MARCH 2017
FINTECH
DIGITAL REVOLUTION Use Fintech to Grow Your Business
No more Financial Advisers Act
Is this the death of salesmen?
Time to nail your plan
LEAD STORY
UP FRONT
DIGITAL 16 REVOLUTION
04 EDITORIAL
Ammunition for advisers.
07 OPINION Is there still a role for sales?
08 PEOPLE New appointments.
22
Use Fintech to Grow Your Business What is fintech and what might it mean for you? Philip Macalister investigates.
PROFILE: ON A FINTECH MISSION REGULARS
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{OPEN TO QUESTION} { INVESTMENT }
{ INSURANCE } { ASSET ADVISER }
06 What will 2017 mean for you?
21 Jennings’ new venture 30 Plan for your business future
20 Pie Funds relaunches key product 24 Advice role has intangible rewards 28 “Big macro” hits peak
10 Playing field still in big firms’ favour 14 What’s good and bad about law changes 19 Fintech changing estate planning 03
UP FRONT
{ FROM THE PUBLISHER }
AMMO FOR ADVISERS?
S
04
ometimes it seems like an oxymoron that financial services and technology go together like roast lamb and mint sauce; but they do. It’s clear that organisations such as banks are keen to embrace technology. It’s a way for them to service mass markets, to cut costs and to improve their bottom lines. Indeed, most banks trumpet what they are doing in the digital world when it comes to reporting time. For advisers, though, the proposition is different. You run high-touch, personalised services. It’s nearly like the old-fashioned way of doing business. Added to that is technology is seen as being for millennials and other “young” generations. We all know the financial advisory industry has an average age somewhere in the mid to late 50s, and there is a strong bias towards males. If you think about clichés it’s blokes in their man caves with planes, saws and drills! Last month I had the pleasure of attending New Zealand’s first fintech conference, organised by Binu Paul, founder of SavvyKiwi. We often hear about roboadvice. While this was part of the conference there was also lots of other interesting things. A point that may be of most interest to advisers is that technology is allowing start-
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ups and competitors to challenge banks. A great example of this is the peer-topeer lending space. Start-ups such as Harmoney are offering clients better rates, and more importantly, setting rates based on risk, rather than one-size-fits-all. On the other side of the equation investors are being offered some enticing returns (commensurate with the risk taken on of course). It’s generally agreed that banks are the biggest competitors financial advisers face. But maybe, just maybe, technology will become a tool that advisers can take into this battle. One thought, which does seem outlandish, is that technology may make banks less relevant in our lives in the future. The first signs of this are tools like ApplePay and blockchain technology. (If, like me, you don’t know much about blockchain read this issue’s lead story, where we give an explanation of how it works.) While roboadvise won’t happen until the new financial advice legislation comes into force, there’s plenty of work going on in this area already. A great example is a recent deal where Booster (formerly Grosvenor Financial Services) teamed up with Australian firm Big Future. Booster says it will implement BigFuture’s current technology and work with BigFuture to create the next wave of technology for their clients and financial advisers. We have more on this in the lead story. But the key point is that it’s not about technology replacing advice. Rather, it’s using fintech to build better advisory businesses.
Philip Macalister Publisher
HEAD OFFICE 1448A Hinemoa Street, Rotorua PO Box 2011, Rotorua P: 07 349 1920 F: 07 349 1926 E: editor@tarawera.co.nz PUBLISHER Philip Macalister EDITOR Susan Edmunds CONTRIBUTORS Russell Hutchinson, Scott Berg DESIGN Jonathan Harding ADVERTISING SALES Kelly Thorp kelly@tarawera.co.nz phone 07-3491920 SUBSCRIPTIONS Dianne Gordon P: 0800 345 675 E: dianne@tarawera.co.nz ASSET is published by Tarawera Publishing Ltd (TPL). TPL also publishes online money management magazine Good Returns www.goodreturns.co.nz and The NZ Mortgage Mag All contents of ASSET magazine are copyright Tarawera Publishing Ltd. Any reproduction without prior written permission is strictly prohibited. ISSN 1175-9585
OPEN TO QUESTION
JESS WAHLSTROM,
GAVIN DIXON,
NICKI SPENCE,
WHERE DO YOU SEE POTENTIAL FOR GROWTH IN YOUR BUSINESS OVER THE COMING YEAR?
WHERE DO YOU SEE POTENTIAL FOR GROWTH IN YOUR BUSINESS OVER THE COMING YEAR?
WHERE DO YOU SEE POTENTIAL FOR GROWTH IN YOUR BUSINESS OVER THE COMING YEAR?
MONEY EMPIRE
Over 2017, we definitely see potential for growth in the advisory space. We find the market is flooded with typical transactionbased services and we want to be able to build strong relationships and provide service-based advice.
WHAT DO YOU EXPECT TO BE THE BIGGEST HURDLE? Our biggest hurdle this year will be the ever-changing market, particularly around lending criteria and restrictions, along with compliance.
WHAT'S ONE THING YOU WILL TRY TO DO DIFFERENTLY IN 2017 We don't feel like we'll do anything particularly differently at Money Empire - it's more about continuing to assist Kiwis to achieve their financial goals, be it buying their first home (or third!), protecting what’s important to them, or gaining more structure and clarity in their day-to-day finances.
BRITANNIA
Around the need for retirement planning for pre-retirees. There will be big changes to retirement – both social (what you want to do and why) and economic (how do you pay for it) over the next decade or so – driven also by political factors. As an industry and company we need to ensure we are there to help people plan. Our core UK pension transfer business will remain an integral part of our overall retirement offering. There remain good numbers of skilled migrants coming from the UK and one of the key areas for them in settling into New Zealand is about sorting their finances and in particular about domesticating their UK pension.
WHAT DO YOU EXPECT TO BE THE BIGGEST HURDLE? The biggest hurdle is ensuring that our clients feel they can have honest financial conversations with us. People vary hugely in the way they look at the future and we need to be objective in our advice so as to best help them plan for the future in a way that is relevant and meaningful.
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I see potential for growth everywhere! The challenge for me is actually deciding where to channel my efforts, because almost no matter where you look at the moment there is opportunity.
WHAT DO YOU EXPECT TO BE THE BIGGEST HURDLE? I think the biggest hurdle for me (and potentially a lot of other advisers as well) is going to be staying focused on core business while also staying informed about (and compliant with) the changes that the new legislation may require. Changing too early as a reaction to the release of the draft could potentially be just as bad as changing too late if it isn't in the right direction.
WHAT'S ONE THING YOU WILL TRY TO DO DIFFERENTLY IN 2017 I'm going to take more time off!
WHAT'S ONE THING YOU WILL TRY TO DO DIFFERENTLY IN 2017 This year it will be about several things but all aimed at getting people to think more about their retirement – what they want, how they should go about it and how their investment through Britannia can help.
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SPENCE ASSETS
OPINION
DEATH OF A SALESMAN?
The new legislative regime may be going back to the future.
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hen the Financial Advisers Act review options paper from MBIE came out and had “agents” mentioned as a possible adviser classification it certainly got me thinking. I, along with many who I still know in the industry started just like that – as agents. For me it was Government Life but there was plenty of choice – from memory there was 37 life companies back then in 1977. And as we were very much seen as “salespeople” back then I thought it would be interesting to see if anything has really changed. The classification has now changed to “representatives” but the intent remains the same. The primary business of every business is to stay in business – don’t think much has changed there! And to do that you have to get and keep customers. This is usually interpreted to mean that you have to sell what you have. “Nothing happens until someone sells something” : While there may be confusion who first said this from Henry Ford to Peter Drucker, there is little doubt that even in this age of the internet, social media and other forms of direct marketing, personal selling is still a major tool used by financial services firms. It may be reducing things to callous simplicity to say so, but the fact is that everybody is selling something the minute he or she opens his or her mouth. All of us are constantly selling something, even if only our skills and personalities. But some people sell professionally – it is their life, their bread and butter. Selling is as basic to society as metabolism is to life and since our society is committed to the system of free enterprise you would think that salespeople would be honoured citizenswe keep the system in good shape, keep the wheels of industry turning. But we are not – especially in the financial services sector – many surveys just do not rank us let alone trust us. We now have the debate on the “client’s best interests’” going on
{ FRED DODDS }
" When the seller-buyer relationship is just a transaction the buyer often has some suspicion. This has been borne out in surveys where clients say that “commitment” is missing too often from advisers."
and so it should. There is a natural difference of interests between sellers and buyers – not necessarily a “conflict of interests” but a natural difference. The seller knows more about the product or service than a buyer. The seller is an expert, the buyer often, at best, a well-informed amateur. When the seller-buyer relationship is just a transaction the buyer often has some suspicion. This has been borne out in surveys where clients say that “commitment” is missing too often from advisers ie the “I’ll keep in touch – yeah right!” Those professional salespersons who dig deeply enough at interview time, discover the real needs of the client, can reduce this suspicion and raise the positive element of satisfaction. In this process the seller will also sell more, keep more and above all create and get more customers. So my ad for some more financial services professionals: ▶ The need for financial services professionals in NZ is huge to service and “sell” products and services to a growing marketplace. ▶ Providing financial services is challenging and rewarding as a career. The industry is large and diverse with many choices to match your skills and interests. ▶ You will find enjoyment and satisfaction in helping others. Helping families or individuals take steps toward doing the right thing with their money because you educate them – you will make a difference in people’s lives. ▶ Nearly everyone is a potential client! Think about it. Who doesn’t need advice on life and health insurance, mortgages, debt consolidation, retirement planning, investment, estate planning… ▶ You and only you will determine your income level. You get to choose how hard you work, how long you work and how many clients you want to work with. I think I might reapply! Fred Dodds is chief executive of the Institute of a Financial Advisers.
