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Twice the love for Colonial First State
- Money Management 22 May 2008
Colonial the FirstChoice in the tech stakes
- Money Management 16 May 2008
Flying below the radar - Money Management
29 November 2007
Counting the Cost of
Compliance - Money Management 30 November 2007
New asset class joins the A list
- Money Management 21 September 2007
Planners shun specialist software
- Money Management 14 September 2007
Low-fee
industry funds fall short for planners
- Australian Financial Review 10 September 2007
IMAs/SMAs fail
to make impression on advisers - Money Management September 6 2007
Approved lists: ratings trump sales
- Money Management 30 August 2007
Consolidation signposts a maturing platform market
- Money Management 13 June 2007
Advisers rank Macquarie
number one - Money Management 13 June 2007
Planners upbeat with
market conditions - Money Management 4 May 2007
Twice the love for Colonial First State
Page 1, Money Management, 22 May 2008
Mike Taylor
Colonial First State (CFS) has taken out a double, judged the best fund
manager as well as the best platform in this year’s Wealth Insights Service
Level Survey.
And according to the managing director of Wealth Insights, Vanessa McMahon,
administrative
efficiency backed by technology has proven to be the key differentiator for
CFS with respect to both the fund manager and platform categories.
The Wealth Insights survey sought the views of 886 advisers, who rated CFS
as providing the best service levels from a funds management point of view,
followed by Perpetual and then Macquarie Adviser Services.
McMahon said administrative efficiency had become a key factor in the minds
of the advisers surveyed, particularly the speed with which redemption
processing and delivery to investors was concerned.
She said its importance in the minds of advisers had increased significantly
over the past 12 months, being rated as a top five issue by just 13 per cent
of respondents a year ago compared to 45 per cent this year.
McMahon said the ability to quickly resolve disputes had also emerged as a
key determinate, rated as a top five issue by 34 per cent of respondents
this year.
Commenting on the findings, Colonial First State chief executive Brian
Bissaker said it was hardly surprising that the company had been judged the
leader in both categories because it worked to ensure consistency of
approach across the two areas.
“The same people look after both elements of the business and that ensures a
pretty consistent approach,” he said.
Bissaker said one of the keys to the success achieved by CFS was that it
worked hard to maintain strong relationships with research houses, dealer
groups and advisers.
What is more, he said it represented an exercise in continuous improvement,
with the company closely monitoring the feedback it received from surveys
such as those conducted by Wealth Insights and then working to achieve
improvements where they were deemed necessary.
Colonial the FirstChoice in the tech stakes
Page 1, Money Management, 15 May 2008
Mike Taylor
In an analysis that has seen technological efficiency and user-friendliness
rated as key differentiators, Colonial First States' FirstChoice platform
has emerged as a clear winner in this year’s Wealth Insights Platform
Service Level Survey.
The survey of 886 advisers, released this week, revealed Colonial
FirstChoice was rated as
having the best service levels in the industry, followed by the Macquarie
Wrap and Navigator platforms.
Commenting on the survey results, Wealth Insights managing director Vanessa
McMahon said the 2008 survey results revealed a key shift in the platform
space, with technology and consumerism having become the key drivers for
change.
“In recent years we saw commissions, products and menus as being the
drivers, but they have become commoditised and been supplanted by the manner
in which the embedded platform technology can actually help time-pressed
planners,” she said.
McMahon said the importance of technology in assisting planners to do their
jobs had become increasingly important in circumstances where the
relationship between planners and platforms was no longer just about
transactions, but about servicing an ongoing relationship with clients.
The chief executive of Colonial First State, Brian Bissaker, said he agreed
with McMahon’s analysis and the manner in which technology had become a key
differentiator.
“And that is heartening in circumstances where we have invested a lot of
money in ensuring that FirstChoice delivers really good functionality,” he
said.
“I think the importance of technology and how it helps planners is also
reflected in the increasing numbers who have sought training and a better
understanding of how it helps them to drive efficiencies,” Bissaker said.
