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.

The post What does Female Excellence look like in 2012? Like this…#3 appeared first on AdviserVoice.

I was concerned that I would not have anything more to worry about other than focus on my clients, helping them to navigate the post-GFC economy, convince them that the government really doesn’t see them as bourgeoisie simply because they save for the future, and protect them from unforeseen risks through insurance.

Ah, that last part, mundane risk insurance.  For well over 120 years, Australians have relied on financial planners and before that good old fashioned insurance salesman, to be the party-poopers that reminded them that, no, they won’t live for ever and even if they do, they might just get sick along the way.  You, dear reader, may not appreciate that these types of events can have a deleterious effect on one’s prosperity planning.

Despite this obvious risk and the fact that, generally, people do care about providing for their family if the unforeseen should happen, most people don’t have enough of the stuff. I’m told in the olden days, General Stores would have shelves full of insurance policies available for purchase.  They were priced at cost, plus a simple retail mark-up for the shop owner.

Sadly, most remained unsold.  Only a few customers that had just been to their doctor and received an unfortunate diagnosis were buying – everyone else was happy to wait and delude themselves that it would happen to somebody else or they’d get to it another day.

Now, this wasn’t a good outcome, especially for those insurance companies that wanted to profit from making the insurance.  Their only customers were ones that they didn’t want to insure in the first place.

But why wouldn’t people want buy the insurance? Well mainly because it wasn’t fun.  First up, you had to dwell on the nasty things that could happen, as well as contemplate your own demise.  But even after that, you had to fill in lots of forms, and ‘fess up to all the horrible diseases and ailments you had already suffered.  As if that weren’t enough, you then get to have a stranger show up with some needles to take blood, or perhaps strap machinery to your person and run on a treadmill while a physician does his best to provoke a heart attack.

Finally, after these indignities, you get a call from the underwriter (aka a faceless stranger) to advise you that those anal fissures actually could result in colon cancer so your premium will be 25% more than you thought and didn’t your doctor tell you about these?

So, perhaps it is unsurprising that the insurance companies realised that there needed to be an incentive involved, so they built in a commission system as a way of remunerating their agents.  In fact, they’ve even increased it over the years – upfront commissions have more than doubled since this author was first involved in the 1980s.

This commission system turned out to be the worst way to structure risk insurance distribution that was ever invented, apart from all the other ways (with apologies to Churchill).  Customers loved it, because if they changed their mind or got loaded or rejected, it didn’t cost them a cent if they didn’t go ahead.  Insurance companies loved it, because it gave them an incentivised distribution channel and allowed them to arbitrage accounting standards and tax law to increase profits.  And planners loved it, because if they worked hard they could earn a good living.

Commission is an appropriate remuneration method, beyond the obvious reasons of the marketplace.  It’s a reason that most of the schmexperts seem to forget.

It’s what I call ‘completion riskc – an economic risk which all parties expect is borne by the adviser.  And, until consumer behaviour changes, it’s why upfront commissions are entirely appropriate for discretionary risk insurance purchases.

You see, unlike investments, there is an independent third party to every insurance contract who decides whether it completes or not.  No matter how much the customer and the adviser want the cover to proceed, unless the underwriter agrees as well, it will not.  Hence, this means a certain proportion of proposals are not completed.

Who pays the adviser for their professional advice when this happens?  Answer: nobody.

Alternative answer (with extra points for thinking it through): all the other people who have insurance, indirectly through cross-subsidisation.

Now, more schmexperts have decided that, despite the unpleasant process of gaining insurance, despite the completion risk being borne, despite every other damn else thing  we have to do, there is a problem.  Financial planners are churning customers insurance just to keep getting upfront commissions for the sake of getting upfront commissions.

This is a serious problem that threatens the viability of our largest insurers.  They’ve swung their massive international resources behind getting this hitherto unknown issue onto the national agenda.  It’s so serious that they are relying totally on anecdotal evidence to make their case.

Apparently, there are some advisers out there that have a bunch of customers that don’t mind undergoing invasive medical investigations every couple of years just to help said adviser make some more commish. These nefarious planners threaten to bring the entire insurance industry to its knees by refusing to leave their customers with uncompetitive insurance rates.

I have to admit, I don’t know any of these personally.  I think I met one of these guys once, Fred someone-or-other but that was in the mid ‘90s at a conference and I don’t think he stayed past FSRA reform but then again I could be wrong. But I am assured that they are out there.

