AdviserVoiceANZ Archives - AdviserVoice https://www.adviservoice.com.au/tag/anz/ Financial planner information & financial planner education/CPD - AdviserVoice Thu, 23 Jul 2026 20:30:20 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.2 ANZ “GAYTMs” out and proud in support of diversity https://www.adviservoice.com.au/2014/02/anz-gaytms-proud-support-diversity/ https://www.adviservoice.com.au/2014/02/anz-gaytms-proud-support-diversity/#respond Mon, 24 Feb 2014 20:55:09 +0000 https://adviservoice.com.au/?p=28360 One of ANZ's GAYTMs on Oxford Street, Sydney.

One of ANZ’s GAYTMs on Oxford Street, Sydney.

Thousands of rhinestones, facial hair and vibrant colours – not what you’re normally on the look out for when you’re hunting down an ATM.

But for the duration of Sydney’s world famous Gay and Lesbian Mardi Gras, ANZ has glammed up its ATM fleet in celebration of diversity and inclusion.

ANZ has commissioned artists to individually decorate ten “GAYTMs” around Sydney to celebrate our partnership with the Sydney Mardi Gras festival. Decorated in colours, patterns and jewels inspired by LGBTI culture, each GAYTM tells a unique story.

The artworks include the “Hello Sailor” GAYTM, designed to celebrate the Defence Force allowing its members to march in uniform for the first time last year and “Pride”, representing the rainbow, a symbol of diversity, amongst others all created in partnership with the LGBTI community.

ANZ’s Pride Network promotes diversity, inclusion and respect for the bank’s staff and customers worldwide. ANZ has chosen to partner with the Sydney Mardi Gras for the eighth consecutive year, becoming the festival’s inaugural principal partner in 2014.

Mark Hand, Chair of ANZ Australia’s Diversity Council said: “This association is all about encouraging an environment where everyone feels comfortable being themselves at work. You don’t get the benefits of a diverse workforce if some people are expending vast amounts of energy pretending to be something they are not and trying to conform.

“We want the best people to work at our organisation and given how many people identify as LGBTI, we want to make sure that everyone feels welcome here at ANZ – regardless of their sexual orientation or gender identity,” Mr Hand said.

ANZ is donating ATM operator fees for non-ANZ cardholders from its GAYTMs during the festival to Twenty10, a not for profit organisation that supports young people and their family and friends who are dealing with gender and sexuality issues.

As well as bringing Sydney Mardi Gras to life through each GAYTM design, the ten GAYTMs will print rainbow coloured receipts and selected ANZ ATM screens in metropolitan cities will carry messages of support for the festival.

ANZ’s GAYTMs can be found in various Sydney locations on Oxford Street, Pitt Street, George Street, Castlereagh Street, Surry Hills and Bondi Junction. More information including a map of the GAYTM locations can be found at anz.com/gaytm. ANZ will share photos and news about the GAYTMs through social media channels using #GAYTM.

]]> One of ANZ's GAYTMs on Oxford Street, Sydney.

One of ANZ’s GAYTMs on Oxford Street, Sydney.

Thousands of rhinestones, facial hair and vibrant colours – not what you’re normally on the look out for when you’re hunting down an ATM.

But for the duration of Sydney’s world famous Gay and Lesbian Mardi Gras, ANZ has glammed up its ATM fleet in celebration of diversity and inclusion.

ANZ has commissioned artists to individually decorate ten “GAYTMs” around Sydney to celebrate our partnership with the Sydney Mardi Gras festival. Decorated in colours, patterns and jewels inspired by LGBTI culture, each GAYTM tells a unique story.

The artworks include the “Hello Sailor” GAYTM, designed to celebrate the Defence Force allowing its members to march in uniform for the first time last year and “Pride”, representing the rainbow, a symbol of diversity, amongst others all created in partnership with the LGBTI community.

ANZ’s Pride Network promotes diversity, inclusion and respect for the bank’s staff and customers worldwide. ANZ has chosen to partner with the Sydney Mardi Gras for the eighth consecutive year, becoming the festival’s inaugural principal partner in 2014.

Mark Hand, Chair of ANZ Australia’s Diversity Council said: “This association is all about encouraging an environment where everyone feels comfortable being themselves at work. You don’t get the benefits of a diverse workforce if some people are expending vast amounts of energy pretending to be something they are not and trying to conform.

“We want the best people to work at our organisation and given how many people identify as LGBTI, we want to make sure that everyone feels welcome here at ANZ – regardless of their sexual orientation or gender identity,” Mr Hand said.

ANZ is donating ATM operator fees for non-ANZ cardholders from its GAYTMs during the festival to Twenty10, a not for profit organisation that supports young people and their family and friends who are dealing with gender and sexuality issues.

As well as bringing Sydney Mardi Gras to life through each GAYTM design, the ten GAYTMs will print rainbow coloured receipts and selected ANZ ATM screens in metropolitan cities will carry messages of support for the festival.

ANZ’s GAYTMs can be found in various Sydney locations on Oxford Street, Pitt Street, George Street, Castlereagh Street, Surry Hills and Bondi Junction. More information including a map of the GAYTM locations can be found at anz.com/gaytm. ANZ will share photos and news about the GAYTMs through social media channels using #GAYTM.

The post ANZ “GAYTMs” out and proud in support of diversity appeared first on AdviserVoice.

]]> https://www.adviservoice.com.au/2014/02/anz-gaytms-proud-support-diversity/feed/ 0 Just how expensive are the banks? https://www.adviservoice.com.au/2013/12/just-expensive-banks/ https://www.adviservoice.com.au/2013/12/just-expensive-banks/#respond Tue, 10 Dec 2013 21:00:12 +0000 https://adviservoice.com.au/?p=27204 Craig Young

Craig Young

Australian banks have been among the strongest performing stocks in the Australian share market this year. Attractive dividend yields have been a primary driver of the banking sector’s outperformance in this low interest rate environment.

