How to respond to complaints
Until now I have avoided the temptation to comment on the range of news reports about the misbehaviour at CBA Financial Planning (CFPL) and the apparent lack of response from the Australian Securities and Investments Commission (ASIC). The original incidents are not the catalyst for this column, but rather the many “tut-tut” comments that I
August 27, 2013
Revolution at NAB continues
National Australia Bank Wealth’s Godfrey Pembroke dealer group has appointed former state manager at MLC Advice Solutions, Sean Allen, to the position of general manager, as sweeping changes to the group’s management structure continue under new chief executive, Andrew Hagger. Allen, who replaces Peter Smith, will be responsible for boosting the productivity of Godfrey Pembroke’s
August 27, 2013
Question marks over traditional portfolio construction
Many investors question the validity of the strategic asset allocation models that the investment industry recommends. Those investors are less keen to move up the risk spectrum, even when they have long investment horizons, and the chart below demonstrates why. When looking at ten-year performance numbers, the returns for each broach asset allocation profiles inch ahead
August 23, 2013
Hybrids overpriced, better value elsewhere
Hybrid securities, which have made headlines recently for attracting the regulators’ ire, are currently overpriced and investors can find better value elsewhere, according to Victor Rodriguez, head of fixed income at Aberdeen Asset Management. “For the value they represent, hybrids are expensive. Furthermore, they don’t provide the diversification benefits of other high quality fixed-interest securities,”
August 22, 2013
Real estate yields point to diversification
The United States housing market rose around 12 per cent in the 12 months to April 2013, according to the S&P/Case Shiller 20-City Composite Home Price Index. This, with the 15-per-cent rise in the US share market during the same period, has taken US net household wealth back to its pre-global financial crisis (GFC) highs.
August 20, 2013
Global equities ought to play a bigger role
The growing trend towards so-called objectives-based investing may encourage financial planners to rethink clients’ allocations to global equities as a way of achieving a better risk-reward trade-off. Don Ezra, co-chair of global consulting for Russell Investments, says investors’ objectives are being redefined in terms of actual objectives, rather than a client’s investment outcome being the
August 16, 2013
Income generation requires tailored strategies
For advisers servicing income-focused clients, including many trustees in the rapidly growing SMSF market, increased choice means flexibility to tailor strategies. Zurich’s Angus Crennan looks at the options. On August 6 the Reserve Bank of Australia (RBA) pulled the trigger on another rate cut. Our cash rate, the primary tool of Australian monetary policy, is
August 12, 2013
Baby boomers reshaping investment landscape
There will be radical changes to the way money is invested over the next three-to-five years, according to AMP Capital, which is preparing to launch a dynamic asset allocation strategy into the retail market by year-end. Baby boomers are driving change because they’re tired of traditional managed funds which fail to meet their needs, said
August 08, 2013
In Focus: Time keeps on ticking, ticking, ticking …
A conversation with a client about retirement income should start not with how much money they’ll have, but how much time they will have. Full In Focus feature, Time keeps on ticking, ticking, ticking …, is available here Discussing a client’s likely longevity – and unavoidably, therefore, when they’re likely to die – might seem like
August 01, 2013
Planners face reality check on SMSF business
Financial planners consistently overestimate the amount of revenue they will derive from self-managed superannuation fund clients, but those who foster relationships with accounting firms are far better placed to meet targets. While the Vanguard and Investment Trends Self-Managed Super Fund Planner Report covered a range of investor and adviser issues, a recurring theme was the
July 30, 2013
