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Viola nabs high-profile family office adviser Angus Mann
Another significant recruit has joined the new venture, with ex-Mutual Trust family office adviser Angus Mann bringing a wealth of experience and a reputation for holistic client care to Viola Private Wealth.
Data and technology the key growth (and risk) areas for advice in 2025: EY
While firms are focusing on improving their operational capability and leveraging good technology to make their practice more efficient, this ambition needs to be tempered by an awareness that those same opportunities create openings for different risk sets.
FAAA slams ‘almighty go-slow’ on CSLR/Dixons inquiry
While the second tranche of DBFO reforms remain stuck in parliamentary mud, an inquiry into the CSLR design and Dixons Advisory scandal is already falling behind.
Regulatory pendulum has ‘swung too far’: FSC
As a result of reform failures, the industry and its consumers are now enduring the “costly overhang” of poor regulatory design and regulation, the council boss said.
Why women will get 95 per cent of the US$54 trillion spousal wealth transfer
By dint of the fact that they have longer life-spans, women are set to receive the vast majority of spousal inheritances in the next quarter century or so. For advisers, that shift has important implications.
ETFs soar on face value and market performance, despite elevated risks
Whether there’s an ETF bubble brewing or not is moot, and the debate only obfuscates the real risks. When markets do recalibrate, how will a new generation of fervent ETF believers react?
Claims of Div 296 tax consultation ‘confusing’: SMSF Association
The association has hit back at spurious claims from the Treasurer that the government conducted “heaps of consultation” on its proposed tax for super balances over $3 million.
Defined returns fund can soften retiree pain in next market turn: Atlantic House
The market will turn at some point, which puts a number of dangers in front of retirees. Australians have historically been wary of structured products, but a new breed of defined return vehicles look to combine surety with a measure of liquidity.
Advice reform and tax ‘razor gang’ lead FSC’s economic growth agenda
While the council’s plan for broad tax reform will grab headlines, its three recommendations for the advice industry have the potential to radically uplift the overall health of the financial services sector.
Advisers pushing for more support and education on ETF product set: Cerulli
The US and Australian advice systems may not be completely analogous, but ETF usage is surging across both markets and the need for more resources is becoming stark according to researchers.
Bucket investment strategies can miss the alternatives nuance: Invesco
Without appreciating or accounting for nuances in the multitude of modern day investment types, opportunities are missed for optimal portfolio management according to Invesco’s Ashley O’Connor.
Global alternatives managers home in on HNW investors despite four key risks
The democratisation of alternative assets into retail markets is nothing new, but the fact that it is accelerating brings into focus the risks that are now being acknowledged by investment management teams.
Lower mid-market PE leaders canvas financial advice investment avenues
Two big factors make the case for investment in a financial advice business – or one that supports the industry – compelling, the Brisbane-based PE purveyors believe.
Why more women are investing, and why they’re better at it than men
The pace of change may be “tepid” but more women are investing than ever, and the research confirms this benefits both individuals and the broader society. They’re also better at investing than men, and rapidly becoming a specific target market for investment product providers.
‘Tale of two halves’ for advice industry showing signs of new growth
The industry’s struggle to identify new talent is likely to continue, but the outflow of advisers has slowed considerably. And there are plans to source talent from other corners, according to the FAAA.
The advice and investment stories that mattered most to advisers in 2024
It was a year that saw private capital become cool and asset consultants become kings. Advice reform continued to plod its clunky path, while the Dixon’s scandal lingered through the much-derided CSLR program. Through it all, surging demand and resilient investment markets fuelled a robust year for advisers, with their businesses streaking ahead of licensees in terms of profitability and value.
‘Great Wealth Transfer’ to reach $124 trillion, putting adviser relationships at a premium
The first thing advisers need to remember, Cerulli notes, is that almost half the intergenerational transfer won’t event be intergenerational, it will be horizontal or intra-generational because it will be passed on to spouses.
Lower mid-market ripens for agile private equity purveyors
What the Brisbane-based lower-mid tier private equity group is pulling off is emblematic of the success private equity players are enjoying in recent times. But each PE player has their own unique strategy that largely defines just how well they’re doing.
‘Information overload’ creating new paradigm between advisers and clients: WEF
Clients are infinitely more informed in the digital age, but that doesn’t necessarily mean they know how to discern the useful information from the misleading. Addressing this divide is the role advisers will need to embrace as the new era unfolds.
Surging appetite for episodic advice validates government’s DBFO plan
The government’s plan to offer more flexibility around simple and scoped advice dovetails well with the advice format consumers prefer, according to new research from Investment Trends.
Secondaries coming to the fore in private markets: Pantheon
Secondaries aren’t new, but the growth of private markets in the last decade has propelled the assets into the mainstream as investors from different pools of capital line up the benefits.
Getting clear on senior secured loans, without the myths
The contemporary notion of senior secured loans needs to be updated to reflect some of the inherent characteristics that make it one of the fastest growing asset classes in markets.
‘But for’ compensation stoush brews between the FAAA and AFCA
AFCA stands by the use of its “But for” methodology to calculate compensation payments, despite the FAAA’s protestations. Clients will get paid what they lost, plus what they would have earned if the advice wasn’t inadequate. Just don’t call it payment for theoretical loss, or opportunity cost.
Private equity’s smaller sectors shine amidst information asymmetry advantage
Companies are eschewing publicly listed markets in favour of private ownership, which has warped the availability of information to investors. For those with access, the advantage is heightened in certain sectors.
‘We were ruthless’: KeyInvest gets serious on private credit manager selection and reporting
Private credit has been crying out for reporting standards that are clear and homogenous, but the industry is so disparate that a solution always seemed far away. That is, until the team at KeyInvest decided to do something about it.
How to find hedge funds investing in ‘dynamism and change’
There’s around 15,000 hedge funds in the world – but how many of them are really hedge funds? When you’re looking for non- or less-correlated returns, it might pay to stay away from a long bias.
Income, growth and impact: Why the SDA sector is the next big emerging asset class
Born out of a government program, the Specialist Disability Income sector has expanded into a robust private market investment opportunity for those with the expertise to navigate its unique characteristics.
New class of advisers limited to prudentially regulated products: Jones
Most of what Jones announced was already known, including a new class of advice. But a few key elements – related to adviser education, product limitations and scoped advice – should provide extra relief to an industry in dire need of reform.
Shield Master Fund investigation has ASIC worried about adviser ‘professional judgement’
“I wish I could say this is an isolated example,” Kirkland said, explaining the regulator’s concern about a small cohort of advisers who transfer client funds into high-risk investments after being referred by cold-calling telemarketers.
‘So much wrong’ with CSLR, but Treasury not inclined to act
The industry has little chance of fighting through the legislative backlog and getting immediate wholesale change made to the ill-designed CSLR. There are things the government can do in the interim, said the FAAA, but who’s listening?
What really matters in alternatives manager selection
High returns help, but what’s more important is trust, accountability, and making sure that the remuneration structures aren’t “really cheeky”.
Property subsectors firm as positive portfolio additions across the spectrum
While it’s broadly considered an alternative asset class, there are still traditional and non-traditional subsectors to real estate. Both have their idiosyncratic features, and both are becoming increasingly attractive to investors across the entire spectrum.
What advisers want the new class of advisers to look like
The likely advent of a new class of ‘simple’ advice providers will reshape the industry ecosystem. According to FAAA members, there are four key issues that need addressing before this key reform is implemented.
Playing it ‘straight down the middle’ suits this industry veteran
Fixed income has evolved tremendously over the decades, but one maxim Roy Keenan has stuck with has lost none of its utility; stick with a process that’s tried and tested, and you’ll keep things from falling apart.
Secondaries market headed for ‘record year’ as private markets surge
As the twin pillars of private markets – debt and equity – have expanded, so has the burgeoning secondaries market behind it. Allocations continue flowing in the private capital arena, and investors are coming around to the opportunity this presents.
Why H1 2024 may be a residential property buying window (for some)
It will be brief, geographically limited and may not come at all, but if SQM Research’s prognostications are again correct there may be reason for aspiring property buyers to smile early next year.
Adding alternatives appropriately means nailing the decision framework
The alternatives sector is unique in that it’s largely defined by what it’s not. Accordingly, how you fit alternatives within your existing asset class structure will depend on relativity, and how the investments interact with the other asset classes according to Atchison’s Kev Toohey.
Private capital’s secret data driving savvy decision-making in secondaries market
The private markets juggernaut is one that has also thrown up a wealth of data that other players can use to sharpen up due diligence when making their own investment decisions – especially in the growing secondaries market.
Investor trust in financial advice building at home and abroad
Consumer trust isn’t something to be taken for granted, but reports from the UK, US and here at home are all pointing towards an uplift in trust levels around financial advice, which can only be a welcome development.
‘Inefficiencies’ the number one block to increasing advice practice profitability
There are significant tailwinds behind the financial advice industry at the moment, but some major obstacles are still preventing advice practices from taking advantage of surging demand according to a new study from CFS.
‘Reflect and reconsider’: ASIC chair calls for complexity cull
The legislative threads surrounding financial services “look less like an elegant tapestry and more like a painting by Jackson Pollock”, the ASIC chair said, before announcing a new thinktank to reassess ways the regulator can help make the system more efficient and less complex.
‘Pivotal moment’ as greenwashing overtakes returns as key ESG concern
Amidst a healthy uptick in investment returns and consumer confidence, the ESG sector is coming to grips with increasing concern about greenwashing, which has now become the major deterrent for investors – up from 45 per cent in 2022 to 52 per cent today.
Advisers in the lurch as Clearview ‘terminates’ $1.5B WealthFoundations retirement product
Clearview and trustee ETSL have raised eyebrows and confused advisers by shifting the popular WealthFoundations super and pension product to investment platform provider HUB24. “It’s like a power plant being run by a battery,” says adviser Jason Poole. “It makes no sense.”
Discovery and documentation the keys to sound compliance
While advisers and their licensees place most of their compliance eggs in the SOA basket, the real focus should remain on more robust client discovery and documentation processes according to Assured Support’s Ben Moffatt.
Alternative managers zero in as regional investment demand spikes
Asset managers have quickly ascertained the region’s growing appetite for alternative investments will not abate any time soon, but liquidity and gate provisions will need to improve.
‘Not talented enough’: Vanguard indulges in hubris as active equity managers slide
As the biggest ETF provider in Australia, Vanguard has the right to crow about another knockout performance over active equity. But invective commentary is a red flag, especially when it’s based on something as changeable as recent market performance.
Jones announces immediate change to ‘complex and confusing’ CDR framework
Despite its potential and the massive investment behind it, the Consumer Data Right has had little impact due to a host of factors. Frustrated with its low take-up, the government is making changes to put the framework on “more sustainable footing”.
Healthcare property sector poised for a ‘second wind’ of growth
By investing in healthcare property, specialist teams can offer both stable income and the potential for capital growth. But it’s the idiosyncratic characteristics of property healthcare that make it so attractive according to Barwon.
