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BT shows ‘It Gets Better’ for LGBTI youth

Thu, 28 Aug 2014 21:40:37 +0000

BT staff to support LGBTI youth on the ‘Wear it Purple’ Day.

BT continues to show its support for lesbian, gay, bisexual, transgender and intersex (LGBTI) youth by asking all employees to Wear it Purple and producing a powerful and personal video of employees sharing their stories with the LGBTI community through ‘It Gets Better’.

It Gets Better

As announced in May BT is proud to be a principal partner of It Gets Better Australia – a non-profit organisation helping LGBTI youth cope with harassment and discrimination relating to their sexuality.

BT Financial Group (BTFG) Chief Executive Officer, Brad Cooper, said the sponsorship and ongoing programs within BTFG are about supporting LGBTI youth with the challenges they face due to community attitudes and the pressure and isolation felt when “coming out.”

It Gets Better Australia aims to show young LGBTI people the levels of happiness, potential and positivity their lives can reach. The organisation uses videos to capture the voices of adult LGTBI people who have experienced bullying and discrimination and who have come out the other side to live happy, fulfilling and successful lives.

BT Financial Group, Westpac and St. George employees (all part of the Westpac Group) have made their own video sharing powerful and deeply personal stories in the hope they will inspire LGBTI youth to feel supported and send the message that things really do get better.

Wear it Purple

August 29 is Wear It Purple Day, a day to show support for LGBTI youth by dressing in purple. It’s a day to empower LGBTI youth and raise awareness across schools, universities, workplaces and the general community about the challenges these youths face.

Statistics show (LGBTI) people have an increased risk of being bullied, discriminated against and assaulted, and suffer from mental health concerns as a consequence.

According to a report by the National LGBTI Health Alliance, 80% of LGBTI people in Australia experience public insults, 20% explicit threats and 13% physical assault, with the most ‘at risk’ places being home and school.

“This lack of acceptance and bullying has a knock-on effect for social and health outcomes, making it more likely for these youths to suffer mental health problems, drop out of school, use drugs, run away from home and even commit suicide,” Mr Cooper said.

Taking part in Wear It Purple Day is about building a world that allows every young person to thrive – no matter what their sexuality or gender identity. BT is working with It Gets Better and supporting Wear It Purple with the aim that LGBTI young people will be safe, supported and empowered.

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Planners have greater freedom of platform choice: Planner Technology Report

Tue, 12 Aug 2014 21:50:35 +0000

Key findings:

Recep Peker

Planners have greater freedom of platform choice in 2014
Platform satisfaction is at an eleven year high, but planners’ loyalty should not be taken for granted
netwealth has the highest satisfaction amongst its users, while MLC MasterKey registered the largest rise in satisfaction
Westpac holds over a quarter of primary relationships

In its eleventh year, the May 2014 Planner Technology Report is an in-depth study of Australian financial planners and their technology needs. The study is based on a survey of 1,038 financial planners concluded in May 2014. This year’s study highlights a number of interesting trends:

Planners have greater freedom of platform choice in 2014

Planners have greater freedom of platform choice in 2014, with 35% (up from 28%) saying they choose from any provider they wish. Consequently, fewer planners (29%, down from 36%) say the reason they use a particular platform as their primary over another is due to dealer group preference.

“Over the last few years planners’ choice of platform had become more restricted, but following FoFA, and perhaps as a consequence of the introduction of the best interest duty, they now have increasing freedom,” said Investment Trends Senior Analyst Recep Peker. “With a quarter of planners saying they stopped investing new client flows via at least one platform, it’s evident that planners have used this increased freedom to change the mix of platforms they use, focusing even more on the platforms that best address their needs.”

Platform satisfaction is at an eleven year high, but planners’ loyalty should not be taken for granted

Planners’ satisfaction with their most-used platform hit another record in 2014, reaching the highest level recorded in the eleven years of this study’s history.