I have an alternative solution.  Let the insurance companies reduce premiums by the exact amount of the upfront commission they pay to advisers at the moment.  Let the clients pay a fee for my expertise in obtaining the cover, regardless of whether they are able to get any insurance or not.

If everyone did this, would our society be better served? Answer: No

Alternative answer (yes more extra points): No, because the marketplace is not ready for that concept yet.  Yes, it’s a beautiful Field of Dreams, but build that sucker and no-one will come, at least for the next ten years or so.

To read the first article in this series, ‘Experts schmexperts’ click here.

The post Insurance Schmexperts appeared first on AdviserVoice.

• Government handouts to families and seniors contributed to a record monthly budget deficit of $14.4 billion in June.
• Receipts from the goods and services tax were $1,059 million above the estimate in the 2012/13 budget. The GST receipts of $48.8 billion were up 1.6 per cent on a year earlier.

What does it all mean?

• The good news is that the federal budget is headed back towards surplus, although this may not appear obvious from the latest figures. In the year to May, the federal budget was in deficit by $34.1 billion, having improved in eight of the previous nine months, and down from a record $63.3 billion deficit in the year to September 2010. But there was a hiccup in June as the government provided a number of handouts to Aussie consumers, the annual deficit coming in at just under $44 billion.
• Still, the underlying deficit continues to improve. The government has shifted some payments into 2011/12, and delayed or cancelled other spending scheduled for 2012/13. A combination of firm revenue growth and flat expenses should push the budget back towards surplus.
• It’s always important to remember that the budget is merely an accounting statement of government finances. In essence, things can go wrong. And while the budget is considered an economic document, it’s also a political document as well, with the government of the day deciding what to spend on a when.
• In May 2011 a budget deficit of $22.6 billion was project. At the mid-year review the projection had blown out to $37.1 billion and in the May 2012 budget the projection had lifted to a $44.4 billion shortfall. Currently a small $1.5 billion surplus is projected for 2012/13.
• From an economic perspective it is encouraging that underlying revenues are continuing to improve with firmer economic growth. Weaker commodity prices mean that the path to surplus less assured, but much also depends on the job market remaining firm and consumers continuing to spend. CommSec tracks the monthly budget statements and figures for July and August should be available over the next month. So we should soon be in a position to see if the surplus goal remains achievable.
• At three per cent of GDP, it is important to stress that Australia’s budget is in far better shape than most advanced nations. Similarly Australia’s net government debt level of 10 per cent is well at the bottom end of the pack.

What do the figures show?

• The Australian federal budget was in deficit by $43.7 billion in 2011/12. At the time of the release of the 2013 Federal Budget in May, the Government had forecast a deficit of $44.4 billion for the 2011/12 year.
  The underlying budget deficit improved by $4 billion over 2011/12, from a deficit of $47.7 billion (3.4 per cent of GDP) in the 2010/11 year.
• Receipts rose by 9.2 per cent to $329.9 billion while payments rose by 7.2 per cent to $371 billion. Future Fund earnings eased from $3.7 billion to $2.6 billion.
• The headline cash balance improved from a $51.1 billion deficit to $47.0 billion deficit in 2011/12. And the fiscal balance improved from a deficit of $51.5 billion (3.7 per cent of GDP) in 2010/11 to a deficit of $44.5 billion (3.0 per cent of GDP) in 2011/12.
• Australian Government general government sector net debt was $147.3 billion (10.0 per cent of GDP), which was $4.8 billion higher than estimated at the time of the 2012/13 Budget.
• Australian Government general government sector net financial worth was minus $358.3 billion at the end of 2011/12. Net worth was minus $247.2 billion at the end of 2011/12.
• Receipts from the goods and services tax were $1,059 million above the estimate in the 2012/13 budget. The GST receipts of $48.8 billion were up 1.6 per cent on a year earlier.

What is the importance of the economic data?

• The Federal Government is required to release the Final Budget Outcome by the end of September each year. The data may have implications for fiscal policy – government spending and taxing – if the figures deviate from official expectations.

What are the implications for interest rates and investors?

• It may not appear obvious, but the goal of a budget surplus is still on track. And if spending remains restrained over the coming year while revenues continue to recover, then fiscal policy will be regarded as contractionary, thus keeping the door open for another rate cut.
• The latest budget result is a “good news” outcome, thus the release of the figures on a Monday, rather than Friday afternoon as is traditional with monthly budget statements.
• GST revenues grew in line with inflation over the past year – effectively translating to no growth in real terms. State governments have been complaining about lack of funds to meet on-going spending demands and infrastructure commitments. But if recent settled conditions on global markets continue, there are hopes that consumers and businesses will spend more freely over the coming year, meaning more GST revenue.