Life insurance advisers plead for reform before election muddies the water
While the government takes its time drafting the second tranche of advice reforms, representatives for the life insurance agency fear the ongoing delays will spill over into the next federal election, which could mean the can gets kicked down the road even further.
FAAA doubles down on Indian advice tie-up through CFP partnership
As part of the strategic partnership, Indian CFP aspirants will have a pathway to gain qualifications that meet the Australian regulatory framework. It’s a bold plan, but one that could help shore up adviser numbers according to the FAAA.
The active advantage in small cap investing explained
The rise of passive investment makes tremendous sense, especially when the index being tracked is on the large cap side. Move down the index, however, and it can pay to have someone sorting out the winners from the losers.
VC is booming in NZ, and the opportunity set for investors is expanding
NZ punches above its weight in many sectors, with deeptech the latest to surge on the back of a global mindset, an abundant talent pool and VC enterprise that knows where the right ideas are and how to propagate them.
Industry innovates on advice access models while Govt dithers on reform
The move from Viridian and CFS to provide personal advice in a scaled manner highlights a growing willingness within the industry to fix its own problems in lieu of waiting for the government.
‘Changing dynamic’ between public and private markets worth watching: ASIC
Private markets are worth around $14 trillion globally, ASIC believes. It’s not sure, and that uncertainty hints at the wider problem – private markets, and their effect on public ones, is still largely a mystery.
‘More professional’ adviser cohort sees AFCA complaint levels plummet
The amount of complaints against advisers that reach AFCA has plummeted in the authority’s five years of operation, and it’s not just falling adviser numbers that are contributing to the improvement in consumer satisfaction.
Investors shake off home bias, shift to international equities
Australian investors are looking past the allure of franking credits and moving towards more unbiased diversification, with ETFs providing a cheap, liquid and highly available access point.
Plying the lower-mid PE market for ‘hidden gems’ with Fortitude’s Nick Miller
The phenomenal growth of private equity’s big players has left a yawning gap in the lower-mid market, which enterprising players like Fortitude Investment Partners are all-too keen to step in to and take advantage of.
FAAA resets strategic priorities for new advice era, with growth on the agenda
The merged association has added a new core driver to its strategic objectives for the next six years, with growing the profession now a top priority. But the inherent challenges, and past failures, are forcing the FAAA to try new ways of getting more advisers on the books.
Bond attraction firms as rate cuts swell yields and non-correlation returns
With rates well and truly crested and bonds once again showing their strength as a defensive ballast mechanism, Capital Group believes the time might be right for investors to swap out cash-like investment vehicles for investment grade credit.
Comprehensive advice demand surges in the US, average adviser manages $822M
The US advice system is the largest in the world, and the trend towards more comprehensive advice provision is a significant harbinger of a global shift towards full-service, holistic wealth.
High regulatory bar makes healthcare a solid value play: Perennial
Idiosyncratic regulations around healthcare product marketing in Australia has led to an under-represented market, which in turn presents an opportunity for savvy investors according to Perennial Partners.
‘Still weak’: Listed asset managers need to evolve rapidly to escape ETF obliteration
With traditional equity managers losing the fight against passive product providers, diversification into more specialist classes of asset management may provide a more sustainable path. But that’s a pricey endeavour, and easier said than done.
FSG exemption back in play after ASIC fixes Treasury’s DBFO reform blunder
It came as a relief instrument rather than the expected guidance note, but ASIC’s move still managed to give advisers the surety they need to legally use the FSG exemption.
Lonsec upgrade places Barwon’s listed PE fund on par with Zenith rating
A feeder fund for one of Barwon Investment Partners’ founding strategies has been rewarded for its robust return, securing a top rating from a second major research house.
‘Higher volatility, higher complexity’: How investors can surf the next wave
During the Great Moderation, the mantra was “be long and don’t touch”. But with a wave of transformation sweeping through markets, BlackRock thinks it’s time for investors to switch things up.
FSG exemption ‘almost entirely redundant’: Lawyer
For advisers that have already started relying on website disclosure, the unclear legislation “may or may not” be an issue, the Cowell Clarke lawyer explained. Whatever approach advisers are currently taking, they should all be paying attention when the regulator releases its guide next month.
New real estate value cycle ‘close at hand’: Invesco
Real estate income will face challenges in the new value cycle, Invesco says, but investors will have the chance to build growth if they lean into secular drivers and key differentiators.
What is the real value of managed accounts in an advice practice?
Managed accounts may be just “one lever of many” that advisers can use to increase scalability in their practice, but the advantages they offer to both clients and advisers make them a crucial consideration.
Compliance salaries surge as super funds, private capital hunt for risk talent
Compliance staff have been in high demand for a few years now, but the rise of industry super funds and the private capital sector has created even more demand for talent, both at the top and bottom end of the experience spectrum.
The funeral bond alternative providing tax and income advantages to older Australians
Funeral bonds offer a host of potential benefits, including preferential tax treatment and capped exemption from the Centrelink assets test. But not all funeral bonds are created the same.
ASIC (and courts) to funds: Practice the ESG you preach and stop virtue signalling
It doesn’t matter whether funds mislead investors with intent or not, and it doesn’t matter if other parties were partly to blame. The authorities have had enough of the excuses, and they’re lobbing record fines at transgressors.
ESG, Markets, News, Regulation
Ex-20 option shines as banks and miners face growth headwinds in 2025 and beyond
The entrenched position of the banks and miners in the ASX 200 doesn’t necessarily correlate to inherent growth potential, especially with the issues both sectors face into. For investors, it may be worth considering an alternative path broad market exposure.
Affluent investors spending more on advice: US report
The customer base for US advisers is growing in the same way that it is in Australia. But the more granular trends that are emerging tell an even more interesting story that Australian advisers would do well to heed.
FAAA highlights ‘professional delta’ between CFP and non-CFP advisers
“It isn’t really a surprise,” FAAA chair David Sharpe said, noting that advisers with CFP next to their name go through “blood, sweat and tears” to attain the designation.
‘No short-term phenomenon’: Why private capital will not only survive but thrive beyond 2025
Pessimists are still trying to shoehorn the “bubble” narrative into the private capital story, but an EY report highlights not only the rise of this burgeoning ‘alternative’ sector, but the reasons it’s likely to keep growing.
Adviser Charlie Viola leads Pitcher Partners buyout to set up new HNW wealth firm
After 21 years building up Pitcher Partners’ wealth management division into a $3.6 billion powerhouse, the high-profile adviser will break from the firm to create an advice group focused on servicing HNW clients and their families.
The systematic, broad market advantage to be had in small-cap investing
The small-cap space can be rife with risk, as emotion and understanding wrestle with common sense practice. But with a systematic style overlaid to provide flexibility, diversification and liquidity, the benefits become clear.
QAR fork in the road: Does your advice practice take a compliance or strategic approach?
An advice group can either shift its compliance settings to accommodate the reforms, or they can reshape their business strategy to take advantage of them. The different paths could lead to a bifurcated industry when all’s said and done.
Australian investors set to benefit from the private equity secondaries market
The private market sector has grown to the point that it has a thriving secondaries market operating behind it, which puts investors in line to benefit from the twin pillars of risk mitigation and upside return potential.
Upfront advice tax deductibility bid fails, but silver linings prevail
The ATO has dug its heels in, and is firm in its belief that upfront advice should remain classed as capital expenditure. But the FAAA did gain a significant concession around tax (financial) advice provision.
Higher-for-longer no longer, but that doesn’t mean lower-for-longer is in play
Why Powell went for a double-dip on the guide rate at the world’s most important reserve bank, sans the presence of a significant economic event that would typically predicate it, remains a mystery. What is clear, though, is the near-term direction of rates in US.
Macquarie leans into AI for ‘less volatile, more robust’ equity active ETFs
It’s one thing to acknowledge the immense computing power at our disposal, but it’s another for leading investment teams to figure out the best ways to shape that advantage into better investment outcomes.
Is APRA’s hybrid war about protecting banks, retail investors… or itself?
It’s odd that of the 12 published submissions to APRA’s consultation on hybrids, not one advocated getting rid of them altogether. Is the regulator trying to protect banks and retail investors from themselves, or is it simply “jumping at shadows”?
US fundies targeting model makers, not advisers, in distribution rethink
The shift in focus from financial advisers to research consultants continues apace, both here and abroad, as asset managers follow the great money management migration.
ASIC granted new powers over financial market infrastructure entities
The Bill comes after a report from the Council of Financial Regulators warned that the financial system’s reliance on financial market infrastructure had “significantly increased” following the 2008 global financial crisis and subsequent reforms.
The advice business models that are growing in 2024
It’s been a tale of two models in advice, with the accountants that provide holistic advice services going one direction and those that provide SMSF advice another. Meanwhile, the pure financial planning business model has remained steady.
Dixon’s inquiry could be a reckoning for vertically integrated practices in advice
In the Dixon’s inquiry vertical integration will not only be writ large, but it will have thousands of victims’ names attached to it. The practice has run relatively unfettered for years, but that may be about to change.
Compliance is ‘hollow, empty’ without the right culture: ASIC’s Longo
Rather than striving to tick legal boxes, the commissioner said, compliance teams should build their work practice around the right ethical pillars to engender trust with consumers and investors.
More than $8,000 per adviser: Potential Dixons CSLR bill comes into focus
It’s essential that we learn from the Dixons Advisory scandal, the FAAA chief said, so we can avoid future harm. The association has asked the government to consider a full inquiry into the case, while advisers contemplate the financial toll ahead of them.
Savvy equity plays see Fortitude ride out broader economic slowdown
The Brisbane-based private equity team has made a point of seeking out investee companies that are well equipped to handle a slow-motion recovery in the domestic economy.
‘The foundations are pretty soft’: Correlation considerations taking centre stage
With the danger of fractured markets inflated, the need for a truly non-correlative asset is at a premium. And with the default system cleaned up, Fortlake saw an opportunity to provide investors with the ultimate diversifier.
ASIC sounds the alarm on third-party product distribution
On the whole, product providers like fund managers have “made progress” with their adherence to target market determination rules. But ASIC warns that when third party distributors come into play, compliance standards begin to slip.
Guide, guru, gladiator: The different roles of a financial adviser in 2024
From behavioural coaching to asset allocation and emotional support, the evolving role an adviser plays sees them take on a raft of heroic guises. The value of that role is now at least 5.7 per cent of clients’ investible funds according to a new report.
FAAA pulls up ABS on advice occupation classification, proposes new definition
The bureau’s financial advice role definition is not up to scratch, the FAAA says, and conflates the role of a financial adviser with an investment adviser. A new setup will help better inform industry, the community, and even potential new advisers about the profession.
‘I’ve been busy’ and other things advisers should stop saying to clients
A long-running study has revealed a raft of information about the way financial services professionals communicate with their clients, as well as four key ways they can improve the discourse.
The advantage of running a high conviction global fund out of Australia
Being caught up in a constant thrum of market activity might be advantageous for some investment teams, Desmond explained, but isn’t necessarily for those with a high conviction style.