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ASSET UPDATA FRONT ADVISER
a new appointment email details { PEOPLE } Ifandyoua have picture to editor@goodreturns.co.nz
NEW CEO FOR FISHER
Bruce McLachlan Bank boss Bruce McLachlan is taking over as chief executive of Fisher Funds. In a statement to investors, Carmel Fisher said he would start in the role on April 18. She said he had a wealth of experience in the sector and a passion for client service. "When we began our search for a new chief executive, we wanted someone who understood and was excited about maintaining and growing the wealth of New Zealanders. We wanted someone who would maintain our longstanding performance record and our commitment to exceptional client service. Bruce was an obvious choice for the role," she said. McLachlan has been chief executive of The Co-Operative Bank for the past four years. Before that, he worked for 10 years at Westpac NZ, where his roles included leading both its business banking and retail banking businesses; he was also Westpac NZ's acting chief executive during 2008/9. "I know that you will warmly welcome Bruce and we hope you will take the opportunity to meet him during our
roadshow in May/June," she said. "As previously advised, I will continue to be a shareholder, director, member of the Investment Committee and very interested observer of Fisher Funds. Thank you for your continued support and interest in Fisher Funds. We have an exciting future ahead of us." McLachlan said Fisher Funds' values aligned closely with what he had been doing over recent years. He said it was a customer-orientated company, that was not bureaucratic. "I think they've got a great opportunity to continue growing in the New Zealand market. They are quite different to other providers." For the past three years, The CoOperative Bank has been distributing Fisher Funds' KiwiSaver product. "I've been working with them for a number of years and feel that confidence in them," he said. "We've put a lot of Co-Operative Bank customers into their KiwiSaver." McLachlan has been commuting to Wellington for his bank role, so the Auckland-based Fisher role appealed for personal reasons, too, he said.
organisations. "We are looking forward having Christine as part of our sales team and believe she will add significant value to advisers in this role," sales manager Andries van Graan said.
NEW DISTRIBUTION BOSS FOR SOVEREIGN
Anna Schubert A newly-created role will be charged with helping to grow adviser businesses at Sovereign. Sovereign has appointed Anna Schubert as its head of retail distribution. She will focus on the insurer's sales department, supporting and growing adviser businesses, and launching the new loyalty programme, Ascend. Schubert has more than 25 years' experience in the industry, 20 of them with Sovereign. She has held many senior roles including head of SovNet and QFE, senior manager distribution development and regional manager adviser sales centre in recent years. She played a key role in launching the Sovereign Women in Business sessions.
NEW FACE FOR PARTNERS
Partners Life has appointed Christine Greer to the role of sales manager as part of their growth strategy for the Waikato/Bay of Plenty area. Greer comes to Partners Life with a wealth of business experience from ANZ, ACC and IRD. More recently as she was the business training manager at ANZ. Greer worked with small and medium businesses to help make them more successful. Her background includes sales consultant and relationship manager roles with large private and government
AUCKLAND OPPORTUNITY
We are advising our client on the sale of their Auckland Brokerage This business is well organised and resourced with a fully integrated structure. A marketing division, qualified advisors and good administration. The business offers a full service financial planning, including risk, savings, investment and mortgage broking. If you wish to create or expand your foot print in the Auckland area, this could be your opportunity. The asking price of $1.5 Million is supported by good profitability and varied recurring income streams.
Mike Moore 021 974 231
Maree Porter 021 874 231
maree@mikemoore.co.nz
www.mikemooremarketing.co.nz 08
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ASSET UPDATA FRONT ADVISER
in her spare time she is a patrol captain at Piha and regularly features on Piha Rescue.
FIDELITY APPOINTS NEW CUSTOMER OFFICER
Fidelity Life has recruited from Suncorp to fill a new role. It has appointed Don Allerston to the new role of chief customer officer. Allerston has a wealth of experience in the financial services sector with a background in customer experience, innovation, marketing, transformation and strategic leadership. Most recently he was executive manager, customer strategy and innovation at Suncorp for five years. Before moving to New Zealand from the United Kingdom he worked with a number of financial services brands internationally including AMP UK Financial Services, AXA, and Royal and Sun Alliance. Allerston’s appointment follows the announcement last year that a number of senior level changes would be made at Fidelity Life to realign the organisation’s operating structure. “I’m very excited to welcome Don to Fidelity Life. He is an extremely talented and experienced marketer who brings proven ability in driving customer strategy and innovation within an adviserfocused structure,” said chief executive Nadine Tereora. Allerston will join the company’s senior leadership team and takes up his new role at the beginning of February.
ANZ RINGS CHANGES
Craig Mulholland ANZ Bank New Zealand has announced changes to its executive leadership team in the wealth and retail channels. Craig Mulholland has been appointed managing director wealth, which is a role
John Body previously filled. Wealth includes the bank's investment business, KiwiSaver and its insurance arm OnePath. Mulholland joined ANZ New Zealand in 2011 as general counsel and company secretary having been at Telecom since 2000. At Telecom he held a number of legal, commercial, transactional and governance roles including head of technology and capability planning, general manager of customer services Australia and group company secretary. He has also been in private legal practice. Antonia Watson has been appointed ANZ New Zealand’s managing director retail and business banking. ANZ's mortgage broking channel and specialist distribution reports into Watson.
James Camons began his financial services career with the Southern Life Insurance company in South Africa. He graduated from Stellenbosch University with a post-graduate diploma in financial planning and qualified as a certified financial planner in 2012. Last year, Camons emigrated to New Zealand and established Phoenix Financial Solutions on Auckland’s North Shore. He provides personal and business insurance solutions including life, income and mortgage protection, disability, trauma, fire and general insurance, KiwiSaver, health insurance, and advice to businesses on key person cover, group insurance plans and share purchase agreements
NEW FACE FOR AEGIS
PRIVATE WEALTH ADVISERS EXPANDS
Lianne Murphy Grant Lowe Boutique investment advisory firm Private Wealth Advisers has appointed a new adviser. Grant Lowe has worked in financial markets for 20 years both in London and New Zealand, with 13 years’ experience as an investment adviser. He has spent the last nine years working for a large private bank, where he advised and managed portfolios for high net worth individuals, family offices, community and charitable trusts. Lowe is an authorised financial adviser, certified financial planner (CFPcm), and a member of the Institute of Financial Advisers. He also holds a Graduate Diploma in Business Studies (Endorsed in Personal Financial Planning).
NEW FACE FOR PLUS4 A new adviser has joined Plus4 Insurance Solutions.
ASB has named a new general manager of its investment platform Aegis. The bank’s head of commercial and rural sales in ASB's global market team, Lianne Murphy, has been appointed. She has more than 15 years of senior experience in share broking and global markets. ASB executive general manager wealth and insurance Adam Boyd said Murphy had a long and successful history of leading teams responsible for client servicing and relationship management. “Lianne’s unique combination of skills, background and strengths made her the obvious choice for the Aegis leadership role as we continue to grow and build our capabilities as a bank-backed platform,” Boyd said. Aegis holds more than $12.5 billion in funds under administration. Murphy took up the role on January 23, replacing Angela Busby, who moved to Sovereign.
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REGULATION LEAD STORY
PLAYING FIELD STILL TILTED IN BIG PROVIDERS' FAVOUR New legislation to govern financial advice has been revealed but does it just hand QFEs a free pass? By Susan Edmunds.
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long-awaited draft of new rules to govern financial advisers has been revealed. But some advisers say it's delivered a home run for big providers, while adding more work for the little guys. The Financial Services Legislation Amendment Bill has been revealed by the Ministry of Business, Innovation and Employment. Although the industry had expected a rewrite of the Financial Advisers Act, the bill instead amends sections of the Financial
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Markets Conduct Act (FMCA) to include advice-specific regulation. This means industry players now have a much bigger Act to get their heads around. But it gives the Financial Markets Authority instant access to the licensing toolbox and other mechanisms that exist under the FMCA, to deal with their new work with advisers. The bill introduces new designations to replace authorised financial advisers, registered financial advisers and qualifying financial entity advisers. Instead, there
will be financial advisers, financial advice representatives and financial advice providers. It looks as though registered and authorised financial advisers will largely continue as financial advisers, while those working for a qualifying financial entity will become representatives. Financial advice providers – which can be a person or a firm – will be licensed to provide a financial advice service and to take responsibility for representatives under their watch.These representatives have much lighter regulatory requirements than advisers.
REGULATION LEAD YROTS STORY DAEL
"The line between 'sales' and 'advice' has not been drawn. "
WHEN IS ADVICE REALLY SALES?
“Financial advice products” will replace what are currently described as category one and two products. They also include things such as DIMS, insurance contracts and consumer credit contracts. Advisers who are currently registered financial advisers will have to step up - they will operate under the same sort of rules AFAs currently work with. All advisers will have to provide uniform disclosure to their clients, but the disclosure rules will sit within regulations rather than primary legislation.
Through 2017, MBIE will engage with the industry and consumers to develop those rules. The industry will be bound by a code of conduct that will introduce requirements such as new minimum qualification requirements for all financial advisers. A working group will be appointed in the first half of this year to produce it. It is expected that the new code will be approved by August 2018 and the new regime will take effect six months later.
