You can’t hold back the tide when the time comes for industry reform
It was recently reported that of more than 300 risk advice businesses surveyed, most said they may be forced to shut up shop “partially or completely”, resulting in more than 700 job losses, if the recommendations of the Trowbridge Report on retail life insurance advice are adopted. Business closures and job losses are really just
May 04, 2015
There’s a hole in my bucket dear adviser, dear adviser
Over the last few years we’ve seen a growing number of strategies adopted by advisers to engage investors in their money decisions. One that has an intuitive appeal is sometimes termed the “Bucket Shop” approach as it can be applied to meet older investors’ needs. Conversations between advisers and their clients are typically constructed to
May 04, 2015
Australia: has the story changed?
Better sentiment towards Australia’s economic outlook over recent weeks has helped to buoy the Australian dollar and prompted a reassessment of rate-cut odds. But has the story changed that much? Not in our view. We continue to see the likelihood of further monetary easing and further weakening in the currency. Over the past few weeks,
May 01, 2015
Asset fees continue to drop off but advisers still undervalue themselves
Asset-based fees are becoming less prevalent among practices that bill clients on a fee-for-service basis, according to a study into financial advice remuneration conducted by Elixir Consulting. The study drew responses from 275 businesses across Australia along with around four from North America. It found 76 per cent of those surveyed charged a flat upfront
May 01, 2015
Steele and Stone to depart AMP as top-level dealer group shakeup widens
The managing directors of three AMP-owned financial planning licensees – Genesys Wealth Advisers, ipac and Charter Financial Planning – are to quit their roles and leave AMP. Tim Steele, managing director of the Genesys and ipac, and Kevin Stone (pictured), managing director of Charter, are expected to leave AMP by the end of June. Steele’s
May 01, 2015
Rise of managed accounts puts spotlight on quality of thinking and reporting of performance
Dealer groups who have seen a decline in revenue after the Future of Financial Advice (FoFA) reforms are increasingly turning to separately managed accounts (SMA) as a new business line. The trend for dealer groups to create their own SMA propositions is in part being driven by client demand to which fund managers and platform
May 01, 2015
Opportunities in Australian stock market despite likely pullback says Dalton Nicol Reid
The strong run in the first quarter of 2015 has left many investors questioning whether Australian equities have run too hard and are too expensive, says Jamie Nicol, Director, Dalton Nicol Reid. The key dilemma for the Australian stock market remains that of valuation, but there are still attractive investment opportunities available said Mr Nicol.
April 29, 2015
AB’s Managed Volatility Equities Fund joins retail platforms after total 26.6% return in first year
A managed volatility equities strategy, which has outperformed its benchmark by 11.8% after fees and including franking credits* since inception just over a year ago, is now available to retail investors, global asset manager AllianceBernstein (AB) announced today. The AllianceBernstein Managed Volatility Equities Fund—which produced a total (net of fees) fund return of 26.6% in
April 29, 2015
MLC Wrap adds Standard Life Investments’ absolute return funds to platform
Standard Life Investments, the global asset manager, is pleased to announce that MLC has added the highly successful Global Absolute Returns Strategies (GARS) Australian Trust (ARSN 125 897 261) and Absolute Return Global Bond Strategies (ARGBS) Australian Trust (ARSN 125 897 261) to its investment solutions platform. Matthew Newham, Investment Director Wholesale Business, Standard Life
April 29, 2015
Executives of vertically integrated and conflicted advice businesses in corporate watchdog’s sights
An inability to take swift and effective action against the managers and executives of financial planning businesses remains a gap in the corporate regulator’s armoury that it wants to fill, according to ASIC commissioner Peter Kell. Speaking at an Association of Superannuation Funds of Australia (ASFA) conference yesterday, Kell said ASIC is seeking greater powers
April 29, 2015
Sentinel Wealth celebrates 10 years and wonders where planning will be in the next 10
Ten years from now, financial planners will be legally distinct from their product-selling counterparts. The financial advice space will also be a huge opportunity particularly favouring independent planners, according to the founding director of Sentinel Wealth, Justin Hooper. Hooper’s business celebrated reaching its 10-year milestone last week, an occasion that prompted his thoughts on where
April 29, 2015
Does a managed account really produce a better outcome for clients?
While originally marketed to high-net-worth clients in the mid 90s, ‘managed accounts’ are gradually becoming one of the most talked-about financial products in Australia. Professional portfolio management, customisation, tax efficiency and direct/beneficial ownership are some of the features promoted by managed account providers. But can managed accounts really leave clients in a better position? Under
April 29, 2015