‘Play to whatever makes you stand out’: Advisers discuss what makes them unique
Knowing how much personality to inject into a professional advice veneer is a skill that needs to be learnt by all advisers, but practices also have a role to play in setting up the right systems, processes and cultural settings so that advisers are comfortable being their true self.
Time to get proactive on $3M super tax changes strategies: KeyInvest
The new rules around superannuation balances over $3 million have many searching for ways to mitigate the impact. The tax advantages of investment bonds may provide a viable alternative.
Ironbark’s Royal London fiasco puts advisers in uncomfortable portfolio position
For those who have recommended the Royal London’s Core Fund, especially, the incongruous management switch means they have to explain to clients why it will probably take on a completely different investment style.
There’s riches in niches, but only if you know which private capital corners to look in
Private capital might house some of the most in-demand asset classes in the game right now, but the proliferation of providers just reinforces the need to know exactly what you’re good at and do it well.
Fortitude builds out adventure tourism investment with US expansion
The Brisbane-based private equity team is backing the further expansion of its New Zealand-based Action Adventures, which has just made its second US company acquisition.
Advice clients have a breaking point; downside protection can keep them from it
Protecting the underside of portfolios, and even thriving through moments of market distress, can keep more fretful clients out of the danger zone. A new generation of products are designed to do just that, and without sacrificing the lion’s share of outsized returns when markets run hot.
Don’t short-sell what is a ‘pretty good’ macro environment: Panel
A panel of investment managers and advisers from The Inside Network’s Investment Leaders Forum painted a relatively positive macroeconomic picture. While market risks remain, the ‘higher for longer’ rate mantra seems less convincing than it once did.
‘Shiny new things’ not in our wheelhouse, says high-conviction investment team
The prospect of riding the giddying, volatile rocket ship of tech stocks like Nvidia holds little interest for high conviction teams who back their proven investment strategies.
Nextgen property funds bringing a new factor into the equation: Certainty
While Australian property is a surging market, the funds that provide broader access to it have lacked ingenuity for some time. That is changing, however, with a new class of providers emerging who look set to change the game.
Stakeholders reject overly complex products: ‘If I can’t explain it, I can’t use it’
If managers present a fund that has a convoluted structure and can’t be described with clarity and transparency, what hope does an adviser have in then explaining it to their clients?
Factors to repel small cap ‘zombies, fallen angels and glamours’: Invesco
By employing smart active management, investors can avoid the ghoulish company cohorts that haunt the small cap sector of the stock exchange, Invesco writes in a recent whitepaper.
FAAA to consult with Treasury over CSLR ‘unintended consequences’
While the minister has remained relatively mute on the obvious issues with the CSLR, he will at least allow the association to discuss the scheme’s flaws with Treasury at some point.
Using the default system to reduce correlation with Fortlake AM
The tranche market isn’t the defining feature of Fortlake’s fixed income funds, Baylis explained, but it’s a pivotal tool for the firm’s managers and adds a critical element of non-correlative returns for investors.
Asset managers courting advisers with free consulting services
Over half of asset managers in the US offer “business consulting resources” to the growing registered investment adviser cohort. Whether advisers actually want these services is debatable, but the trend seems to be gaining traction.
WNT Ventures nears first close on new fund as NZ capital flows into deep tech
A combination of deep tech expertise, government support and start-up know-how has put this New Zealand venture capitalism team on the cusp of deploying capital in its fourth (and biggest) fund.
‘Now’s the time’ for liquid alts: P/E Investments
It’s not impossible to find a good investment in private equity when interest rates are high, Harrex explained, but it’s a lot easier to find a good liquid alts investment in the current economic environment.
The FAAA’s ‘Angry Anderson’ sounds off on Dixon Advisory drama
Appropriately enough, it took a regulatory breakdown to finally ruffle the policy chief’s feathers. In the first of a series of whitepapers aimed at collating the issues, Phil Anderson lays bare the failures of government, ASIC and E&P Financial Group.
AMP sells major stakes in advice network to Entireti, AZ NGA in blockbuster deal
The three-way tie-up highlights just how much the power dynamic has shifted across the advice landscape over the last decade, with advice ownership groups arguably superceding licensees in the pecking order.
UK’s Atlantic House spots income gap, brings uncorrelated fund to local market
The UK investment team co-founded by Andrew Lakeman is banking on its ability to bring liquid alternatives to markets that are on the hunt for non-correlated diversifiers.
Private credit set to surge as cooling inflation frees up borrower appetite
2023 may have had its challenges, but the cream of the private credit crop still managed to write plenty of loans. As inflation cools, the outlook for non-bank lenders in the commercial real estate sector, especially, is encouraging.
ETF investors ‘leaving money on the table’ without discernment
ETFs may have utility, but the notion that you can diversify responsibility of each individual investment needs to be challenged according to managers at The Inside Network’s Income and Defensives Symposium.
Juice ‘worth the squeeze’: Custom model portfolios take hold as SMA market matures
Both in the US and at home, the model portfolio market has matured to the point where most advice firms running managed accounts are in the frame to use customised options.
‘Jumping at shadows’: Is investor fear out of step with macro environment?
From gloomy retail clients to fretful global institutional providers, investment experts report a glaring disconnect between the risk appetite of investors and the overall economic outlook.
Markets remain fundamentally strong, despite real asset concerns: Atchison
Despite latent geopolitical threats and a persistently hobbled commercial real estate sector, the market presents a fundamentally strong and stable picture according to the Melbourne-based investment consultants.
Time’s up on sloppy FAR record keeping: ASIC
Licensees were given a month to clean up the information they provided to ASIC about adviser qualifications and training. That time is up, and enforcement action is not off the table.
SMSF trustees drift from advice towards accountants and… the internet
More and more SMSFs are being set up without the assistance of a financial adviser. As the gulf between demand and supply widens, consumers are looking at alternative sources of information for their self-directed retirement needs.
Blind faith in growth tech stocks doesn’t add up: Pzena
Where the market goes from here is a question each investor much face on their own, but for those looking to chase the growth tail and tip into what are a small clutch of highly price equities, Pzena has a sobering history lesson.
Adviser numbers begin long, slow climb north again
There’s a pattern to the way adviser numbers oscillate around the end of the financial year, but there’s nothing common about the movement in the licensee sector at the moment.
Older, more productive advisers are earning less money… for now
The average financial adviser is older and brings in more revenue than they did a year ago, but that hasn’t translated into a fatter salary according to data from Adviser Ratings.
Real diversification requires proactive allocation strategies: Atlantic House
How do investors stay on top of diversification and maintain adequate levels of non-correlation when markets oscillate with every breath, when asset relationships are as fickle as they are malleable?
‘This can’t be left here’: FAAA calls for public inquiry into Dixons
There are several aspects to the treatment of the case that don’t add up, the association’s policy lead says, and a transparent public inquiry is more than warranted.
US leads platform consolidation trend, with Australian advisers set to follow
As platform technology develops, the race to become the one dominant platform for Australian advisers is just heating up. In the US, it’s already well underway, with the number of advisers consolidating platforms rising more than 50 per cent in four years.
Private credit in poll position to alleviate housing crisis: KeyInvest
Spurred by the speed and flexibility of private credit, developers are eschewing banks in favour of trusted non-bank lenders. The lending market’s evolution is good news for housing in Australia.
Broking opportunity grows as new generation embraces online investing
The online investment industry is growing rapidly, and a whole new set of providers are offering investors different ways to invest in different markets with low-cost, innovative fee arrangements.
‘From tinkering to a real venture’: VC pioneers bringing lifesaving medtech to fruition
When this biotech engineer met up with WNT Financial’s crack venture capitalism team, it sparked a partnership that could lead to a lifesaving product being put in the hands of doctors worldwide.
‘Process over prediction’: What high-conviction teams have over their speculative peers
By avoiding market forecasts and not making prognostications based on macroeconomic conditions or political changes, the Claremont team is able to focus on something much more predictably profitable – its own proven process.
The bad news that’s good news for markets: Invesco
Cracks are opening up in global economies around the world, with increasing unemployment a bellwether for softening conditions. A tipping point is on the horizon, but central banks remain wary.
Soaring ETF market needs asset servicing to match its growth
Inefficiencies in the back office and clearing systems that the burgeoning ETF market relies on need to be rooted out, but data shows there may be a disconnect between what providers and consumers believe matters.
Advisers slugged with $2,878 levy as industry gets behind funding model reform
The government now has two internal reports recommending an overhaul of the industry funding model. Yet they appear destined to sit on the shelf “gathering dust”, with the financial services minister of the opinion that recruiting more advisers will fix the problem.
Adviser tech spend set to surge as reporting, and client portal needs grow
Advisers now spend a staggering amount on technology in an effort to keep up with efficiency needs and client expectations. Security is still front of mind, but integration is the buzzword for 2024.
Digital asset ETFs surge, but US advisers have little interest in recommending them
The relative lack of adoption in advice isn’t particularly surprising given its volatile nature and the unregulated state of the digital asset sector. But that may be about to change.
Two tweaks to DBFO bill set industry at ease on super in advice rule changes
The government addressed perceived ambiguity around advice fee deduction from member accounts by pulling out two statements from the bill that essentially duplicated rules that already exist in the sole purpose test.
How the government helped WNT Ventures harness the best deep tech minds in NZ
WNT Ventures was an early adopter into a grant scheme designed to nurture technology and innovation in New Zealand. After ten years, and as it prepares to launch its fourth fund, WNT’s Maria Jose Alvarez reflects on the journey.
Are ASX-listed asset managers undervalued or just falling knives?
Listed asset managers may be undervalued, Morningstar believes, and there are opportunities for well-positioned firms to rebound as the new interest rate cycle takes effect. But the mid- to long-term outlook may be more problematic.
Energy transition thematic delivering niche opportunities for investors: Fortitude
“There are a range of different ways to invest in the energy transition thematic,” Fortitude explains, adding that the opportunities on the periphery often present the greatest value.
Blackstone tips private credit market to reach US$25 trillion
Private credit is booming across the globe, and while a bullish prognostication from alternative asset manager Blackstone won’t surprise there is enough evidence to suggest the prediction is likely accurate.
Model portfolios fuel ETF growth spike in US adviser channels
ETF usage is growing exponentially in the US, aided in no small part by increased adoption by Registered Investment Advisors who are all-in on the model portfolio phenomena.
‘It’s not enough’: New entrant numbers tank as FAAA proposes Adviser Academy
New entrants have “crashed” since 2019, and while less competition affords advisers the luxury of charging more, this doesn’t equate to a healthy or prosperous industry according to the FAAA, which wants to build growth through a program that fosters new talent.
Confusion reigns as government hedges its bets on advice in super
The government’s line on its proposed changes to advice in super is incongruous with the actual changes. You can’t re-do the language embedded in the SIS Act while denying that anything will be different.
Advisers are ready for the private credit era, but are their clients?
As the world of private capital expands, and advisers depend on it more as an alternative diversifier, one group has questioned whether advice clients know enough about it and if more education is required.