The post Budget on track despite record monthly shortfall appeared first on AdviserVoice.

Platinum’s group of companies has been in operation for almost 12 years, recently adding wealth management to its suite of client services. 

Premium CEO, Paul Harding-Davis, said Premium wasvery pleased to expand its Queensland reach and welcome Platinum to the Premium group. 

“We are actively growing our firm through alliances with firms that want the support of dealer network, but also wish to remainfree of institutional ownership.  Platinum is our second Queensland alliance in as many months, with Meridien Wealth Management joining us in August.  We are very pleased to welcome Platinum to the group and look forward to a long and mutually beneficial relationship, for both our businesses and clients.” 

Platinum Principal, Robert Kirk, said the firm had looked at a number of dealer groups and found that Premium was the best fit for its business and clients.  

“We were looking for a group with similar depth of knowledge and focus on holistic financial management, rather than simply selling life insurance or other products.  As Premium was founded by accountants, we were attracted to the focus on training and qualifications that the group holds.  Additionally, as Premium operates on a fixed rate and is not driven by volume or funds under advice fees, it made a better fit for our business.” 

Mr Harding-Davis said he anticipated that the recently announced accountants licencing program will also lead to additional recruitment in the near future. 

‘We will offer the three tiers of licencing and the support services that go along with it, such as monitoring, audit and training.  Additionally, accountants will need to be RG146 compliant, so we provide access to the necessary training packages, along with a sensible pricing model.  As most of our advisers are part of accounting firms, we also offer significant advantages with our collegiate approach to knowledge sharing. We believe the referral opportunities this will create will also be of significant value for the advisors in our network.”

The post Premium Wealth Management secures new advice firm appeared first on AdviserVoice.

Nineteen cyclists –  out of the 40 who have taken part in the $100,000 fundraising marathon – were greeted by David Southwick, member for Caulfield in the Victorian Legislative Assembly; 1960s cycling Olympian Alan Grindal; AMP Financial Planning’s Thomas Reeh, and a crowd of wellwishers.  

The cyclists are financial planners and friends who had pledged to raise $100,000 to help disadvantaged young Australians through Future2, the foundation of the financial advice profession.

• The AMP Future2 Wheel Classic covered 1210 km in nine days, an average of 134.4 km a day. 
• The cyclists were on their bikes for between 4.5 and 6 hours each day.
• On average, they had to fix  8 flat or punctured tyres on the road every day – 14 of these on the road out of Sydney to Bundanoon on Day 1. 
• They spent an average of 3,251 calories each  day and were sustained by – among other energy foods and drinks – 53 kilos of bananas. 
• They climbed and descended an average of 1.25 km each day, the biggest climb being almost 3 km between Jindabyne and Corryong; the total net climb was 3.8 km.  
• In spite of the climbs, the cyclists averaged a speed of 28.7 km/h.  One recorded speed during the descent of the Snowy Mountains, was 80.7 km/h.

The group set off from Sydney’s Circular Quay at 7.30am on 15 September.  Their route took them to Canberra, over the Snowy Mountains, and through country Victoria stopping at Wangaratta, Shepparton, Bendigo and Castlemaine. This is the third annual Future2 cycling fundraiser. 

Future2 Wheel Classic 2012 - riders arrive in Melbourne

The Wheel Classic also has the generous support of Caltex (fuel vouchers), Vital Massage Therapies (massage), Rural Funds Management (dinner in Canberra) and many others.

The fundraising efforts of the cyclists have raised over $89,000 to date.  The ride also has the generous support of AMP Financial Planning (Gold Partner) and Matrix Planning Solutions (Silver Partner).  Magellan Asset Management and Macquarie sponsored seminars in Canberra and Bendigo, delivered by Peter Bobbin, a Future2 trustee and expert in superannuation, taxation and estate planning. 

The funds will boost Future2’s grant program, giving a second chance and hope for a better future to disadvantaged young Australians like those featured in the short films on the Future2 website, www.future2foundation.org.au/Grants/Grantfilms

Every cyclist participating in the AMP Future2 Wheel Classic has realized a personal goal on two levels: achieving a physical challenge while fulfilling a desire to help those in most need in the community. 

