Gen Y-ers looking to family, not professionals, for advice.

When it comes to money and our financial futures – who do we turn to and trust most to give quality advice?

According to the 2013 RaboDirect National Savings & Debt Barometer (NSDB), 36% of Gen Y relied on family and friends for financial advice – using their loved ones over a bank (33%), an accountant (14%) or a financial adviser (13%).

At the same time, Gen Y is the most trusting of financial planners as a source of financial advice of all the generations. However, cost appears to be their biggest hindrance to enlisting the help of a qualified financial planner, with 60% of Gen Y respondents saying they think using a planner would be expensive.

According to Bede Cronin, RaboDirect’s National Manager Key Account Services, these statistics highlight the need for greater awareness of the benefits of financial planning compared to the actual costs of obtaining it.

“While it is certainly encouraging to see that financial matters are being discussed with friends and family instead of being treated as a taboo topic, it is still important to enlist the help of a qualified professional to ensure that advice is sound and tailored to individual circumstances,” Mr Cronin said. “In light of Gen Y’s perception that financial advice is expensive, seeking free advice from family and friends may be viewed as the better option, however, when it comes to your financial future we would always recommend seeking tailored professional advice.”

Based on the NSDB results, RaboDirect is encouraging financial planners to confront the perception that advice is too expensive and demonstrate the role they can play in developing long term strategies to deliver financial security.

“Our findings reveal a clear opportunity for planners to engage with younger generations to teach them about the value of financial planning and show them the benefits that come from investing in their financial wellbeing. From the work our Key Account Services team does partnering with financial planners to deliver savings and cash investment solutions to clients, we know that many financial planners do an excellent job in building lasting relationships with clients. The opportunity for all planners is to not just develop strong relationships for older generations but to develop a clear plan for engaging Gen Y also.

“Gen Y needs to understand that financial advice doesn’t have to be complex and costly. It can be simple, affordable and deliver better financial outcomes than would be achieved in the absence of professional advice. And with more than a quarter of Gen Y saying they think they will run out of money during their retirement, it is never too early to enlist the help of a professional who can design an appropriate financial plan to set you up for the future,” Mr Cronin said.

While there was some discrepancy in the survey among generations over who they trusted most for financial advice, the support for financial literacy/language being taught at schools was universal across the generations.

“Financial literacy is obviously a very important topic for all Australians and we should be doing all we can to encourage people to engage with their finances at a young age. Knowledge is key. And with a firm understanding of financial terms and concepts, we would hope to see the number of people who see financial planning daunting – currently around a third of respondents – drop significantly.

“We support initiatives that help to raise levels of financial literacy and designed the National Savings and Debt Barometer to drive important conversations among consumers about the importance of saving as well as the value of trusted professional advice.”

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Gen Y-ers looking to family, not professionals, for advice.

When it comes to money and our financial futures – who do we turn to and trust most to give quality advice?

According to the 2013 RaboDirect National Savings & Debt Barometer (NSDB), 36% of Gen Y relied on family and friends for financial advice – using their loved ones over a bank (33%), an accountant (14%) or a financial adviser (13%).

At the same time, Gen Y is the most trusting of financial planners as a source of financial advice of all the generations. However, cost appears to be their biggest hindrance to enlisting the help of a qualified financial planner, with 60% of Gen Y respondents saying they think using a planner would be expensive.

According to Bede Cronin, RaboDirect’s National Manager Key Account Services, these statistics highlight the need for greater awareness of the benefits of financial planning compared to the actual costs of obtaining it.

“While it is certainly encouraging to see that financial matters are being discussed with friends and family instead of being treated as a taboo topic, it is still important to enlist the help of a qualified professional to ensure that advice is sound and tailored to individual circumstances,” Mr Cronin said. “In light of Gen Y’s perception that financial advice is expensive, seeking free advice from family and friends may be viewed as the better option, however, when it comes to your financial future we would always recommend seeking tailored professional advice.”

Based on the NSDB results, RaboDirect is encouraging financial planners to confront the perception that advice is too expensive and demonstrate the role they can play in developing long term strategies to deliver financial security.

“Our findings reveal a clear opportunity for planners to engage with younger generations to teach them about the value of financial planning and show them the benefits that come from investing in their financial wellbeing. From the work our Key Account Services team does partnering with financial planners to deliver savings and cash investment solutions to clients, we know that many financial planners do an excellent job in building lasting relationships with clients. The opportunity for all planners is to not just develop strong relationships for older generations but to develop a clear plan for engaging Gen Y also.

“Gen Y needs to understand that financial advice doesn’t have to be complex and costly. It can be simple, affordable and deliver better financial outcomes than would be achieved in the absence of professional advice. And with more than a quarter of Gen Y saying they think they will run out of money during their retirement, it is never too early to enlist the help of a professional who can design an appropriate financial plan to set you up for the future,” Mr Cronin said.