The subtle art of stacking the deck: Fortitude Investment Partners
Getting a good business in a good market with good people is just the start for this highly connected Brisbane funds management team. The next step involves a network of specialist consultants that know how to scale.
‘It’s bittersweet’: CSLR head explains the challenge of punishing and promoting advice
Just how thin the line that Berry walks becomes clear when he outlines the two paradoxical objectives of the CSLR. He has to highlight the worst in financial advice, while making it seem better and more trustworthy in the eyes of the public.
Private credit not so alternative anymore: KeyInvest
Market forces and changing winds in the banking sector have supercharged private credit, which is growing faster than any other arm in private capital. For advisers, that might mean reassessing which portfolio sleeve it slots into.
AMP doing its best to preserve the worst of its reputation
By reneging on long-standing employment deals, AMP has again given the impression that it has welched on an existing agreement once it realised the deal wouldn’t work out in its favour. Do that repeatedly and people stop wanting to do business with you.
Advice in super declines as funds ‘stuck’ on member engagement: SuperRatings
Super funds are offering less and less advice services, despite members making clear that they need it more than ever. Fund advice has a relatively attractive price point, SuperRatings’ Kirby Rappell explained, but funds are struggling to explain its value.
BDM bonuses vanish as fund flows dry up… but not in every sector
Not all fundies are bringing home a smaller bonus this year, according to Kaizen, with BDMs in the alternatives space doing better than those in the more traditional equities and fixed income asset classes. The big trend, however, is that the most in-demand BDMs are now the ones that can sell to investment consultants as well as advisers.
Australian Ethical rotates to transition-linked metals as broader resources market weakens
The ethical investor is using the China’s sluggish reemergence from the pandemic as an opportunity to rotate into more investments that facilitate a sustainable future, while simultaneously fortifying the return profile of its flagship fund.
GDG’s all-in Lonsec play confirms investment consultants are the new captains of capital
First it was Scarcity Partners taking a sharp left turn to pick up Evidentia. Then KKR swerved just as hard to avoid Perpetual’s asset management business. And now GDG has pushed all its chips into the centre of the table for the most attractive investment consultancy on the market. Spot the trend?
Regal Partners bets big on private credit surge with $235M Merricks acquisition
While private credit is experiencing growing pains in some major markets, its rise continues apace back home with Regal Partners making another significant acquisition in the sector.
Wealth transfer on hold: Boomers reluctant to down-size, content to wait
The data is a reminder that while this enormous shift of wealth is imminent, it won’t happen before its time. According to AMP, more education about the options available might instigate the process.
Minister turns back on CSLR as AFCA steps in, looks to cut Dixons membership
It’s a welcome stopper on the amount advisers will have to fork out, but has no connection to the core issue. The government still fails to recognise the inherent flaws in its CSLR scheme, and the industry is running out of patience.
Government faces split opinions on wholesale investor test reforms
It’s an aspect of financial services regulation that was flawed from the outset and has become all but useless over time. The divergence in opinions on how to fix it could give some hint as to why it’s taken so long to address.
The Chilean tech visionary behind NZ’s big venture capitalism push
The technology subsector in venture capitalism is thriving, especially in New Zealand, where the government is putting its money where its talent is. An increasingly vital part of this growth is WNT Ventures’ Maria Jose Alvarez, who has already been marked as a ‘women of influence’ in her adopted home.
What makes a good company AGM, and when it’s right to turn someone’s mic off
Whether it’s the right agenda, executive engagement, cold catering or the right to put a rambunctious shareholder on mute, there are myriad elements that go into an effective AGM according to those who’ve had their fair share.
‘Markets are changing’: ASIC’s gaze turns to private capital providers
Like the Reserve Bank, ASIC is keenly aware that the rise of private markets, and especially private equity, creates both “upside and downside risks” to an efficient and fair economy. But it’s ASIC that sits in the first line of defence, and its new cohort of commissioners are determined to keep this burgeoning market clean.
Partnerships beat mass market solutions for real asset fund provider Alceon
Alternative fund manager Alceon and advice group Findex reflect on the genesis of Alceon’s Australian Property Fund, and why a finite number of key partnerships is better than mass market capital.
T+1 settlement an ‘unstoppable force’ Australia needs to adopt, or risk falling behind
The frictionless movement of assets is becoming a common feature of markets around the developed world, yet Australia remains a step behind. The ASX is in no mood to rush the move to T+1, however, after its calamitous attempt to implement distributed ledger technology.
‘Bitterly disappointed’: Senate to push on with plan to tax unrealised gains
Tax on unrealised assets is virtually unheard of in Australia, and imposing one on fund members sets a dangerous precedent according to the SMSF Association, which says it’s “completely unreasonable” for retirees to plan for “such a radical departure from existing policy”.
Banks present savvy value play through crisis fears and tech frenzy
The global banking system has proven both resilient and lucrative for investors since it seemed to teeter on collapse just over a year ago. The turnaround highlights the kind of alternatives available for those that don’t see enough value in the prevailing big tech stocks.
‘Completely unfair’: Advisers to be slugged another $4,165 over Dixons CSLR bill
Costs for the compensation scheme are spiralling out of control, with the FAAA estimating another $4,165 will be added to every adviser’s CSLR bill – bringing the estimated total to $5,709 – if the funding model isn’t re-examined.
Barwon finds the sweet spot for first-ranking mortgage property play
Real estate credit funds have firmed as an attractive source of alternative returns in the past few years. What matters, however, and what doesn’t, for these non-bank private credit lenders, has largely been left unexplored by investors.
Perpetual motion curbed: 138-year old manager broken up in $2.2B KKR deal
The transaction comes after a decade long struggle for one of the bigger players in the Australian financial services landscape, which could only fend off so many takeover attempts while its share price continued to fall.
‘I’m sick of being an adviser ATM machine’: FAAA chair lashes out over CSLR
Even though most of the Dixons Advisory complaints are yet to be submitted, the CSLR has already allocated a $24 million bill to the industry. Good financial advisers will be forced to pay for the nefarious and neglectful acts of bad ones for years to come.
‘Remember to breathe’: Advice profitability up 4.4pc as industry settles
After years of regulatory turmoil and a violently shifting business landscape, the advice industry may be on the cusp of a relatively calm period. For advisers, this could be the right time to reflect, revise and even reset their business.
‘Very sad’: Tech market concentration just like internet bubble, Pzena says
The disconnect is not about the big technology companies themselves, the famed value investor believes. It wasn’t in 2,000 and it isn’t now. The disconnect is about their valuations.
Brand, advice or price? The factors that drive consumers to purchase life insurance
That consumers are influenced heavily by well known, trusted brands comes as no great surprise. What does, though, is that they rate life insurance as the least most important tool in ensuring financial security.
How to select a fund manager
While much ado is made of the science that goes into fund manager research, real assessment puts comparable weight on the art as well according to investment leaders.
How we invest: The companies and sectors that Australians love to buy and sell
While financials and materials dominated trades leading into 2024, the popularity of other sectors like healthcare and information technology followed generational, and even demographic, lines.
Advice coalition proposes broader education slate for new entrants
The representative working group is lobbying the government for a broader section of study to be eligible for credit within the ‘equivalent degree’ requirement for advisers in the hope that more people will be encouraged to join the profession.
Advisers shift out of one-man shops as more ‘Micro-AFSLs’ close doors in 2024
After the Hayne Royal Commission many advisers decided to steer away from large dealer groups in favour of becoming self-licensed. In the last six months, however, that trend has taken an abrupt turn.
FSC bulks up its financial adviser representation stocks
While known for being the flagbearer for financial product providers, the Financial Services Council is now making serious inroads into the financial advice sector.
Expectations matter, and the market’s ‘big fluffy toys’ have set a historically high bar: Orbis
Valuations at the top end of indexes are sky high, but with that comes inflated forecast earnings. For savvy investors, it may be time to rotate towards more value-oriented stocks according to Eric Marais from Orbis Investments.
Industry ‘backed up’, waiting to invest in QAR reforms amid election uncertainty
The government’s reform package may be flawed, but it’s crucial that the first tranche goes through parliament before the next election, Abood said. Further delays will stall vital investment in the financial advice industry.
After a brutal period, active equity managers look to turn a corner
While some may have gotten a little kick out of watching the tall poppies of the investment landscape get cut down over the last decade, it’s worth remembering that stock pickers provide critical degrees of diversification and balance to the ecosystem. It may have been a tough old decade, but this cohort is nothing if not resilient.
Trailblazing deep tech investors dig into fourth NZ fund
The NZ science and technology investors are onto their fourth fund, which is shaping up as their biggest yet. Savvy investment and active ownership have been key ingredients so far, along with support from the NZ government.
Fund managers urged to position portfolios for new era as generations and geopolitics collide
“The biggest mistake we make as investors is to think that the environment going forward is going to be similar to either the environment that we’ve had or the environment that is shortly foreseeable,” Langley said, adding that “all of this is going to get turned on its head”.
US tech stock concentration narrative needs perspective: Claremont Global
You don’t need to be a tech stock advocate to understand the importance of looking beyond the headlines and the hype, creating your own narrative based on facts, and assessing each opportunity with a clear lens.
The three steps that matter for contrarian investors in the ‘zero-sum game’
Contrarian investors are adept at spotting misalignment that leads to arbitrage between real value and perceived value. But it isn’t easy. “True bargains are hard to come by,” says Orbis Investments’ Eric Marais.
Rate cuts by mid-year as ‘little victories’ chart the path to disinflation: Invesco
The tailwinds for disinflation are starting to coalesce across the globe, which should give some central banks the ‘anchoring’ required to start dropping rates by the middle of the year.
QAR legislation stumbles on prohibitive super fund advice fee rules
It was assumed by industry that a glaring gaffe in the government’s draft legislation, which forces super funds to assess every piece of advice before deducting advice fees, would be amended in the final bill.
CSLR adds to the burden on industry it’s meant to support: FAAA
There are several bones of contention that the FAAA, and the industry more broadly, has with the compensation scheme’s settings, despite supporting it in principle. At the heart of it is the government’s repeated willingness to foist retrospective punishment on the good for the sins of the bad.
Correlation dilemma gives liquid alternatives their time in the sun
Liquid alts will only become more in demand if the positive relationship between bonds and equities remains sticky, Harrex explained. Investors will need another diversifier, and the liquidity will only make them more attractive.
Co-investment and secondaries reign comes to the fore in 2024’s PE channels
After a stellar two years for private equity, the global market stalled in 2023 amidst challenging conditions. The switch called for agility, with Neuberger Berman finding other ways to get deals going that put distributions in the hands of investors.
Have we reached peak model portfolio?
There is an incredible rush to bring model portfolio offerings to market from every corner of the advice ecosystem. From platform providers to licensees and advice groups, researchers and asset consultants, the list of service providers casting themselves as mini fund managers is growing exponentially. We’ve seen this kind of thing happen before.