Check out the route at www.future2foundation.org.au/events/wheelclassic

See who is riding and make a donation at www.future2fundraising.org.au/event/f2wheelclassic

The post AMP Future2 Wheel Classic – mission accomplished! appeared first on AdviserVoice.

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.

The post The US election and the markets appeared first on AdviserVoice.

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 post What does Female Excellence look like in 2012? Like this…#2 appeared first on AdviserVoice.

• 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 post Oliver’s Insights – 3 steps forward, 2 steps back – but Euro-zone risks are receding appeared first on AdviserVoice.

Where a company is domiciled is no longer such a focus for global equity managers.

Bronwen Moncrieff, Senior Investment Analyst at Zenith said “Barriers that may once have existed and encouraged the separation between developed and emerging countries are decreasing. The development of technology such as the internet, near instant access to global events and ease of travel are just a few factors that have played an important part in making the world become a smaller place. As a result, many developed market domiciled company’s now generate an increasing level of revenue from emerging market consumers, and many emerging market domiciled companies are increasing their level of exports to developed market countries.”

“The flow through impact of this change is influencing the portfolio construction approach for many managers. Where a company is domiciled is becoming less and less relevant. Research is focusing on where a company’s source of revenues or target market demand is coming from – not where a company is domiciled or listed.”

“At a fund or product level, this is influencing factors such as the choice of benchmark, and the % of a fund that can be invested in emerging markets. For the benchmark, there has been a gradual move away from the MSCI World Index to the MSCI All Country World Index, which broadens a fund’s potential investable universe by virtue of the inclusion of emerging markets. The other change has been a gradual increase in the degree a fund can be invested in emerging market domiciled companies. Funds that may have once had a restriction on holding emerging market domiciled stocks may now be allowed to hold a portion of the portfolio in emerging markets, or funds with an existing emerging market allocation limit have been increasing that limit.”

“There may come a time when you don’t need to have separate global and emerging market funds – one fund might be able to provide you with exposure to both, in fact many funds now do just that.” Moncrieff said.

Performance over the last 12 months has clearly been very difficult. The MSCI World ex Australia ($A) index generated a very modest positive return of 2.3% for the 12 months ending 31 July 2012. The majority of regions have experienced declines.

The financials sector continued to post negative returns and the energy and materials sectors have suffered with the decline in resource demand and commodity prices. On the positive side, sectors such as consumer staples, consumer discretionary, healthcare and technology have all fared well.

Certain investment styles (core, value, growth for example) are suited to different market environments, and it is fair to say the market environment has generally been tough for all managers. However, for this review, it was the value managers that generally outperformed their core and growth style counterparts over the short, medium and long-term (5 years).

Zenith’s International Shares Sector Review represents the largest sector review undertaken by Zenith. Of the 59 global, regional and specialist funds that undertook the full due diligence process, 17 funds achieved Zenith’s top rating.

Zenith’s Highly Recommended Funds
* Aberdeen Asian Opportunities Fund
* Aberdeen Emerging Opportunities Fund
* Arrowstreet Global Equity Fund
* Arrowstreet Global Equity Fund (Hedged)
* Goldman Sachs International Wholesale Fund
* IFP Global Franchise Fund
* IFP Global Franchise Fund (Hedged)
* Magellan Global Fund
* MFS Concentrated Global Equity Trust
* MFS Fully Hedged Global Equity Trust
* MFS Global Equity Trust
* Platinum Unhedged Fund
* Walter Scott Global Equity Fund
* Walter Scott Global Equity Fund (Hedged)
* Zurich Investments Global Thematic Share Fund
* Zurich Investments Hedged Global Thematic Share Fund
* Zurich Investments Unhdg Global Thematic Share Fund

The following new funds were added to the Recommended List following the completion of due diligence for this sector.

Fund Name/New Rating
* Altrinsic Global Equity Fund/Recommended
* Aubrey Global Conviction Fund/Recommended
* Fidelity China Fund/Recommended
* Franklin Global Growth Fund/Recommended
* Martin Currie Emerging Markets Fund/Recommended
* MFS Concentrated Global Equity Trust/Highly Recommended
* MFS Fully Hedged Global Equity Trust/Highly Recommended
* Schroders Global Quality Fund/ Recommended

The post Zenith 2012 International Shares Sector Review appeared first on AdviserVoice.

• 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.

The post Weekly economic & market update appeared first on AdviserVoice.