One of the biggest concerns for independent financial advisers about the new bill is the financial advice representative designation. During the options paper process, there had been discussion of a carve-out of sales versus advice services. "We have heard that the distinction between advice that puts the interest of the customer first, and what is essentially sales activity, remains blurred," then-Commerce Minister Paul Goldsmith said. A survey by the Ministry of Business, Innovation and Employment found almost 90% of consumers said clarification would help them better understand the industry. One of the options proposed was a "salesperson" category, in which people would not have to put the customer first - but would have to notify them of that - and could only sell their own provider's products. But banks argued strongly against the idea in their submissions on the options paper, saying it was unworkable. MBIE said it had abandoned the idea of including "agents" in the final legislation because of the way that term was used in the industry. It settled on "representatives" as an alternative. Both advisers and representatives have to make clear any limitations on their advice. But representatives will work on behalf of advice providers, and will not be individually accountable for compliance with conduct and disclosure requirements. PAA chief executive Rod Severn said the representative designation was a problem. "While the earlier proposed term ‘agent’ may have had its own set of confusionchallenges, the newly proposed designations - FA and FAR - take that confusion to a new level,” he said. "The line between 'sales' and 'advice' has
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REGULATION
{ FRED DODDS }
"MBIE seems really confused here – and is solely focused on competency – which is gained through experience, training and CPD. " not been drawn. The new designations FA ‘financial adviser' and FAR ‘financial advice representative' do not communicate to the public the essential difference between sole-provider advisers and those with access to multiple providers. It also does very little to differentiate between someone providing advice for which they take individual responsibility, and those who don’t," he said. "The exposure draft states that financial advice representatives will not be individually accountable for compliance with conduct and disclosure. In our view, to increase public trust and confidence and to place the interests of the public first, all advisers must be individually accountable for their advice. "We don’t support a structure in which
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some 25,000 FARs - ex-QFEs - can provide ‘advice’ on one provider’s product and without individual accountability. If FARs are to provide ‘advice’, they should also be individually accountable for the advice they provide. The public deserves a better outcome than this. Crucially, this kind of structure would impede the development of a professional advice sector in New Zealand; accountability is fundamental to providing client-first advice." He said it was not clear what incentive there would be for someone to register as an adviser, with compliance cost, obligation and accountability, when they could be a representative with no accountability for compliance, under the protection of a licensed financial service provider. IFA chief executive Fred Dodds said it looked as though representatives would get a free pass on their qualifications. He said, with the draft indicating that in-house training would be an option for representatives, it would consign the next generation of QFE employees to being "formally unqualified under NZQA and having no portable qualifications. It will have a devastating effect of reducing the potential number of advisers for the future." They will not have to meet the competence or qualification requirements set out by the code, which may be a level five certificate. "It seems MBIE seems really confused here – and is solely focused on competency – which is gained through experience, training and CPD. MBIE seem to ignore knowledge – gained through learning, the standard being a ‘qualification’. Every adviser needs both. They are not mutually exclusive. The standard has been previously set at level five and now MBIE seem to want to avoid this?" Adviser Murray Weatherston argued the bill seemed to show "complete capture" by the institutions. "Realistically, not much is going to change. What is proposed will allow the big end of town to proceed merrily with their sales processes, with legislative sanction that what they are really doing is giving advice. If this isn't what the banks were after as the holy grail for them, I don't know what would have been." Industry commentator David Whyte said the draft was disappointing. "From a consumer perspective, I fail to see the difference between the functions carried out by a financial adviser and a financial advice representative. From a commercial advisory entity in the distribution space, I fail to see the attraction of engaging financial advisers. From an individual adviser's perspective, I fail to see the attraction of being a financial adviser. "I fail to see how when a bank employs a financial advice representative to sell bank
products, he or she can possibly put the client's interest first. I fail to see where the title 'financial advice representative' provides adequate
distinction from the term 'financial adviser'."
CLIENT FIRST
The bill says advisers have a duty to put a client’s interests first and, for the first time, lays out a framework of how they might be expected to show they are doing so. But that is already causing consternation. It says that if they know, or ought reasonably to know, that there is a conflict between the interests of the person to whom advice is being given, and their own interests, or the interests of any other person, “[the adviser] must give priority to [the client’s] interests, including by taking all reasonable steps to ensure that the [adviser’s] own interests or the interests of any other person do not materially influence the advice.” Weatherston said that was too broad. “Any could mean anyone – what happens with a sharebroker who is allocating a float? There’s conflict between what they would give me or you. "It’s fine to put meat on the bones and I’m personally pleased that my articulation of what I thought it meant is pretty right but with this ‘any other person’ I don’t think the people who wrote the legislation understood what they were writing." David Ireland, of Kensington Swan and chair of the current code committee, said the committee would make a submission on the point. He said, as it was written, it was not viable. “Any means any, with no wriggle room other than it only extends to where the financial adviser ‘ought reasonably to know’ that there is a conflict.” He said the way the bill had been framed was unfortunate in that regard. “Irrespective of your views on whether the standard should be client first or best interests of the client or some alternative formulation of that sort of concept, code
REGULATION
standard one [placing clients' interests first] has been fundamentally altered and its application narrowed by the way it has been reflected in the draft legislation. “The explanation we have received as to the rationale behind that draft wording convinces me that the substance of the obligation should revert back to the code, where it does not require the tightness of a legislative straight jacket and can remain a principles-based requirement. “To give effect to Parliament’s policy decisions, the Act could simply note the obligation to place the client first must be discharged in accordance with the code – or something similar. That way the financial advice sector and consumer interest groups get a decent opportunity to help the code working group properly couch this core obligation of the new regime.”
TRANSITION TO A NEW REGIME
MBIE wants feedback on its proposed arrangements to move the industry to its new regime. The bill proposes that all existing industry participants would need to be engaged by a firm with a transitional licence by February 2019. Two years later, they will need to have a full licence. At a minimum, transitional licences will enable existing industry participants to continue providing their current advice services for a further two years. Authorised and registered financial advisers will be able to continue as financial advisers, and QFE staff will work as representatives. Existing industry participants who do not meet the new code of conduct competence, knowledge and skill standards by 2019 will be protected by a safe harbour that will enable them to continue providing the same advice services that they can currently provide for up to two years. But even then, not all advisers will have to go back to study if they do not have required qualifications. The bill suggests that existing AFAs could have five years’ exemption from meeting the competence, knowledge and skill standards in the new code of conduct and could continue providing the financial advice services which they are currently able to. “This recognises that AFAs have already completed the National Certificate
FINANCIAL ADVISER:
An individual who is registered under the FSPR Act in relation to a financial advice service. A financial adviser can only give advice on behalf of a financial advice provider, or if they are a sole trader, on their own account.
FINANCIAL ADVICE REPRESENTATIVE:
An individual who is engaged by a financial advice provider to give financial advice and is not a financial adviser.
FINANCIAL ADVICE PROVIDER:
A person, or a company, that provides a financial advice service. The provider may give advice itself or may engage advisers and advice representatives to do so on its behalf.
in Financial Services, which, based on the feedback received throughout the review, is considered by many to be broadly appropriate.” That would mean, if the code brought in a requirement higher than level five, AFAs would have until 2026 to meet it. Another option proposed is that existing AFAs and RFAs could demonstrate that they meet the competence, knowledge and skill standards through an assessment process that recognised prior learning and experience. “This option recognises that there are a large number of experienced AFAs and RFAs who may not have a qualification which is recognised in the new code of conduct and would not benefit from being required to undertake one,” MBIE said. MBIE suggested this process would be open to advisers who have been in the industry at least 10 years. It could involve an assessment process including reviews of file records, tests and interviews. Dodds said this might not be popular with advisers who had already achieved the level five certificate. “I can hear the screams of protest for the 1800 AFAs who had to get to level five and it was very evident in the recent Financial Advice NZ Forums that the majority wanted education standards raised.” MBIE said the main purpose of consulting on the draft bill was to check whether the drafting achieved the policy intent or could have any unintended consequences. "In addition, some detailed policy questions remain and we are seeking feedback on these throughout the consultation document." Licensed firms will be subject to the FMCA's compliance and enforcement tools. Individuals will still be dealt with by the Financial Advisers Disciplinary Committee and MBIE is consulting on whether financial advice providers should also be subject to this. The bill also amends the Financial Service Providers Act to tackle the problem of offshore providers registering here to give an illusion of operating under New Zealand regulations.
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007 ADVISER, FINANCIAL ADVISER... LICENSED TO ADVISE What’s good – and bad – about the changes ahead for financial advisers. By Barry Read.
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BIE has released the draft Financial Services Legislation Amendment Bill and proposed transitional arrangements and consultation paper to gather industry feedback on the draft. The bill is the result of the Financial Advisers Act Review which MBIE started in 2015. The bill proposes to merge the Financial Advisers Act into the current Financial Markets Conduct Act (FMCA), which as of December 2016, is now fully in force. This makes sense as we always believed that the FMCA should have come before Financial Advisers Act, anyway, and there is crossover for financial service providers.
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Code of Conduct approved
February 2019*
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Existing industry participants must be transitionally licensed
February 2021*
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Everyone must be fully licensed
August 2018*
THERE ARE SEVERAL THINGS WE LIKE ABOUT THE PROPOSED CHANGES
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Licensing - Having been through the
process of licencing with DIMS and peer-to-peer lending clients as part of the FMCA, it is a more robust way for entities to engage with the Financial Markets Authority. The current registration and authorisation processes are a bit like making a scout promise and hoping you are meeting your obligations. You don’t really know until the FMA takes a look as part of monitoring or an investigation. The licensing process approves your processes and agrees ongoing reporting. So you are on solid ground if you do what you said you do.
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Bill passed and regulations made
2017/2018*
ASSET REGULATION REGULATION DATA ADVISER
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Conduct obligations – Having these
apply across all adviser types rather than just AFAs, as is the case now, is a more level playing field. Currently the code of conduct doesn’t apply to RFAs or QFE advisers, creating an unlevel playing field when it comes to advice.
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Labelling – AFA, QFE and RFA was
confusing to the industry, let alone consumers, so having standardised labels that can then be defined by the specific types of products or advice each adviser can advise on is a better outcome. But the proposed labels need some work. There is still a lot of the detail that is unknown and won’t be known for a while yet. ▶ Competence standards for the different types of advice. ▶ Disclosure requirements ▶ Cost of licencing ▶ Reporting requirements They do describe a timetable for developing these and a process, but the outcomes of those will determine what everyone must do to operate an advice business in the future. One key area of concern, though, is the designations, financial adviser and financial advice representative (FAR). Both must operate under a financial advice provider licence, but the obligations and transparency are very different. The FAR won’t be individually registered on a public register and won’t be individually accountable for their advice or conduct. Their advice services will be limited and the licence-holder will be fully responsible. We believe this creates an issue where individuals could hide under this regime and potentially move from licence to licence without any transparency. This would be a bad outcome. We think there needs to a be a better definition of the types of advice consumers can access and a better description of the advice services they can access under different licence-holders. In July 2015, we suggested that there should be three types of defined advice services. Here is an extract from our feedback to MBIE: Advice comes in all shapes and sizes and from different entities and technologies. The Financial Advisers Act should really be the Financial Advice Act. This could then allow scope for future technologies as well as institutional advice that is not linked to just a person. Also consumers should be able to identify the advice as either financial product information, financial product advice (Currently defined as financial advice) or financial advice (currently defined as “an investment planning service” and could be expanded across a range of services, insurance, debt, property, etc not just investments).
Financial product information – A product provider or distributor is able to provide information on their products to assist consumers in making an informed decision on if they wish to purchase the product or not. This could be provided by a product distributer
The FAR won’t be individually registered on a public register and won’t be individually accountable for their advice or conduct. Their advice services will be limited and the licenceholder will be fully responsible. - Barry Read or sales person who has obligations under section two of the FMCA as the product providers does now.
