Why Moats Matter: The Morningstar approach to stock investing
Identifying ‘economic moats’, or structural barriers that protect companies from competition, is the cornerstone of Morningstar’s equity analysis. In the same way that castles are protected by moats, companies with economic moats are great businesses that can fend off competition and earn high returns on capital for many years. Morningstar’s new book, Why Moats Matter: The
August 06, 2014
FSC Chairman: Australia needs to build a strong financial services export industry
Australia needs to significantly grow its financial services export industry over the next decade to ensure future employment and economic growth, Greg Cooper, CEO of Schroder Investment Management Australia and chairman of the Financial Services Council said today (Wednesday). In his opening speech to the FSC’s annual conference in Cairns, Mr Cooper said: “Selling financial
August 06, 2014
How family financial planning opened the door to a holistic advice career
Growing up with a developmentally disabled sister has given Matthew Leech, a financial planner with Evalesco Financial Services, a unique perspective on the value of holistic financial advice. His earliest exposure to financial planning was as a young teenager, when his family sat down with an adviser to develop a plan, and they invited him
August 06, 2014
Everybody shut up! The adviser’s eight-step guide to seeking Fundamental Truth
In the digital age and the era of the 24-hour news cycle, advisers are bombarded with information and data. This “noise” is the adviser’s natural enemy, but without a disciplined approach to staying focused on what’s important it’s impossible to make sound long-term investment decisions for clients, according to Paul Taylor, portfolio manager for the
August 06, 2014
Move away from institutions sees non-aligned licensees driving innovation
The advice market is in a significant period of disruption. I would even say it’s at a pivot point that will shake the foundations of the value propositions being provided by different licensees. The long-held consensus view is that the market share of financial advisers operating under a vertically integrated licensee oscillates between 75 and 85 per
August 06, 2014
Ignore the noise and keep your eye on the long game, investors advised
Despite decades of evidence to the contrary, investment managers and commentators persist in holding a short term view of the market that’s unlikely to be in the best interests of ordinary investors, says boutique Aussie equities specialist, Hyperion Asset Management. “The recent falls in the ASX are a case in point, with the extent of
August 05, 2014
Let the regulator regulate and leave professionalism to the pros, says SPAA
Self-regulation of financial planning is a real possibility of the Parliamentary Joint Committee (PJC) on Corporations and Financial Services inquiry into proposals to lift the professional, ethical and education standards in the financial services industry. The chief executive officer of the SMSF Professionals’ Association of Australia (SPAA), Andrea Slattery, says the creation and enforcement of
August 04, 2014
Technology to play bigger role in financial advice, but legislation lags
New technology offerings are enabling financial planning firms to lift their disclosure standards well beyond current requirements, according to the head of a specialist technology provider. Julian Plummer, managing director of Midwinter Financial Services, a specialist firm providing financial planning software, says they are experiencing more demand than ever. “Disclosure is now more important than
August 04, 2014
FORUM: Why success is is simple as A, B, and C
Success looks different for every financial planning firm. But a Professional Planner/MLC Advice Partnerships forum has identified some of the common elements. And it all starts with the client. In practice management terms, that means segmenting clients into relevant and distinguishable groups, and ensuring that the service the firm offers to each segment is both valued
August 04, 2014
Strong growth prospects ahead for SMSF advice: Core Data
A majority of self managed super fund (SMSF) advisers expect revenue from SMSFs to grow by more than 10 per cent over the next three years, according to a new study from Core Data. Conducted between the end of March and start of May 2014, the SMSF Professionals Study asked 101 questions of an overall
August 01, 2014
What will end this nightmare of shonks and greed, of clowns and cowboys?
Sometimes the financial planning industry lives right down to its reputation. It’s just a bad joke, a recurring nightmare of shonky advisers, stupid and greedy licensees and a rapacious, self-first culture. Relatively few financial planners and licensees suffer these shortcomings, but that is cold comfort while clowns and cowboys continue to generate all the headlines.
August 01, 2014
AFA code precursor timely as PJC turns its attention to standards and regulation
The Association of Financial Advisers’ release this week of a paper entitled Code of Conduct – 6 Principles of Professionalism sets the scene for the association to produce a full-blown code of professional conduct in coming months. Its release is timely. Codes of conduct will form part of a current Parliamentary Joint Committee (PJC) on
August 01, 2014
