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Chartered Accountants

Trusted advisers of all tax compliance and annual accounting issues facing both individuals and small businesses.

Diversify, diversify

Source:DFA Australia Ltd

This slide illustrates the importance of diversifying across asset classes. The patchwork table shows from top to bottom the highest returning asset classes each year. The second table shows which asset class each colour represents.
There is no real pattern in the best performing asset classes from year to year. For instance, in the year 2011 Australian Small was the best performer, but one year later it was the worst.
Even within one broad asset class such as Australian equities, the sub asset classes – large, value and small – behave differently from year to year as you can see from the second table.
What’s more, it is not just about picking the best asset class from year to year, but about timing your moves in and out of the best performers. That is an awful lot of decisions to get right.
The only way for an investor to ensure exposure to the highest performing asset classes each year is to incorporate all of them into a portfolio.

For many years now Garry Hughes of BDS Hughes Chartered Accountancy and his team have provided us with an exceptional professional service. We have found Garry‘s knowledge in his field of taxation, business planning and financial matters of great value to us, along with providing us additional recommendations for improving our business strategies. We would recommend their friendly and professional services to anyone who is looking for an accountancy service that will improve their business performance.
Jane HandleyDirector Rug Doctor

Latest news

Changes to provisional tax

Posted on April 16, 2018 by BDS Hughes

Small businesses, sole traders and contractors can choose a new pay-as-you-earn option rather than paying provisional tax instalments several times a year as changes to pay-as-you-earn tax have come into place this April. The changes were made to help small businesses pay provisional tax based on their cash flow rather than the previous year’s earnings or estimated earnings for the current year. Paying provisional tax as you earn profit provides more certainty about cash flow. This new method is known as the Accounting Income Method (AIM). It is optional and only available for businesses with an annual turnover of less […]

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