Fund manager skill or luck? New analysis turns the question on its head
One of the enduring areas of asset management academic study, and practitioner query, is whether or not fund managers have skill. In his work, professor of finance at Stanford, Jonathan Berk, shows the answer doesn’t lie in returns at all, but in manager compensation. Determining whether active skill exists is not the same as looking
February 06, 2014
Roadblocks in post-retirement financial planning
A traditional approach to financial planning – where an investment outcome is dictated by an assessment of the client’s risk tolerance – is unsuited to producing effective solutions in the post-retirement phase, according to a leading investment consultant. Lukasz De Pourbaix, general manager of investment consulting for Lonsec, says the structural deficiencies are not the
February 06, 2014
Why low-cost compliance solutions could lead to a crash
Most people would never fly on an airline if the airline did not require its pilots to undergo regular simulator tests. Similarly, most pilots would not choose to fly for an airline that did not properly maintain its aircraft or took shortcuts on maintenance. The commercial airline industry expects pilots to undergo regular training in
February 06, 2014
Taliored approach to risk for the SMSF market
Like many of us, my working day starts with coffee. There are a number of vendors within the vicinity of the office, ranging from mobile coffee carts to Starbucks. There is a place in the coffee scene for all of them. Some people swear by the chains, while others prefer the local barista who knows
February 06, 2014
Australian super funds have highest 10 year growth rate in the world
Australia’s superannuation assets have experienced the highest growth rate of 14% per annum, when compared to the world’s thirteen largest pension markets over the 10 year period 2003 to 2013 according to the latest Towers Watson Global Pension Assets Study. It remains the world’s fourth largest pension market valued at US$1.6 trillion and, relative to
February 06, 2014
DomaCom open for business
After a two year development DomaCom Limited CEO, Arthur Naoumidis, has announced that DomaCom are “open for business” with an innovative fractional property investment product called the DomaCom Fund. “Today we have accepted the first application into the DomaCom Fund and with over 18,000 properties on our platform, investors will now have the ability to
February 06, 2014
No distinction between fee types in renewed tax-deductibility bid
The Financial Planning Association (FPA) has put the issue of tax deductibility of financial planning fees firmly back on the agenda in its pre-Budget submission to Treasury. In its submission, the FPA argues that under the Future of Financial Advice (FoFA) regime, fees paid by clients to financial planners are explicitly non-conflicted. And where there
February 04, 2014
Financial planners challenged by collision of the Great Australian Dreams
The Great Australian Dream is to own one’s home. But increasingly, that dream is colliding with what’s been called the Second Great Australian Dream – to retire in comfort. Matt Lawler, chief executive officer of Yellow Brick Road Wealth Management (YBR), says there’s growing evidence that Australians are taking out mortgages later in life, taking
February 04, 2014
Centrepoint appointments continue mission to lift practices’ efficiency by 50 per cent
Listed financial services group Centrepoint Alliance has continued on its strategy of improving its financial planners’ productivity with the announcement yesterday of four key appointments, spanning distribution strategy and marketing, life insurance, research and a regional manager for Queensland. Centrepoint, the parent company of Professional Investment services (PIS) and Associated Advisory Practices (AAP), has appointed Neil
February 04, 2014
Zurich launches iPad communications mix simulator
Zurich today announced the launch of a communications mix simulator, designed to enable financial advisers to assess the effectiveness of their client communication strategy. Designed in partnership with the Beddoes Institute, the net reach simulator is an interactive iPad app which calculates the effectiveness of a communications mix based on the generational profile of an
February 04, 2014
BT’s Phil Hay: Addressing the insurance image gap a virtue borne of necessity
Many improvements to the customer experience have been borne out of one simple necessity: to improve the life insurance industry’s reputation. It’s no secret that our industry has an image problem. Many people either don’t trust life insurance providers or they don’t see the value in obtaining cover. To reverse this perception, the industry has
February 03, 2014
FPA members urged to get involved in Ask an Expert Week
Today marks the start of Ask an Expert Week – a seven-day period when members of the public can have questions about their finances answered free of charge by members of the Financial Planning Association. The week is designed to showcase the expertise of financial planners, and to increase the number of people use the
February 02, 2014