Advisers cram in the clients, but have more support than ever
When you have an increase of 50 per cent in support staff over a 4 year span, it hints at some serious changes to the shape of advice practices across the country. It might also mean there are further efficiencies to unravel.
Both human and digital advice constrained by the same price-to-value dilemma
The good news? Millions of unadvised Australians see the value in financial advice. The bad news is that the vast majority remain reluctant to attach market rates to that value, even if the advice is digital. But all that has the potential to change.
Small caps renaissance set to highlight the value of active management: Invesco
While the small companies sector of the share market is poised to benefit from the predicted retreat of inflation, the tailwinds really kick in when you throw active management into the mix according the Invesco team.
Advisers warned: Choice super returns must be monitored and explained
Advisers should treat Choice super performance as a “primary consideration,” the commissioner stated, while licensees should have “rigorous processes” for underperformance as part of their APL program.
Iress’ big loss on OneVue deal caps five years of platform bloodletting
It’s a spectacular transaction, one that marks not only the likely nadir of Iress but what should be the end of five very frothy years of M&A activity in the investment platform space.
SMSF advice review to focus on set-up suitability and early access: ASIC
Both illegal early access and SMSF suitability are known concerns of the regulator, but Sciacca noted that the driver of this review is ASIC’s desire to audit the efficacy of its earlier guidance on SMSF advice.
Advice review to help consumers move up advice ‘continuum’: Panel
Bringing super funds and other institutions into the advice ecosystem should benefit consumers by creating an organic path for them to follow as their needs become more complex. More would benefit if the review also took into account the SMSF capabilities of accountants, stakeholders believe.
Why fund managers are smarter than you think
The current market isn’t just a poor marking stick for active investment expertise, but a dangerous one, with concentration risk at alarmingly high levels. Are fund managers right to be wrong?
Why ‘Magnificent Seven’ FOMO can be a serious NO-NO for investors
It’s hard to exceed stratospheric expectations, which is the proposition investors buying into the big US tech stocks face. Hunting for lower bars to hurdle likely makes sense in this unique market era, according to Orbis Investments.
Grumbles over Evidentia deal highlight growing pains in the rise of asset consultant cohort
An evolutionary leap in the retail investment product landscape is taking place, with asset consultants displacing financial advisers across rich corners of the value chain. Scarcity Partners’ big bet on Evidentia, and how it’s being received, brings into focus just how seismic the shift really is.
Ex-AMP executive Hartley named to succeed Mota as CEO at Insignia
After his executive stint at AMP was cut short eight months ago, Hartley firmed as favourite for the leadership role at its institutional contemporary, Insignia, when Mota announced his departure.
The 6 ways policymakers can fix advice in the 2024/25 budget: FAAA
The collation of issues is an important marker for how many areas of advice legislation still need improvement for the industry to thrive, with fairness at the heart of all the proposals put forward by the association.
Value matters: Mid-cap market ready to take off as top end gets heavy
Historically, periodic outperformance by a cohort of stocks linked by sector or region – often with a catchy moniker – has been a mainstay. As has that group’s inability to maintain dominance over the long term.
The OG investment researcher: Rob da Silva on gorillas, conflicts and what advisers really want
Rob da Silva didn’t plan a career in research, but a confluence of events led to an early career switch away from pure funds management. The research sector has its challenges, which the now-veteran researcher calls “frustrating”, but it also holds real pockets of opportunity for new players to add value for advisers.
Covenant-lite loans ‘like driving a car without a steering wheel’: Epsilon
A business may appear to be robust, but a savvy lender that is responsible for the capital of its investors needs to be constantly across the mountain of variables that can present themselves.
HMC Capital looks to mirror healthcare sector success with property focus in 2024
HMC Capital has demonstrated how effective its active engagement strategy is with the success of the Sigma/Chemist Warehouse merger. Now David Di Pilla and his team have their sights set firmly on the real estate sector.
Global regulators chart ESG path for companies to follow in 2024
In 2023 governments came to a general awareness that to achieve net-zero, robust and consistent ESG policy frameworks must be put in place. In 2024, we should see a continuation of that theme according to New-York based investment group Neuberger Berman.
Life insurance advice on life support… but can it be saved?
The life insurance advice sector has been battling a host of issues, including an ill-fitting education program, remuneration uncertainty and product design flaws, for some time. Is it in a death spiral, or is there a path to sustainability for this crucial arm of the advice industry?
“A lot is at stake”: Thousands of advisers risk deregistration in February
As advisers trickle back into the office after summer holidays, many will be confronted with the an urgent regulatory requirement that, if ignored, could see them unable to legally provide advice.
Financial complaints soar, but advice no longer the driver: AFCA
The number of cases being escalated to the complaints authority is soaring, but as we approach the 5-year anniversary of the Hayne Royal Commission it’s clear that a whole new set of issues are driving consumer ire.
Remuneration and regulation: The biggest advice and investment stories of 2023
Adviser remuneration was a clear thematic this year, with the top two stories focusing on salary levels. Practice management and regulation, once again, played prominent roles in the news cycle, as did the profile of one very interesting young adviser.
The art and science of high conviction investment: Claremont Global
There is a world of complexity behind the construction of a highly concentrated portfolio of stocks that consistently outperforms the benchmark. According to Bob Desmond it requires patience and a willingness to operate in “a very select universe”.
OpenInvest finds its buyer
The proprietary technology provider will use a capital injection from an existing investor to take advantage of regulatory tailwinds set to push the wealth management industry forward. Staying profitable in the interim will be key.
‘Their mood will change’: Lawyer warns against licensees signing sophisticated investor test
Cowell Clarke lawyer Richard Hopkin said there are reasonable grounds for licensees to certify clients as wholesale, but the practice invites a much higher degree of risk than the traditional route of gaining an accountants’ certificate.
Life insurance advice levels sink as people turn to alternative sources
The problems afflicting Australia’s life insurance advice industry run deep, with pundits estimating there are now less than 1,000 pure risk advisers left in the country. That consumers are turning to other sources of information should come as no surprise.
‘The triumph of hope over reality’: Why Ruffer expects higher, more volatile inflation
Faced with the option of stunting ‘financial stability or growth stability’, the US will only go one way. So investors need to protect against more volatility and inflationary pressure, Alex Lennard warns. But at least it won’t be boring.
Instos to re-enter advice, SOAs scrapped in landmark reform package
The government will now follow through on Levy’s proposal to bring licensed financial institutions back into the advice fold, while also agreeing to “modernise” the Safe Harbour Steps and swap SOAs with “advice records”.
Catalyst will correct ‘expensive’ markets at some point: Atrium
A recalibration of dislocated markets is inevitable, according to Atrium’s Glen Foster, and the landing may not be a soft one. This presents an opportunity for investment teams that are prepared for a range of outcomes.
Morningstar invested in nuclear weapons components against ESG claims: ASIC
The five holdings were only for about two weeks each, and then divested as soon as Morningstar became aware of them. But ASIC takes a seriously dim view of ESG claims that don’t match reality these days.
What paraplanners want: How advisers can work better, ditch the double-ups and make staff smile
It’s not a corner office or a fatter pay packet at the top of paraplanners’ collective wish list, but something that is much more beneficial to financial advice practices and the clients they serve.
PE purveyors gear up as valuations normalise after ‘challenging’ period
After a “frenzy” in the pre-pandemic era, markets have calmed down significantly for private equity investment teams. There are opportunities, however, especially for management teams with patience and a little bit of nous.
‘Really concerned’: Jones admits worry over QAR draft, stands by advice reform schedule
“I was really worried people would say ‘Is that all?'” the minister said, before explaining that he didn’t want to submit key compliance reforms until they were well-designed and collectively agreed upon.
AMP’s $100M BOLR bill a win for all sides
Advisers won the case against a well-armed opponent and can move on with more financial parity, while AMP’s shareholders and executives can put a long-overdue cap on the damage caused by this at-times acrimonious dispute.
Code of Ethics important, but it won’t supplant the Safe Harbour Steps
The government’s position on what to do with the Safe Harbour Steps is no longer clear, but the chances of seeing it supplanted by the existing Code of Ethics are slim according to the FAAA’s policy chief Phil Anderson.
External validation key to credit quality of corporate loans: Epsilon
For non-bank corporate lenders that don’t have the regulatory oversight that banks do, using third party validation for loan books is essential according to Epsilon Direct Lending’s Joe Millward.
Start counting the ways AI can help an advice business grow
The potential for artificial intelligence to aid the delivery of financial advice is being recognised globally, and should lead to a “redefinition” of the sector according to commentators.
Advisers want one thing above all else from their fund managers: Report
Advisers still place a lot of emphasis on historical performance and fees when they sum up the value of a fund manager, but it’s the thinking behind their investment process that really matters.
Advice reform stalls as Jones dithers on SOA, safe harbour changes
Even with a lightened agenda, the government failed to finish its homework and instead delivered only a portion of the first tranche of advice reforms. It’s a poor return, and at this rate the advice review could be a ten-year project.
As correlation norms turn, liquid alternatives come to the fore
Bonds and equities are suddenly firm friends, but this is far from the first time they’ve positively correlated. And it’s not the only reason liquid alternative investments are being brought into focus as a non-correlated diversifier, managers believe.
OpenInvest hunts ‘buyer with a bigger balance sheet’ in search for scale
Despite a unique value proposition and some notable backers, wealth admin platform OpenInvest finds itself once again looking for capital. “We’ve had mixed results,” says founder Andrew Varlamos.
Investment managers get more active on ESG engagement and accountability
Institutional investment teams may still oscillate between engagement and divestment as their first choice in leverage with large emitting companies, but one thing is certain – they are all looking at ways to hold these groups accountable for their activities and behaviours.
Hobbled by hubris, industry funds in danger of failing their members
The meteoric rise of industry funds has earned them a rightful place at the top of the superannuation food chain. But their standing is not a given, and the failures are starting to mount.
Expectations ‘reshuffled’ as resilient inflation delays tipping point on rates
Stubborn inflation is forcing central banks around the world to recalibrate, according to Neuberger Berman. Shorter durations remain du jour while yields are strong, but hedging against monetary easing (especially in the US) could be savvy.
Dig for lithium exposure beyond the ASX: PrimaryMarkets
As the world turns towards critical minerals like lithium to power electric vehicles, alternative access to investment in these sectors will become crucial pieces of the supply chain puzzle.
The quants are expanding their toolkit beyond factor investing: Invesco
The latest iteration of Invesco’s landmark systematic investing study shows just how far quant teams are going in an effort to meet the modern day challenge of identifying and capitalising on emerging opportunities.
Number of wealthy investors not seeking advice ‘persistently’ high
Even though there are thousands more HNW investors in the country this year, they are a lot less willing to pay the going rate for financial advice according to Praemium and Investment Trends.
So how much revenue does the average financial adviser pull in, anyway?
While one listed group reported $236K revenue per adviser, another said its advisers brought in $600K each. But the extraordinary delta is more a function of business models than adviser performance, however.