He said that while the platform had considerable capabilities, it was
important that it was efficient and easy to use from a basic administration
point of view, especially during periods such as June/July 2007, where there
had been particularly high volumes.
“The ‘Better Super’ changes not only drove a whole lot of new strategies but
increased the number of underlying transactions per strategy,” Bissaker
said. “That makes it imperative that the underlying technology works and
gets it right.”
McMahon said FirstChoice had been rated the leading platform across a range
of measures but, significantly, had emerged as number one with respect to
technology.
She said based on technology alone, FirstChoice had taken first place,
followed by the Asgard platforms and then Macquarie.
Flying below the radar
Appeared in Money Management's seventh annual list of most influential people in financial services Page 26, Money Management, 29 November 2007
Sara RichWhile there may be many in the industry who have not heard of Vanessa McMahon, her work and influence is far reaching.
With industry funds, banks, dealer groups and many of the largest fund managers
subscribing to her research, the influence of Vanessa McMahon, founder and
managing director of the market research firm Wealth Insights, extends
widely throughout the financial services industry.
While Money Management’s annual list of influential people tends to focus on
personalities, sometimes these assessments are as much a reflection of the
organisation as the person themselves.
The Wealth Insights research reports and, in particular, the annual Service
Level and Adviser Market Trends Report are widely subscribed to in the
industry and greatly influence the strategies and product development
processes of many leading companies.
At times challenging commonly-held perceptions, such as those surrounding
the commissions versus fees debate, McMahon’s research often sparks new
conversations within the industry.
As a result, many product providers take note of what is uncovered by the
research when formulating new product and marketing strategies.
As testimony to the quality of her research, many executives in financial
services have their key performance indicators and bonuses linked to the
findings detailed within Wealth Insight’s annual research reports.
McMahon is a strong advocate of financial planners, often sharing her
research with government and industry bodies, particularly where she
perceives they have been unfairly treated on an issue in the public eye.
An example of this occurred recently, with planners revealing the reasons
for their limited use of industry superannuation funds, which Wealth
Insights' research exposed as primarily due to a lack of independent
research reports and inadequate administration.
While McMahon’s reach and influence within the industry is significant, you
would nevertheless be excused for not knowing who she is if you are not a
client of Wealth Insights as she chooses not appear at conferences, nor does
she pursue a role as an industry commentator.
Nonetheless, as a supporter of the industry and its participants, she will
continue to shape it for some time to come.
Counting the cost of compliance
Page 1, Money
Management, 30 November 2007
Sara Rich
A new study
has revealed that each week financial advisers are losing a day’s worth of
valuable face-to-face time with clients to compliance.
The Wealth Insights survey of more than 890 advisers found, on average, that
advisers spend 18 per cent of their time on compliance, which does not
include plan preparation, plan implementation and other administration.
It is of little surprise then that 74 per cent of advisers cite compliance
as their biggest concern, followed by a related worry of not having enough
time to provide quality service and advice to clients.
The study showed that only 35 per cent of an adviser’s time is spent meeting
with clients or reviewing client portfolios.
Wealth Insights managing director Vanessa McMahon said the level of
frustration advisers experienced under the current regime remained unchanged
from when Financial Services Reform was first introduced.
“Their frustrations are compounded because of a lack of clarity around black
letter law interpretations, and the intent of the law has not yet been
achieved,” she said.
“Advisers’ frustrations are compounded when there isn’t anything really
definitive that explains exactly what they have to do to be in full
compliance of the law.”
The survey’s revelations highlight the importance of the work conducted by
the
Investment and Financial Services Association (IFSA) and the
Financial Planning Association (FPA) in lobbying the Government to cut
red tape.
According to IFSA chief executive Richard Gilbert, Australian financial
services compliance costs as much as 10 to 15 per cent of total operating
costs.
Earlier this month, FPA chief executive Jo-Anne Bloch said by cutting the
red tape surrounding an adviser’s disclosure and compliance obligations,
financial advice would become more accessible and affordable for
Australians.
