Investors hurt by home-country bias
Australian investors are increasingly aware that their home-country bias to domestic equities is hurting them, according to Vanguard senior investment analyst Paul Chin. In the last six months, investors have boosted their allocation to international and emerging market equities, he said, indicating a growing desire for, and understanding of, the return and diversification benefits of
December 03, 2013
Over 5.5 million reasons to upskill
Thousands of Australia’s 5.5 million baby boomers retire each week and with the holiday period approaching there will be plenty of discussions around the needs of ageing parents and relatives. The Christmas season is when families catch up and adult children, who may not have seen their parents for a while, spend quality time together. The
December 03, 2013
It’s time to value add
The dynamics of investing change as an economy shifts from high to low cash rates. The most obvious change will be that overall investment returns decline after a temporary boost to stocks and bonds. Generally, bond yields will be lower and the slowdown in economic growth will cap future equity returns. One of the less
December 03, 2013
Is this the end of the bond market?
Despite predictions that the end of the bond market is near, the fixed income universe covered by Lonsec has expanded considerably over the past few years. This growth has been driven by increased demand for financial products that pay regular distributions, the launch of the bond ETF market and an evolution of absolute return focused
November 29, 2013
PI set to soar, for some
Advice businesses which heavily recommend direct equities, property, structured products and Managed Discretionary Accounts (MDA) could face hefty premium increases for professional indemnity insurance at time of renewal, warns Australia’s largest financial planning risk insurance broker. According to Mega Capital director Michael Gottlieb, the number of PI insurers who are prepared to cover advisers who
November 29, 2013
Australia rated “moderate to poor” on global advice scene
The most profitable and effective financial planning practices globally are savvy marketers who spend around 80 per cent of their time in front of clients, and focus on “asset gathering” not asset management, according an Australian delegation who recently returned from North America. The group, which included Treysta Wealth Management adviser Mark Nagle, Implemented Portfolios
November 29, 2013
Expect lower returns: MBA
The outlook for Australian equities is gloomy, with the easy money already made and valuations now stretched, according to Maple-Brown Abbott’s managing director and chief investment officer Garth Rossler. “Domestic equities have had a strong run with long-term returns in the range of 9-10 per cent, however, multiples are now reasonably full and earnings are
November 29, 2013
The Power of Consensus
Asian cultures may appear conservative and resistant to change but it would be unwise to underestimate the power of consensus. Once both Japan and China decide on a direction of travel, they tend to reach their destination. Prime Minister Shinzo Abe must overcome significant vested interests if he is to succeed in hitting the bullseye
November 29, 2013
The misguided idealism of Arthur Sinodinos
There are many reasons to applaud the latest consultation paper issued by Treasury on better governance and transparency in superannuation, but its ownership by someone without an in-depth knowledge of retirement planning is worrying. That Arthur Sinodinos, the minister for financial services and assistant treasurer, also has a background in banking and thus a clear
November 29, 2013
Keeping insurance companies honest
Financial planners must keep insurance companies honest and ensure clients are paid their maximum claim entitlements, with the number of payment errors soaring in the last year, according to Principal of Integrity Resolutions Col Fullagar. He said advisers had a responsibility to double check that claims were paid in full, warning that errors were often
November 28, 2013
Disgraced adviser faces up to 10 years jail
A former Perth-based private client adviser will stand trial for stealing more than $3.7 million in client funds while a former authorised representative of IOOF-owned Consultum Financial Advisers has been convicted of 10 offences and ordered to pay back more than $684,000 to affected clients. The Australian Securities and Investments Commission’s assault on dodgy financial
November 28, 2013
Insurer to cut premiums by 20 per cent
Life insurer AIA Australia will reward healthy customers with discounts on shopping, entertainment and travel and slash premiums by up to 20 per cent, under a new scientific wellness program which is being piloted by a select group of financial planners. The AIA Vitality program is a joint venture between AIA and South African insurer
November 28, 2013