‘Open-mindedness’ key in the era of correlated bonds and equities
The prevailing market dynamic has changed, with inflation fanning volatility and bonds no longer providing diversification ballast against equities. Active managers that have been employing alternatives for years are well placed to accommodate the new paradigm.
Life insurance industry ‘slowly losing relevance’: Capgemini
A confluence of factors has seen the life insurance industry lose significant ground across the globe, according to the French multinational. The Australian industry’s own problems are unique, but the broader trend is the same. So is the solution, pundits reckon.
Advisers offered ‘$50K bump in salary’ as talent poachers circle
It’s not just money being thrown at financial advisers, with title changes, more responsibility and “other added benefits” also on offer according to financial services recruitment teams.
Government forces crypto into the regulatory fold
Concerned by collapses of crypto platforms both here and abroad, the government has put forward a plan to bring digital asset platforms into the Australian Financial Services Licensing system.
ESG in action: Mr Seaweed and the incredible, Earth-changing bovine burp fix
Sam Elsom, Mr Seaweed and the rest of the Sea Forest team are unlocking the power of asparagopsis to reduce methane emissions in a spectacular way. The plan has caught the attention of Prince William and Caroline Kennedy, but remains bogged down by governmental process.
Five curly questions to ask your private credit provider
As the private credit market grows, so does the importance of due diligence when selecting an investment partner. Epsilon’s Joe Millward details the five things all potential investors should look out for.
All at once, government data finally catches up to adviser shortage
Even when thousands more advisers left the industry in 2022, bringing the cohort down from 28,000 in 2018 to a total of around 17,000, there was still no shortage according to the government’s own skills commission.
Uncertainty prevails, so quality is king: Neuberger Berman
The inflationary cycle is at a tipping point both in Europe and the US as central governments sweat the lagged effect of rate rises on inflation. For investors, this only inflates the value of quality issuers according to Neuberger Berman.
AMP spending goodwill it doesn’t have with BOLR pushback
AMP’s executive spine has done a remarkable job of arresting the company’s decline, but its refusal to accept the court’s decision that it shortchanged advisers on BOLR deals is an egregious misstep that could put its trust account with those advisers back in the red.
Ethical investing surges despite higher bar and greenwashing scrutiny
Despite being buffeted by some serious headwinds, the sustainable investment movement shows no sign of slowing down in Australia.
Prepare for a ‘slow’ correction on interest rates: Bentham AM
The current inflationary cycle is an “interesting” one, says Bentham CIO Richard Quinn, with a host of contributing factors that will all take their time playing out.
ASIC warns licensees to improve ‘inappropriately narrow’ remediation practices
After publishing two separate guides and with the Financial Accountability Regime firmly in mind, the regulator was scathing of licensees’ collective remediation processes when it released findings of a recent industry review.
Count picks up Diverger in blockbuster licensee acquisition
The purchase comes after a turbulent couple of years for Diverger, which was formerly a collection of dealer groups under the Easton Investments banner.
REITs go through ‘structural megatrends’ as fundies pivot in different ways
Investors and consultants are bending their efforts to find navigable paths around headwinds buffeting the commercial real estate sector.
Older and increasingly wealthier: The changing face of retirement
Australians are retiring much later and with more in their retirement coffers than ever before, according to the ABS, with a confluence of factors behind the trend.
Belgium overtakes Australia to top median-wealth rankings
Much of the 2.4 per cent decline in global wealth in 2022 – the second-biggest this century – stemmed from US dollar appreciation, but even controlling for exchange rates it was the slowest wealth increase since the GFC, UBS and Credit Suisse said in a new report. And for the first time, Australia did not record the highest median wealth in the developed world.
Education carve-out should come with separate adviser designations
An approved degree doesn’t necessarily make for a better adviser, but if the government wants to get the experienced pathway legislation right it must disclose which pathway an adviser took to accreditation.
‘Micro AFSLs’ surge as dealer group models lose grip on advice licensing
The quantum of licensees may be growing, but none of that growth is coming from the big end of town. Advice groups are increasingly eschewing larger groups and pursuing autonomy in the way they run their practice.
HMC Capital envisions rebuild for ‘underperforming’ icon, Lendlease (ASX:LLC)
HMC has invested heavily in the hope that after 30 years of disappointing shareholders, Lendlease can reinvent itself by shedding non-core assets and recycling capital into its large scale urban projects.
Meet Josh Lee, an advice director at 27 with a full book of clients and millions of online fans
By age 24 he had more clients than he could handle. On his 26th birthday Josh was appointed as a director at Link Wealth Group. “I hit the ground running,” he says. “I enjoyed doing it and just engulfed myself in it.”
Did the great recession of 2023 just pass us by, or is it still lurking?
Did one of the most widely forecast recessions just fail to materialise, Neuberger Berman asks, or are we entering a false dawn that could see investors trip over themselves to entertain more risk than is prudent?
HMC Capital eyes $10b AUM by 2025 with new funds, new pipelines
David Di Pilla’s group made its bones flipping unloved real assets into a sprawling network of essential retail centres. Now HMC Capital is leaning into its public/private hybrid style of management and eyeing off investment in a host of sectors.
Japan’s second economic coming on the horizon: Platinum CEO Andrew Clifford
Japan’s spectacular decline may still be spooking investors, but the recovery is well and truly underway according to Platinum’s Andrew Clifford, who spoke at The Inside Network’s inaugural Investment Leaders Forum in Queenstown, New Zealand this week. Corporate governance has been reinstated, and innovation is once again being nurtured.
Beware the ‘aggressive optimism’ around overvalued tech stocks: Atrium
Technology stocks at the big end of the S&P500 have enjoyed a (mostly) golden run, but Atrium Investment’s Brendan Paul warns that Nvidia’s astronomical valuation may have tipped the balance.
Clarity of purpose is what we want to see in borrowers: Epsilon
The mid-market private manager’s co-founding partner, Mick Wright-Smith, expounds on the biggest red flag borrowers can wave, as well as the lending advice he’d like to give to his younger self.
Adviser-to-client ratios reach upper limit, with tech marked as the saviour
There are now an average of 120 clients per adviser in Australia – a number not seen since 2013. While the declining adviser cohort is a factor, so is the improved experience of advisers with technology according to researcher Investment Trends.
Gravitation of advisers to the city a function of business models: Wealth Data
Whether an adviser is based in their state’s capital city or not has more to do with their chosen business model than anything else, according to new research from Wealth Data.
‘Opaque’ private credit purveyors add value, but quality is key: Mason Stevens
The proliferation of private credit providers in recent years is a boon for investors, explains Andrew Ash from Mason Stevens. But the attraction of diversification and returns comes with several caveats that investors should consider.
Regulators skewer super funds for slow progress on retirement income covenant
A joint review conducted by ASIC and APRA was scathing of funds’ collective attempts to meet their new legal obligation to help fund members plan for retirement, and urged them to “address, with urgency, the gaps in their approach”.
Last mile for tightening as sovereign wealth investment themes come into view: Invesco
Inflation is in a transitory phase but the downward trend looks set to continue. Sovereign funds around the world are adjusting accordingly, with 5 major themes charting the course of institutional investors in the current climate.
The ‘safer sandbox’: Government doubles down on super path to increased advice access
The minister is putting his financial advice eggs in the superannuation basket, with dramatic changes to the existing intrafund advice models being considered. “I don’t think fiddling with intrafund advice is going to get us where we need to be,” he said.
‘Macro event’ to erase property market’s 2023 gains in second half of the year: SQM Research
The domestic economy is reaching a tipping point, says SQM Research’s Louis Christopher, with the property market only a step behind. Valuation increases across the country are set to be wound back as unemployment and falls from the fixed rate cliff lead to forced sales.
HMC Capital gets real on net-zero with impact themed 3-step approach
Eighteen months ago, the fund started by former US banker David Di Pilla announced its target to achieve net-zero for scope 1 and scope 2 emissions by FY28. Alongside this came an energy road map and the first phase of its ‘Energy Management System’, which was subsequently rolled out across 18 sites.
‘Unconscionable conduct’: AMP lambasted in first round of BOLR battle
The judge was satisfied that Equity suffered “loss and damage” as a result of AMPFP’s breach of contract, while the language used for the licensee’s treatment of Wealthstone was even stronger. AMP acknowledged the result, and did not rule out an appeal.
So who has more advisers per capita, the US or Australia?
The barriers to enter the advice profession differ significantly between the two nations, as do the regulatory parameters. Despite the differences, the US and Australian advice industries have a big problem in common.
Review into ASIC funding model recommends levy discount cut and… another review
While finding that more research is needed to determine if the “definitions, metrics and formulas” used to calculate levies remain fit‑for‑purpose, Treasury was able to determine that advisers should no longer benefit from discounted levies.
Up to $1,250 per adviser: FAAA flags ‘onerous’ scheme of last resort costs
The controversial, long-delayed scheme doesn’t protect consumers from high profile managed investment scheme failures like Sterling and Timbercorp, FAAA CEO Sarah Abood said, and could end up adding another layer of unfair fees at the feet of advisers.
Advisers, banks winning back consumer trust: ASX report
The public appears to be rewarding efforts to reshape the financial advice and banking industries after the royal commission, with advisers and the banks both enjoying an increase in faith across the community.
Reprieve in sight for franked distributions funded by capital raisings
Stakeholders have welcomed a recommendation from the Senate Economics Legislative Committee that the government review its controversial plan to limit franking credits stemming from capital raisings and share buybacks.
SOAs, safe harbour steps gone as government takes staged approach to advice reform
Financial services minister Stephen Jones has accepted 14 of Michelle Levy’s 22 recommendations to increase advice access, with super funds set to play an expanded role and advisers benefitting from a drastic cut to red tape. Banks and insurers, however, have had their advice reform hopes dashed – for now.
FSC, product providers bemoan lack of support from ASIC on innovation
On what was set up as a discussion around the proposals put forward by the Quality of Advice Review, the topic repeatedly shifted to the frustration providers felt at not being able to work with ASIC to bring compliant solutions to market.
This time it’s different: Scaling up the advice, not the distribution channels
Product distribution is still embedded in advice, but with banks out of the game expansive product flogging programs are no longer ubiquitous. Businesses are growing based on their advice proposition now, with investment products increasingly put to the side.
Shhh… don’t mention the wealth: Family offices fret about online boasting
A desire to flaunt ubiquitous wealth on social media is putting moneyed families at risk, according to family office representatives, with extortion and kidnapping “a legitimate concern”.
Levy details ‘frustration’ with consumer groups opposing advice review proposals
The infamous open letter penned by advice review leader Michelle Levy wasn’t so much a slight on the government, she explained, but an expression of her consternation with CHOICE. “I think there’s a very profound misunderstanding,” she said.
AMP flattens advice hierarchy with Hartley’s chief executive role ‘removed’
Hartley, who joined AMP from Sunsuper in January 2021, will help transition the AWM business to a flatter human resource model before leaving the group in late November.