She said that rather than seeking a total overhaul of the Financial Services
Reform regime, the FPA was calling for policy changes, such as definition
updates to the terms ‘general’ and ‘personal’ advice within Corporations
Law.
The FPA would also like to see the removal of the current criminal sanctions
on financial planners for failing to provide clients with a Statement of
Advice or Financial Services Guide within five days of giving advice.
New asset class joins the A list
Page 3, Money Management, 21 October 2007
Sara Rich
Global listed property has exploded in terms of financial adviser uptake
despite being an asset class with less than three years in the retail market
under its belt, according to the latest Wealth Insights Adviser Market
Trends Report.
The survey of 890 advisers found that in the last six months, 59 per cent
have placed client investments in global listed property, which followed
shortly behind cash (67 per cent), fixed interest (73 per cent) and
Australian listed property (84 per cent).
Not surprisingly, Australian and international equities scooped the highest
percentage of adviser usage, totalling 97 per cent and 95 per cent,
respectively.
Wealth Insights managing director Vanessa McMahon said the fact global
listed property was already more popular than alternative investments, which
only managed to attract 35 per cent of advisers in the last six months,
highlighted how popular the relatively new asset class was.
“Most global listed property funds don’t yet have a three-year performance
history, so the fact they are already attracting more money than hedge
funds, which have been in the market longer, is highlighting that planners
are still to embrace alternative investing,” she said.
Morningstar Australia head of research Anthony Serhan confirmed that global
listed property had been swiftly adopted in the marketplace and attributed
this to Australia’s love affair with property in general.
“Australian investors are very comfortable with the idea of property and
have been very familiar with the Australian listed property market,” he
said.
Serhan said investor enthusiasm had been matched by the significant number
of fund managers launching global listed property funds in recent years.
“When we did our review of global listed property last year we covered about
15 strategies, which is a really big number,” he said.
According to Wealth Insights, the fund manager to achieve the highest
percentage (20 per cent) of advisers using its global listed property fund
is AMP Capital Investors, which offers the AMP Capital Investors Global
Property Securities Fund.
The fund manager’s senior investment adviser, Richard Shields, is positive
in terms of a medium to long-term outlook for the sector.
“There is still some interesting growth to come – we are yet to see property
investors, particularly in Europe and the UK, really embrace listed property
the way Australian and US investors have, so I think we will see some more
of that,” he said.
“I think we will see a lot more property get listed in Asia and Europe and
we will see a lot more real estate investment trusts.”
Planners shun specialist software
Page 1, Money Management, 14 September 2007
Mike Taylor
While VisiPlan
has emerged as the most widely used financial planning software in
Australia, Microsoft supremo Bill Gates would be heartened to know that a
hefty proportion of Australian planners simply rely on Microsoft’s Office
suite.
According to survey data compiled by Wealth Insights as part of its Adviser
Market Trends Report, not only do large numbers of Australian planners
nominate Microsoft Office as their primary and secondary software, a
remarkable 66 per cent of those people are happy using what is widely
regarded as a fairly generic offering.
Indeed, when it comes to satisfaction with the software planners are using,
AdviserNet emerges with the highest number of satisfied customers, followed
by Microsoft Office, Count’s Wealth Planner, Xplanner and ProPlanner.

And the bad news for the software manufacturers and re-sellers is that
financial planners are exhibiting a remarkable reluctance to change the way
they do things, with 50 per cent of survey respondents saying they would be
“very unlikely” to change their primary software in the next 12 months, with
a further 27 per cent saying they are “unlikely”.
Indeed, only 15 per cent of respondents said they were either likely or very
likely to change.
The managing director of Wealth Insights, Vanessa McMahon, said the survey
reflected the response of 892 financial planners, and she expressed surprise
at the popularity of the Microsoft offering.
“Microsoft Office has more advisers using it than many other dedicated
software packages on the market, which presents a great opportunity for
financial planning software manufacturers,” she said.
