Written: 18 May 2023

5 min read

Here at Flint Wealth, we have some exciting news to share – Octagon Asset Management has launched on the Flint platform! Octagon Asset Management brings eight new funds to Flint, providing investors with additional investment choices from one of New Zealand’s newest, yet paradoxically most long-standing, active fund managers. So, what do you need to know about Octagon and their funds when investing? In this article, we shed some light on who they are and some compelling reasons to consider investing in their funds.

Overview of Octagon Asset Management

Octagon Asset Management is a new brand in the funds’ management industry, but one with a long-standing history, backed by one of the most recognised financial services brands in New Zealand. Octagon was spun out from Forsyth Barr back in 2021 but well and truly stands on its own two feet.

Operating as their own organisation provides Octagon the nimbleness and flexibility they require to take a broad view of both customers and fund distribution. This is where DIY investing comes in. The business has been designed with digital in mind and has partnered with Flint Wealth to help with retail distribution of their funds.

Having mentioned ‘Forsyth Barr’, chances are you’re giving an appreciative nod – they are not just a well-known financial advice firm headquartered in Dunedin, but also a household name from their sponsorship of New Zealand's only fully-roofed stadium. The name ‘Octagon’ is also a nod towards the Dunedin roots of Forsyth Barr, with “The Octagon” being the eight-sided plaza at the heart of Dunedin’s city centre. In keeping with the theme, the business currently has 8 funds on offer for investors… it’s quirks like this which bring a smile to our face at Flint!

The team

When you choose a fund to invest in online, one of the questions you may ask is ‘who is managing my investments?’ Octagon Asset Management has a team with extensive capital markets experience here in New Zealand.

Octagon is headed by Paul Robertshawe, Director and Chief Investment Officer. Paul has over 26 years of funds management experience in the New Zealand market, including 17 years experience running equity portfolios. Prior to joining Octagon Asset Management, Paul worked for ACC, running the ~$4Bn New Zealand Equities fund, and before that at Tower Asset Management.

He is supported by Jason Lindsay who is the portfolio manager for Octagon’s Australian Equities and Listed Property funds. Jason is also an ACC alumnus, where he ran the Australasian Infrastructure Fund.

Last, but by no means least, the Fixed Interest and Cash portfolio manager Craig Alexander rounds out the senior investment team. Craig has over 25 years of capital markets and investment experience, including 10 years at Forsyth Barr and a stint at Tower Asset Management, where he used to work with Paul.

In fact, the Octagon investment team has over 100 years combined experience in capital markets and often works together in the same firm. That’s a lot of experience for a “new” brand!

Delving into the fund options

So, what is there to know about the funds that Octagon Asset Management offers? They are an active manager, taking an active, asset and stock-picking approach to investment management. Learn more information on active investment management versus passive management.

The funds offered by Octagon are in keeping with what you would expect from an active manager and offer diverse options. They could be viewed as building blocks from which a portfolio can be built, depending on your investment objectives and needs, or you could simply invest in one of Octagon’s multi-asset class Income, Balanced, and Growth funds.

The eight funds currently offered by Octagon are:

• New Zealand Equities Fund
• Australian Equities Fund
• Listed Property Fund
• Global Equities Fund
• New Zealand Fixed Interest Fund
• Income Fund
• Balanced Fund
• Growth Fund
• Enhanced Cash Fund (added in July)

A point of difference for Octagon is the omission of a Trans-Tasman, Australasian equities fund – but the exclusion is deliberate. Matt Hardwick, Octagon’s Business Development Manager, says “Managing pure New Zealand and Australian Equities funds provides investors with the flexibility to invest into the two funds to gain the level of New Zealand and Australian exposure they prefer. We reckon investors like the mix and match approach to suit their style and investment goals.”

The Octagon funds have annual fund charges of between 0.75% and 1.35% - a fee structure that is middle of the range among active managers.

Why Invest with Octagon Asset Management?

Your investment options are personal and should be guided by your long-term goals and objectives. For more information on the mix of investments that you may wish to have in your investment portfolio, we recommend you visit the Sorted website and read through the helpful information there. With these thoughts in mind, here are some specific reasons why you may consider investing in an Octagon Asset Management fund:

Equity exposure

Four of the Octagon Asset Management funds are equity funds – you can choose from New Zealand, Australian, or Global equity funds, as well as Listed Property.

Control over your market allocation

With both New Zealand and Australian equity funds, you have control over how much you choose to allocate to each, rather than being bound by the arbitrary allocation, you would receive for simply investing in an Australasian equity fund.

Income, Balanced, and Growth funds

The Income, Balanced, and Growth funds provide easy-to-understand options for people looking for a ready-made, multi-asset class fund approach. The asset mix for each of these funds can be found in the product disclosure statement (PDS), available for download from the Flint app or from the Octagon website. In general circumstances, a growth fund is suitable for an investor with a long-term outlook (for example, a younger person saving for retirement), a balanced fund is suited to an investor who is looking to decrease risk as they near retirement years, and an income fund is suited to an investor who is looking to derive ongoing income from the investments they have made – often those who are nearing or in retirement.

Experienced investment team

It goes without saying, but investing with a manager who is credible and who has an experienced team can provide peace of mind. With many decades of combined investment experience, and the backing of Forsyth Barr, one of New Zealand’s most successful wealth management businesses, we think you’ll rest easy when choosing to invest with Octagon.

Explore the Octagon Funds on the Flint App now at 
https://app.flintwealth.com/funds

Happy investing!

Flint

IMPORTANT NOTICE AND DISCLAIMER:

All content shared is of a general nature, current to the time it was penned, and is not financial advice. Before making any investment decisions, please be sure you have completed full due diligence. This should include reading the product disclosure statement (PDS), considering fees and taxation, identifying your time horizons, and understanding the performance history and reputation of the investments you are considering.

Please note: When investing you are not guaranteed to make money (and on occasion, you may lose some or all of the money you began with). Seek independent advice to establish if an investment is suitable for your financial situation and long-term wealth generation goals.

References:

https://www.octagonasset.co.nz/our-team/

https://sorted.org.nz/guides/saving-and-investing/about-investing