The ‘optical illusion’ making the S&P 500 look so much healthier than it really is
There is a hidden bifurcation in the S&P 500 that retail investors may not be seeing, but it has private investment manager Neuberger Berman showing a degree of caution.
US disinflation to put the brakes on rate hikes, but debt ceiling concerns remain: Invesco
“I believe inflation is largely in the rear view mirror, and the Fed will not be hiking again,” said Invesco’s chief global market strategist Kristina Hooper. And the trend could be a global one.
AFCA’s scope within super grows as Treasury tweaks complaints body’s mandate
The proposal seeks to preserve this definition of what a superannuation complaint is, but “clarifies the policy intent that other types of superannuation-related complaints may also be under the AFCA scheme”.
Fine fleece to financial planning: The advice journey of Invest Blue CEO David Stephen
To give him a taste of the farming life, Stephen’s father sent him to a neighbour who offered him $400 per week in wages, with $200 of that quarantined by his employer for rent and bills. He declined, and headed straight into a career in financial advice. “I was going to be a wool baron, until I very quickly wasn’t,” he says.
VC charging as startups grow to scale at speed, but support needed for next phase
Digital transformation, combined with companies staying private for longer, means successful startups are scaling up faster. The next wave of development, SeedSpace’s Cathryn Lyall said, would come from larger VC fund allocation and sovereign wealth fund investment.
Upfront advice tax deductibility a possibility mid-2023 after four years of consultation
Back in 2019, then-FPA CEO Dante De Gori and Tangelo Advice Consulting’s Conrad Travers engaged the ATO to see if it would be open to updating guidance on the tax deductibility of upfront advice fees. By the middle of this year, we should see the outcome.
Adviser numbers swell as Professional Year candidates come through
“The worst case scenario is that things have definitely stabilised,” Wealth Data’s Colin Williams tells The Inside Adviser. “Best case scenario is that we’re seeing some growth.”
Divisive experience pathway proposal plan ‘upset’ FAAA members: Abood
“There’s so much pain, so much division on this one,” FAAA CEO Sarah Abood said of the proposed exemption. “It actually really upsets me, as I know it upsets many members.”
PE’s structural advantages put equity markets in the shade: Neuberger Berman
The structural advantages of private equity span every phase of the investment process, Ng told a room full of advisers and associates. During the buy, the hold and the sell, he said, PE outpoints traditional public market offerings.
‘Not aligned to reality’: Tomorrow’s retirees want $99K per year in today’s terms
Working Australians aren’t getting real when it comes to plausible retirement ages and income levels, according to data from Vanguard, with a new report suggesting expectations get closer to reality as retirement draws near.
Crypto in the shade as ledger technology applications take centre stage: Invesco
Cryptocurrencies may take up most of the headlines, Invesco says, but the real investment potential lies in the technology and the trading platforms behind them – despite the shocking FTX blowup.
‘Experienced’ and ‘Relevant’ provider tags will only confuse consumers: FAAA
Consumers will be bamboozled by the government’s plan to divide advisers into “experienced” and “relevant” camps, the association explained. That, and the need for a sunset clause, mean the current proposal needs work.
The strategy of compromise: Australian Ethical eyes supermarket giants
Using Coles as a case study, Australian Ethical demonstrates how sustainability-minded money managers are dealing with the nuanced issues involved in appraising the activities of big companies.
Insignia’s Mota: Advice review to ‘start opening doors’ for the industry
The 16,000 advisers providing full-service, holistic advice aren’t the ones who can plug the advice gap, Mota explained. Levy’s plan, however, has the potential to facilitate a “quantum shift” in the industry.
Adopt advice review plan now, ASIC can smooth any creases later: Levy pens open letter
The advice review lead had said she wouldn’t comment on the recommendations while the government pondered its response. But with the consultation dragging on, she urged the government to get it done and let ASIC do the refinement.
RBA pauses for now, but may follow Fed and ‘push till it breaks’: Atrium
The RBA will either take the road that equity markets are pricing in, and try to nail a smooth landing, or follow the road that bond markets anticipate and re-raise interest rates, according to Atrium’s Brendan Paul.
Praemium joins leading platform peloton on reporting, data strength
After buying Powerwrap and shrugging off its own buyout offer from Netwealth, Praemium has joined the top tier of platform providers on the back its data and reporting capabilities.
Whisper of tailwinds blowing as inflation soften: Neuberger Berman
While still high, inflation in developed economies is showing signs of slowing down according to New York-based investment management firm Neuberger Berman, with markets set to benefit from increasingly stable conditions.
‘Experience pathway’ plan released, with no sunset clause and a bizarre anomaly
Advisers can practice without a relevant degree for around 30 years according to the draft proposal. They do need a clean record, however – but only up to the end of 2021.
Di Pilla’s HMC Capital tops $7.5 billion FUM with large hospital group acquisition
The listed property group formed by former star UBS banker David Di Pilla has gone from a standing start in 2015 to a retail and commercial investment force, with its latest acquisition pushing funds under management to $7.5 billion.
Big city advisers paid more, but big city paraplanners paid less
While it pays for advisers to work closer to a large cohort of well-heeled clients in metropolitan areas, the opposite is true for paraplanners, with scarcity of talent pushing salaries sky-high for regional workers.
Don’t fall in love during the ‘slow, grinding bear’ economy
The current economic cycle is too changeable to set any portfolio to autopilot, according to Mason Stevens’ Jacqueline Fernley. Counterpoints to conviction are needed, and the devil’s advocate should be your friend.
Australian Ethical dumps Lendlease over koala habitat concerns
The ethical money manager says Lendlease failed to provide information required to independently assess the impact of its planned development in Mt Gilead, an area deemed critical to the survival of a resident koala colony.
Infocus releases ‘magic’ platform tool as it nears 30-year anniversary
If you’re going to offer services that the incumbents already do well, Steinhardt tells Inside Adviser, you need to do a pretty good job at it yourself. And if there are any flaws in your system, they need to be addressed.
FPA and AFA complete merger to create unified voice for advisers
The new association will be branded with its key purpose – providing a unified voice representing advisers – reflected in speech bubbles over the ‘A’s in its name.
Portfolio protection paramount as earnings shock looms: Ruffer
“Gradually, and then suddenly”, the old Hemingway quote goes. The same could be said for corporate earnings, which Ruffer’s Jasmine Yeo believes are in danger of taking a sharp southerly turn.
ASIC to investigate ASX over possible Corps Act breaches in failed CHESS upgrade
The hits keep coming for the country’s primary stock exchange, which is now under investigation by the corporate regulator for its oversight of the doomed upgrade to its clearing system.
CountPlus mulls downsizing company name in latest market move
The converged advice and accounting group will go to shareholders with a proposal to change its name to ‘Count’, which it hopes will “better reflect the nature” of its operations.
Forget hard or soft, we’re in no-landing territory: HMC Capital
With some real asset trading at 20 to 30 per cent below their fundamental value, HMC’s David Di Pilla says there are “compelling” opportunities for managers that can spot value and raise capital.
SVB damage contained by Fed support, but VC and PE managers count losses
The US Federal Reserve may have guaranteed deposits at the failed bank, but its collapse constitutes a major scare for venture capital outfits and private equity purveyors with outsized technology exposure.
Supply chains normalising, but labour still problematic for private debt purveyors
Many supply chain issues have been alleviated in the last year as restrictions eased in the wake of the pandemic, said Alceon’s Phil Green, but labour remains a sticking point.
Transactional advice enables financial planners to meet consumers where they’re at
The wealth management arm of Bell Direct believes the principles-based regulatory system proposed in the advice review will not only facilitate the dissemination of advice, but encourage development of digital models that will facilitate transactional advice.
‘Context is everything’: What ChatGPT can do for advice, and what it really can’t
AI language generators like ChatGPT pose about as much threat to advice as robo does, which is to say not much. But much like robo, ChatGPT and its contemporaries might just provide advisers with an efficiency tool that can help build scale and better service clients.
The grassroots Spatium journey from startup SMA to thriving managed fund
Eschewing the traditional route, Spatium Capital founders Nicholas Quinn and Jesse Moors grew their short-holding, long-only small companies managed fund from the seeds of a separately managed account.
Market neutral is for all seasons, not just volatile periods: Yarra
Market neutral strategies should not only used as lever for investors that want an on-call safety valve for volatility, but retained as a strategic holding to drive portfolio performance throughout market seasonality according to Yarra Capital Management’s Andrew Smith.
‘Somewhat bemused’: Advice review lead, industry push for the adoption of proposals
Michelle Levy said she was ‘puzzled’ by the government’s decision to conduct a consultation on the proposals handed down in the advice review, while industry leaders urged for the adoption of her reform suite.
FPA and AFA members vote an overwhelming ‘yes’ to merger proposal
After years of declining membership bases and growing frustration with disparate representation, 96.5 per cent of AFA members and 96.7 per cent of FPA members voted in favour of a merger between the two groups.
Downsizer, NALE rule changes top shifting regulatory backdrop for SMSFs
Peter Burgess told the SMSF Association’s National Conference the industry group has pushed for some of the developments, while it continues to oppose others, such as a high-balance cap. The government now plans instead to double the tax rate for funds with very high balances.
‘Not a honeypot’: ATO flags increase in illegal early access to super via SMSFs
The success and popularity of SMSFs has also given several hundred thousand people direct access to their retirement savings. More concerning, the ATO believes, is that fraudsters are starting to take notice.
SMSF sector poised for growth as millennials, Gen X opt for ‘the Spotify of superannuation’
Despite a growth hiccup in 2022 the SMSF sector is trending in the right direction, with more younger people opting for choice in the way they manage their retirement savings.
The most common illiquidity, risk and volatility fallacies investors face
Lending specialist Daniel Zwirn spoke candidly about investor “credit myths”, and the misunderstandings that hold people back in the selection and movement of assets in portfolio construction.
Investors warned against chasing the ‘commodity rainbow’
While commodities proved a safe haven for investors in a brutal 2022, completing a rare two-year run at the top of the asset class returns table, Atchison consultant Kevin Toohey warns against expecting a repeat performance.
SMSF investors flock to longer term deposits, but Aussie equities still reign
The shift to healthy longer term deposits has begun, and while Australian equities still dominate SMSF portfolios the way they access them is changing.
New best interests duty to cover broader swathe of advice service providers
In Levy’s new world, conflicts and vertical integration are likely to be accommodated by a new statutory best interests duty with a broader scope and a lower, more flexible bar in an effort to bring advice to the masses.
HMC Capital leans into community connection
In its latest sustainability report HMC details the kind of comprehensive ESG strategy typical of a fund manager that appreciates the value of corporate responsibility – both to the group’s three funds and the broader environment.
Safe harbour steps to go as Levy sticks (mostly) to the advice reform script
Levy made no major deviations in her final suite of proposals, with Treasury left to mull on a blueprint for reform that should usher in a less prescriptive, two-tiered advice regime. But there are a few tweaks that might raise eyebrows.