With valuations now very stretched, what lies ahead for the banks, particularly when quantitative easing in the US comes to an end?

Banks are expensive on all traditional measures

National Australia Bank has been the strongest of the four major banks, rising 46% (including dividends) for the calendar year to 30 November 2013. ANZ and Westpac returned 34% and Commonwealth Bank gained 31%. This compares with the market’s1 rise of 19% over the same period.

The banks have become very expensive. Tyndall’s research shows that the average price to earnings ratio (PE) of the four major banks (whereby the earnings have been adjusted to reflect long-term bad debt charges rather than current low levels) is trading at around 33% above its long-term average (as shown in Chart 1).

chart1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At the end of November 2013, the four major banks were trading on an average adjusted PE of 14.5x, which is one standard deviation above the long-term average of 10.9x. This highlights the extreme variation of current valuations from historical levels.

The last time the banks traded at these levels was before the global financial crisis, after which the banks fell sharply and required capital raisings. Banks are more likely to underperform from current levels.

On a price to book (PB) valuation, Australian banks are among the most expensive in the world, even when their high return on equity (ROE) is considered. Chart 2 shows that the PB ratio (which is the market’s value of a company compared to the book value of its assets) for Australian banks is sitting above the average of other global banks for their respective ROE (as represented by the solid line).

For example, Commonwealth Bank (CBA), which is the most expensive of the four major banks, has an ROE of 17% and a PB of 2.7x, which is well above the 1.9x PB it should be trading on. This means the market is paying more for CBA’s assets than it should be – if taking into account its return on equity.

chart2

 

Record headline profits, but weak underlying results

The recent bank reporting season showed record headline profits for the banks and they delivered very pleasing dividends to shareholders. When adjusting for very low bad debt charges, the average profit growth (as measured by earnings per share) for the four major banks was 1.8% pa in the 2013 financial year. By comparison, profit growth for the market (excluding banks and resources) is forecast to be 5.2% pa2 for the same period.

Tyndall expects this trend to continue with adjusted earnings per share for the four major banks expected to grow on average by 2.4% in the 2014 financial year. This compares with IBES forecasts of around 8.2% for the market (excluding banks and resources)2. This reflects a relatively weak credit growth outlook – both in the household and business sectors.

 

Household debt remains elevated (with net debt at around 130% of income) compared with other developed countries that have de-levered – and the Reserve Bank of Australia won’t be keen to see this increase any further. Business credit growth hasn’t rebounded as yet (currently running at a seasonally adjusted annual rate of 1.0% pa versus the 10-year average of 7.5% pa) and a recovery isn’t expected to occur anytime soon.

Payout ratios unlikely to go higher

Banks have been able to increase dividends in recent years, reflecting low credit growth and higher payout ratios. Low credit growth created excess or ‘lazy’ capital for the banks, which has been paid out as dividends. Banks have subsequently increased their adjusted payout ratios to around 76% (as shown in Chart 3).

chart3

Banks should be able to maintain the current payout ratios, but not increase them. We expect credit growth to increase modestly from very low levels and banks need to maintain more capital to satisfy Basel III requirements. Accordingly, dividends should grow in line with earnings growth, as opposed to in excess of earnings as has occurred in recent years.

Where to from here?

While bank dividend yields continue to remain relatively attractive, particularly versus bond yields and cash, on a total return basis, we expect banks to underperform. There is more downside risk for the banks than upside risk in the near term.

Australian banks have been a major beneficiary of the low interest rate environment, due to an unprecedented level of monetary stimulus by global central banks. Once the US Federal Reserve commences tapering its asset purchase program, which is expected to occur early in the New Year, long bond yields will rise and high-dividend yielding stocks, such as banks, are likely to lose some of their appeal.

As mentioned above, expectations for a modest uptick in credit growth will restrict the banks’ ability to further increase their payout ratios and pay higher dividends.

If company earnings in the rest of the market outside of the banks rise more than is currently priced in and we see a beta (risk) rally, the banks may be used as a funding source to build positions in higher risk assets.

Portfolio positioning

Tyndall, as an active manager, has been steadily reducing its exposure to banks over the last 12 months and the flagship Australian equity strategy (including the Tyndall Australian Share Wholesale Portfolio) is currently underweight the banking sector.

Underweight positions in Westpac and Commonwealth Bank, which are the most expensive of the four majors, more than offset overweight positions in National Australia Bank and ANZ. While NAB and ANZ have outperformed the banking sector for the year to date, they continue to have higher expected returns than the other banks over three years.

By Craig Young

—————–

Disclaimer: This document was prepared and issued by Tyndall Investment Management Limited ABN 99 003 376 252 AFSL No: 237563 (TIML). The information contained in this document is of a general nature only and does not constitute personal advice. It is for the use of researchers, licensed financial advisers and their authorised representatives. It does not take into account the objectives, financial situation or needs of any individual. The Tyndall Australian Share Wholesale Portfolio (TASWP) ARSN 090 089 562 is issued by Tyndall Asset Management Limited ABN 34 002 542 038 AFSL No: 229664 (TAML). Investors should consult a financial adviser and the information contained in the current Product Disclosure Statement available at www.tyndall.com.au before deciding to invest. Reference to individual stocks in this material neither promise that the stocks will be incorporated into TASWP nor constitute a recommendation to buy or sell. TIML and TAML are part of the Nikko AM Group.
]]> Craig Young

Craig Young

Australian banks have been among the strongest performing stocks in the Australian share market this year. Attractive dividend yields have been a primary driver of the banking sector’s outperformance in this low interest rate environment.