While there was some discrepancy in the survey among generations over who they trusted most for financial advice, the support for financial literacy/language being taught at schools was universal across the generations.

“Financial literacy is obviously a very important topic for all Australians and we should be doing all we can to encourage people to engage with their finances at a young age. Knowledge is key. And with a firm understanding of financial terms and concepts, we would hope to see the number of people who see financial planning daunting – currently around a third of respondents – drop significantly.

“We support initiatives that help to raise levels of financial literacy and designed the National Savings and Debt Barometer to drive important conversations among consumers about the importance of saving as well as the value of trusted professional advice.”

The post Advice conundrum – Gen Y trust financial advisers but view as too expensive appeared first on AdviserVoice.

Financial advice highly valued but Australians are still reluctant to seek professional advice: BlackRock

Australians rank the state of the economy as their number one concern, and only half of all Australians feel confident about their financial future.

These were some of the key findings from BlackRock’s inaugural Global Investor Pulse Survey released yesterday.

The survey of 17,600 respondents, including 1,000 Australians, was commissioned by the world’s largest investment manager, BlackRock, to test consumer attitudes and opinions about savings, investments and superannuation.

Key findings, outlined below, shed light on Australia’s retirement hopes, use of financial advice and approach to property.

Financial advice conducive to good financial health

Despite the fact that financial advice is highly valued when it is used, many Australians are still reluctant to seek professional advice, and only 15% of Australians use a financial adviser.

Of those that do, two thirds feel positive about their financial future, compared with only half of Australians in general.

So why do so few Australians seek financial advice when the benefits are so clear?

Not surprisingly, income plays a key role. Twenty-five percent of those who earn in excess of $150,000 (or with household income in excess of $160,000) use a financial adviser, compared with only 10% of those on lower incomes.

Mark Oliver, BlackRock Managing Director, commented: “As the survey shows, financial advice is still the preserve of a small minority, but those who use it value it highly. For instance, in Australia, 89% of advised investors said that professional financial advice was good value for money (compared to 84% globally), while 93% said that it helped them to select the right investment products for their needs (compared to 87% globally).”

“However, the survey also highlighted that the use of financial advice was highest among the 55-64 age bracket, or those approaching retirement. It is well known that the earlier we start planning for retirement, the better the outcome, so we would encourage young Australians as well as those approaching retirement to engage with a financial adviser.”

When asked what concerns Australian investors when it comes to the security of their financial futures the state of the Australian economy ranked as the top reason, followed closely by job security, having to spend more than they earned and healthcare costs. Drilling down it was clear that those on lower incomes were most concerned with spending more than they earn. Unlike those who were more affluent they were very concerned with changes to government pensions and social security as well as housing costs. In contrast, those who were more affluent were preoccupied with the state of the Australian and global economies and also were more interested in tax policies, changes to interest rates and stockmarket volatility.

Property is a priority

Australia’s love for property was evident in the survey, with a clear difference between Australia’s attitude towards buying and saving for property compared with the rest of the world.

We spend more of our planning time on purchasing a new home (20% of time in Australia compared to 17% globally), and are more interested in paying off the mortgage on our homes (28% compared to 23% globally). We are also more interested in saving for a deposit for a new home (17% compared to 13% globally).

Investment property ownership in Australia sits at 15% of those surveyed, which is well above the European and North American averages, where rates of ownership were 10%.For more affluent Australians the rate of ownership increased to 35%.

Mr Oliver said that it was no secret that Australians have always had a love affair with property.

“However, investors need to be mindful that while property has its place in the asset class mix, they should ensure they have a well-diversified portfolio.”

Planning for retirement

According to the survey, Australians are more enthusiastic about their need to plan for a comfortable retirement than their global counterparts, with 76% of retired Australians believing in saving for retirement as early as possible, compared with 65% globally. Seventy-two percent encouraged a long-term approach to retirement saving, compared with only 55% globally.

“While Australia has made great progress towards self sufficiency with the superannuation guarantee, it is widely recognised that more needs to be done to fund a comfortable retirement. It’s not surprising to see that the majority of retirees recommend that we should start saving earlier and take a long-term view when it comes to retirement planning, Mr Oliver said.

“At BlackRock we echo those thoughts and encourage Australians to be positive about our increased longevity. Investing for a long retirement is complicated but a few simple steps may help your longevity work to your financial benefit: for example, investing early …and often, allotting small amounts over time could potentially be easier to bear than having to play catch up. Also, consider all your investment options, including alternative investments, and combining indexed and active strategies to manage diversification and costs along the way.”

“In the past, planner focus has been largely on clients’ wealth accumulation, culminating in transition to retirement and the early days of retirement, with the main aim of setting up finances to maximise income streams in retirement.
 
“However, it is becoming clearer that the need for financial advice will increase in retirement – especially during the later stages – resulting in the need for a lifetime of continuous advice.”
 