Financial product advice – A product provider or distributor should be able to assist a consumer in selecting products/ benefits/options and help with advice related to the product such as selecting the right level of contributions or sums insured or interest rate to achieve what the client has stated as their reason for wanting the product. They are not providing a planning service and this should be disclosed.
Financial Advice – An adviser (AFA/ licensed adviser or entity) is a person/place a consumer can go to and say ‘I want some help planning my needs in the area of (investment/ retirement/debt/mortgage/insurance/ property) and then based on that advice I may also want/need some financial product advice to achieve that plan’. This advice should not come from a product provider and should be a separate entity to avoid the natural conflict of interest. Now if we apply this model to the proposed draft bill, the bit that is missing is a clear definition of product providers distributing product via information only or product advice only.
We therefore believe the draft could address this by having two types of licences, a financial advice provider licence and a financial product distributor licence. Product providers who manufacture products should only have a distributor licence which clearly states that product advice and information are the limits of their services and sets the obligations of the entity and their advisers/ distributors. Advisers under this licence should be classed as distributors and not advisers. This could also cover the majority of roboadvice services. Anyone wanting to be a financial adviser is licensed under a financial advice provider licence. Each adviser under this licence is individually registered for the types of advice they give (any or all the ones listed above) in the products and/or services they cover. Then consumers would know when they see the words “financial advice” they are dealing with a licenced adviser who is individually responsible. Competency standards and conduct obligations can then be set by the advice type as well as the product and service types for each adviser and/or distributor under each licence type. This would allow consumers to clearly identify if the person they are seeking advice from is working for a product provider or working for them. Will this happen? We don’t know. what we do know is that in about a year’s time all advice businesses must plan to be licenced.
SO, WHAT SHOULD YOU DO NOW? If you want to have your say on the draft bill then you need to hurry because it must be in by the end of march 2017. We are telling our clients to start thinking about the future of their business. What types of advice, products and clients do they want to be dealing with in the future? If they can clearly articulate what they want their business to look like in three years’ time, then when the bill is passed and the obligations released we will be able to provide them with a pathway to the best structure under the new regime. Now, time for a martini… Barry Read runs Independent Development Solutions (IDS), specialising in helping advisers meet their compliance requirements.
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YOUR GUIDE TO FINTECH Advancing business through technology
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intech is one of those funny words which may not immediately mean anything to you as a financial adviser. Alternatively it may be something that feels like it’s for the big, corporate end of town. But the reality is that all financial advisers should be keeping an eye on “fintech” developments to see what they can use in their businesses. So what is fintech? There doesn’t seem to be any hard and fast definition for this term. One of the better descriptions is fintech is a business that aims to provide financial services by making use of software and modern technology. Three of the bigger New Zealand companies which fall into the fintech space are Xero, Vend and Pushpay. One of the most obvious areas for advisers to think about is roboadvice. Recently Binu Paul’s Savvy Kiwi business held its first annual fintech conference in Auckland. (See page 22) Kiwibank is one of the corporates taking a lead in developing ideas with its support of the Kiwibank Fintech Accelerator. This programme, which is also backed by Xero, Callaghan Innovation and Creative HQ, will initially fund and support eight Kiwi fintech start-ups to build, launch and expand products in global markets. “New Zealand has shown its ability to grow true digital-era disruptors that can foot it with the world’s best so the challenge is to build on that success so others can break into global markets,” Kiwibank chief executive Paul Brock says. It is big business, too. “Global investment in fintech ventures reached $5.3 billion in the first quarter of 2016, an increase of 67% over the same period the previous year. In Australia, the fintech sector is forecast to grow to over $4 billion by 2020, of which $1 billion will be completely new added value to the Australian economy.” Kiwibank itself is embracing fintech and has been developing applications to help in the advice space. Much of the discussion is around roboadvice and what it means to advisers and whether it is a threat to the current status quo. However, Kiwi Wealth senior manager digital and innovation Ramesh Naran looks at robo-advice differently. He says, “financial services has too much friction”. The idea of fintech is to “reduce the friction” and empower more New Zealanders to take control of their financial affairs. To him fintech and robo-advice are complimentary. “There will always be a human point” in the advice process, he says. “The most important thing for us is how to blend the two together.” He told attendees at the recent conference that 77% of KiwiSaver members don’t know what their account will be worth when they retire. To help address this Kiwi Wealth has developed a tool to help its members
Note: These are hypothetical for illustrative purposes only and do not constitute the delivery of advice currently available through Kiwi Wealth understand what their terminal balance may look like. A similar proportion of New Zealanders don’t have financial advice. There are many reasons for this but they include that people
are too embarrassed to see an adviser or they lack the confidence to do anything. Kiwibank is working on developing tools to help investors find out more about their money. They can play with different variables
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and will, hopefully, empower them to make financial decisions. These tools “give people reason and motivation,” he says. But there is more to it than just helping motivate people, he says. Already, firms in the United States and other countries are using artificial intelligence to serve up messages and insightful information to investors. Naran says AI is being used to predict what a customer is going to do next and to offer up information and options. An example of this is when someone looks to exit or withdraw from an investment. AI would be used to deliver a message, or maybe a video, asking them if they are doing the right thing and offer options and solutions. Naran says to deliver great customer experiences roboadvice needs to be simple, intuititve, personalised and be fun and engaging. At the conference he showed a basic way fintech could be used to engage with clients. In this example (see illustration) roboadvice would use customer information and software algorithms to see if a customer’s investments were matching up to their goals. In this example an app delivers a message providing some recommendations. The customer could select one and easily make changes such as switching to an appropriate fund or changing contribution levels. Naran stresses this is a hypothetical illustration and can’t be done yet. But it does illustrate what the future could look like. He says there are challenges ahead including regulation consumer protection and legislative changes.
REGULATIONS
One of the biggest questions is where does regulation fit into this sector? Financial Markets Authority capital markets director Garth Stanish says the regulator is supportive of innovation. He told the conference that the FMA was “pro-growth and innovation”. “We are not starting from the position of saying no,” he said. “We are very keen to say yes.” Stanish said while the FMA was “very supportive of growth and innovation,” it also had to ensure that the risks were appropriately moderated. Financial services is facing “unprecedented technology change”. In the past technology had been dumped on the market without risks being known. “Technology is equal parts fear and excitement,” he said. When it comes with dealing with the regulator, Stanish offered this advice. Try to understand the approach of the regulator. By nature the FMA will be sceptical. Be proactive and start discussions early. Start talking at the hammer and chisel stage, he says, not two seconds before the curtain goes up. Also, he advises that the regulator is interested in people and culture and how things are done in an organisation. Going to a
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New Zealand has shown its ability to grow true digital-era disruptors that can foot it with the world’s best so the challenge is to build on that success so others can break into global markets. – Kiwibank chief executive Paul Brock meeting and having advisers or lawyers doing all the talking isn’t a good option, he says. “Avoid being angry or aggressive.” Regulators have a strand of DNA which is hair trigger sensitive to aggressive behaviour, he says. Law firm Chapman Tripp said, in a review of the Australian fintech sector, that there were some good lessons from across the Tasman. “New Zealand needs a clear policy direction from government to keep pace with international developments and to capitalise on the momentum it created as a pioneer for the crowd funding and P2P industries,” it said in a Brief Counsel note. The government should consider: ▶ establishing a Fintech Advisory Group of financial services technology leaders, officials, and other market professionals to provide policy advice on issues important to New Zealand’s FinTech Industry ▶ establishing an Innovation Hub within the FMA to engage on a targeted basis with innovative fintech start-ups and financial services firms ▶ consulting on our own Regulatory Sandbox or other measures to remove barriers to entry, and ▶ engaging further with industry and overseas regulators on offers of innovative products and services in consumer credit, payments and remittance, digital-advice, blockchain and lending services, on how best to facilitate fintech innovation in New Zealand, both for start-ups and larger existing financial service providers. The firm says that fintech is a highly
competitive area. “Unless New Zealand moves rapidly, we may find ourselves vulnerable to innovation from offshore.”
BLOCKCHAIN
You may have seen the term blockchain around the place and it would be odds on that few people really know what it means. Before trying to describe it, is worth noting Stanish’s comments about how big it is likely to be: “Blockchain now is like the internet in 1990,” he says. The technical description is that block change is a double entry, permission-based ledger. Essentially all the parties involved in process or transaction can be involved in the project and can track it the whole way from beginning to end. To put into a practical perspective think how it could be used for insurance applications or claims. If all the parties using blockchain, in this case, client, adviser, life company, underwriter claims manager, are involved they can see where things are at and where the roadblocks are. Or as IBM blockchain leader Michael Aaron said: “Blockchain is about removing the friction in a transaction or process.”
DISRUPTION
The other key feature of fintech is that it is being used to disrupt the traditional players in the financial services sector. Banks are clearly the biggest target because of their size. One current example is the emergence of peer-to-peer lending. In New Zealand peer-to-peer lenders like Harmoney are attacking the banks in the personal lending market. To date, Harmoney has lent $426 million and this includes 10,725 loans for debt consolidation. As Squirrel Money founder John Bolton says, peer -to-peer lending is primarily a banking technology play. “We have built a platform that can do secured and unsecured lending, term deposits and call accounts. We put in a secondary market, an App and auto-invest.” H2 is a venture capital investment firm which focuses on innovation and digital disruption in the wealth and financial services sector. Chief executive Ben Heap put the size of disruption into perspective, saying Australian banks currently have $27 billion of business at risk from current fintech activity. The message is simple. Fintech has started and it is likely to disrupt many parts of the financial services sector. Sector players need to watch what’s happening and find ways to enhance their service and offering. Philip Macalister was a guest at Savvy KiwiSaver’s Finnotec conference. The Finnotec conference may be expanded to run over two days in Auckland this year. Mark these dates in your diary: November 2 and 3. For more information email binu.paul@savvykiwi.co.nz
FINTECH
CHANGING THE FACE OF A DULL PROCESS Writing wills and estate planning is, arguably, one of the duller tasks in the financial services sector. But to Perpetual Guardian fintech is changing the face of this important task and allowing the company to grow on a global scale.