With valuations now very stretched, what lies ahead for the banks, particularly when quantitative easing in the US comes to an end?

Banks are expensive on all traditional measures

National Australia Bank has been the strongest of the four major banks, rising 46% (including dividends) for the calendar year to 30 November 2013. ANZ and Westpac returned 34% and Commonwealth Bank gained 31%. This compares with the market’s1 rise of 19% over the same period.

The banks have become very expensive. Tyndall’s research shows that the average price to earnings ratio (PE) of the four major banks (whereby the earnings have been adjusted to reflect long-term bad debt charges rather than current low levels) is trading at around 33% above its long-term average (as shown in Chart 1).

chart1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At the end of November 2013, the four major banks were trading on an average adjusted PE of 14.5x, which is one standard deviation above the long-term average of 10.9x. This highlights the extreme variation of current valuations from historical levels.

The last time the banks traded at these levels was before the global financial crisis, after which the banks fell sharply and required capital raisings. Banks are more likely to underperform from current levels.

On a price to book (PB) valuation, Australian banks are among the most expensive in the world, even when their high return on equity (ROE) is considered. Chart 2 shows that the PB ratio (which is the market’s value of a company compared to the book value of its assets) for Australian banks is sitting above the average of other global banks for their respective ROE (as represented by the solid line).

For example, Commonwealth Bank (CBA), which is the most expensive of the four major banks, has an ROE of 17% and a PB of 2.7x, which is well above the 1.9x PB it should be trading on. This means the market is paying more for CBA’s assets than it should be – if taking into account its return on equity.

chart2

 

Record headline profits, but weak underlying results

The recent bank reporting season showed record headline profits for the banks and they delivered very pleasing dividends to shareholders. When adjusting for very low bad debt charges, the average profit growth (as measured by earnings per share) for the four major banks was 1.8% pa in the 2013 financial year. By comparison, profit growth for the market (excluding banks and resources) is forecast to be 5.2% pa2 for the same period.

Tyndall expects this trend to continue with adjusted earnings per share for the four major banks expected to grow on average by 2.4% in the 2014 financial year. This compares with IBES forecasts of around 8.2% for the market (excluding banks and resources)2. This reflects a relatively weak credit growth outlook – both in the household and business sectors.

 

Household debt remains elevated (with net debt at around 130% of income) compared with other developed countries that have de-levered – and the Reserve Bank of Australia won’t be keen to see this increase any further. Business credit growth hasn’t rebounded as yet (currently running at a seasonally adjusted annual rate of 1.0% pa versus the 10-year average of 7.5% pa) and a recovery isn’t expected to occur anytime soon.

Payout ratios unlikely to go higher

Banks have been able to increase dividends in recent years, reflecting low credit growth and higher payout ratios. Low credit growth created excess or ‘lazy’ capital for the banks, which has been paid out as dividends. Banks have subsequently increased their adjusted payout ratios to around 76% (as shown in Chart 3).

chart3

Banks should be able to maintain the current payout ratios, but not increase them. We expect credit growth to increase modestly from very low levels and banks need to maintain more capital to satisfy Basel III requirements. Accordingly, dividends should grow in line with earnings growth, as opposed to in excess of earnings as has occurred in recent years.

Where to from here?

While bank dividend yields continue to remain relatively attractive, particularly versus bond yields and cash, on a total return basis, we expect banks to underperform. There is more downside risk for the banks than upside risk in the near term.

Australian banks have been a major beneficiary of the low interest rate environment, due to an unprecedented level of monetary stimulus by global central banks. Once the US Federal Reserve commences tapering its asset purchase program, which is expected to occur early in the New Year, long bond yields will rise and high-dividend yielding stocks, such as banks, are likely to lose some of their appeal.

As mentioned above, expectations for a modest uptick in credit growth will restrict the banks’ ability to further increase their payout ratios and pay higher dividends.

If company earnings in the rest of the market outside of the banks rise more than is currently priced in and we see a beta (risk) rally, the banks may be used as a funding source to build positions in higher risk assets.

Portfolio positioning

Tyndall, as an active manager, has been steadily reducing its exposure to banks over the last 12 months and the flagship Australian equity strategy (including the Tyndall Australian Share Wholesale Portfolio) is currently underweight the banking sector.

Underweight positions in Westpac and Commonwealth Bank, which are the most expensive of the four majors, more than offset overweight positions in National Australia Bank and ANZ. While NAB and ANZ have outperformed the banking sector for the year to date, they continue to have higher expected returns than the other banks over three years.

By Craig Young

—————–

Disclaimer: This document was prepared and issued by Tyndall Investment Management Limited ABN 99 003 376 252 AFSL No: 237563 (TIML). The information contained in this document is of a general nature only and does not constitute personal advice. It is for the use of researchers, licensed financial advisers and their authorised representatives. It does not take into account the objectives, financial situation or needs of any individual. The Tyndall Australian Share Wholesale Portfolio (TASWP) ARSN 090 089 562 is issued by Tyndall Asset Management Limited ABN 34 002 542 038 AFSL No: 229664 (TAML). Investors should consult a financial adviser and the information contained in the current Product Disclosure Statement available at www.tyndall.com.au before deciding to invest. Reference to individual stocks in this material neither promise that the stocks will be incorporated into TASWP nor constitute a recommendation to buy or sell. TIML and TAML are part of the Nikko AM Group.

The post Just how expensive are the banks? appeared first on AdviserVoice.