“Part of this is survivorship bias, with planners more likely to stop writing new business on platforms that they’re less satisfied with,” said Peker. “But an even greater driver is platforms’ increased responsiveness to planners’ needs. Their recent enhancements to usability, adviser support, reporting, direct shares and corporate actions functionality has played a key role in driving satisfaction to new records.”

“Following last year’s record satisfaction, these increases have resulted in planners’ overall satisfaction with their platforms reaching the highest level we’ve seen in the eleven years of this study.”

“Despite platform satisfaction hitting record levels, planners’ loyalty should not be taken for granted,” said Peker. “18% of planners who play some role in platform selection intend to look for a new or additional platform in the next 12 months.”

“When asked which platforms they plan to use, it appears the wraps will be the key winners from this switching, with planners most commonly saying they’re likely to start using Macquarie Wrap, BT Wrap and Asgard eWRAP (including Infinity).”

netwealth has the highest satisfaction amongst its users, while MLC MasterKey registered the largest rise in satisfaction

netwealth continues to lead the platform industry by adviser satisfaction, achieving the highest average satisfaction rating from its users. It was also highest rated for direct equities capability.

The top three platforms by planner satisfaction:

netwealth
CFS FirstChoice
CFS FirstWrap

Over the last 12 months, MLC MasterKey recorded the largest increase in planner satisfaction. When asked what its users saw as the best new feature or innovation, many nominated the new online superannuation and insurance application functionality for helping them save time. The innovative capital and income guarantee feature, and improved reporting functionality also got enthusiastic mentions as best new features.

The second largest increase to satisfaction was achieved by the Asgard eWRAP and Infinity eWRAP platforms, with their users especially happy about the new Fee Disclosure Statement functionality, the availability of BT Life (in addition to AIA), online application enhancements and improved integration with XPLAN.

Westpac holds over a quarter of primary platform relationships

Westpac is the largest platform provider by primary planner relationships, with the proportion using a Westpac platform the most for new inflows remaining steady at 25% as of May 2014 (edging down from 26% last year). Westpac is followed by CBA, which holds 19% of primary relationships (steady).

On an individual platform level, BT Wrap and CFS FirstChoice are still the most-used platforms, followed by North and Asgard Infinity eWRAP, both of which continue to grow their share of primary relationships.

The four largest platforms by number of primary relationships:

BT Wrap
CFS FirstChoice
North
Asgard Infinity eWRAP

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Just how expensive are the banks?

Tue, 10 Dec 2013 21:00:12 +0000

Craig Young

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

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

Banks are expensive on all traditional measures

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

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

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

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

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

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

Record headline profits, but weak underlying results

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

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

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

Payout ratios unlikely to go higher

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

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

Where to from here?

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

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

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

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

Portfolio positioning

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

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

By Craig Young

—————–

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

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Westpac Online Investing launches Daily Share Tracker

Wed, 03 Jul 2013 21:40:01 +0000

Research and trading ideas based on individual portfolio and trading activities

Westpac launches Daily Share Tracker

Westpac Online Investing has launched Daily Share Tracker – an Australian-first feature which provides independent research and trading ideas based on a client’s individual share portfolio and trading behaviour. The new service will be delivered to each client’s inbox every day and will make it easier to track their investments.

Daily Share Tracker was launched in response to investor demand for market research and stock picking recommendations. A recent client survey conducted on behalf of Westpac showed that:

43% of investors choose their stockbroker based on quality of research offered and research tools
41% of investors said stock picking recommendations would increase their satisfaction with their online broker
27% of investors said trading strategies are valuable to them.

Source: Investment Trends – December 2012

“Our most recent client survey showed that investors put a high value on the quality of research and accompanying research tools from their online broker,” said James Staltari, Head of Westpac Online Investing.

“This new service is in response to our client demand for individually-tailored market research and strategies.

“The Daily Share Tracker will give our customers an easy way to monitor their existing investments. It’s a snapshot – a concise way of seeing how your portfolio is doing. It will also keep investors ahead of the pack with market updates, trading ideas, research and investment strategies.