‘Best entry point in asset class history’ for SSLs: Invesco
Senior secured loans make an attractive proposition in an inflationary environment, says Invesco’s Ashley O’Connor, especially when returns are stable and company defaults are at low tide.
Ex-heads of advice associations line up to plump for merger
The old guard of advice representation has implored the combined membership groups of the AFA and FPA to vote ‘yes’ in the upcoming merger vote.
‘No compromises’: Levy details advice review mindset
“I don’t think anyone told me that things are going well,” said Michelle Levy of the advice review consultation process. Despite being given disparate views on how to fix things, the lawyer believes compromise was never an option.
‘Absolutely too complex’: SMSF body slams indexation rules amid cap increase
The likely ‘double-bump’ transfer balance cap increase to $1.9 million will exacerbate what is already an “overly complex” indexation rule that advisers have to navigate and explain to clients, the SMSF Association’s Fabian Bussoletti says.
‘Easy wins’ not enough for QOAR: Joint advice association group
In a letter released by the group Thursday it said “urgent action is needed”, and called the government’s impending response a “rare opportunity to deliver affordable and accessible advice to consumers”.
ETFs go niche with S&P/ASX 200 first covered call index fund from Global X
The announcement comes amid a major push into the domestic market for Global X, which in December signaled its intention to launch ten new products in 2023.
Exodus reversing? Adviser numbers on the rise in 2023
The green shoots that emerged for adviser numbers in the back half of 2022 were no fluke, with provisional advisers leading an industry resurgence after five years of decline.
House prices to fall more in 2023, but crash not likely">
House prices to fall more in 2023, but crash not likely
Housing conditions are tipped to remain soft in the year ahead as central banks continue to raise credit costs, but experts still believe an all-out property market crash is unlikely.
Paraplanners are changing, but they still don’t want to be advisers
The percentage of paraplanners that have ambitions to become qualified financial advisers has decreased dramatically, with several key drivers behind the change.
ASIC commissioner cuts 5-year term early to join Vanguard
The respected lawyer will not see out his contract with the corporate regulator after accepting a role in the commercial sector.
Tax deductibility review a ray of hope for adviser community
Advisers are rallying around the prospect of upfront advice fees becoming tax deductible after the ATO announced a review of Tax Determination 95/60.
US stocks to rise as inflation sags in post-pandemic period: BCA Research
The US economy should experience a “benign disinflation” over the next six months as pandemic-infused snarls unravel. That should mean good things for stocks, at least in the short term.
Adviser at a crossroads: Leadership, sustainability and the election of choice
Adviser James O’Reilly had a long-held personal ambition to “stick a pin in the ground” and make a difference, but it was realising how much his clients wanted leadership on sustainable investing that sparked change in the way his practice manages money.
ESG, In Practice, Markets, News, People
Inflation peaking, but ‘conflicting forces’ keep rebound at bay: Sage Capital
Green shoots of relief from central banks will take some time to filter into the economy due to a confluence of factors according to Sage Capital.
The biggest advice and investment stories of 2022
The release of Michelle Levy’s preliminary advice review recommendations topped this year’s most read stories, yet the proliferation of well-read articles that carried an investment theme highlighted the interest of advisers in finding content evaluating what has been a choppy year in markets.
The truth about ESG: Australian Ethical
What investors often misunderstand is that despite having ‘environmental’ in its description, ESG integration screens often don’t exclude companies that damage the environment according to the 2022 Sustainability Report.
ASIC pullback on $500K threshold sparks SMSF narrative change
After the regulator abandoned its $500K minimum balance guidance, the SMSF Association says it hopes licensees will reconsider some of the concerns they may have had about low-balance funds.
Recession plus ESG uplift spells ‘worry’ for REITS: Clearbridge
Speaking on a fireside chat during The Inside Network’s recent ESG event in Tasmania, Langley said that while infrastructure assets will continue carrying the burden of inflation there is likely more to be concerned about with REITS, both in the dominant US market and around the world.
Levy’s advice proposals get heavy hitting advocacy lift
The Financial Services Council and its provider members are putting their weight behind the advice review leader’s suite of reforms as the December 16 delivery date looms.
ASIC ‘neutral’ on SOA format, video statements good to go
The Corporations Act is “technology neutral” according to ASIC, so video SOAs are acceptable as long as they include the eight or so standard compliance requirements.
Responsible investing now one of the top actions people take to improve the world
It now sits aside recycling, reducing energy consumption and using biodegradable products as one of the most common methods of making a positive impact according to research from Australian Ethical and Investment Trends.
Good advice foundation to shift from ‘reasonable benefits’ to ‘fit for purpose’: Levy
Review leader Michelle Levy said the proposals need to look at the “full universe” of providers. If ‘good advice’ is to replace best interests duty while also opening the gates to product providers, the duties involved will need to fully match the breadth of that task.
Waiting for the weight to shift: Atrium
Markets may not always do what’s expected, but fundamental valuations and adherence to timelines will usually win out eventually according to Atrium Investment Management.
Life insurance commissions consent concerns ‘misinformed’: AFA
Concern about Michelle Levy’s insurance advice consent proposal is off the mark and shouldn’t get in the way of reform, the association’s chief executive says.
ASX drops plan to replace CHESS with blockchain, writes off $250M
The long-running project has been shelved after a devastating Accenture report cited multiple areas of concern. ASIC chair Joe Longo said the ASX “failed to demonstrate appropriate control”.
‘The destination is what’s important’: FPA/AFA chart next stage of merger plan
The draft documents to be handed out in December will contain information members can use to assess whether a union between the two groups is the best way forward, FPA chief Sarah Abood tells The Inside Adviser.
The ‘relationship’ fund banking on a 10pc return
While data is a big part of the Michael Birch’s new property fund play, he says the real key to running a rent roll investment is maintaining relationships.
Risk commissions to stay, with consent rule caveat: Levy
Life insurance advisers should retain commissions at their current level, the advice review leader proposed, but only on the condition that clients sign explicit consent agreements acknowledging conflicted remuneration.
Leaders sound consolidated alarm on the rise of consumer harm in financial services
The financial services minister is looking at tackling scammers at the source: “Does our barista down the corner really need my email address, my bank details, my name and my mobile phone number just to buy a cup of coffee?”
Are we there yet? Inflation and interest rates likely to keep rising: Sage Capital
Central banks are likely to continue inflating interest rates around the world, with the US federal reserve at the vanguard. Be wary of thinking markets have gone through the fire already, Sage Capital warns.
Continued volatility opens door to skilful investment: Franklin Templeton
Tightening of central policy on a global scale is creating valuation arbitrage across the board, and creating investment opportunities for skilful managers.
Experience pathway to perpetuate poor advice industry image: FPA
Implementing the current proposal for ‘experienced’ advisers to skip the relevant degree mandate will do far more harm than good, the association argues, with both current and future advisers turned off by the plan.
Michael Birch’s big rent-roll of the dice
The respected corporate adviser and manager is laying it all on the line after “rolling the sleeves up” on multi-faceted research for his new property-based fund.
SMSFs under advice surge as adviser numbers dip below 16,000
As the quantum of advisers has decreased those that remain have consolidated client books, which has led to a higher proportion of high-balance SMSFs coming under advice.
Australians expect $200K retirement savings gap as FORO concerns grow
Higher rates and the cost of living, on top of global events, have contributed to increased Fear Of Running Out across the country. Yet the level of concern may be relatively unfounded, AMP reports.
ASIC laments licensee ‘lag and drag’ after $5.6 billion customer remediation bill
The corporate regulator has delivered a stern warning to licensees with the release of its guide on consumer remediation. After overseeing billions in repayments to Australians, ASIC chair Karen Chester says the industry “must do better”
Australia surges up retirement security ranks
By holding ground in areas such as quality of life, material well-being, finances and health while other countries fell back, Australia moved up two spots to 5th on the latest Natixis Global Retirement Index.
Big banks at global ‘inflection point’ as challengers play to their strengths
A global study has shown that the problems faced by the Big4 are universal; incumbent banks may have the data, products, infrastructure and capital, but it doesn’t guarantee customer primacy.
Market neutral strategies swerve volatility, diffuse market risk
Recent market turbulence has brought market neutral long short strategies into primacy, with funds able to look at companies with a clear lens and avoid taking large binary positions.
‘Complex’ regulatory changes driving technical adviser queries
New income thresholds for seniors health cards, downsizer rules, the transfer balance cap, changing work test requirements and the Home Equity Access Scheme are the five most common technical problem areas for advisers in 2022.
Managed accounts investment swells to $135 billion despite market headwinds
Positive flows negated an almost ten per cent drop in the ASX/S&P200 over H1 2022, with total funds increasing another $3.4 billion.
Further 7pc of advisers linked to unis: Principals Community brings scale to grad drive
With 127 practices under its wing, the tie-up between Kon Costas’ ex-BT network and Deakin University will give 1,263 advisers a direct line to graduates and add an element of scale to what is currently a skinny pipeline of talent.
FPA/AFA cultural divide ‘more perception than reality’: Abood
CEOs at the soon-to-merge associations say the two groups have become more aligned over the years. AFA members are no longer die-hard ‘riskies’, and the FPA membership base has come a long way from its institutional adviser roots.
‘Now’s the time’: FPA, AFA announce merger plans
Prompted by advice industry rationalisation, the Levy review and the need for a united voice in Canberra, the two major associations will invite members to provide feedback on a proposed merger.
SOAs to go, advice upended in review proposal paper
Advice is set for a dramatic shift towards deregulation, with the Levy proposal paper sketching a plan to ditch statements of advice and best interest duty in favour of a new “good advice” directive.
Insignia’s ANZ and MLC moves show dividends
The integration of its marquee business acquisitions has helped the nation’s largest provider of financial advice services turn the corner.
‘Promise, celebrity, volatility’: Longo lays out ASIC’s concerns for year ahead
The chair will take a hard line on DDO and crack down on scams, but his major concern is crypto misinformation. “My job is to be frank with the Australian people,” he said.
Bubble spotting as much art as science: Ruffer
The analysis required to distinguishing the hot from the irrationally over-heated is about more than numbers, according to Ruffer’s Lauren French.
Global advice business models on the cusp of change: KPMG
“Fragmented” service models for advice groups will soon coalesce into three distinct business models according to KPMG’s Future of wealth management report.
Jones looks to shorten exam, improve ethics code
Once the advice review is completed, the minister has asked Treasury to look at updating the ethics code and assessing the viability of a shortened adviser exam.
AZ NGA dives into supply chain with Virtual Business Partners tie-up
AZ NGA moves on from dealer group model to take up a horizontally integrated strategy.
ASIC levy review targets adviser ‘time-lag’ issue
The review will consider “the consequences of time lags between regulatory action and cost allocation”, the terms of reference states.
AMP Advice to ‘break even’ by 2024 as losses soften
The institutional provider’s AUM and profit lines stayed red in 1H22, but positive signs emerged.
Vanguard goes all-in on ‘lightly regulated’ advice pitch
The global ETF and would-be superannuation fund provider believes a scaled compliance model would better serve the domestic advice market.