markets
Wednesday, October 20th 1999, 12:00AM
The National Bank Financial Services Investment Race for 1999 turned out to be a bit like the investment markets. One competitor gained ascendancy for a few months only to be overtaken by others, and to add an extra bit of variety the lead see-sawed back and forth between two competitors until the nail biting finish.
Going into the final round only $542 separated the top four competitors - that’s how tough the competition was. Each of the 150 financial advisers from throughout the country were vying for the status and prizes that go to the winners of The National Bank Financial Services Investment Race.
Finally, Colin Vazey prevailed over Matt Butterfield and Michael Lawrence to win the 8th annual Investment Race. Colin, Matt and Michael have each won a trip for two to the FPA Convention in Sydney in November, which will be a great opportunity for them to broaden their industry knowledge and gain further education.
The star performing Unit Trust over the March – September 1999 period was unquestionably The Emerging Markets Trust with a net return of 13.9 per cent and all of our winners had high percentages of their asset allocations in this trust.
So how did our winners do it? Guesswork? Did they put on blindfolds and throw darts? Careful research and strategic planning? Or a combination of all of these?
Overall Winner - Colin Vazey of Vazey Child, Hamilton
A seasoned campaigner in the Investment Race, Colin has been an investment adviser for 5 years but has been a Chartered Accountant with a public practice certificate since 1977. He holds a B. Comm, CA, a Diploma in Financial Planning and CFP.
Colin’s net performance for the period of 16.47% was achieved through a carefully planned "contrarian strategy". He started the Investment Race in the Emerging Market Trust. In July he "moved into the Corporate Bond Trust to avoid the equity markets during the traditionally bad months of (July to October) and because the Dow Jones was overvalued and had to fall". This strategy differs from the strategy Colin uses for his clients because "it is more risky than I would use for clients, as I had 70% in one fund at all times. With clients we don’t do that; a) because of risk and b) the transaction costs of switching too often.".
Colin’s investment advice, summarised in just one sentence – "to make above average returns be a contrary investor, by staying with an asset allocation no matter what the markets do".
As a footnote to this advice Colin advises that he had never achieved a placing higher than 12th in the Investment Race. However, last year he read a book entitled The Education of a Speculator by Victor Neiderhoffer – amazing the results since then!
Second Place Winner - Matt Butterfield of KSL Financial, Christchurch
Matt has been an investment adviser for 4 years and is well qualified for the job. He has a B. Comm (Finance), a Dip. AFIS (Accounting) and is currently working his way through a Diploma in Financial Planning. This is Matt’s 3rd year competing in the Investment Race and his net performance for the period was 14.09%.
His winning strategy was that "decisions were based on the outlook and predictions for US interest rates and stock markets that influence all other markets and ultimately The National Bank Unit Trusts". This Investment Race asset allocation strategy differs from the strategy Matt uses for his clients because ‘the Investment Race is more focused on the short-term (1 month) with high percentages towards funds with probability of increasing over that period whereas client’s portfolios are more diversified and would be reviewed six monthly".
Matt’s investment advice, summarised in just one sentence – "setting and meeting goals and objectives".
Third Place Winner – Michael Lawrence of PricewaterhouseCoopers, Palmerston North
Another Chartered Accountant, Michael has been an investment adviser for 6 years. He has a BBS and is working towards a Diploma in Financial Planning. Michael’s net performance for the period was 12.97%.
Michael’s strategy was "I focussed on units with the greatest potential fluctuation and made some exits/entry at low/high points". As with our other two winners, "the six month competition strategy needed to be aggressive" and for clients he would use "a more long-term view".
Michael’s investment advice summarised in just one sentence – "take a persons unique circumstances and tailor solutions to them".
Congratulations to all the winners in The National Bank Financial Services Investment Race for 1999, including our other Top Spot winners - Liam McBride, David Belcher and Kay Annett.
THE NATIONAL BANK OF NEW ZEALAND LIMITED
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