By Jacob Wolt
In 1994 Bradley Nuttall was established as a partnership with a singular focus: to provide advice in the best interests of our clients. This foundational principle has remained the cornerstone of our business for three decades, guiding us through significant transitions and growth.
The Genesis of Client-Focused Advice
When Dave Bradley, Andrew Nuttall and I founded Bradley Nuttall, we set out to create a firm that would provide tailored personalised advice free from the influence of prevailing trends or product driven offerings. Our approach was quite revolutionary at the time, as most advisers and brokers were still operating on commission-based models that prioritised product sales over client needs. A pivotal moment in our journey occurred in 1998 when we made the decision to transition to a fee-only model. This decision was radical for its time, as it meant complete transparency in our pricing structure and a clear alignment with what was in the best interest of our clients. It was a bold move that set us apart as the financial services industry was still heavily reliant on commissions, brokerages and frequently opaque fee structures.
Embracing Technological Advancements
The late 1990s marked a significant shift in our operational efficiency. In 1998, we became a foundational user of the AEGIS investment platform. This custodial system enabled our clients to access lower cost wholesale investments and eliminated the need for individual paperwork to be completed for each investment. This technological leap forward allowed us to focus on delivering improved investment outcomes and spend more time on providing strategic advice tailored to each client’s individual needs and less on administrative tasks. The move to the FNZ and several other investment platforms in recent years has further enhanced our delivery and capabilities.
I recall the early days of handwriting financial plans, completing manual cashflow modelling, writing up file notes and the time taken in preparing for client reviews. The stark contrast with today’s virtually instantaneous modelling and reporting capabilities illustrates the rapid technological evolution we’ve witnessed and embraced over the years.
Pioneering Holistic Wealth Management
Our vision extended beyond just offering investment advice. We recognised early on that true financial stewardship required a comprehensive approach. In the late 1990s and early 2000s, we were pioneers of holistic wealth management in New Zealand. This approach considered not just delivering investment solutions for clients but also took into account many other financial and personal matters. Depending on client needs, these included lifestyle goals, cash flow modelling, tax considerations, estate planning, inter-generational wealth transfer and philanthropy – a methodology now becoming more of an industry standard but was innovative at the time.
This approach resonated with many accounting and legal firms. We developed close relationships with many financial professionals to ensure that all our clients’ needs were considered. These relationships are greatly valued, as are the many client introductions provided by Accounting and Legal professionals seeking unbiased, fee-only, holistic wealth management advice. This also applies to the many introductions from our clients over the years.
Adopting an Evidence-Based Investment Philosophy
Another watershed moment for our firm occurred in 2001 when we adopted an evidence-based investment philosophy. This approach, grounded in academic research and empirical evidence, including Nobel Prize winning work, provided a robust framework for our investment decisions. It offered our clients a transparent, low-cost investment strategy where risk could be measured and managed effectively. This shift had profound implications for our business model. It freed us from the constant barrage of fund managers pushing their latest products, fads and, at times, illusory returns, allowing us to maintain a consistent, scientifically grounded approach to investing. This philosophy has stood the test of time, serving our clients well for over two decades.
Strategic Growth and Specialisation
As we grew, we recognised the need for specialised expertise to serve our clients better. This realisation led us to seek a complementary firm for a merger, culminating in our 2017 union with Richard Austin and Steve Mander and their business, IQ2, to form a new brand, Cambridge Partners. This merger allowed us to expand our service offerings and provide a greater range of comprehensive wealth management solutions for the differing needs of a broader range of clients. It also provided enhanced opportunities for our staff in terms of their career development and progression.
Cambridge Partners continued to uphold Bradley Nuttall and IQ2’s core beliefs, including a commitment to innovation, high professional standards, and a strong focus on client outcomes.
Over the years, we have also provided shareholding opportunities for several of our Advisers – Todd Sutton, Scott Rainey, Pip Kean and James Howard – as part of our succession planning. This ensured the continuity of our client-first approach beyond the tenure of the founders of the business.
Global Connections and Continuous Learning
Our commitment to excellence led us to forge global connections. We participated in various overseas conferences, study tours and training programmes. Our commitment to lifelong learning led to us co-founding the Australasian Asset Class Investment Association in 2003 and the Global Association of Independent Advisors (GAIA) in 2014. These two associations exposed us to world-class ideas and practises. The connections we formed in these groups have been instrumental in our ongoing innovation, business development and ability to deliver quality advice to our clients.