]]> https://www.adviservoice.com.au/2013/12/just-expensive-banks/feed/ 0 ANZ executes strategic alliance with leading Swiss bank Vontobel https://www.adviservoice.com.au/2013/11/anz-executes-strategic-alliance-leading-swiss-bank-vontobel/ https://www.adviservoice.com.au/2013/11/anz-executes-strategic-alliance-leading-swiss-bank-vontobel/#respond Thu, 14 Nov 2013 20:40:54 +0000 https://adviservoice.com.au/?p=26604 Joyce Philllips

Joyce Philllips

ANZ yesterday announced the formalisation of its strategic alliance with leading Swiss private bank, Vontobel, with the signing of a Co-operation Agreement that will enable ANZ to offer its private clients a distinct proposition through exposure to Vontobel’s differentiated investment and product expertise.

Set for an initial period of five years, the alliance with Vontobel will provide ANZ’s clients with access to sophisticated investment solutions. Additionally, Vontobel will act as an advisor to ANZ’s Global Wealth business in the areas of global asset allocation and equity investing.

ANZ Global Wealth CEO Joyce Phillips said: “Through our alliance with Vontobel we will provide our clients across the Asia Pacific region with world-class investment and asset allocation solutions, which includes expertise and capability in global asset allocation, equity investing, and sophisticated client advisory services.”

Vontobel CEO Zeno Staub added: “This alliance with ANZ positions our company as an active wealth and asset manager with a high level of investment and product expertise in a region that is experiencing very dynamic growth.”

Full capabilities are expected to be made available to clients in 2014. In the interim, ANZ and Vontobel will focus on implementing services and training staff in Asia, Australia and New Zealand.

The ANZ-Vontobel Co-operation Agreement follows the signing of a Memorandum of Understanding between ANZ and Vontobel in late 2012.

]]> Joyce Philllips

Joyce Philllips

ANZ yesterday announced the formalisation of its strategic alliance with leading Swiss private bank, Vontobel, with the signing of a Co-operation Agreement that will enable ANZ to offer its private clients a distinct proposition through exposure to Vontobel’s differentiated investment and product expertise.

Set for an initial period of five years, the alliance with Vontobel will provide ANZ’s clients with access to sophisticated investment solutions. Additionally, Vontobel will act as an advisor to ANZ’s Global Wealth business in the areas of global asset allocation and equity investing.

ANZ Global Wealth CEO Joyce Phillips said: “Through our alliance with Vontobel we will provide our clients across the Asia Pacific region with world-class investment and asset allocation solutions, which includes expertise and capability in global asset allocation, equity investing, and sophisticated client advisory services.”

Vontobel CEO Zeno Staub added: “This alliance with ANZ positions our company as an active wealth and asset manager with a high level of investment and product expertise in a region that is experiencing very dynamic growth.”

Full capabilities are expected to be made available to clients in 2014. In the interim, ANZ and Vontobel will focus on implementing services and training staff in Asia, Australia and New Zealand.

The ANZ-Vontobel Co-operation Agreement follows the signing of a Memorandum of Understanding between ANZ and Vontobel in late 2012.

The post ANZ executes strategic alliance with leading Swiss bank Vontobel appeared first on AdviserVoice.

]]> https://www.adviservoice.com.au/2013/11/anz-executes-strategic-alliance-leading-swiss-bank-vontobel/feed/ 0 ANZ to launch digital Self-Managed Super Fund https://www.adviservoice.com.au/2013/11/anz-launch-digital-self-managed-super-fund/ https://www.adviservoice.com.au/2013/11/anz-launch-digital-self-managed-super-fund/#respond Thu, 31 Oct 2013 20:40:58 +0000 https://adviservoice.com.au/?p=26239 ANZ to sell Super Concepts to Super IQ as part of strategic partnership
ANZ release digital SMSF fund.

ANZ release digital SMSF fund.

ANZ yesterday announced the launch of its new digital solution for Self-Managed Superannuation Funds (SMSF) as a further step in its strategy to create simpler and more convenient ways for customers to better engage with their wealth.

ANZ CEO Global Wealth Joyce Phillips said: “This new SMSF solution will enable ANZ to provide clients with an integrated digital product that helps them manage all their self-managed superannuation needs in one place.

“This is a further step in our ambition to transform the wealth industry in Australia. Digital and mobile technology is increasingly driving how we operate and how we serve our customers, and as their behaviours change, we’re focused on finding new ways to better connect customers with their wealth.

“We see an opportunity for ANZ to become a key player in the SMSF market, which today is the largest superannuation segment in Australia with assets of around $500 billion,” Ms Phillips said.

‘ANZ Self Managed Super’ will be made available to customers from early December 2013. The key benefits for customers will include:

  • Convenience – being able to have a full view of all SMSF assets and information in one online dashboard so that decisions can be made in real time; industry leading simple application process;
  • Control – 24/7 access through an online portal, which also provides reporting, investment monitoring, document storage and underlying product transacting capability;
  • Security and compliance – customised alert systems (via text message, email or post) allowing customers to stay on top of their SMSF compliance and legal obligations;
  • Value – integration with a wide range of products and solutions across wealth, retail and commercial banking;
  • Efficiency – completion of tax and audit requirements involved with running an SMSF, underpinned by industrial strength accounting software.

In delivering the new digital SMSF solution, ANZ will partner with specialist SMSF service provider Super IQ Pty Ltd.

As part of this agreement with Super IQ, ANZ also announced today that it had agreed to sell its wholly owned SMSF accounting, tax and compliance business, Super Concepts Pty Ltd to Super IQ.

The sale of Super Concepts is not material to ANZ and will be completed by close of business today. The terms of the sale were not disclosed.

]]> ANZ to sell Super Concepts to Super IQ as part of strategic partnership
ANZ release digital SMSF fund.