She said that there was still considerable movement in the software space,
with 20 per cent of advisers having taken up a new financial planning
software package in the past 12 months, and 15 per cent expecting to change
software in the next 12 months.
The Wealth Insights research has also revealed some interesting changes in
market share for financial planning software providers, with VisiPlan
maintaining its dominance with 24 per cent primary usage, but falling
slightly from its 29 per cent share in 2005, while Xplan has doubled its market share from 8
per cent in 2005 to 16 per cent.
Similarly, the Macquarie-backed Coin has grown from a mere 2 per cent of the
market in 2005 to 11 per cent today, while AMP’s MoneyWise has held ground
at 10 per cent market share.
Low-fee industry funds fall short for planners
The Australian Financial Review 10 September 2007
Brendan Swift
The majority of financial advisers do not recommend industry super funds
because they are not approved by their dealer group, do not provide adequate
research and have a limited range of investment and insurance options,
according to new research.
Industry funds, which generally charge lower fees than retail funds, have
won significant funds inflows in recent times despite not being recommended
by most advisers.
However, the survey of more than 600 advisers by research firm Wealth
Insights found significant concerns with customer service.
Only 12 per cent of the advisers were satisfied with industry funds’ speed
and accuracy of administration, and just 15 per cent were satisfied with
their range of product features. On the other hand, three quarters of
planners were satisfied with industry funds’ low fees and more than half
were satisfied with their performance.
“It appears the industry funds have not made an effort to embrace the
channels that financial planners rely upon,” the report says.
Industry funds have previously said the main reason they are not recommended
is because they do not pay advisers commissions.
But only 9 per cent of the planners surveyed said they did not recommend
industry funds because they did not pay commissions.
Wealth Insights clients include commercial funds such as AMP and Asgard Wealth
Solutions.
IMAs/SMAs fail to make impression on advisers
Page 1, Money Management September 6 2007
Sara Rich
Despite industry hype surrounding individually managed accounts (IMA) and
separately managed accounts (SMA), the majority of financial planners have
not and do not intend to use them, according to the latest Wealth Insights
report.
The survey of 270 planners found that 85 per cent have not used these types
of managed accounts in the past 12 months, and of that group, 90 per cent
believe they won’t use them in the next six months.
Wealth Insights managing director Vanessa McMahon said many planners did not
perceive any real benefit from using IMAs/SMAs, particularly when compared
to the platforms they currently used.
“Believe the industry hype and the IMA/SMA phenomenon is poised ready to
tear down the dominance of traditional managed funds and the platforms that
support their expansion,” she said.
“Despite the promise of IMAs/SMAs, the reality is that they have failed to
make much of an impression on financial planners.”
Bravura Solutions provides the underlying software to IMA/SMA providers and
agrees that the products haven’t taken off as greatly as the hype suggests.
“There certainly are some benefits of IMAs/SMAs, but we think part of the
reason for why they haven’t taken off is twofold; they’re generally being
targeted at high-net-worth individuals, and they’re not available at the
moment in superannuation, and super is a large part of an adviser’s world,”
Bravura head of corporate strategy Wes Hall said.
Ray Griffin, managing director of boutique financial planning practice
Griffin Financial Services, said as a planner he preferred direct, hands-on
involvement in his clients’ portfolios – the type of access IMAs/SMAs don’t
offer.
“In our own business, we individually manage every client’s portfolio, so we
are not looking for packaged, off-the-shelf type services from
institutions,” he said.
“An adviser’s job, apart from a lot of other things, is to manage a
portfolio – when my clients come to see me they want to know how their
investments are going, and it’s my job to be across the portfolio with an
understanding of what’s been happening and why and be able to give them an
outlook.
“Now if I’m not managing that portfolio, I’m really just giving them a token
gesture in terms of the insight I can give them.”
MLC MasterKey Custom was met with the same attitude when it consulted with
its adviser base about its plans to launch an IMA/SMA.