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incoln Watson, who is the general manager of IT at Perpetual Guardian and its subsidiary KÕwhiri says digital tools are bringing what has essentially been a forgotten conversation back into the mainstream and enabling it to be included within financial service relationships. He says people's asset bases have been growing significantly, but unfortunately estate planning has been missing from the service equation. “The traditional providers of estate services haven’t done enough to drive the improvements needed to adequately ensure enough people’s assets are protected and transferred how they want.” “Estate planning customers give you permission to have a long-term relationship with them. When we look at the information they provide about who their family is, their children, what assets they hold and their value – whether they have one house or many, what investments they have and what protection they have in place. That data starts to become uniquely holistic and rich. It can also be a predictor for what is going on in their life.” Watson says the historical view of the trusted adviser is breaking down where the power of “agency” is being taken back by the consumer. “The consumer is driving the choice of who, when and how they purchase. Often they will now spread their relationships across multiple providers based on their specific needs and how easy it is to join.” What this means for the industry is that
Digital services are removing the historical issues of inefficient delivery and the stuffy air of mystery that the estates industry suffered from. now unfortunately that we often can’t count on a guaranteed “share of wallet”. Systemically we are missing out on the conversations that allowed us to sell our other services in a manner that we controlled. We have always had to compete to maintain our presence with customers, however technology disintermediation happens at a frightening speed as anyone who has been on the receiving end of it will attest to. Business and digital strategies now need to proactively determine whether you are going to build and compete, buy into and
share the upside, partner and share or lose to technology companies. Many of these issues are caused by the manual nature of estate planning service delivery. Estate services are often delivered passively as a tag along with other services or fall through the gap between financial services provider’s offerings. Digital services change the dynamics of the offering; enabling education and accessibility for consumers and for providing improved productivity, quality and the opportunity to and gain significant insight and interaction with those clients as longer term connected relationships. “We see that when delivered digitally, it is significantly easier for organisations focused on providing solutions to their customers rather just selling a product, to add value into their customer relationships with additional services.” Unsurprisingly, the early adopters of these services are mostly non-traditional providers. They are seeing the opportunity to generate additional revenue by closing the loop on conversations they are already having with the clients about risk and their long-term financial goals. “We are removing the mystery from the law and simplifying services that can be delivered by technology at a fixed price. Most estate plans are quite straight forward, however an online service is not necessarily right for everyone. As a client’s needs become more complex we have found that being able to facilitate an adviser based process efficiently has been extremely well received. Watson says Perpetual Guardian is looking to grow in various markets across the world. He says artificial intelligence holds particular interest for the business. “At the simple end of the scale we are looking at the opportunity to utilise chatbots for a more interactive user experience. At the higher end the capabilities of AI will create interesting opportunities as we develop out our product set and we will be including them in our second and third horizon plans. Blockchain is also an interesting technology, he says. The fundamentals of providing for secure, long running contracts fits well with estate planning and the ability to have a very simple to manage registry aligns well with the industry needs. “Our research has indicated that the economics of delivering cost effective services is not right just yet but is one we will be keeping an eye on.” “Digital services are removing the historical issues of inefficient delivery and the stuffy air of mystery that the estates industry suffered from. “What was a one to one process can now be efficiently delivered at scale with improved information and value. Additional long term and emotionally strong connections become available at important times in customers lives – benefiting both consumers and providers. “With these improvements the barriers that made it difficult for organisations to deliver estate planning within their current conversations have been removed.”
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SPECIAL REPORT
PIE FUNDS RELAUNCHES PIE GLOBAL FUND
Manager is increasing its direct investments into overseas markets. By Susan Edmunds
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mall-cap specialist fund manager Pie Funds is relaunching its Global Fund. The fund has been operating for three years but last year it went through an evolution. It now has a much higher proportion of direct investments. In 2015, three-quarters of the fund’s assets were managed by other managers. Now, approximately three-quarters are managed by Pie Funds and only a quarter is handled by specialist fund managers. “When we launched it, we didn’t have any expertise about investing outside Australia and New Zealand so we decided to use some global managers,” said Pie Funds’ chief executive Mike Taylor. “We picked managers who were as close to Pie as we could find – boutique managers who ran a concentrated portfolio in small-cap stocks. But ultimately what we wanted to do
was build up our expertise over time and bring more of the fund in-house.” The fund was designed to give New Zealand investors wider exposure. He said too often New Zealanders invested solely in property or term deposits. Too few had international investments that would give them true diversification, Taylor said. He said Pie Funds wanted to create a fund that would deliver the best possible performance. “We believe it is best to have a mix of specialist managers as well as our own direct stock picks,” he said. Outside managers are still used for investments in areas where Pie does not have specific expertise, such as Japan, emerging markets and tech stocks in the US. Taylor said he had received feedback from investors that they were concerned about the previous “fund of funds” structure, because it created two layers of fees and could mean the fund struggled for performance.
“That’s part of why we made the alternation and took the feedback on board. We believe how the fund looks now is a better structure.” Head of client services Sam de Court said the fund had been too highly diversified in its previous guise, with as many as 500 underlying stocks. “Even though the fund managers we used were top of their region, we would just get the average of everyone’s returns. We starting doing direct investments and build that up. We built up the confidence that we could do it successfully from here.” In the year to the end of February, the fund returned 13.5 per cent. Since inception, it has achieved an annualised return of 7.8 per cent. The fund’s largest direct investments include email marketing platform Dot Digital Group (UK-listed), and document automation software provider Esker (French-listed). It has $66 million in assets under management.
ADVERTORIAL
JENNINGS BACKS NEW INSURANCE TECH COMPANY M
osaic Enterprises Limited is a New Zealand-owned Insuretech company. It provides digital tools for the financial sector to grow strong customer relationships through an online presence. Some of these products are unique in the world and will change the way insurers manage their businesses. Many companies in the financial sector are unable to offer digital solutions for their customers due to back end legacy systems and capital is utilised in other areas rather than meeting the modern needs of customers in an electronic age. Mosaic has recognised this and has developed three tools that the financial sector can use to add value to customers. The first is a modern online portal for the sale of financial products. Initially it will be targeted at life, health and travel insurance. Then it can be extended to cover fire and general, pet insurance, mortgages and investment products like KiwiSaver.
The portal is backed up by a comprehensive CRM and claims system. It uniquely also provides the consumer with ownership and worldwide access to their essential medical data. This significantly reduces the time and cost to the customer and insurer in times of a; medical emergency, travel claim and a medical claim. The second is a digital lockbox to secure critical documents for the customer called Heartbeat. This is where the medical records, policy documents, passports etc can be stored. It can be accessed from any mobile device or computer anywhere in the world. Critically important if anything happens to you whilst travelling overseas. This unique tool will be highly valued by customers and will be a great retention tool. The third innovation is the data analytics. Extensive non-personalised medical data collected can be used to assess the medical risk profile of the customer. Suggestions will be put into the lockbox on improving their health profile. This data can be updated every
time a medical visit is made, claims made or from wearable devices. Mosaic has put together a strong board with Murray Lilley the previous founder of Konnect, Dr Geoffery Sayer an epidemiologist, expert at analysing medical data and Milton Jennings, well known in the life insurance market. All directors having a financial interest in Mosaic. The insurance portal has been well tested in the life insurance market during 2016. Travel insurance has just been added and the Heartbeat lockbox is operational. Mosaic will be selective in the companies they will deal with in New Zealand. This is the training ground for expanding overseas where the real opportunity lies. The Australian branch is operational and will start trading early 2017. The real growth will come from up in Asia, where a lot of interest has already been expressed. The company is currently doing a capital raise through Greg Anderson at Northington Partners to allow it to expand into Australia and Asia.
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A MAN ON A MISSION Binu Paul can see huge potential for fintech in this country – if we can all get in line. By Susan Edmunds
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inu Paul had a slightly selfish
motivation for organising last year’s Finnotec conference in Auckland. The event, attended by 160 people, was designed to showcase the latest fintech products from New Zealand and overseas, and give attendees an idea of what might be coming in the financial services sector. But Paul, founder of online KiwiSaver research and advice provider SavvyKiwi, says he had an ulterior motive. “I was trying to find out who else is in the same space as I am. I was finding myself to be quite lonely and I thought I could put this event together to see who turns up.” The answer turned out to be a lot of people. The Hilton in Auckland had space for 150 in the room Paul booked. He managed to squeeze the extra 10 on to another table but had another 20 on the waiting list. He said one of the big successes of the conference was the amount of collaboration that had come out of it. “I’ve made about 19 introductions,” he said. “One as recently as this year. That, for me, is a huge success.” Many fintech start-ups had come out of the woodwork, wanting to be represented, he said. He is already planning another event this year. Paul has spent the past 18 years in the financial services sector in New Zealand. Before that, he worked in technology and financial markets roles overseas. He qualified as an engineer but caught the financial markets bug while doing an MBA. “It wasn’t anything fancy that caught my interest,” he says. “I was simply fascinated by the ever-changing dynamics of financial markets and how money was so integral to society and business.” He moved to New Zealand in the 1990s and had to rebuild his career here from scratch, forging relationships and developing a new network. “A bit of luck - meeting the people
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who were willing to take a punt on me and give me an opportunity - and tons of perseverance saw me through those initial years - but those were the years I learnt the most as well,” he says. Paul held senior positions at FundSource, Tyndall Investment Management and NZ Funds. But in 2013, he quit to commit all his time, energy and money into SavvyKiwi, a fintech start-up. It offers KiwiSaver members a tool to help them choose the right KiwiSaver fund and keep an eye on how it is going. At the moment, 43% of users switch funds when they use the platform. Paul says that’s proof that the product works. Paul says he is a committed entrepreneur and always has an eye out for an opportunity. “It's still early days so I'm yet to figure out how 'career defining' that decision [to start SavvyKiwi] is going to turn out to be,” he says. “As much as I'm bullish about SavvyKiwi's prospects, in the start-up world everything is a possibility - including it all ending up being a 'a very expensive education', but education nonetheless. This applies to anyone in business I suppose.” At the beginning, he worked up to 20 hours a day on SavvyKiwi, often overnight with a development team based in the United States. “In the financial service sector, you can’t really cut corners,” he says. “You’re not creating a social media app where you can add a feature later on, you’ve got to get it right from day one.” There were a few key things that were vital, he says. “It had to be empowering - helping make decisions rather than telling users what to do, it had to be mobile – it’s available as an Apple iTunes app, it had to provide independently sourced insights i.e, not influenced by kickbacks and commissions, and it had to alert users to changes with their fund.” SavvyKiwi has been well received but the take-up has not been as great as he hoped. “But, in the context of it being a new product category as well as a New Zealand first with a fully tech-enabled automated platform, I'd say I'm happy with the direction it is taking. What absolutely makes my day is the feedback I do receive from my users. In one instance, I had one of my users sign up not only their whole family but their staff as well.” One of the key things holding him back may be that he is not devoting much time on marketing or promotion of the site at this stage. At the moment, he’s most focused on trying to make sure that the service he is delivering is the best it can be for SavvyKiwi’s users. For the past six to eight months, he has not run a single marketing initiative. Many have asked what else SavvyKiwi can do, he says. His plan is to eventually provide something for every point of a person’s financial journey. “There are a number of things lined up to be rolled out over this year and in the next few years to come. The opportunities aren't going away anywhere so I'm not rushing
".Taking an advisory business for example, whether you become redundant or not will be determined by 'what' you provide consumers here and now." – Binu Paul
into any of them.” Money will need to be raised, to invest in the company and to hire the people with the skills to take it to the next level. But he says the key is to find people to work with who share the same goals and understand the business, as well as fintech more generally.