ANZ release digital SMSF fund.

ANZ yesterday announced the launch of its new digital solution for Self-Managed Superannuation Funds (SMSF) as a further step in its strategy to create simpler and more convenient ways for customers to better engage with their wealth.

ANZ CEO Global Wealth Joyce Phillips said: “This new SMSF solution will enable ANZ to provide clients with an integrated digital product that helps them manage all their self-managed superannuation needs in one place.

“This is a further step in our ambition to transform the wealth industry in Australia. Digital and mobile technology is increasingly driving how we operate and how we serve our customers, and as their behaviours change, we’re focused on finding new ways to better connect customers with their wealth.

“We see an opportunity for ANZ to become a key player in the SMSF market, which today is the largest superannuation segment in Australia with assets of around $500 billion,” Ms Phillips said.

‘ANZ Self Managed Super’ will be made available to customers from early December 2013. The key benefits for customers will include:

  • Convenience – being able to have a full view of all SMSF assets and information in one online dashboard so that decisions can be made in real time; industry leading simple application process;
  • Control – 24/7 access through an online portal, which also provides reporting, investment monitoring, document storage and underlying product transacting capability;
  • Security and compliance – customised alert systems (via text message, email or post) allowing customers to stay on top of their SMSF compliance and legal obligations;
  • Value – integration with a wide range of products and solutions across wealth, retail and commercial banking;
  • Efficiency – completion of tax and audit requirements involved with running an SMSF, underpinned by industrial strength accounting software.

In delivering the new digital SMSF solution, ANZ will partner with specialist SMSF service provider Super IQ Pty Ltd.

As part of this agreement with Super IQ, ANZ also announced today that it had agreed to sell its wholly owned SMSF accounting, tax and compliance business, Super Concepts Pty Ltd to Super IQ.

The sale of Super Concepts is not material to ANZ and will be completed by close of business today. The terms of the sale were not disclosed.

The post ANZ to launch digital Self-Managed Super Fund appeared first on AdviserVoice.

]]> https://www.adviservoice.com.au/2013/11/anz-launch-digital-self-managed-super-fund/feed/ 0 Planner risk report: key findings https://www.adviservoice.com.au/2013/09/planner-risk-report-key-findings/ https://www.adviservoice.com.au/2013/09/planner-risk-report-key-findings/#respond Sun, 15 Sep 2013 21:55:06 +0000 https://adviservoice.com.au/?p=24903 Key findings of the Investment Trends 2013 Planner Risk Report:
  • Life insurance focus eased but still important.

    Life insurance focus eased but still important.

    Adviser focus on life insurance has fallen back from its peak in 2012, but remains a key area.

  • Insurance business is even more concentrated, and AMP now tops primary relationships.
  • Good BDM support is key for retention and acquisition.

Adviser focus on life insurance has fallen back from its peak in 2012, but remains a key area of their businesses

Following the recovery in investor sentiment and increasing flows to growth assets, adviser focus on life insurance has come back slightly from its peak in 2012, according to a new report released last week from leading wealth researcher Investment Trends.

The July 2013 Investment Trends Planner Risk Report is an in-depth study of Australian financial planners and their usage of insurance. The study is based on a survey of 1,159 financial planners concluded in July 2013.

The amount of client time spent on talking about insurance needs by planners fell slightly to 18%, after reaching the highest level recorded in the seven years of this study last year (20% of client time).

“The volatility in the markets that lasted most of 2011 and 2012 had driven planners to focus on increasing the role of insurance advice within their businesses, but the return in confidence earlier this year has meant planners were able to write a lot more non-risk business this year,” said Investment Trends Senior Analyst Recep Peker. “An outcome of this is that they are again spending the normal amount of time talking to clients about their insurance needs.”

“Despite this, those who write risk estimate they have written 5% more in annualised risk premiums in the last year than we recorded in the previous study, and remain optimistic predicting future growth (as they have for several years).”

The Future of Financial Advice (FoFA) reforms may also be a catalyst for planners to write more risk business, with 23% of planners saying they plan to provide more life insurance advice as a result of FoFA.

Insurance business has become even more concentrated, and AMP tops primary relationships

Insurer relationships are changing rapidly, with 29% of planners saying they reduced usage of an insurer in the last 12 months and 35% saying they stopped using an insurer (8% did both).

Those who have been leaving their insurer don’t necessarily start using another insurance provider, which is evidenced in the average number of insurers used by planners declining from 3.8 each to 3.4 each.

“This has resulted in the greater concentration of risk businesses written,” said Peker. “Planners write 64% of premiums through their most-used insurance provider, up from 61% in 2012 and 54% just five years ago.”

“It has become even more crucial to be a planner’s most-used insurance provider.”

AMP and AIA posted strong gains in primary market shares. The top five insurance providers by number of primary planner relationships are now:

  1. AMP
  2. OnePath/ANZ
  3. AIA Australia
  4. TAL
  5. BT Life

Platforms are becoming more important in the insurance market

The proportion of these risk premiums written on platforms is on the up, with planners writing 39% of new risk business via a master trust or wrap platform. This is up from 34% of premiums just last year, and up from almost zero ten years ago.

“The reason this is so significant is because the concentration of risk business is even greater among advisers using platforms, partly due to the limited range of insurers available on most platforms,” said Peker. “This means insurers without a platform will need a more compelling proposition to compete.”

Having multiple insurance providers available on platforms could help drive more insurance business to platforms.

“The main factor inhibiting more risk businesses on platforms is the limited range of insurers on offer, and indeed planners continue to ask for choice of insurer on platforms, most often because they believe this allows them to provide the best deal for the client.”