Mr Rimmer said that, as a result of clients tending to choose planners who are the same age or a little older than them, advisers often retire about the same time as clients do, which can work against their interests.
 
“It would appear that when advisers are planning their own retirement there may not be an in-depth program in place within their firm to help manage the transition of clients to a new adviser or team.
 
“A common complaint amongst clients seems to be that when their own adviser retires, they end up dealing with two or three different advisers from the firm before things settle down.
 
“A contributor to this in recent years could have been the restructuring that has taken place within the profession, but it hasn’t helped client/adviser relations,” he said.
 
Mr Rimmer added that it can also happen that when advisers take over a retired colleague’s client list, they don’t always have the same loyalty or empathy towards the client as someone who has developed a relationship over time.
 
“Whatever the reason, there can be a feeling of disconnect for many clients which is inevitably damaging to firms, as well as the long term well-being of those clients who no longer feel engaged because they don’t have a worthwhile relationship with the people at the firm.
 
“Yet the first few years in retirement can be a particular time of insecurity for clients and a time when advisers should be stepping up contact and support.
 
“The profession is slowly recognising that when a client retires there is likely to be another two or even three decades of advice needed for them, their spouse, family and other dependants.
 
“Clients will need different help and advice during the two key phases of their retirement –early or active retirement, and care-focused, elderly, retirement – and financial advisers are well-positioned to help manage these needs.
 
“The two major phases are quite different from each other, ranging from more focused estate planning and adjusting income and capital preservation in the early years, to helping with aspects such as aged care facility selection and arranging bonds for elderly retirees.
 
“The pressure of Australia’s aging population means the advice and planning to manage the later stages of retirement is becoming more and more critical.
 
“Advisers need a broad-based understanding of what the retirement lifecycle encompasses so they can help clients.  If clients are left in a vacuum during their early days of retirement, things can easily go off the rails for their financial security and wellbeing.
 
“Handled well, advice during retirement can add a new generation of clients through enhanced family relationships arising from the implementation of intergenerational wealth strategies.
 
“If necessary, advisers need to access specialist knowledge to complement their own service offering for retirees.
 
“Finding a satisfactory service approach to help clients in retirement, as well as the impact of their own retirement on their business, will create long-lasting opportunities for financial planners at a time when its traditional way of doing business is undergoing fundamental change,” Mr Rimmer said.

Mark Rantall – CEO – FPA

The Financial Planning Association (FPA) has announced an overwhelming response to its inaugural Ask an Expert Week, which it ran nationally between the 21 and 27 January.
 
Talking about the week-long initiative, which was conceived by the FPA as a way of improving access to professional financial advice for all Australians, CEO of the FPA, Mark Rantall, said that he was very encouraged by the number of people who took the opportunity of seeking answers from qualified financial professionals.
 
The FPA already has a popular ‘find a planner’ tool on its website, but decided to use social media to increase its reach during Ask an Expert week and to give consumers more opportunities and tools with which to ask questions in a safe forum. 
 
“We offered an online ‘ask an expert’ forum, the ability to ask questions on Twitter using #AskanExpert , as well as a consumer brochure explaining financial advice in plain English,” he explained.
 
Mr Rantall said that the reach achieved by the campaign was impressive.   “Of course we had hoped for a strong response,” Mr Rantall said, “but we were really pleased to see so many Australians benefitting from the financial expertise of our members.”  
 
The Ask an Expert website achieved over 510 visits during Ask an Expert week.  The site was viewed over 900 times in the week prior to Ask an Expert week, and this more than doubled to over 2000 views during the week itself.
 
“Many of our Tweets were also re-tweeted, bringing our reach to nearly 19,000, which we were really happy with,” Mr Rantall said.

Mr Rantall went on to explain the importance of financial planning.  “It is widely recognised that financial control is crucial to our health and well-being, yet far too many Australians still do not seek help from a qualified financial planner.”
 
“There are many reasons for this, including a belief that financial advice is something that only wealthy individuals can access or alternatively a lack of understanding about just how much value good advice can add,” Mr Rantall said.
 
“By using Ask an Expert week to reach out to all Australians and allow them to benefit first-hand from answers given by professional financial planners, the FPA hopes to help more Australians understand that financial security is not beyond their grasp.”
 
Mr Rantall concluded by saying that trusted and professional financial advice can help everyone, regardless of age or financial situation, to achieve their financial goals sooner.
 
“And that’s really what the FPA is trying to achieve,” he said.

For female excellence in advice, the role doesn’t end as the client walks out the door, it’s an ongoing relationship of advice, and education that makes a difference not just on a client level, but on an industry level.

This award doesn’t just represent great client/adviser achievement, its represents a step forward in diversifying an industry. See three of the contenders for this year’s Female Excellence in Advice Awards below.

