Starter for 10 is $1 million

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A financial management firm hopes a new Queenstown hook-up will attract high-net-worth individuals with a minimum of $1 million to invest.

New Zealand Assets Management this week launches an agency deal with prominent Queenstown accounting firm McCulloch and Partners.

Based in Auckland and Wellington, NZAM uses “global equities strategies with the emphasis on providing absolute returns on clients’ invested capital”, director Alan McChesney says.

“The minimum investment is $NZ1,000,000,” NZAM’s website says.

Although its “model portfolio” produced a negative return of -3.87 per cent in 2008, the annus horribilis for world stockmarkets, NZAM can boast a compound 10 per cent since the firm’s inception in 1991, the website claims.

Figures are before fees and taxes.

McChesney believes his clients can do better than the present “miniscule returns from cash and fixed-term deposits”.

And he’s not wild about corporate bonds, either.

“Corporate bonds aren’t necessarily bad investments but I don’t think investors understand the level of risk involved with these products.

“Things can go wrong with even the largest of corporates,” McChesney says.