Good BDM support is key to retention and acquisition

“Satisfaction is crucial in the insurance space, as business is not very sticky and planners can easily stop writing new business on an insurance provider,” said Peker. “That’s why there is a very strong relationship between satisfaction and switching behaviour.”

“Relative to their market share, insurers with lower overall satisfaction ratings from their users experience a higher proportion of planners leaving or switching to other insurers.”

Planners’ satisfaction with their insurers remained high, but fell slightly from the levels achieved in 2012. The top three insurance providers by overall planner satisfaction in 2013 were:

  1. TAL
  2. Zurich
  3. Macquarie Life

Satisfaction with insurers increased the most with business development support, but part of this increase is driven by switching to insurers with better support.

“Good BDM support is a hygiene factor, crucial for both retention and acquisition,” said Peker. “Poor support is a key factor that has caused planners to stop using an insurance provider, and good BDM support is the top selection driver for becoming a planner’s most-used insurer.”

“Although providers now score well for business development support at an industry level, they cannot let service levels falter.”

“Beyond this, planners are demanding further enhancements to underwriting and technology, and these areas will continue to be key battlegrounds for insurance providers over the next year,” said Peker.

]]> Key findings of the Investment Trends 2013 Planner Risk Report:
  • Life insurance focus eased but still important.

    Life insurance focus eased but still important.

    Adviser focus on life insurance has fallen back from its peak in 2012, but remains a key area.

  • Insurance business is even more concentrated, and AMP now tops primary relationships.
  • Good BDM support is key for retention and acquisition.

Adviser focus on life insurance has fallen back from its peak in 2012, but remains a key area of their businesses

Following the recovery in investor sentiment and increasing flows to growth assets, adviser focus on life insurance has come back slightly from its peak in 2012, according to a new report released last week from leading wealth researcher Investment Trends.

The July 2013 Investment Trends Planner Risk Report is an in-depth study of Australian financial planners and their usage of insurance. The study is based on a survey of 1,159 financial planners concluded in July 2013.

The amount of client time spent on talking about insurance needs by planners fell slightly to 18%, after reaching the highest level recorded in the seven years of this study last year (20% of client time).

“The volatility in the markets that lasted most of 2011 and 2012 had driven planners to focus on increasing the role of insurance advice within their businesses, but the return in confidence earlier this year has meant planners were able to write a lot more non-risk business this year,” said Investment Trends Senior Analyst Recep Peker. “An outcome of this is that they are again spending the normal amount of time talking to clients about their insurance needs.”

“Despite this, those who write risk estimate they have written 5% more in annualised risk premiums in the last year than we recorded in the previous study, and remain optimistic predicting future growth (as they have for several years).”

The Future of Financial Advice (FoFA) reforms may also be a catalyst for planners to write more risk business, with 23% of planners saying they plan to provide more life insurance advice as a result of FoFA.

Insurance business has become even more concentrated, and AMP tops primary relationships

Insurer relationships are changing rapidly, with 29% of planners saying they reduced usage of an insurer in the last 12 months and 35% saying they stopped using an insurer (8% did both).

Those who have been leaving their insurer don’t necessarily start using another insurance provider, which is evidenced in the average number of insurers used by planners declining from 3.8 each to 3.4 each.

“This has resulted in the greater concentration of risk businesses written,” said Peker. “Planners write 64% of premiums through their most-used insurance provider, up from 61% in 2012 and 54% just five years ago.”

“It has become even more crucial to be a planner’s most-used insurance provider.”

AMP and AIA posted strong gains in primary market shares. The top five insurance providers by number of primary planner relationships are now:

  1. AMP
  2. OnePath/ANZ
  3. AIA Australia
  4. TAL
  5. BT Life

Platforms are becoming more important in the insurance market

The proportion of these risk premiums written on platforms is on the up, with planners writing 39% of new risk business via a master trust or wrap platform. This is up from 34% of premiums just last year, and up from almost zero ten years ago.

“The reason this is so significant is because the concentration of risk business is even greater among advisers using platforms, partly due to the limited range of insurers available on most platforms,” said Peker. “This means insurers without a platform will need a more compelling proposition to compete.”

Having multiple insurance providers available on platforms could help drive more insurance business to platforms.

“The main factor inhibiting more risk businesses on platforms is the limited range of insurers on offer, and indeed planners continue to ask for choice of insurer on platforms, most often because they believe this allows them to provide the best deal for the client.”

Good BDM support is key to retention and acquisition

“Satisfaction is crucial in the insurance space, as business is not very sticky and planners can easily stop writing new business on an insurance provider,” said Peker. “That’s why there is a very strong relationship between satisfaction and switching behaviour.”

“Relative to their market share, insurers with lower overall satisfaction ratings from their users experience a higher proportion of planners leaving or switching to other insurers.”

Planners’ satisfaction with their insurers remained high, but fell slightly from the levels achieved in 2012. The top three insurance providers by overall planner satisfaction in 2013 were:

  1. TAL
  2. Zurich
  3. Macquarie Life

Satisfaction with insurers increased the most with business development support, but part of this increase is driven by switching to insurers with better support.

“Good BDM support is a hygiene factor, crucial for both retention and acquisition,” said Peker. “Poor support is a key factor that has caused planners to stop using an insurance provider, and good BDM support is the top selection driver for becoming a planner’s most-used insurer.”

“Although providers now score well for business development support at an industry level, they cannot let service levels falter.”

“Beyond this, planners are demanding further enhancements to underwriting and technology, and these areas will continue to be key battlegrounds for insurance providers over the next year,” said Peker.

The post Planner risk report: key findings appeared first on AdviserVoice.