FINTECH FUTURE
Paul can see huge potential for fintech in New Zealand, and says it will be transformational both for the providers of services and the consumers who use them. “The consuming public will have a wider choice with the introduction of new types of financial products,” he says. “It will improve how consumers interact with existing financial products. As social constructs change so will the consumer’s expectation of how they want to be treated and the way they make decisions. “On the other hand, looking at it as an industry participant, technology allows the ability to commoditise a lot of the repetitive, and what I call, lower order activities. This frees us up to commit our intellect and time to higher order activities like delivering value add to clients, such as coaching and financial discipline.” A wide range of tools and advice will be needed over the next couple of decades as the world undergoes the biggest intergenerational transfer of wealth it has ever seen, he says. Paul has spoken to a number of providers developing roboadvice applications. He says some plans have been moved to the back-burner because it looks likely that the Financial Services Legislation Amendment
Bill will take two years to clear the way for roboadvice from a regulatory perspective. “It’s not like they will have the opportunity to do it right away. But a number of product providers and intermediaries are looking at a solution. I don’t know if there is space for a whole heap of roboadvisers in New Zealand.” Incumbents in the market are most likely to succeed with a roboadvice offer, he says, because they have the established customer bases to deal with. But he says there is a clear difference between a product provider’s tool – which would be just another distribution channel to sell their products – and an advice firm’s online, independent advice offering. “In New Zealand the legislation has brought them both together.” The key to any financial service provider’s success is the strength of their brand and how much integrity they have, he says. “Building a brand is not just an overnight thing, it takes years to build up the right reputation, you’ve got to perservere.” Paul acknowledges that fintech and roboadvice spark fears of disruption that leave some industry participants, particularly small-scale financial advisers, worried about the future. “It’s a valid sentiment, only to a certain point. “Taking an advisory business for example, whether you become redundant or not will be determined by 'what' you provide consumers here and now. If it’s purely transactional in nature, then yes that function will be made redundant, very quickly I must add. But, if anything, the value of true advice and need for good advisers will only become all the important in the new age of fintech. “I'm convinced that the face-off will not be between advisory businesses and technology, which is what a lot of the chatter now is, but it will be between transactional advisers and relationship advisers. And I think I have a view on who's going to come out alive at the other end.” Paul says, relative to other countries, New Zealand is still in the early stages of fintech development. Here, investors are less used to the dynamics of investing with fintech start-ups, which often require a long-term view. “Typically the return on investment is not frontloaded so you can end up spending a lot of capex upfront with the breakeven down the road.” Overall the outlook is good – although Paul says a lot more could be done to build the pipeline of talent coming into financial services. “In the time I have been involved with the industry, it has definitely seen more than its fair share of changes but largely it’s all heading in the right direction. So I do feel positive in that I believe we have a great bunch of people in the industry who I know will collectively head towards the right direction.” And now, thanks to the conference, he knows he’s not alone in New Zealand’s fintech landscape.
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FINDING HER NICHE Bank adviser says what she does is almost like a social service. By Susan Edmunds
ADVISER LEAD YROTS STORY PROFILE DAEL
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racey Coxhead says right now, she’s pretty much exactly where she wants to be. The ANZ senior private banker has been working in the broader financial services sector since she left school at 17 but made the switch to financial planning later in her 30s. “It’s just something that has evolved for me,” Coxhead says. “I didn’t know what I wanted to do when I grew up then I turned 35 and realised what I wanted to be was this.” She started studying for the level five adviser qualification while working as a bank credit manager. “I just really enjoyed the papers and the whole financial planning aspect of it. There wasn’t so much in the way of financial planning back then. Then I saw a job advertised at Westpac. I said ‘I’m going to apply for one of these’ because it sounded exactly like what I wanted to do and there had not been any jobs in that space before.”
HELPING THOSE IN A QUANDARY Despite being warned that she might be underqualified for the role, she was offered it. She soon worked her way up to becoming priority sales manager, overseeing lending managers, investment advisers, broker liaison and administration staff looking after the bank’s high-networth clients. “I just love it; I live and breathe it. In some ways, it’s a bit like my social service to other people as well, family members and things like that. So many people don’t know what to do, it’s just having that framework. It’s just something I really care about.” From Westpac, she moved to ANZ where she was regional manager of 20 financial advisers in the central North Island. She then went out on her own with some business partners for seven years as a director of G3 Financial Freedom, based in Tauranga. She was brought back to an employed role at Heartland Bank as a sales manager when she wanted to change location and shift to Wellington. Coxhead says there are pros and cons to both working for a bank and being a selfemployed adviser. “You’re in front of more clients working for a bank and you don’t have to look under every rock for them. There’s more of a client base to work with and from that respect, it’s really good. A lot of people wouldn’t go and get advice anywhere if
"A lot of clients are property investment clients and there are a lot of things they need to consider as well." – Tracey Coxhead
they weren’t approached by someone in the branch perhaps to talk to someone else. You’re probably talking to people who were never going to go to an independent, anyway, because it had never occurred to them to talk to someone about their investments.” Now, as a senior private banker at ANZ Private Banking, she leads a team, handles some lending and looks after investment clients. “I’m a hybrid, they call me, there’s not too many of us. I’m really fortunate I can switch between both. A lot of clients are property investment clients and there are a lot of things they need to consider as well.” While there are still compliance requirements to meet as an employed adviser, Coxhead said the bank offered a “wonderful safety net”. “The compliance levels and standards are set for us. We are scrupulously checked out, which is great – our quality assurance is fantastic.” Coxhead joined the Institute of Financial Advisers as soon as she started studying financial planning. She said she could not understand why advisers would not. “They provided all the professional development I needed. Of course, we had professional development in the bank but I was exposed to a lot wider range of things through the IFA. I saw it as going hand in glove, if you’re going to be an adviser, you should belong to the professional organisation that represents them.”
RAISING AWARENESS She is now a board member of the organisation.
Coxhead said the advice industry had some hurdles to tackle when it came to raising public awareness of its work. “Advisers need to be paid for the work they do; it’s not going to be given away for nothing. And the people who need it most are the least likely to pay for it.” She said she hoped that as more people invested, the better their knowledge would become. She pointed to Australia, where a lot of information on superannuation savings websites for people who wanted to read it was available. “They have to be interested. People are so interested in iPhones, techy things that cost them money. It’s a shame they’re not more interested in something that’s a bit like breathing really – knowing how to manage your money is as important as your healthcare, surely.” She said the situation had started to improve and more people were interested but there was still a propensity for some to view KiwiSaver savings as a “Lotto win”. “It’s almost like it’s not real money.” Advisers should not be afraid to charge a planning fee for the work they did, she said. Coxhead said she never had any trouble getting clients to pay such a fee when she worked as an independent. “You’re not going to get everyone but not everyone is going to be a client, anyway. I think it’s in our own heads, just give the fee upfront. People charge implementation fees and it’s hard to justify that fee over a planning fee because the work is in the planning.
CHOOSING FINANCIAL PATH “It’s about willingness to take action. That’s all that really matters. People have to want to do something about improving their investment situation. I’ve always taken the view that if you’ve put aside an hour to talk to me, you want to do something.” Coxhead is looking forward to helping the IFA with its path towards Financial Advice New Zealand, and to chipping in where she can with professional development initiatives. She is still considering the possibility of a master’s degree. She said, while she would never rule out a return to self-employment, she was very happy with what she was doing at the bank. “I kind of feel like I’ve ticked a lot of my things off now. You sometimes get to a stage in life where you are happy where you are and you just want to keep doing a good job.”
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{
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“BIG MACRO” REACHES A PEAK Scott Berg - Portfolio Manager, T. Rowe Price Global Growth Stock Strategy
W
hile the aftershock of Donald Trump's US election victory continues to be felt across global markets, T. Rowe Price portfolio manager Scott Berg highlights some of the challenges they face distinguishing between meaningful change and market noise in the year ahead and why they are confident in their exposure to the financials sector.
