Resources

Frequently asked questions

Here are the answers to some of the questions we are typically asked by potential clients.

a. A client can expected to be treated honestly & with integrity, receiving a high level of personalised, professional service, from highly experienced and qualified financial advisors.
a. Every investor’s needs and circumstances are unique, and portfolio structure and investment strategy should reflect this. Markets, legislation, and client circumstances are dynamic, and so too should the approach to a client’s wealth management be. Thus, while a DIY approach may work to a point, we believe a proactive, holistic approach to financial planning has significant benefits. By using an NFB financial advisor, clients gain access to significant and up to date experience and expertise. This allows clients to focus on their business and jobs without limiting the attention that their portfolios receive.

b. NFB provides clients access to industry leading solutions, with a focus on cost minimization. Through NFB’s cumulative industry footprint, we actively engage with our institutional partners to ensure that client costs are compressed as far as possible.
a. One of the key aspects to a successful wealth management is a consistent, holistic, and coherent approach. When multiple advisors are involved in a portfolio, one of the risks that needs to be addressed, is around whether the different strategies in place are complementary or are conflicted. As such, while it is possible to have multiple advisors, we would advocate that clients allow NFB to fully understand the portfolio.
a. Typically NFB advisors meet with their clients a semi-annual basis for a formal review of their portfolio. This arrangement is however flexible and can be adapted to the specifics of the client relationship. In some instances it may be necessary to meet more often or less frequently. Outside of reviews, clients will receive regular investment statements directly from our institutional partners as well as ongoing market and industry comment from NFB.
a. NFB advisors provide advice to clients on investment and portfolio decisions, requiring sign off from clients. That said, the underlying investments which are structured into the portfolio of clients are typically managed (within the defined mandate) by the fund managers without requiring client sign off.
a. As per NFB’s FSB licensing categories, NFB does not physically handle client money. There is consequently no credit risk associated with using NFB as the advisor.

b. One of the issues that NFB is acutely aware of is the issue of risk. Thus, one of the most material aspects of NFB’s role, is correctly understanding the clients risk tolerance and ensuring that the investment decisions that the client makes are appropriate for their risk appetite. Furthermore NFB has a sophisticated quantitative and qualitative due diligence process to understand as far as possible and limit the risks associated with using underlying product providers and fund managers.

glossary

This glossary will help you better understand terms commonly used in the financial industry.

A bond is a debt investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate.
a tax levied on profit from the sale of property or of an investment.
Cash equivalents are one of the three main asset classes, along with stocks and bonds. These securities have a low-risk, low-return profile.Cash equivalents include U.S. government Treasury bills, bank certificates of deposit, bankers' acceptances, corporate commercial paper and other money market instruments.
A fund that is operated by a trust company or a bank and handles a pooled group of trust accounts. Collective investment funds combine the assets of various individuals and organizations to create a larger, well-diversified portfolio.
An index of the variation in prices paid by typical consumers for retail goods and other items.
Disability insurance offers income protection to individuals who become disabled for a long period of time, and as a result can no longer work during that time period.
Income tax withheld from employees' wages and paid directly to the government by the employer.
A special addition to a life insurance policy that gives a percentage of the death benefit to the policy holder if he or she is diagnosed with a serious disease, such as cancer or heart disease
A stock or any other security representing an ownership interest
A payment made to a professional person or to a professional or public body in exchange for advice or services
A financial market is a market in which people trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand. Securities include stocks and bonds, and commodities include precious metals or agricultural goods.
A "fund of funds" (FOF) is an investment strategy of holding a portfolio of other investment funds rather than investing directly in stocks, bonds or other securities. This type of investing is often referred to as multi-manager investment.
Gross Domestic Product (GDP) is the broadest quantitative measure of a nation's total economic activity. More specifically, GDP represents the monetary value of all goods and services produced within a nation's geographic borders over a specified period of time.
Income distribution is the smoothness or equality with which income is dealt out among members of a society. If everyone earns exactly the same amount of money, then the income distribution is perfectly equal.
The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to stop severe inflation, along with severe deflation, in an attempt to keep the excessive growth of prices to a minimum.
A protection against the loss of income that would result if the insured passed away. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the death of the insured.
A LISP is an institution that packages multiple Collective Investment Schemes (Unit Trusts) together. This gives an Investor a single entry into a selection of funds.
A company that is set up to manage a group of properties, a mutual fund, an investment fund, etc.
Multi-manager investment is an investment product that consists of multiple specialized funds. Each specialized fund may invest across different sectors and markets, or having managers investing in the same asset class but have different investment styles.
The value of a mutual fund that is reached by deducting the fund's liabilities from the market value of all of its shares and then dividing by the number of issued shares.
A portfolio manager is either a person who makes investment decisions using money other people have placed under his or her control or a person who manages a financial institution's asset and liability (loan and deposit) portfolios.
Any tangible or intangible thing that is or may be owned by someone
Repo rate is the rate at which the central bank of a country (RBI in case of India) lends money to commercial banks in the event of any shortfall of funds.
The total expense ratio, or TER, is a measure of the total cost of a fund to the investor. Total costs may include various fees (purchase, redemption, auditing) and other expenses. The TER is calculated by dividing the total annual cost by the fund's total assets averaged over that year, and is denoted as a percentage
The income return on an investment. This refers to the interest or dividends received from a security and is usually expressed annually as a percentage based on the investment's cost, its current market value or its face value.