]]> https://www.adviservoice.com.au/2013/09/planner-risk-report-key-findings/feed/ 0 ANZ appoints Kerri Thompson as Managing Director Bancassurance and Customer Experience https://www.adviservoice.com.au/2013/09/anz-appoints-kerri-thompson-as-managing-director-bancassurance-and-customer-experience/ https://www.adviservoice.com.au/2013/09/anz-appoints-kerri-thompson-as-managing-director-bancassurance-and-customer-experience/#respond Tue, 03 Sep 2013 21:45:29 +0000 https://adviservoice.com.au/?p=24635 ANZ today announced the appointment of Kerri Thompson to the new position of Managing Director Bancassurance and Customer Experience, ANZ Wealth, reporting to ANZ Global Wealth CEO Joyce Phillips.

Mrs Thompson is a career banker with more than 30 years’ experience in financial services in Australia, New Zealand and the United States. Commenting on the appointment, Global Wealth CEO Joyce Phillips said: “We created this role to help us further transform the way in which we engage with our customers and deepen the relationships we have with ANZ’s existing customer base. Kerri is an experienced executive with a track record of growing businesses and has a strong focus on building customer relationships,” Ms Phillips said.

Mrs Thompson has been Managing Director Retail New Zealand since March 2010, during which time ANZ has significantly increased market share in key products and improved customer satisfaction. Prior to joining ANZ, Mrs Thompson was a senior executive at General Electric and Commonwealth Bank of Australia.

Mrs Thompson will be based in Sydney and will commence in the role on 2 December 2013. An announcement regarding ANZ’s Managing Director Retail New Zealand will be made in due course.

]]> ANZ today announced the appointment of Kerri Thompson to the new position of Managing Director Bancassurance and Customer Experience, ANZ Wealth, reporting to ANZ Global Wealth CEO Joyce Phillips.

Mrs Thompson is a career banker with more than 30 years’ experience in financial services in Australia, New Zealand and the United States. Commenting on the appointment, Global Wealth CEO Joyce Phillips said: “We created this role to help us further transform the way in which we engage with our customers and deepen the relationships we have with ANZ’s existing customer base. Kerri is an experienced executive with a track record of growing businesses and has a strong focus on building customer relationships,” Ms Phillips said.

Mrs Thompson has been Managing Director Retail New Zealand since March 2010, during which time ANZ has significantly increased market share in key products and improved customer satisfaction. Prior to joining ANZ, Mrs Thompson was a senior executive at General Electric and Commonwealth Bank of Australia.

Mrs Thompson will be based in Sydney and will commence in the role on 2 December 2013. An announcement regarding ANZ’s Managing Director Retail New Zealand will be made in due course.

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]]> https://www.adviservoice.com.au/2013/09/anz-appoints-kerri-thompson-as-managing-director-bancassurance-and-customer-experience/feed/ 0 Darren Whereat appointed new Head of RI Advice https://www.adviservoice.com.au/2013/01/darren-whereat-appointed-new-head-of-ri-advice/ https://www.adviservoice.com.au/2013/01/darren-whereat-appointed-new-head-of-ri-advice/#respond Tue, 22 Jan 2013 00:20:52 +0000 https://adviservoice.com.au/?p=18994 ANZ yesterday announced the appointment of Darren Whereat to the role of Head of RI Advice Group (RI, formerly RetireInvest).

Commenting on the appointment, Neil Younger, ANZ’s Head of Aligned Licensees, said: “Darren will be responsible for leading an experienced regional management team that is focused on driving even greater growth for RI, building on its strong position in the market and leveraging new capabilities for clients. He is a great fit for the business with a deep understanding of self-employed advisers, their businesses and the execution of organisational growth.”

Mr Whereat is experienced in the areas of insurance, corporate superannuation and platform key account management, having previously managed Licensee Select, BT’s dealer services business, and having had responsibility for AdviserNETgain.

Mr Whereat, who will take up the role in late January, said he was impressed with ANZ’s commitment to growing and investing in Aligned Dealer Groups as well as RI’s competitive terms that position it at the forefront of post-FoFA advice solutions.

“RI is a strong brand with a long history and is an attractive proposition for advisers and their clients. I look forward to building on the success the business has had to date,” Mr Whereat said. He joins the business after Paul Campbell’s departure in early December for family reasons.

]]> ANZ yesterday announced the appointment of Darren Whereat to the role of Head of RI Advice Group (RI, formerly RetireInvest).

Commenting on the appointment, Neil Younger, ANZ’s Head of Aligned Licensees, said: “Darren will be responsible for leading an experienced regional management team that is focused on driving even greater growth for RI, building on its strong position in the market and leveraging new capabilities for clients. He is a great fit for the business with a deep understanding of self-employed advisers, their businesses and the execution of organisational growth.”

Mr Whereat is experienced in the areas of insurance, corporate superannuation and platform key account management, having previously managed Licensee Select, BT’s dealer services business, and having had responsibility for AdviserNETgain.

Mr Whereat, who will take up the role in late January, said he was impressed with ANZ’s commitment to growing and investing in Aligned Dealer Groups as well as RI’s competitive terms that position it at the forefront of post-FoFA advice solutions.

“RI is a strong brand with a long history and is an attractive proposition for advisers and their clients. I look forward to building on the success the business has had to date,” Mr Whereat said. He joins the business after Paul Campbell’s departure in early December for family reasons.