Its response to this was to design what it coined an ‘adviser managed
account’, which affords advisers many of the benefits of IMAs/SMAs but with
greater control over the portfolio.
“We were looking at the IMAs and SMAs in the market and considering whether
we should be thinking about something like that, and in the end, for a
number of reasons, we thought there was a better solution that had broader
appeal,” MasterKey Custom head of product David Wappett said.
The full Wealth Insights report is currently available from the researcher.
Approved lists: ratings trump sales
Page 1, Money Management 30 August 2007
Sara Rich
Insufficient ratings, not commissions, are the reason why financial advisers
do not recommend industry superannuation funds to their clients, according
to the latest research from Wealth Insights.
However, Industry Super Network (ISN), the representative body of 14
industry funds, strongly disagrees, claiming the funds are not welcome on
the majority of dealer groups’ approved product lists because they do not
pay commissions.
As part of its research, Wealth Insights asked more than 660 planners to
list the reasons why they did not place clients in industry funds.
The majority said it was because the funds were not on their approved list
(41 per cent) or due to a lack of research (18 per cent).
Only 9 per cent cited “no commissions” as their reason for not recommending
the products.
While the financial planning community and ISN both agree that the main
reason planners do not recommend industry funds is because they are not on
their approved lists, their views are divided as to why this is the case.
From a dealer group’s perspective, an independent research house must rate
all funds placed on an approved list, with the majority relying on
Morningstar, van Eyk Research and
Lonsec.
However, the majority of industry funds are rated by
Rainmaker Information, Chant West
Financial Services and SuperRatings.
Investment and Financial Services Association chief executive Richard
Gilbert said if a fund manager wanted placement on a dealer group’s approved
list, it was critical they went through the “hoops” set out by the company.
“Any fund manager wanting to get on an approved list has to use the vehicle
used by that provider,” he said.
However, ISN manager David Whiteley said “because we don’t pay commissions
we are excluded from the approved lists”.
“I think the issue is a little more fundamental than not being rated by
certain ratings agencies. I think the issue is that we don’t pay sales
commissions and that’s how the industry works.”
Wealth Insights managing director Vanessa McMahon said this highlighted what
appeared to be a market failure on the part of industry funds to recognise
how the planning industry operated.
“It appears industry funds have not made an effort to embrace the channels
that financial planners rely upon,” she said.
“Getting on approved lists is incredibly competitive and if the basics are
not done you can hardly expect people to rush to your doors.”
Financial Planning Association chief executive Jo-Anne Bloch feels that at
the heart of financial planning is the value of advice, not commissions.
“People go to advisers to get advice and the adviser needs to recommend an
appropriate product to suit the client – remuneration is a secondary issue,”
she said.
“The whole commission issue is a bit of a beat up to promote industry super
funds.”
Wealth Insights will make the full research report available in September.
Consolidation signposts a maturing platform market
Page 16, Money Management 13 June 2007
Mike Taylor
A mere decade ago the Australian platform market was in its infancy.
Today it represents a mature market providing little scope for the
successful entry of new players.
That is one of the key bottom lines to emerge from the latest Wealth
Insights/Assirt Service Level Survey Report published exclusively in this
edition of Money Management.
The report reveals a pattern of consolidation within the industry, with
three or four platforms dominating financial planners’ preferences and
therefore the market over the past five years.
But the real picture of what is happening in the sector emerges from a
five-year retrospective of the Service Level Survey (see box).