Want to be recognised for your excellence in advice?  Find out more here

Leanne McDonald
Position: Principal of Create Financial Solutions
Education: Bachelor of Commerce majoring in Banking and Finance, Diploma of Financial planning   Deakin University and Kaplan, CFP Course Completed in 2010 through FPA, SMSF, Derivatives and Gearing Courses through Kaplan completed and Collaborative Law Course in 2011.

Leanne is the founding principal of Create Financial Solutions.  Leanne is Passionate about assisting and educating her clients through each life stage. She prides herself on developing excellent working relationships with all clients, this often leads to her providing comprehensive financial advice and ongoing service.

Leanne has a high percentage of clients that are single or widowed women who seek out her advice as a female adviser.  As a result of this, she finds that female clients are the greatest referral for other female business.
Leanne is an active member of Women on the Move and Women in Business. She has also recently been placed in the Top 50 Financial Advisers for Australia in 2012 for Wealth Professional Magazine, ranked 12, including the Highest Female adviser of the top 50.

Being driven and positive about what you can achieve and share that with others is central to Leanne’s working practice.

“I am a passionate person and I enjoy discussing my successes and how to manage work/ life balances, given the number of personal challenges I’ve had over the years myself, it’s important to keep energy levels up to continue to motivate and inspire others. I encourage my staff to be honest, approachable, and hard-working and to enjoy what they are doing.”

Dianne Charman
Profile: Owner and Director of Jade Financial Group
Education: Masters of Financial Planning

Dianne Charman is the Owner and Director of Jade Financial Group.  While this is what her role says on her paper, Dianne sees her role as one to guide and mentor each person who wishes to make a difference in their life, by firstly seeking to understand their financial potential.

In the workplace Dianne acts as a mentor providing a nurturing environment for the growing potential of her team.
Dianne embraces the differences in her team and likes to lead by example. She believes that you bring people on the journey with you.  This is crucial to individual, team and ultimately client success.

Dianne is passionate about providing help for others so they can make a positive financial change in their life, and the lives of their families. As a result of this, Dianne started a not-for-profit foundation for children to start adopting money-savvy habits from an early age – ultimately aiding the developing good financial habits from the ground-up.

Christine Swanson
Position: Owner and Managing Director of Business Prominent Financial Planners.
Education: Diploma of Financial Planning and Certified Financial Planner (CFP), Australian Institute of Company Directors (MAICD), Associate Member of the FPA.

Christine Swanson is the owner and managing director of Prominent Financial Planners.  She has been building her successful business for over 25 years, and 3 years ago formed a highly successful joint venture which has won the Securitor Dealership Practice of the Year for the past 2 years.  Her workplace is also a Women Friendly Service, promoting the importance of advice to women.

Christine’s work with her clients involves a deep understanding of their personal situation which allows her to create and maintain very strong relationships. Christine believes this is not just because of technical knowledge, but also her ability to offer intuitive advice for her clients’ needs and situations.

In the worksplace, Christine works to reflect her own personal values of integrity, trust and fair play. She allows her staff to make decisions and take responsibility for their actions, rather than referral and passing on responsibility within the group.  It is encouraged that others manage their responsibilities, while taking and giving appropriate feedback along the way.

Christine plays an active role in the community and is passionate about her work with Cancer Council SA, she is an Ambassador for Cancer Council SA and coordinates the Glitz & Hammer Annual Fundraising Ball.

Ironically, the state of the American economy and stock market could influence the election outcome. In the past, the lower the level of inflation and the higher the level of economic growth, the greater the incumbent’s share of the votes has been.

There is a common perception that the Republican Party is more pro-business, deregulatory and tends to support lower taxes and takes a more limited role in governance. The Democratic Party, on the other hand, is seen as more willing to regulate business, support higher taxes and play a more active role in government. The implication is that a Republican outcome should be better for stock markets.

However, the evidence does not bear this out. Over the past twelve elections spanning 48 years, the S&P 500 has delivered a higher average annual return under the Democrats.

At present, spread betting markets have offered relatively accurate predictions for the outcome of recent elections. The market odds for Barack Obama being re-elected continually fluctuate and these odds are very well correlated with the performance and level of the S&P 500. The latest (Intrade) odds of 57% (as at 4 September) suggest Obama will win. Any material fall in the US stock market would hurt Obama’s chances.

Some academics have theorised a link between business cycles and election cycles. Since the 1960s, the US economy has experienced seven business cycles with an average length of 75 months, or a little over six years. Unfortunately, this theory is not borne out in reality. Similarly, history shows that unemployment is a relatively poor predictor of election results.

Whichever party wins the US election, they will have some hard economic work ahead of them.

Future challenges – the fiscal cliff
Tackling what has been labelled the fiscal cliff in a way that does not do further damage to an already weak US economy is the biggest challenge faced by the next administration.

