MyFiduciary's approach

MyFiduciary develops investment strategies and governance frameworks for a wide range of investment organisations, including Iwi, advisers and charitable trusts.

The MyFiduciary Investment Committee members have wide experience and expertise across investment governance, institutional asset management, advice and direct investing. The MyFiduciary Investment Committee members also serve on a number of other external Investment Committees and Boards.

Investment philosophy

The MFIC have a rigorous evidence-based approach to portfolio design. 

MFIC provides research and recommendations to Consilium for the construction of the six MyFiduciary portfolios offered through Synergy. MFIC uses a core-satellite approach to portfolio construction. The MFIC favours, in general, well diversified low-cost managed investment funds for core exposure in the portfolios. For the satellite exposures, the MFIC recommends active managers who are not tightly constrained by market indexes and have the potential to add value net of costs.

The MyFiduciary portfolios also try to capture "value" factors and tilt towards small companies. MyFiduciary has a comprehensive qualitative and quantitative due diligence process for fund selection. Funds must meet a range of criteria in order to be considered for inclusion in the MyFiduciary portfolios

The MFIC believes good governance and processes are integral investment outcomes. The MFIC’s main working principles relevant to the model portfolio design includes:

  • Asset allocation is more important than manager or security selection for risk and return outcomes. The MyFiduciary portfolios cover a range of risk profiles to suit investors with different time horizons and risk tolerances.

  • Diversifying improves the risk and return trade-off. The MyFiduciary portfolios are well diversified across asset classes, securities, and risk factors.

  • Some markets are inefficient. Low cost passive funds play a role in the MyFiduciary portfolios, but the MFIC also believes skilled managers can earn excess returns in some areas. Market efficiency and evidence of manager value-added are part of the portfolio design process.

  • Responsible investing. The MFIC believe responsible investors who manage environmental, social, governance and cultural (ESGC) factors do better over the long term. ESGC is considered as part of the manager selection and monitoring process.

Portfolio monitoring

The MFIC’s review process incorporates qualitative and quantitative considerations. Along with regular fund manager visits and updates, a comprehensive set of screens is used to monitor investments.

Each fund is reviewed quarterly using a structured checklist. This is summarised into an overall “fiduciary score”. When issues are identified, a fund is placed on a ‘watch list’ for heightened monitoring.

MyFiduciary Investment Committee

Giving advisers a greater choice of portfolios

Scott Alman, Managing Director, Consilium sat down with Chris Douglas, Principal at MyFiduciary, to talk about MyFiduciary portfolios core-satellite approach and how they complement the current Synergy portfolios to give advisers more choice.