Some of the features of the Daily Share Tracker include:

it changes depending on trading behaviour
it tracks and provides key market information on up to 15 shares that a client currently holds or has recently traded
the Dividend Tracker finds high yield shares that are going ex-dividend in the next 30 days
it provides a snapshot of the key markets, currencies and commodities from around the world
it provides analyst reports on different shares each week
it has video interviews with independent industry experts
it gives investment ideas for customers.

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Westpac & St George to double female planners

Thu, 21 Mar 2013 20:38:47 +0000

Mark Spiers – General Manager Advice – BT Financial Group

Westpac and St.George Financial Planning aims to double the number of women working in planner roles by 2015 to over 700 planners.

This initiative will see current female representation in Westpac Financial Planning and St George Financial Planning increase from 26% to 45% over three years.

“We know women make great financial planners and it’s time we made it easier for women to work in our growing industry,” says Mark Spiers, general manager Advice, BT Financial Group.

To achieve this, both St.George Financial Planning and Westpac Financial Planning have reviewed and revised their employment offers to ensure they are attractive, rewarding and progressive for women interested in financial planning as a career.

”By looking at our own work practices and listening to the changes women need to make the profession more attractive, we are making real change to the way we attract and retain women to the profession,” says Mr Spiers.

Structural change has already been made across both businesses to improve the flexibility of the employment offer and to increase the level of planner support.

This includes the revision of planner scorecards to better reflect flexibility of work hours, as well as access to childcare and the opportunity to purchase additional leave to help manage school holidays.

Increasing planner support via study assistance, induction programs and 100% paraplanner support have been key areas of focus. Career paths via different entry points into the profession have also been established, recognising that 63% of existing advice-related roles such as paraplanning, call centre and banking staff are filled by women.

Currently, there are approximately 16,500 planners in the financial planning industry, with approximately 13,200 male and 3,300 women.

“We are not taking a numbers-based approach in this project, but we are setting targets,” says Mr Spiers. “We want to be accountable and signal to the market we will make this happen.”

With the dawn of a new era of demographic change, increasing the number of women who are financial planners is essential if the industry is going to provide advice to more Australians.

Increases in longevity, higher female workforce participation and women wanting more control of their financial affairs will all put pressure on the limited number of financial advisers.

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Westpac Online Investing voted best online broker

Mon, 28 Nov 2011 21:18:43 +0000

Westpac Online Investing has been voted Best Online Broker in the AFR Smart Investor 2011 SMILES (Smart Investor League of Exceptional Service) Survey.

The AFR Smart Investor SMILES survey allows subscribers to nominate which organisations are offering them the best service.

Westpac Online Investing scored particularly well for website speed, reliability, layout and navigation. James Staltari Head of Westpac Online Investing noted that while pricing is important to customers, the overall service and reliability is what really counts.

“This award is exciting, as it is recognition by our customers that we are listening to them, and are able to deliver a market-leading product based on their ever increasing sophistication and investment requirements,’ Mr Staltari said.

“The award also reflects the commitment shown by the team at Westpac Online Investing to offer a market-leading product in an increasingly competitive market place,” Mr Staltari said.

In March, Westpac Online Investing launched the new Westpac Cash Investment Account and sharply reduced brokerage to as low as $19.95.

Significant upgrades to Westpac Online Investing over the past 12 months have added a broader range of investments including a managed funds supermarket and international shares.

“We remain committed to increasing our market share and are considering a range of further upgrades to the product so that more customers will turn to Westpac Online Investing for its breadth of investment options, unrivalled research and value for money,” Mr Staltari said.

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BT Financial Group announces new structure to accelerate strategy

Wed, 03 Aug 2011 21:04:53 +0000

BT Financial Group has made changes to its internal structure to best position it to achieve its current and future goals.

The changes have largely been driven by:

a desire to accelerate its strategy of earning more of The Westpac Group’s seven million customers’ superannuation, investment, advice and insurance business; and
the need to help customers, advisers, dealer groups and the IFA market navigate the changes brought about by the Future of Financial Advice and Stronger Super reforms.