They will have a choice; they could let sequestration kick in, which will indiscriminately see tax increases and spending cuts across the board. The Congressional Budget Office has estimated that this would see the US economy shrink by 4% in 2013, which makes this an unpopular option. At the other extreme, cancelling the automatic tax increases and spending cuts would stoke the US budget deficit and perhaps lead to a further sovereign rating downgrade.

The Republicans want to cut spending significantly and avoid raising taxes, while the Democrats want more limited spending cuts combined with tax increases.

An ideal outcome would be to phase in tax increases and spending cuts over time, and target cutbacks in areas where the economy is least sensitive, to minimise economic damage. While both parties want to avoid the ‘fiscal cliff’, finding an agreeable compromise on the issue will be difficult.

If Congress fails to find a solution to the fiscal cliff, spending cuts and tax hikes will be enacted indiscriminately across the board under sequestration.  And this could be extremely damaging if it adversely affects the most productive areas of the economy.

This becomes a higher risk if a clear election outcome is not achieved.

The market after the election – sector specific
How the US stock market performs after the election is also of interest to investors. History tells us that the stock market is likely to rally if the incumbent wins re-election. But, empirical evidence also suggests that the US stock market has historically delivered its strongest returns on the third year of an election term. This effect might be tied to the incidence of government spending within the presidential cycle, as most government expenditure occurs during the first and second years of an election term.

The biggest stock market effects this time, however, will probably be felt at a sector level – healthcare, financials and defence are sectors likely to be most affected by the election result.

Healthcare – the Affordable Care Act that was passed in 2010 (dubbed ‘Obamacare’) was designed to give 30 million of the poorest Americans access to healthcare. Opposed by the Republicans, it was criticised for being uncompetitive, inefficient, expensive and bad for the healthcare industry. They have challenged its legality as it makes buying healthcare insurance compulsory. The Act also expands the safety net of Medicaid, which provides healthcare for the poorest Americans. The election outcome is a key battleground that will have deep ramifications for the healthcare sector.

If Obama wins, companies that support Medicare and Medicaid should benefit, including pharmaceutical companies. It could also be supportive for jobs as additional hospital staff would be needed to cope with increasing patient numbers. Private health insurance companies would probably lose out.

If Romney wins, he may try to repeal the Act and replace it with an alternative. Companies from a variety of sectors that have lucrative contracts supplying Medicare (for the elderly) and Medicaid (for the poor), could be adversely affected. Pharmaceuticals would be negatively affected because there would be fewer medically insured people. Private health insurance companies on the other hand, would probably benefit – taxes, fees and regulation under the Affordable Care Act would probably be dismantled.

Financial reform – the Dodd-Frank Act passed in 2010 is the main financial service reform proposed by the Obama administration. However, it is complex and it has been difficult to implement. Romney has already vowed to repeal the Act if he is elected, criticising it for being overly burdensome. A repeal of the Act is unlikely, however. Wall Street firms have spent a huge amount of time and resources adhering to the new rules, so reform is still more likely than repeal under Romney.

Despite his threats, even the controversial ‘Volcker Rule’ that bans banks from proprietary trading probably is unlikely to change under Romney. Such a move would be politically unpopular following recent bank scandals. However, Romney would have influence over the Financial Stability Oversight Council, benefitting non-bank financial companies, such as asset managers and insurers. If Obama is elected, plans to shift OTC derivative contracts onto exchanges would benefit the clearinghouses.

Defence – attempts to cut programs, such as missile defence under Obama, would require strong Democratic control of Congress and polls suggest this is unlikely. If the Republicans take control of Congress, defence cuts would be tempered, even under Obama. Many companies could benefit under both Obama and Romney, which is a reflection of the geopolitical tensions that still pressure US policy at present, not least in the shape of the Iran-Israeli nuclear crisis.

Firms that specialise in drone aircraft for military surveillance are likely to benefit regardless of the outcome. Funding the development of cyber security also enjoys bi-partisan support. Additionally, US defence companies will also benefit from equipping the depleted weapon inventories of close NATO allies.

If Romney wins, it is likely that he would support weapons exports to compensate those contractors adversely affected as wars in Iraq and Afghanistan wind down.

A contentious point, many analysts feel that a Romney victory would be more likely to bring about military conflict than an Obama one, presenting a potential boon for the defence industry.

In conclusion, the evidence suggests that the state of the US economy going into an election can influence the votes of swing voters and help to determine an election outcome.

