Professional Adviser Awards 2009: Winner

Investment Philosophy

Verus Wealth believes in asset-class investing because asset allocation is the single biggest determinant of the long-term performance of an investment portfolio.

The Verus investment philosophy is based on academic studies and Nobel-prize winning investment principles and unlike stockbrokers and the vast majority of Independent Financial Advisers and Financial Planners, Verus does not spend time fund or stock picking or trying to predict and time the market.

Academic studies and history reveals that a low-cost, passive investment strategy outperforms the vast majority of active investors over the medium and long-term. We therefore believe this approach should at least represent the core of any investment portfolio.

Although a passive investment strategy takes away a lot of the excitement associated with investing, Nobel Prize winner William F. Sharpe, an advocate of passive management, once noted that indexing - the most basic passive investment strategy - is "a boring way to get rich”.