BT Financial Group Chief Executive Brad Cooper said that given the pace of change in the wealth sector, flawless execution would be required from teams who are adept at not only responding to legislative change but also building innovative new offerings for customers.

“We are setting ourselves up to help our customers, advisers, dealer groups and the IFA market navigate the changes of unprecedented government reform and to help position them for the future.”

Notable changes to BT Financial Group’s structure include:

a new division – Bank Distribution and Insurance – which, in addition to managing the life and general insurance businesses will be responsible for the drive to earn more of The Westpac Group’s customers’ superannuation, investment, advice and insurance business. Mark Smith has been appointed General Manager, Bank Distribution and Insurance
a new division – Business Transformation lead by General Manager John Shuttleworth – will focus on designing and building the next generation wealth platform to support the evolving needs of key customers including advisers, dealer groups and investors
the Superannuation and Investment business, focused on Australia’s $1.2tr superannuation opportunity[1], will now bring together the Group’s multi-award-winning BT Super for Life, Corporate Super and BT Wrap and Asgard platforms, with its investment businesses including Advance Asset Management, Ascalon and BT Investment Management[2]. General Manager David Lees will head up this unit
a bolstered Private Wealth division lead by Jane Watts will deliver to the banking and wealth management needs of high net worth customers of Westpac Private Bank, St. George Private Clients and Bank of Melbourne Private.

There are no structural changes to the Advice business which comprises Westpac Financial Planning, St.George Financial Planning, BankSA Financial Planning, Bank of Melbourne Financial Planning and Securitor. This unit lead by General Manager Mark Spiers is set to employ an additional 140 planners over the next three years in order to address growing demand for professional financial advice.

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Jane Watts to lead Westpac Private Bank

Fri, 29 Oct 2010 00:20:43 +0000

Brad Cooper, BT Financial Group’s Chief Executive, today announced the appointment of Jane Watts to General Manager of Westpac Private Bank.

Ms Watts joins Westpac Private Bank from her most recent position as Executive Director – Head of Wealth Management at Macquarie Private Wealth.

“At BT Financial Group we are very focused on earning all our customers’ business and this is particularly key in the high net worth segment where we are currently meeting our customers’ needs with regard to banking but have a real opportunity around wealth management,” Mr Cooper said.

“Jane will bring fresh insights into our Private Banking business, drawing on her very impressive career to date in wealth management spanning Macquarie Wealth Management, where she has worked for the past eight years, and previous to this held executive positions at Lend Lease/MLC and Westpac.

“During her time at Macquarie, Jane was responsible for a portfolio of businesses within Macquarie Private Wealth that included Strategic Financial Planning, the Direct Sales team, Mortgages and Insurance as well as Lachlan Wealth Management and Financial Index Australia. Consequently, Jane’s background makes her ideally suited to take Westpac Private Bank to the next level.

“I am certain Jane will ensure Westpac Private Bank continues to meet and exceed the expectations of high net worth individuals with their often more complex financial needs. The private banking industry in Australia is still in a rapid state of evolution and our momentum is centred on delivering a broader suite of services that is more aligned to the needs of our high net worth clients,” he said.

Ms Watts succeeds Jan Swinhoe who will be leaving BT Financial Group after 16 years with Westpac to pursue a range of interests that include business and finance as well as sport and family.

Mr Cooper credited Mrs Swinhoe’s leadership of Westpac Private Bank with the string of achievements and public accolades it has been awarded and the transition of the business from a series of state-based operations to a truly national business with a strong culture.

“Before leading Westpac Private Bank as it transitioned from the Westpac to BT in late 2006, Jan spent 12 years in the Westpac Institutional Bank where her last role was General Manager, Large Corporates,” he said.

“It was this focus on client and employee engagement that made her ideal to lead Westpac Private Bank, taking it forward to being the most awarded institution at the inaugural Private Banking Awards in 2009 and Jan taking home Outstanding Thought Leader in 2010.”

Jane Watts’ appointment is effective 1 December 2010.

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