This document is issued by FIL Responsible Entity (Australia) Limited ABN 33 148 059 009, AFSL No. 409340 (“Fidelity Australia”).  Fidelity Australia is a member of the FIL Limited group of companies commonly known as Fidelity Worldwide Investment. Prior to making an investment decision, retail investors should seek advice from their financial advisers. Investors should also obtain and consider the Product Disclosure Statements (“PDS”) for any Fidelity fund mentioned in this document. The PDS can be obtained by contacting Fidelity Australia on 1800 119 270 or by downloading from our website at www.fidelity.com.au. This document may include general commentary on market activity, sector trends or other broad-based economic or political conditions that should not be taken as investment advice. Information stated herein about specific securities is subject to change. Any reference to specific securities should not be taken as a recommendation to buy, sell or hold these securities. While the information contained in this document has been prepared with reasonable care, no responsibility or liability is accepted for any errors or omissions or misstatements however caused. This document is intended as general information only. The document may not be reproduced or transmitted without prior written permission of Fidelity Australia. The issuer of Fidelity’s managed investment schemes is FIL Responsible Entity (Australia) Limited ABN 33 148 059 009. Reference to ($) are in Australian dollars unless stated otherwise.  2012 FIL Responsible Entity (Australia) Limited.  Fidelity, Fidelity Worldwide Investment and the Fidelity Worldwide Investment logo and F symbol are trademarks of FIL Limited.

For female excellence in advice, the role doesn’t end as the client walks out the door, it’s an ongoing relationship of advice, and education that makes a difference not just on a client level, but on an industry level.

 This award doesn’t just represent great client/adviser achievement, its represents a step forward in diversifying an industry. See three of the contenders for this year’s Female Excellence in Advice Awards below.

Want to be recognised for your excellence in advice?  Find out more here.

  Christine Hornery
  Position:  CEO of the FMS Group
  Education: 2000-Bachelor of Commerce, 2001-Diploma of Financial Services (Financial Planning), 2005-Statement of Attainment AMC, 2006- Advanced Diploma of Financial Services (Financial Planning), 2006-Tribeca & SMSF’s, 2006/7-Marketing in Action & Practice Fundamentals, 2007-Certified Financial Planner Designation, 2007/8-Trinity Programme, Business Management Course, 2009-Certificate IV Financial Services (Finance/Mortgage Broking), 2010-Registered Tax Agent, 2011-SPAA Accredited SMSF Specialist Adviser.

Christine is the CEO of Financial Management Solutions (FMS), which is a three company group offering complete financial solutions to clients.  She works to provide the overall strategic direction for the company, but also to ensure a harmony with working culture too, making sure personal development standards and positive working practices are always in place.

Christine’s passionate about providing tailored advice to clients, and as one of her clients is the largest employees of women in their sector; Christine works actively to run campaigns that provide solutions to empower them so they can enjoy a secure financial future. 

Further to this, Christine is active in the industry with education; she promotes financial literacy using seminars, public speaking opportunities and is in the process of completing a series of children’s books and interactive apps.
Christine hopes that FMS will provide a legacy for generations to come to join the industry – including her grandchildren.  

  Catherine Robson
  Position: Principal Adviser Affinity Private
  Education: Bachelor of Laws (Honours), Bachelor of Arts Asian Studies ANU, Securities Institute’s Graduate Diploma in Applied Finance FPA’s CFP program. Master of Laws (Tax) at Melbourne University. Executive Certificate in Positive Psychological Coaching UTS.

Catherine is the Principal Adviser for Affinity Private. Her primary focus is to give her clients – particularly the women, the confidence they need to be in control of their finances. Her passion as an adviser is based not just on the want to contribute to client success but to provide a broader positive impact on society through her work and the flow on effect with her client’s impact – which often has a philanthropic skew.

Central to Catherine’s workplace is the belief and practice that innovation and creativity come when we are removed from the demands of the day-to-day. This means that for Catherine, every team member should have the time they need away from work to balance life commitments, whether they have family or not.

“We’re a values driven organisation, and look for other businesses to work with who share our values. We often find that the businesses we want to work with are run by women. We do not actively seek out businesses run by women, but find that we gravitate to businesses who share our values, and invariably these are business run by women. In this way we are proud supporters of meaningful and sustainable gender diversification.”

In life as in business, Catherine leads by example, and believes that success is only achieved by helping those around her succeed. 

  Deborah Kent
  Position: Director Integra Financial Services
  Education: Securities Institute, FPA Diploma of Financial Planning, CFP, Stanford University Strategic  Leadership Programme.

Deborah is the Director of Integra Financial Services. Her practice works to promote services to lawyers, especially in family law. Deborah believes that this is an area female financial planners can play a strong role in, especially with assisting women who are facing divorce. She works passionately to give newly divorced women the confidence to move on and start new lives. 

Deborah actively markets the practice to business communities, especially female members, ensuring they have their super, insurance and estate planning in place. She is extremely active with her involvement in associations within the industry, promoting the need for women on FPA chapters, and assisting in increasing the numbers of women in the industry.

Deborah is on the board of the WSBC (Western Sydney Business Connection), and has been for over ten years.  She is the first Female President of this Board and works to actively encourage more women to be involved. She actively takes a mentoring role for other women in management roles.