EXECUTIVE SUMMARY
- Scott Berg -
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▶ The election of Donald Trump has caused a significant change in sentiment. While uncertainty reigns on any specifics, markets have voted quickly and aggressively that growth, inflation, and U.S. interest rates will rise. ▶ We believe less has changed fundamentally than is currently priced in to markets and would caution against chasing a cyclical bounce. ▶ We remain constructive and believe that global equities can still deliver solid returns, but it will be crucial to monitor corporate earnings, individually as stock pickers and in aggregate as equity investors. ▶ Importantly, there are strong signs of an evolution in equity markets. If we are right, we are moving away from the theme of “big macro” being the extreme driver of stock returns and more toward a stock pickers’ market. Since the election of Donald Trump, some deep cyclical segments of the market
Earnings delivery is likely to be key over the medium term, and this is an environment where we feel comfortable given our bottom-up, earnings growth focus. More importantly, while inherently hard to predict, we do not anticipate an especially defined style environment looking out. - Scott Berg have been given a shot in the arm on the back of his pro-growth policies. However, we believe less has actually changed
INVESTMENT
fundamentally than is currently being priced in to markets. We are focusing intensely on stocks we own and those stocks we would seek to own on any weakness. For us, it is important to distinguish between meaningful change and market noise. Key to our view is the need to believe in durable earnings improvement. In many cases, we do not see a fundamental change at present in these cyclical sectors. We have been underweight energy and materials for some time, and remain so today. The world remains oversupplied with oil in the medium term, and if the U.S. is successful at extracting more of its reserves as per early rhetoric around energy independence, this should ultimately put a ceiling on oil prices. While we are cautious on commodities, we have been active in financials, maintaining or increasing our positions. Our view of developed world growth and inflation going into 2017 was, and remains, one of modest improvement from a low base. We already believed before the election that some magnitude of interest rate rise cycle was likely. Therefore, we were happy to have decent exposure to the financials sector. We also continue to favor emerging markets. The year 2016 was a roller coaster for emerging markets, and despite concerns over Donald Trump’s rhetoric around trade, we remain steadfast in our positive views. Overall, we remain constructive and believe that global equities can deliver solid returns over the next 12–24 months. Led by the U.S., economic growth expectations are rising and industrial production and earnings data have been steady after a period of real weakness. If the future does hold broadbased growth, then some degree of cyclical repricing makes sense. However, there is a level of overexcitement surrounding the policies of Donald Trump playing out in markets at present, and we would expect the strong run for deep cyclicals and Value to slow when hope meets reality this year. Earnings delivery is likely to be key over the medium term, and this is an environment where we feel comfortable given our bottom-up, earnings growth focus. More importantly, while inherently hard to predict, we do not anticipate an especially defined style environment looking out. Instead, we see strong foundations for the evolution of a stock pickers’ market as we move away from “big macro” being the extreme driver of stock returns. This is especially likely if earnings delivery reasserts itself as a driver of stock returns. Indeed, stock correlations have already fallen, providing more opportunity to benefit from the disparity of company fortunes.
IMPORTANT INFORMATION
This material, including any statements, information, data and content contained within it and any materials, information, images, links, graphics or recording provided in conjunction with this material are being furnished by T. Rowe Price for general informational purposes only. The material is not intended for use by persons in jurisdictions which prohibit or restrict the distribution of the material and in certain countries the material is provided upon specific request. It is not intended for distribution to retail investors in any jurisdiction. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price. The material does not constitute a distribution, an offer, an invitation, recommendation or solicitation to sell or buy any securities in any jurisdiction. The material has not been reviewed by any regulatory authority in any jurisdiction. The material does not constitute advice
of any nature and prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested. The views contained herein are as of February 2017, written by designated investment professional of T. Rowe Price and may have changed since that time. These opinions may differ from those of other investment professionals of T. Rowe Price. For wholesale clients in New Zealand only. T. ROWE PRICE, INVEST WITH CONFIDENCE and the Bighorn Sheep design are, collectively and/or apart, trademarks or registered trademarks of T. Rowe Price Group, Inc. in the United States, European Union, and other countries. This material is intended for use only in select countries. 2017-GL-5652
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PRACTICE ASSET REGULATION DATA MANAGEMENT ADVISER
IMAGINING YOUR BUSINESS FUTURE Planning is key for business success but getting the goals right is vital, writes Russell Hutchinson.
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PRACTICE ASSET REGULATION DATA MANAGEMENT ADVISER
might use if you were describing your idea to a friend who knows little about your work – a plain statement of what you think might make a difference. By describing your whole business, it can avoid the problems of trying to test an idea on its own which is difficult to communicate.
SYNCHRONISING BUSINESS
{ RUSSELL HUTCHINSON }
A
re you all fired up after listening to some speaker and you think, right… Or are you contemplating the future and wondering if there is a role for fee charging? Or thinking about a line extension – adding home loans or KiwiSaver perhaps? Maybe you have been approached with a referral deal? So many new things could be considered. Thinking about the future is great. If you are optimistic and have a creative streak that engine could pull your business forward and drive growth. Too much, of course, has its risks. Too little is harder to spot. Instead of spending loads of time in a room with a whiteboard it seems like the responsible thing: you just do what’s in front of you, taking each decision on merit.
COMMON COMBINATIONS
But do that for too long and incremental changes can be haphazard and even conflicting – wasting time and energy and subtracting rather than adding or multiplying the value of your business. What seems like a logical combination from your point of view can look strange to customers: what if it says insurance over the door, now you tell me you can’t insure my house, but you can do my KiwiSaver, huh? I know why those combinations are common but if it makes no sense to your customers it isn’t going to be much help with your marketing. Quite often the options in front of us were simply put there – someone promoted the idea to you – and you are being asked to become part of someone else’s plan rather than creating an exciting plan of your own. So if you haven’t worked on business strategy for a while, now might be the time. I suggest you try developing whole concepts. A business concept is a short description written in the kind of language you
There is a world of difference between saying to a client, “I’m thinking of starting to charge fees”, and, “I’m thinking of a subscription service, a fixed fee and you can call me for as much advice as you need without worrying about the cost”. It also encourages you to think how parts of your business work with each other. Like the idea of adding home loans and house and contents insurance to your offer both at the same time: “We’re going to take care of all the financial stuff when people move or buy property.” The other great thing about these simple pitches is that it helps to make them testable. There are so many good ideas you can get when you can test your plans with people. Take your business concept statement to a local graphic artist Here are some concepts for future advice businesses which you might want to consider to help start the process. Bear in mind they are not a recommendation, just examples based on various models we have seen from around the world:
Health and wealth – where you actively link the idea of health with wealth and focus on the group of customers that want to wear a Fitbit, go to the gym, watch their nutrition, and would appreciate a similarly rigorous approach to managing their finances. They see a big mortgage the same way they see a sagging waistline and want to tackle it.
Insurance adviser – why not just update the classic model? Be straightforward about it. It says insurance over the door and the customer knows to walk in and get insurance advice. Nothing flash, just building a reputation in your community for the best advice for insurance. Does what it says on the tin. Ideal if everyone else in your neighbourhood has gone with something a bit too clever.
Advice club – you pay a subscription and we work to keep your plan in tip-top shape for the fee. As part of that we manage all the kinds of insurance that go with your life, even travel covers – plus regular advice on claims. With a fee-based approach you can be independent and spend time to offer advice on high frequency-low value cover – such as travel insurance.
"What seems like a logical combination from your point of view can look strange to customers" Risk management – we use the term a lot but if you read the standards document for risk management then you will find out that what is meant here is about hazard identification and then applying concepts like management, mitigation, avoidance, and risk transfer to achieve resilience goals. It is quite a corporate approach, rarely solely applied to personal lines, but an interesting concept for the right kind of customers.
Financial advice chambers – create a group which doesn’t actually share a corporate structure but we operate from the same location, refer to each other freely and maintain some things, perhaps a reception area, that make the whole feel more than the sum of the parts. Common in medical practices it has benefits in marketing, sharing expertise, and the biggest of fixed costs for us all: buildings and non-advice staff.
Integrated business – build a new corporate entity which pulls together the services of several advisers and enables a more cohesive, professional, and comprehensive advice service. Promote based on getting actual advice and as a place consumers can have a wide range of products compared without having to call lots of different companies themselves. However you choose to do your future, planning is up to you. But concept development in customer-focused language has really got to be part of the process. The more you talk about it before you spend money the fewer costly mistakes you are likely to make.
Russell Hutchinson is director of Chatswood Consulting and Quality Product Research, which operates Quotemonster.