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]]> https://www.adviservoice.com.au/2013/01/darren-whereat-appointed-new-head-of-ri-advice/feed/ 0 J.P. Morgan completes migration of ANZ custodian business https://www.adviservoice.com.au/2010/11/j-p-morgan-completes-migration-of-anz-custodian-business/ https://www.adviservoice.com.au/2010/11/j-p-morgan-completes-migration-of-anz-custodian-business/#respond Mon, 22 Nov 2010 00:35:36 +0000 https://adviservoice.com.au/?p=4150 J.P. Morgan direct custody offering open for business

J.P. Morgan Treasury & Securities Services has today announced it has completed the successful migration of direct and master custody clients from ANZ Custodian Services. ANZ Custodian Services was acquired by J.P. Morgan in November 2009.

Completed on time, within one year of the acquisition, this migration has increased the assets held under custody by J.P. Morgan in Australia & New Zealand more than 20 per cent. With more than 150 ANZ Custodian Services staff in Melbourne and Wellington accepting roles with J.P. Morgan, the firm’s footprint has been dramatically increased in these two key financial services hubs.

Jane Perry, CEO of J.P. Morgan Treasury & Securities Services, Australia and New Zealand, said the strategic acquisition of the ANZ Custodian Services business builds on J.P. Morgan’s service offering as the only local firm to provide the full range of global, domestic, direct custody and fund administration services to local and international institutions and fund managers.

“As custody continues to move towards a scale-driven business model, we will continue to ensure that our clients benefit from our integrated solutions, our global platform, and our deep local expertise in the local market. We remain committed to enhancing our on-ground coverage in key Australasian financial centers such as Sydney, Melbourne and Wellington, and further broadening the wide range of innovative solutions available to our clients,” said Perry.

The completion of the ANZ project follows J.P. Morgan’s recent announcement of the expansion of its direct custody and clearing capabilities globally, with the first phase build-out of the offering covering Australia and New Zealand, Taiwan and India in Asia Pacific, along with the United States, United Kingdom and Russia. The firm already offers a globally integrated custody and clearance service backed by a unified technology platform to institutional investors in more than 100 markets.

“Direct custody is a natural extension of our existing business and is part of J.P. Morgan’s expansion plans globally. A direct custody service enables us to meet the needs of clients with cross-border investments in Australia and New Zealand, and to add new clients seeking local custody and clearing services and grow these relationships globally,” she added.

“The migration of ANZ’s Custodian Services clients, combined with our enhanced direct custody network, mark a milestone for the Treasury & Securities Services business in Australia & New Zealand. We are excited about the future opportunities in the direct custody and administration space and we look forward to better servicing the needs of our existing and future clients.”

The provision of direct custody in Australia & New Zealand is part of the Asia Pacific growth plan for the Treasury & Securities Services business, with the firm expanding its local on-ground presence, enhancing its range of market leading products and elevating its client servicing capabilities year-to-date, J.P. Morgan Treasury & Securities Services has hired an additional 500 financial professionals in Asia Pacific to broaden its regional coverage and further develop its partnership with clients. J.P. Morgan Treasury & Securities Services provides solutions to corporate and institutional clients across the region.

]]> J.P. Morgan direct custody offering open for business

J.P. Morgan Treasury & Securities Services has today announced it has completed the successful migration of direct and master custody clients from ANZ Custodian Services. ANZ Custodian Services was acquired by J.P. Morgan in November 2009.

Completed on time, within one year of the acquisition, this migration has increased the assets held under custody by J.P. Morgan in Australia & New Zealand more than 20 per cent. With more than 150 ANZ Custodian Services staff in Melbourne and Wellington accepting roles with J.P. Morgan, the firm’s footprint has been dramatically increased in these two key financial services hubs.

Jane Perry, CEO of J.P. Morgan Treasury & Securities Services, Australia and New Zealand, said the strategic acquisition of the ANZ Custodian Services business builds on J.P. Morgan’s service offering as the only local firm to provide the full range of global, domestic, direct custody and fund administration services to local and international institutions and fund managers.

“As custody continues to move towards a scale-driven business model, we will continue to ensure that our clients benefit from our integrated solutions, our global platform, and our deep local expertise in the local market. We remain committed to enhancing our on-ground coverage in key Australasian financial centers such as Sydney, Melbourne and Wellington, and further broadening the wide range of innovative solutions available to our clients,” said Perry.

The completion of the ANZ project follows J.P. Morgan’s recent announcement of the expansion of its direct custody and clearing capabilities globally, with the first phase build-out of the offering covering Australia and New Zealand, Taiwan and India in Asia Pacific, along with the United States, United Kingdom and Russia. The firm already offers a globally integrated custody and clearance service backed by a unified technology platform to institutional investors in more than 100 markets.

“Direct custody is a natural extension of our existing business and is part of J.P. Morgan’s expansion plans globally. A direct custody service enables us to meet the needs of clients with cross-border investments in Australia and New Zealand, and to add new clients seeking local custody and clearing services and grow these relationships globally,” she added.

“The migration of ANZ’s Custodian Services clients, combined with our enhanced direct custody network, mark a milestone for the Treasury & Securities Services business in Australia & New Zealand. We are excited about the future opportunities in the direct custody and administration space and we look forward to better servicing the needs of our existing and future clients.”

The provision of direct custody in Australia & New Zealand is part of the Asia Pacific growth plan for the Treasury & Securities Services business, with the firm expanding its local on-ground presence, enhancing its range of market leading products and elevating its client servicing capabilities year-to-date, J.P. Morgan Treasury & Securities Services has hired an additional 500 financial professionals in Asia Pacific to broaden its regional coverage and further develop its partnership with clients. J.P. Morgan Treasury & Securities Services provides solutions to corporate and institutional clients across the region.

The post J.P. Morgan completes migration of ANZ custodian business appeared first on AdviserVoice.

]]> https://www.adviservoice.com.au/2010/11/j-p-morgan-completes-migration-of-anz-custodian-business/feed/ 0