Deborah is passionate about promoting the role women advisers should take, and always encourages female advisers to participate in the industry.

To see the other nominees, please click here.

• The Euro-zone debt crisis is a long way from over, and it will be a long hard slog for Greece, Portugal, Ireland, Spain and Italy but I suspect that we may have passed the worst of the financial panic associated with it. With the exception of Greece, which may yet leave one day, ultimately I see the Euro-zone hanging together and becoming stronger, not weaker.
• With economic rationalist reforms being imposed across Europe, depressed European shares & assets are likely to be great value on a ten year horizon.
• Meanwhile, HSBC’s China manufacturing PMI was little changed in September coming in at 47.8, versus 47.6 in August. The good news is that it hasn’t become any worse, but the bad news is that it is yet to improve suggesting that Chinese economic growth and industrial production remain relatively soft. More aggressive policy stimulus is still called for, but it may have to wait till after the leadership transition is resolved.

To read the full report, click here.

• The Reserve Bank of India’s easing may in part be a response to recent stepped up reform efforts by the Indian Government but it was fairly modest and its failure to cut its official interest rate reflects the constraint imposed by persistently high inflation.
• The Bank of Japan’s move is more significant and highlights the pressure that US QE3 is putting on countries around the world to ease monetary conditions further if they want to prevent their currencies from rising against the $US. Unfortunately, based on recent experience it’s doubtful whether Japan’s QE program will be enough to match the Feds or to meet its 1% inflation goal for this year.
• In terms of the European debt crisis the main outstanding issues at present are Greece and Spain. Spain seems to be hoping that new reforms (possibly to be announced on September 27) and the threat of ECB action will enable it to avoid seeking formal assistance. Our view remains that this is unlikely though, but we could easily go through another bout of short term market nervousness where a rebound in Spanish bond yields then forces it to seek help from the Euro-zone bailout fund and the ECB. However, whether Spain does it proactively or reactively the end result is likely to be the same in triggering ECB bond buying. Reports that it is in talks with the European Commission regarding proposed reforms necessary to obtain assistance are a positive sign.
• Greece has taken a back seat lately, but it still risks hitting the headlines again. The Greek PM is having difficulty reaching agreement with his coalition partners on budget cuts as required by the troika of the EU, ECB and IMF. Ultimately agreement is likely though and in return Europe is likely to grant it more time to meet its commitments because it doesn’t want to take risks with a Greek exit from the Euro-zone. But this may not be resolved for another month or so.
• Tensions between China and Japan have clearly escalated again with disputed islands being the focus this time around. While scary, it’s hard to see the issue going too far as both sides are pragmatic and unlikely to want to risk their trade relationship, eg Japan is China’s third biggest export market. On top of this, uncertainty is continuing to build regarding the Chinese leadership transition ahead of the National Congress in October.

Major global economic releases and implications

• US economic data remained consistent with continued moderate growth. The bright spot remains housing where home builder conditions rose to their highest level in six years and housing starts, permits and home sales are continuing to trend higher all adding to confidence that the housing recovery is continuing to gather steam. Manufacturing conditions surveys were a bit more mixed though – falling slightly for the New York region, but improving slightly in the Philadelphia region. The flash PMI produced by Markit for the US remained at 51.5 indicating that manufacturing conditions remain sub-par but reasonable and a bit better than suggested by the widely followed ISM index. Jobless claims fell but have been stuck in a range all year showing little improvement, which is consistent with why the Fed announced QE3 on an open ended basis.
• In Europe, investment analyst sentiment as measured by the ZEW index picked up substantially in September, but flash business conditions PMIs remained soft with a fall in services conditions offsetting an improvement in manufacturing resulting in a slight fall in the composite PMI taking it to a new cycle low. The overall readings for Euro-zone PMIs are at levels consistent with our expectations for a 1% GDP contraction in the Euro-zone this year, but hopefully should start to pickup by year end to be consistent with our expectation for modest positive growth next year.
• Japanese economic data remained soft with another fall in exports and a weak activity index for July.
• HSBC’s flash Chinese manufacturing PMI was little changed in September indicating that while conditions haven’t deteriorated they haven’t picked up yet either. One positive though was that new orders picked up a bit. Meanwhile average house prices continued to rise in August after a few months of gains, but the gains seem to be losing momentum again which may be a positive sign if it allows the authorities to become a bit more aggressive in providing stimulus for the broader economy.
• The softening in Asian exports continues and was highlighted by a falls in Singaporean and Korean exports.

