Darren Connolly

The FY25 reporting season has delivered a clear reminder for investors: strong governance and honest communication matter just as much as the numbers. Confidence in the market is holding up, but results from some of Australia’s biggest companies have shown that without transparency and careful risk management, even solid profits can leave shareholders uneasy.

Darren Connolly, CEO of InvestmentMarkets, said the shift is evident across the investor community. “What we’re seeing is a strong expectation that companies do more than just deliver results. Investors are looking at leadership, governance structures, and the way risks are communicated. Less spin and more honesty,” he said.

Rachel Waterhouse, CEO of the Australian Shareholders’ Association (ASA), said three themes stood out this reporting season: optimism about the market outlook, sector-specific surprises such as CSL falling short of forecasts, and growing unease about disclosure. “Healthcare caught investors’ attention with CSL missing expectations, which was reflected in the immediate share price reaction,” Waterhouse said. “But the bigger issue is around communication. At James Hardie, for example, the gap between forecast and actuals raised serious questions about when the company knew and whether it could have told investors earlier.”

Qantas also remains under scrutiny, reporting a record profit and a record fine in the same period. For investors, the combination highlights both the strength and the risks of relying on brand reputation. “It’s not just about profits, it’s about governance and culture,” Waterhouse said. “Companies need to show they are investing in people, in their fleet, in systems and processes that build long-term trust.”

Connolly said this sentiment is important for self-directed investors. “Governance is front and centre. Investors are well aware that reputational risks can quickly turn into financial ones,” he said.

Broader policy concerns are also weighing on investors, particularly the proposed Division 296 tax on superannuation balances. The ASA has warned the measure undermines confidence, with Waterhouse noting that taxing unrealised gains “simply doesn’t make sense.” She said the change raises serious questions about how investors are expected to pay a tax that has no cash impact, and called instead for a holistic review of the tax system rather than piecemeal reforms.

For retail investors, the challenge extends beyond policy to whether their voices are being heard in a market dominated by institutions, ETFs and superannuation funds. Waterhouse said hybrid AGMs, direct engagement and proxy voting remain critical tools. “Companies that engage meaningfully with retail shareholders build stronger long-term support,” she said.

Connolly said demand for transparency and engagement is an ongoing theme. “Investors want to know not just the numbers, but the risks, and the issues too. They don’t expect everything to go perfectly all the time, and companies that are upfront with the bad news too, are the ones that attract long-term investor support,” he said.

The post Good governance is everything for retail investors: lessons from reporting season appeared first on AdviserVoice.

Drew Meredith

Membership partnership with Wattle and ASA

Wattle Partners (Wattle), a leading financial planning firm specialising in retirement-focused advice, has announced a strategic partnership with the Australian Shareholder’s Association (ASA), Australia’s largest not-for-profit shareholder association.

This partnership aims to strengthen financial literacy and empower Australians to make informed investment decisions.

As part of this initiative, all new and existing Wattle clients will receive complimentary ASA membership, aligning with Wattle’s goal of equipping Australians with the financial knowledge needed to navigate the investment landscape and fostering a robust, and informed investor community.

ASA membership provides Wattle clients access to a wealth of valuable resources, including investor education programs, community events, and advocacy initiatives that champion investor rights and financial literacy.

This partnership follows the successful amalgamation of the Australian Investors Association (AIA) with ASA in November 2023, under the leadership of Wattle Principal Jamie Nemtsas, then acting chair of AIA.

Recognising shifts within the financial industry, Nemtsas guided the merger to strengthen the collective groups mission of improving financial literacy and investor advocacy.

Wattle Principal, Drew Meredith says: “We are always looking for a way to educate our clients, and by forming this partnership with the ASA, our clients will receive the best investment resources and education.”

ASA CEO, Rachel Waterhouse says: “For over 60 years, ASA has served as the voice of retail investors in Australia. This first-of-its-kind partnership with Wattle and launching the ASA Financial Advisers Directory Panel enables us to reach a broader audience, giving more Australians the resources they need to navigate the financial landscape and make empowered investment decisions.”

Launch of ASA Financial Adviser Directory

As part of the initiative to work closer with financial advisers, the ASA has launched a Financial Adviser Directory, which will provide a partnership between financial advisers and the ASA in each state.

Nemtsas has agreed to introduce financial advisers to ASA for potential addition to the Directory and Nemtsas has agreed to consult with an ASA selection committee which will decide on additions to the Directory. The advisers will exemplify professionalism, show ethical leadership, and a commitment to financial literacy in Australia.

The advisers will cater to the diverse needs of ASA members, ranging from those in the wealth accumulation phase to retirees, and high-net-worth investors.

In addition to supporting ASA members, directory advisers will contribute to the broader financial literacy objective by providing educational content through articles, podcasts and conference presentations.

This initiative underscores ASA’s dedication to fostering collaboration and delivering tailored resources that elevate the financial capabilities of its members and the wider community.

The post Wattle Partners and Australian Shareholders’ Association partner to enhance financial literacy for Australians appeared first on AdviserVoice.

Both boards have signed an agreement and shared details of the proposed amalgamation with their respective members and shareholders yesterday.

The ASA board says: “At the core of this amalgamation proposal is the goal of establishing a powerful entity that can work for the benefit of current and future investors, and provide a rounded approach to investors covering strengths from both the ASA and AIA.”

“To achieve this goal, it’s essential we have a smooth transition that maintains continuity of services to both organisations members, including membership transfer, ongoing member meetings and discussion groups, an expanded board and a future branding review of the organisation.”

The AIA board says: “The board’s decision to move forward the discussions with the ASA recognises the dynamic shifts in the financial industry.

“This is a pragmatic, forward-thinking step, driven by the objective of harnessing the collective strengths that will elevate financial literacy nationwide and safeguard the interests of individual investors.”

ASA CEO, Rachel Waterhouse says: “ASA has been protecting the rights of individual investors for over 60 years and like the AIA, we have always been dedicated to financial literacy, and investor education.”

“So, we believe there is a pre-existing alignment between both organisations in terms of purpose, values and visions that will allow for a seamless amalgamation and see the entities emerge with a stronger voice on investor issues as well as offering increased benefits to both organisations’ members.”

The proposed amalgamation will see an expanded membership base, reduced administrative costs, and, most importantly, expand the collective expertise, ideas, and ability to make a positive impact on investment issues for members.

AIA has proposed to close their organisation, and AIA members will be offered complimentary ASA membership of the same duration as their existing AIA membership.

The ASA board concluded, “There is no doubt this is great news for not only ASA and AIA members, but the industry as a whole.

“We will be able to provide larger and greater access to individual investors looking for an independent, knowledgeable and proven source of education and advocacy.”

The post ASA and AIA enter into amalgamation discussions appeared first on AdviserVoice.