TOP PLATFORM RANKINGS
|
|
|
2007 |
|
|
1 |
Macquarie Wrap |
|
2 |
Asgard Elements |
3 |
Asgard eWrap |
Colonial FirstChoice (equal 3rd) |
|
2006 |
|
1 |
Asgard eWrap |
2 |
Asgard Elements |
3 |
Macquarie Wrap |
|
|
2005 |
|
1 |
Asgard Elements |
2 |
Macquarie Wrap |
|
Asgard (equal 2nd) |
4 |
Colonial FirstChoice |
|
|
2004 |
|
1 |
Macquarie Wrap |
2 |
Asgard |
3 |
Asgard eWrap |
4 |
Colonial FirstChoice |
|
|
2003 |
|
1 |
Macquarie Wrap |
2 |
Asgard |
3 |
Colonial FirstChoice |
|
|
2002 |
|
1 |
Asgard Elements |
2 |
Macquarie Wrap |
3 |
BT Wrap |
A pattern of preference has clearly emerged and it is one that the managing
director of Wealth Insights, Vanessa McMahon, believes underscores the
maturity of the sector and the difficulties likely to be encountered by any
player looking to enter the industry.
“Someone with aligned distribution might be capable of forcing an entry into
the sector with a new platform, but it would be just too hard for anyone
else,” she said.
The importance of the Wealth Insights/Assirt Service Level Survey is that it
represents probably the most comprehensive independent assessments of the
Australian platforms arena.
It is based on the opinions of 900 financial advisers, who rated both
platform providers and fund managers on over 30 different service features
regarded as important to advisers. The survey is now in its 15th
year.
The fact that the survey outcomes over the past five years have seen the
honours shared between just a handful of players tends to reinforce the 2007
findings that while some planners may have access to up to half-a-dozen
platforms, most choose to focus on one and use perhaps two others to
accommodate the needs of particular clients.
“On balance, the platform market appears to be very stable, with advisers
using an average of 3.2 platforms – the same number they were using 12
months ago – making the job of the platform marketer all the harder when
trying to gain cut-through in a competitive market,” McMahon said.
What her research also revealed, however, was that planners showed clear
preferences for particular platforms and that this was reflected in the fund
flows.
She said the data suggested that 75 to 80 per cent of flows were being
directed through a primary platform with the remainder being directed
through perhaps one or two secondary platforms.
McMahon said it was in theses circumstances that platforms needed to ensure
they were getting it right and meeting the needs of planners.
“Providing good service, particularly in those areas that are most important
to advisers, and providing good value for money are key differentiating
factors for advisers when choosing between platforms,” she said.
McMahon even went so far as to suggest that advisers would only look to
change platforms if they considered it was justified by factors such as
declining service levels.
Looking forward, McMahon said that given the maturity of the platform
sector, one of the few things capable of challenging the dominance of the
current leaders would be a significant technology breakthrough.
She dismissed the validity of recent research reports suggesting the
platform market might ultimately be challenged by the rise of separately
managed accounts (SMAs) and individually managed accounts (IMAs).
McMahon said separate research being undertaken by Wealth Insights suggested
that SMAs had developed little momentum among Australian advisers.
“SMAs may have taken off in the United States but our research suggests that
it is just not happening in Australia,” she said.
McMahon said that of planers surveyed by Wealth Insights, 85 per cent had
indicated they did not use SMAs or IMAs and that of that 85 per cent, 90 per
cent said they were unlikely to do so over the next 6 months.
She said the popularity of SMAs and IMAs in the US was probably owed to the
difference in markets between the two countries.
“Many Australian advisers would be asking themselves why they would want to
do all the work involved in SMAs and IMAs when they could access a platform
arrangement within which all the work was done for them,” McMahon said.
Advisers rank Macquarie number one
Page 1, Money Management
13 June 2007
Sara Rich
Macquarie Financial Services Group
has secured prime positioning across the platform and funds management
categories of the 2007 Wealth Insights/Assirt
Annual Service Level Survey, providing the best service in the eyes of financial
advisers.
Based on the opinions of 900 advisers, the survey has revealed Macquarie Wrap is
the best platform in terms of service, while Macquarie Adviser Services ranks as
the number one fund manager.
The independent survey asked advisers to rate 16 of the most popular platforms
and 17 of the most popular fund managers on more than 30 different service
features.
Following behind Macquarie in the platform category was
Asgard Elements in second place, with Asgard eWrap and
Colonial FirstChoice in equal third.