Australian economic releases and implications

• In Australia, the minutes from the RBA’s last rate setting meeting revealed a significantly more dovish tone than was evident in the statement released straight after the meeting, with significant discussion regarding the risks to global growth, and China in particular, and the risks to the mining boom and a closing observation that the benign inflation outlook provides scope to ease policy if needed. We remain of the view that the RBA will cut the cash rate to 2.75% over the next six months, starting with a 0.25% rate cut next month. The ongoing strength in the $A at a time when the mining boom is loosing momentum and the rest of the economy is weak is only adding to the urgency for more rate cuts.
• It was pretty quite on the data front in Australia. Car sales were strong in August and the Westpac Leading Index continued to point to subdued annual growth.

Major market moves

• After rising almost 5% in response to the ECB’s bond buying plan and QE3 from the Fed over the previous two weeks, global shares took a breather, slipping slightly over the past week on profit taking not helped by soft data in Europe and China and a bit of uncertainty regarding Greece. Chinese shares fell sharply not helped by the dispute with Japan and uncertainty about the leadership transition. Australian shares rose slightly though helped by a rebound in iron ore prices, which boosted miners, and heightened expectations for interest rate cuts following dovish comments from the RBA.
• Just like global share markets, commodity prices slipped with a sharp fall in the oil price on the back of higher US inventories. Softer commodity prices and expectations for RBA rate cuts saw the $A fall back below $US1.05.
• Bond yields fell back in the US, Germany, the UK and Australia and continued to fall in Spain.

What to watch over the week ahead?

• In the US, expect a modest further gain in home prices for July (due Tuesday), a rise in consumer confidence (also Tuesday), further gains in new home sales (Wednesday) and pending home sales (Thursday) but a fall back in headline durable goods orders (also Thursday). Data for personal income and spending and a Chicago regional manufacturing conditions survey will be released Friday.
• In the Euro-zone, September readings for economic confidence are likely to remain subdued consistent with an ongoing “mild” recession.
• Japanese data to be released on Friday is expected to show softness in retail sales and industrial production along with ongoing price deflation.
• In Australia, it will be a quite week on the data front. Expect new home sales (Monday) and private sector credit growth (Friday) to have remained soft. On Tuesday the RBA’s six monthly Financial Stability Review is likely to conclude that the Australian financial system remains in pretty good shape and speeches by RBA officials on Tuesday and Wednesday will be watched closely for any clues on interest rates.

Outlook for markets

• After the strong bounce in shares on the back of recent policy moves by the ECB and Fed, shares are vulnerable to a short term pause or pull back particularly given outstanding issues regarding Spain and Greece and ongoing uncertainty regarding China. However, it’s doubtful that the broad rising trend in shares since early June will be derailed. The ECB’s bond buying program is likely to see the European debt crisis gradually settle down, the Fed is providing a huge shot in the arm for the US economy and global share markets, more decisive policy easing is likely in China once the leadership transition is resolved next month and in Australia the RBA is on track for more interest rate cuts. With shares remaining cheap, particularly against bonds, we see further gains into year end. If there are any set backs in the weeks ahead they should be seen as a good buying opportunity.
• While sovereign bonds in safe countries are a good diversifier, bond yields in major countries remain very low and point to low medium term bond returns as investor confidence returns over time. Corporate debt is a better proposition for those after income but not willing to accept the volatility that comes with shares.
• The short term outlook for the $A is somewhat messy. US QE3, foreign central bank buying and prospects for improved global growth and higher commodity prices into next year are positive. But against this, uncertainties regarding China, soft bulk commodity prices and the likelihood of RBA rate cuts are negatives. The likely outcome is for a volatile range of between $US0.95 to $US1.10.

ASIC’s guide, Regulatory Guide 240 Hedge funds: Improving disclosure (RG 240), follows industry consultation earlier this year (refer: 12-30MR) and the Parliamentary Joint Committee on Corporations and Financial Services (PJC) report into the Trio collapse, and is part of ASIC’s forward plan of work to improve the conduct of gatekeepers for managed investment schemes and strengthen the regulatory requirements applying to hedge funds.

In the final version of the regulatory guide, there are a number of changes made as a result of submissions received during the consultation, including:

• defining ‘hedge funds’ as managed investment schemes which exhibit at least two out of five characteristics: complex investment strategy or structure; use of leverage; use of derivatives; use of short selling; charging a performance fee
• removal of an independent custody benchmark
• simpler fee disclosure more in line with prevailing industry practice, and
• where a hedge fund has invested 35% or more of its assets in an underlying hedge fund or similar investment vehicle, the disclosure principles and benchmarks should be taken to apply to each such ‘significant underlying fund’.

‘Hedge funds, because of their diverse investment strategies and use of leverage and offshore investments, can pose more diverse and complex risks for investors than traditional managed investment schemes,’ ASIC Commissioner Greg Tanzer said.

‘Given the risks for retail investors associated with investing in hedge funds, disclosure needs to provide retail investors with all the information they require to make an informed investment decision. In some cases, this may include a decision not to invest in these products.’

Responsible entities of hedge funds should disclose against the benchmarks and apply the disclosure principles in any PDS dated on or after 22 June 2013.