Institutional Services and Broader Impact
In 2005, we expanded our services to include institutional clients, particularly not-for-profit and tax-exempt organisations. This move not only diversified our client base but also provided valuable insights into the strategies employed by fund managers and consultants in the institutional space, further enhancing our knowledge and capabilities.
This initiative was further enhanced in 2013 when Bradley Nuttall became the first New Zealand-owned financial advisory business to be accredited by the Centre for Fiduciary Excellence (CEFEX). This global accreditation provides comfort for our clients, ensuring that we adhere to the highest global standard for fiduciary excellence.
The Development of Consilium
Originally launched as Bradley Nuttall Middle Office Services in 2006, this initiative was designed to provide investment and technology solutions to similarly aligned financial advisory firms throughout New Zealand. In 2013, recognising the growing demand for these services, the decision was made to separate this division of Bradley Nuttall into what is now known as Consilium. Today, Consilium is a leading provider of advanced financial solutions in New Zealand, offering services to over 150 advisory firms.
Navigating Challenges and Learning from Mistakes
Our journey hasn’t been without its challenges. For instance, our venture into mortgage broking in 1998, which was subsequently divested in 2001 due to inherent conflicts of interest, taught us valuable lessons about staying true to our core competencies and ethical standards.
The Importance of Long-Term Vision
Throughout our history, we’ve maintained a strong focus on long-term planning. Our business plans have consistently looked beyond immediate goals to three, five and even ten-year horizons. This forward-thinking approach has been crucial in meeting client needs, achieving sustained growth and adapting to changing market conditions. The concept of overestimating what is achievable in the next year but underestimating what can be achieved in the next decade has been particularly relevant to our business.
Building a Legacy
As I reflect on the past 30 years, I’m filled with gratitude for the relationships we’ve built – with clients, team members, other professional advisers and many other stakeholders. The transition from the founding generation to the new leadership team, led by James Howard as our CEO, fills me with confidence that the values and vision we established will continue to thrive.
Key Lessons from Three Decades in Business
1. Choose Business Partners Wisely: the decision to partner with Dave Bradley and Andrew Nuttall initially was pivotal. Our shared values and vision were more important than any formal contract. Later, the decision to merge our business with Richard Austin and Steve Mander’s business was based on the same principles and this continues to this day with the new shareholders introduced to Cambridge Partners.
2. Invest in Team Development: building a strong team, providing the opportunity to use their unique abilities in their roles, and career enhancement. This is reflected in the longevity of many of our team members within the business.
3. Embrace Innovation: from adopting new technologies to pioneering fee-only advice, our willingness to innovate has kept us at the forefront of financial services.
4. Focus on Client Outcomes: our unwavering commitment to putting clients first and making a difference in their lives, consistently focusing on helping them to achieve the best outcomes possible, has been the foundation of our success and longevity. Many of our clients have been with us for over 20 years.
5. Maintain a Global Perspective: our international connections have been crucial in bringing world-class practises to our local market.
6. Adhere to an Evidence-Based Approach: adopting and sticking to an evidence-based investment philosophy has provided consistency and reliability for our clients.
7. Be Willing to Take Calculated Risks: not every initiative succeeded, but our willingness to take risks has been essential for growth and learning.
8. Prioritise Transparency: moving to a fee-only model early on set us apart and built trust with our clients.
9. Evolve with Technology: continuously adapting to technology changes enables leverage and improved client outcomes.
10. Balance Business and Personal Life: while the business has demanded significant time and energy, maintaining a focus on family and personal values has been crucial.
Looking to the Future
As Cambridge Partners continues to evolve the foundational principles established 30 years ago remain at its core. The firm’s commitment to innovation, professionalism and client-centric service continues to drive its success. With the new generation of leaders at the helm, supported by the wisdom and experience of its founders, Cambridge Partners is well-positioned to continue its legacy of excellence in wealth management. The journey from Bradley Nuttall to Cambridge Partners over the past 30 years has been one of continuous growth, learning and adaptation with our clients at the core of everything. We’ve built a firm that survives and thrives in an ever-changing financial landscape. As I look to the future, I am confident Cambridge Partners will continue to deliver value to our clients and make a positive impact in the field of wealth management.
I am very grateful to have been part of that journey and thank you all for your contribution.