In second and third position of the fund manager rankings were
AMP Capital Investors and Colonial First State, respectively.
Speaking on the results, Macquarie Adviser Services executive director and head
Neil Roderick attributed Macquarie’s success to its client responsiveness.
“We continue actively listening to what our clients want and as part of that we
conduct research and focus groups every year to get specific feedback on our
service levels and how we can keep on improving them, and then we invest a lot
of money in doing that,” he said.
“[The survey results] demonstrate to me that you can still be very big and lead
in service – often there is a perception you can only lead in service if you are
small and nimble, [but] Macquarie Adviser Services manages over $43 billion
worth of monies, the majority of which is in cash and wrap, which shows you can
be big and good at customer service.”
According to St George group executive, wealth,
Geoff Lloyd, consistency of service is the driving force behind Asgard’s
success, highlighted by the fact the platform provider has ranked in the top
three of the survey’s platform category since 2002, including the number one
position in both 2005 and 2006.
“Our goal is consistency when it comes to service – not just trying to be number
one every year,” he said.
Wealth Insights managing director Vanessa McMahon told Money Management
that as well as identifying the top players in the industry, the survey also
highlighted specific aspects of platform service that advisers consider to be
most important, such as a comprehensive managed fund menu, accurate reporting,
value for money and the ability to resolve errors quickly.
Planners upbeat with market conditions
Money Management
4 May 2007
Mike Taylor
Sentiment among Australian financial
planners is about as good as it gets, according to the latest ASSIRT
Wealth Insights data.
The data, the result of a survey conducted in April and covering a
sample of more than 400 financial planners, reveals almost unprecedented
levels of positive sentiment, not only with respect to current
conditions but moving into the future.
According to the managing director of Wealth Insights, Vanessa McMahon,
the latest research findings highlight the sheer confidence of advisers.
“Such openly positive sentiment and an obviously thriving industry are
led by a fourth consecutive year of upbeat investment markets,” she
said. “Business is brisk and advisers are very happy.
“The general mood of most advisers is very positive, which is in stark
contrast to a few years ago when advisers were struggling with the
introduction of Financial Services Reform, poor investment markets and
highly publicised shadow shopper surveys,” McMahon said.
The survey was conducted in the first two weeks of April and is
available from Wealth Insights.
Asked whether in their role as a financial planner, times were “good or
bad for you right now?” an overwhelming 87 per cent of respondents said
things were either “good” or “very good” right now, with 59 per cent
indicating things were “good”, while 28 per cent said things were “very
good”.
The survey respondents were equally bullish when assessing how the
market would treat their clients over the next 12 months, with nearly 95
per cent expecting that returns would be in positive territory.
The planners were asked to think about the financial planning industry
as a whole, and then to assess whether returns on the average portfolio
“will be good or bad over the next 12 months”.
The data revealed that 95 per cent of respondents expected average,
good, or excellent returns, with only 5 per cent expecting below average
returns.
What was particularly significant about the data was that it indicated
that 51 per cent of respondents were expecting good returns, while 2 per
cent were expecting excellent returns.
The good news for the financial planning industry is that most of the
respondents expect that the good times will continue to roll through the
next 12 months, with 77 per cent indicating they expected to be either
“better off” or “much better off”.
Asked whether their businesses would be “better-off or worse off over
the next 12 months”, 67 per cent of respondents said they expected that
it would be better off, while 10 per cent said they believed it would be
much better off.
Twenty-one per cent said they believed their businesses would be much
the same and 1 per cent said they believed they were likely to be worse
off.
The good news for the Federal Government flowing from the survey is that
financial planners are generally very positive about the state of the
economy.
The respondents were asked to think about economic conditions in
Australia as a whole, and whether they thought the Australian economy
would have good times or bad times over the next 12 months.
Sixty-one per cent of the planners said they expected economic
conditions to be good or very good, while 37 per cent said they were
expecting both good and bad. Two per cent said they expected bad
conditions.