The Australian sharemarket in 2014: winners and losers
If over the years I had banked a dollar every time someone told me that Australian shares were a sure bet to outperform global shares, I would be able to retire much earlier. While it’s true Australian shares have outperformed global shares in many years, in 2014 our Australian share market’s was relatively modest compared
January 14, 2015
ETFs/ETPs end 2014 gathering $US338.3 billion, a record level of net new assets
ETFGI’s research finds 2014 was a very good year for the global ETF/ETP industry. The global ETF/ETP industry has reached a new record level of US$2.79 trillion in assets invested in 5,580 ETFs/ETPs, with 10,770 listings, from 239 providers listed on 62 exchanges in 49 countries. We expect the assets to break through the US$3
January 12, 2015
Financial planners are 50 years behind accountants in education standards
Financial planners still lag decades behind accountants in terms of educational requirements for those who practice within the two sectors, according to the head of one of Australia’s largest financial planning university programs. Only an Australian Qualification Framework (AQF) 5 level of education is required to practice as a financial planner here, while accountants need
January 12, 2015
Australian Defence Force wades into the financial planning debate
During 2015 there will be an interesting real-world test happening in the financial planning profession. It focuses on how effectively financial planning businesses can deliver genuinely non-conflicted advice, irrespective of structure or licensee ownership. The test is being run by a seemingly unlikely entity: the Australian Defence Force (ADF). The ADF becomes a far move
January 12, 2015
Does robo-advice spell the end of the human adviser?
Advisers who attended the 2014 AFA National Conference could be forgiven for thinking – where does my future lie? ‘Robo-Advice’ was vigorously debated with some predicting the demise of face-to-face financial advice over the next 10-20 years. Is this a reality? The simple answer is – nobody really knows. What we do know is we
January 12, 2015
Global equity unconstrained opens to overseas investors
Global fund manager, Standard Life Investments has announced the launch of a Global Equity Unconstrained SICAV – a fund which mirrors the existing OEIC offering which launched in January 2007. The move widens the accessibility of Standard Life Investments’ global equity capability1 for international investors and uses the company’s successful unconstrained equity proposition2. The launch
January 09, 2015
Centrepoint head says independence, profitability are mutually exclusive
Asset-based fees are unavoidable if financial planning practices are to maintain a sustainable level of profitability, according to the head of a non-aligned dealer group. “As a licensee, I think it’s almost impossible to operate sustainably without product margins. That’s just the way [Future of Financial Advice] FoFA and the institutions have forced the game,”
January 09, 2015
What is the right price for financial advice?
The right price for financial advice, investment management and administration is somewhere between 1.25 and 1.4 per cent, according to financial adviser Ken Bloomfield. While there’s no industry consensus on what constitutes a fair price for comprehensive advice, Bloomfield is adamant that sophisticated clients with between $500,000 and $1 million under advice should pay no
January 09, 2015
How to tackle aggressive insurance litigation
Lawyers who get involved in death and disablement claims tend to fall into two categories. The largest is where the lawyer advises their client well, ensures a rapid flow of documentation and only litigates from a position of knowledge after engaging with the underwriting process. Then there are the aggressive litigators who initiate legal proceedings
January 09, 2015
Australian ETF industry reaches $15 billion milestone – sector grows 50% YOY
The Australian ETF industry reached $15 billion by the end of 2014, growing a massive 50% when compared to data released in January of last year. Flows in December were also the largest on record, with 672 million flowing into the category, largely driven by interest in international-based ETFs. Despite ongoing fears about the stability
January 07, 2015
Finding a homegrown alternative to investment platforms
There is much talk about the impending demise of large bank-owned investment platforms. In recent years, at least one financial planning principal has put his thoughts on platforms into action and created a bespoke alternative. Ian Bailey, director and co-founder, Bailey Roberts Group, holds a firm belief that clients need direct access to their portfolio
January 07, 2015
More than 11,000 SMSF auditor contravention reports issued in 2013-14
As we all know, sometimes unexpected events occur, including contraventions of super law for self managed super funds (SMSFs). The secret is to be prepared and know who can help. Contraventions that have either been detected or reported to the Australian Tax Office (ATO) through an auditor contravention report (ACR), or which are likely to
January 07, 2015