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ASSET ADVISER
For more information call 0800 888 361 Latest 1 Yr 3 Yr 5 Yr Transaction Return Return Return Exit Price % New Zealand Insurance Fund Miscellaneous Booster KiwiSaver Capital Guaranteed 1.0745 2.80 --Booster KiwiSaver Options 1.2005 2.52 --Fidelity Life Super-Sup Options -1.33 4.98 5.78 Kiwi Wealth KiwiSaver Scheme -2.45 3.42 -CashPlus Fd NZ Funds KiwiSaver Growth Strategy 1.6211 12.20 6.93 11.17 NZ Funds KiwiSaver Income Strategy 1.3062 6.43 4.12 4.18 NZ Funds KiwiSaver Inflation Strategy 1.355 8.98 5.00 5.95 Westpac KiwiSaver-Capital Protect Plan 1 2.2081 14.55 10.64 13.07 Westpac KiwiSaver-Capital Protect Plan 2 1.9822 14.53 10.64 13.07 Westpac KiwiSaver-Capital Protect Plan 3 1.9003 14.52 10.64 13.07 Westpac KiwiSaver-Capital Protect Plan 4 1.9627 14.54 10.64 13.07 Westpac KiwiSaver-Capital Protect Plan 5 1.7065 14.54 10.64 -NZ Insurance Cash AMP KiwiSaver Cash Fund 1.464 1.78 2.59 2.64 AMP NZRT Cash Fund 1.45709 0.73 1.57 1.62 AMP Prem PSS OnePath NZ Cash 1.55883 1.97 2.75 2.78 AMP PSS Select Cash 1.47041 1.77 2.55 2.55 ANZ Default KiwiSaver Scheme-Cash 1.3934 2.37 3.00 2.97 ANZ KiwiSaver-Cash 1.2986 2.37 3.06 2.99 Aon KiwiSaver ANZ Cash 15.0083 1.93 2.54 2.53 Aon KiwiSaver Nikko AM Cash 14.0147 2.30 2.95 3.08 ASB KiwiSaver Scheme's NZ Cash 1.4176 2.26 3.04 2.92 BNZ KiwiSaver Cash Fund 1.1238 2.65 2.87 -Booster KiwiSaver Enhanced Income 1.4774 1.97 2.83 2.97 Fidelity Life Super-Super Cash Portfolio 2.8344 0.99 1.48 1.58 Fisher TWO KiwiSaver Scheme-Presv 2805.62154 2.23 2.95 3.09 Kiwi Wealth KiwiSaver Scheme Cash Fund -2.73 3.33 -Mercer KiwiSaver Cash -2.26 3.01 2.98 NZ Defence Force KiwiSaver Cash -2.04 --OneAnswer KiwiSaver-Cash Fund 1.3484 2.24 2.94 2.86 SIL 60s + Sup Cash Fund 2.152 2.03 2.53 2.44 Westpac KiwiSaver-Cash Fund 1.3594 2.36 3.01 2.95 NZ Insurance Equity Region Australasia AMP Prem PSS OnePath NZ Shares 2.1757 14.26 9.06 14.04 Aon KiwiSaver Milford 2.969 11.71 10.36 15.56 Booster KiwiSaver Socially Rsp Inv Gr 1.6049 12.28 9.21 9.72 Booster KiwiSaver Trans-Tasman Share 1.3908 20.62 8.43 5.27 Milford Active Growth KiwiSaver 2.98793 11.82 10.47 15.71 OneAnswer KiwiSaver-Australasian Share 1.6611 14.74 12.09 16.65 NZ Insurance Equity Region Australia AMP KiwiSaver Australasian Shares 1.0486 ---New Zealand Insurance Fund Equity Region NZ AMP Prem PSS ACI NZ Shares 2.38203 14.00 14.13 16.84 AMP Prem PSS ACI NZ Shares Index 2.0998 15.42 13.52 17.17 Fidelity Life NZ Shares Portfolio 5.9303 13.87 10.24 10.63 Fidelity Life Super-Super NZ Share -18.76 11.81 11.57 SIL 60s + Sup NZ Share Fund 5.2082 15.55 11.72 16.50 SIL NZ Share 5.2126 30.41 15.22 17.15 New Zealand Insurance Fund Equity Region World AMP KiwiSaver International Shares 1.1103 ---AMP KiwiSaver Passive International 1.1085 ---AMP Prem PSS ACI Global Shares Index 1.97889 11.10 10.39 12.19 AMP Prem PSS ACI Global Shares 2.15465 26.89 9.27 12.55 Index Hdg AMP Prem PSS FD Intl Share Fund 1 Value 1.22903 12.97 8.75 10.80 AMP Prem PSS FD Intl Share Fund 1.34759 11.77 10.18 12.25 3 Growth Booster KiwiSaver International Share 1.7569 16.88 9.55 11.42 FANZ Lifestages KiwiSaver High Growth 1.09475 14.37 --Fidelity Life Aggressive 3.3624 8.32 8.91 9.04 Fidelity Life International 2.3404 13.44 6.97 8.44 Fidelity Life Super-Sup Intl -15.99 7.76 8.92 Fidelity Life Super-Super Aggressive -12.36 10.25 9.84 Fisher FuturePlan - Intl Coms 2.89048 15.64 6.10 8.14 Fisher TWO KiwiSaver Scheme-Eq 4022.427 15.37 9.23 10.49 Mercer KiwiSaver Shares -17.42 --NZ Defence Force KiwiSaver Shares -17.24 --OneAnswer KiwiSaver-Intl Share 1.6525 8.56 10.76 13.46 OneAnswer KiwiSaver-Sustainable Int Shr 1.5804 6.62 8.19 9.60 SIL 60s + Sup International Share Fund 3.1419 8.29 10.24 12.90 New Zealand Insurance Fund Equity Sector Global - Real Estate AMP KiwiSaver Property 0.9508 ---OneAnswer KiwiSaver-Intl Property 1.3095 10.13 10.30 11.94 New Zealand Insurance Fund Equity Sector NZ - Real Estate MFL Property Fund 3.8463 9.05 11.89 14.20 OneAnswer KiwiSaver-Australasian Prpty 1.7199 6.98 13.53 14.62 New Zealand Insurance Fund Global Bond AMP KiwiSaver International Fxd Intr 0.987 ---AMP Prem PSS Blackrock Global Fixed Int 1.94601 2.84 5.35 5.22 AMP Prem PSS PIMCO Global Fixed 2.27267 5.76 6.15 6.36 Interest Name
Size Morningstar Rating $M Overall 45.40 88.66 13.55 76.08 83.85 18.05 60.79 12.00 10.01 15.68 22.35 18.53
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84.21 114.24 4.09 1.10 4.34 315.06 4.05 1.39 401.07 112.58 18.81 4.27 27.85 114.46 16.02 0.26 32.80 1.71 300.09
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4.39 113.65 24.14 5.66 628.46 24.75
3 4 2 1 4 4
0.45
--
4.72 8.51 1.35 6.04 22.86 22.83
4 3 1 1 3 3
0.37 0.43 9.42 11.42 5.76 5.62 8.44 33.70 0.59 0.43 20.49 8.70 24.70 78.55 11.40 2.37 37.62 5.24 12.07
--4 3 2 3 3 -3 2 2 4 2 3 --5 2 5
1.06 8.46
-4
514.11 16.51
2 4
0.27 2.21 2.40
-3 5
Name
Latest 1 Yr 3 Yr 5 Yr Size Morningstar Transaction Return Return Rating Return $M Overall Exit Price %
AMP Prem PSS SSgA Global Fixed 1.93177 1.03 5.49 Int Index OneAnswer KiwiSaver-Intl Fxd Int 1.6476 1.17 5.21 New Zealand Insurance Fund Multisector - Aggressive AMP KiwiSaver LS Aggressive Fund 1.4289 16.90 7.49 AMP NZRT AMP Aggressive 2.92883 15.80 6.46 AMP PSS DynamicMkts Growth 1.78268 16.17 6.98 AMP PSS Select Growth 1.68007 16.09 6.97 Aon KiwiSaver Russell Lifepoints 2045 8.0398 13.81 9.96 Booster KiwiSaver Asset Class Growth 8.0087 16.64 -Booster KiwiSaver Geared Growth 1.892 20.04 11.06 Booster KiwiSaver High Growth 1.4194 14.56 9.06 Fisher Funds Growth KiwiSaver Fund 1.8347 12.54 8.08 Fisher FuturePlan - Growth 2.78256 11.29 7.82 Generate KiwiSaver Focused Growth Fund 1.3983 10.15 9.95 Kiwi Wealth KiwiSaver Growth -12.01 7.86 Mercer KiwiSaver High Growth -15.52 10.33 NZ Defence Force KiwiSaver High Growth -15.26 -New Zealand Insurance Fund Multisector - Balanced AMP KiwiSaver AMP Global Multi-Asset 1.0421 --AMP KiwiSaver AMP Responsible 1.034 --Invmt Bal AMP KiwiSaver ASB Balanced 1.0316 --AMP KiwiSaver Fisher TWO Balanced 1.6926 9.08 7.69 AMP KiwiSaver LS Balanced Fund 1.5683 11.51 6.24 AMP KiwiSaver LS Moderate Balanced 1.5563 9.63 5.80 Fund AMP NZRT AMP Balanced Fund 2.77422 10.54 5.28 AMP NZRT AMP Global Multi-Asset 1.03868 --AMP NZRT AMP Moderate Balanced 2.0422 8.56 4.81 AMP NZRT ASB Balanced Fund 1.92683 10.39 7.34 AMP NZRT Fisher Balanced 2.27714 8.07 6.70 AMP NZRT Nikko AM Balanced 2.42923 7.65 7.78 AMP NZRT Responsible Investment Bal 1.03807 --AMP PSS DynamicMkts Balanced 1.80578 10.77 5.66 AMP PSS Lifesteps Consolidation 1.73289 8.70 5.31 AMP PSS Lifesteps Progression 1.81976 10.66 5.58 AMP PSS Select Balanced 1.74962 10.78 5.68 ANZ Default KiwiSaver Scheme-Balanced 1.6199 7.21 7.84 ANZ KiwiSaver-Balanced 1.6911 7.25 7.78 Aon KiwiSaver ANZ Balanced 23.3788 9.08 7.81 Aon KiwiSaver Russell Lifepoints 2025 8.4633 9.18 8.08 Aon KiwiSaver Russell Lifepoints Bal 8.5529 11.83 9.16 ASB KiwiSaver Scheme's Balanced 1.6782 12.14 8.97 BNZ KiwiSaver Balanced Fund 1.3476 12.15 7.86 Booster KiwiSaver Balanced 1.6344 10.16 7.48 Booster KiwiSaver Socially Rsp Inv Bal 1.2415 8.63 -Fidelity Life Balanced 4.2363 7.90 6.12 Fidelity Life Super-Super Balanced -8.97 -Fisher FuturePlan - Balanced 3.83763 8.76 6.90 Fisher TWO KiwiSaver Scheme-Bal 4590.4095 9.43 7.61 Kiwi Wealth KiwiSaver Balanced -7.95 6.64 Mercer KiwiSaver Balanced -10.22 8.15 Milford KiwiSaver Balanced 1.94951 11.76 10.49 NZ Defence Force KiwiSaver Balanced -10.00 -OneAnswer KiwiSaver-Balanced 1.7133 7.32 7.90 Westpac KiwiSaver-Balanced Fund 1.6303 8.68 7.89 Westpac Retirement Plan - Balanced Port 3.4094 7.59 6.75 New Zealand Insurance Fund Multisector - Conservative AMP KiwiSaver ANZ Conservative 1.0005 --AMP KiwiSaver Default (Default) 1.5661 5.85 5.14 AMP PSS Select Income 1.72461 0.97 3.76 ANZ Default KiwiSaver Scheme Cnsrv(Dflt) 1.6313 4.23 6.13 ANZ KiwiSaver-Conservative 1.5958 3.59 5.76 Aon KiwiSaver Russell Lifepoints Cnsrv 9.1194 6.60 6.90 ASB KiwiSaver Scheme's Cnsrv (Default) 1.6514 6.11 6.04 BNZ KiwiSaver Conservative (Default) 1.2274 6.81 5.89 BNZ KiwiSaver First Home Buyer Fund 1.0623 5.42 -Booster KiwiSaver Default Saver 1.1607 5.23 -FANZ Lifestages KiwiSaver Income 1.04132 2.78 -Fisher FreedomPlan - Capital Prot 1.20502 --Fisher Funds Conservative KiwiSaver Fund 1.4961 5.56 5.70 Fisher FuturePlan - Capital Prot 1.20643 1.50 1.50 Fisher TWO KiwiSaver Cash 1.63297 5.42 6.02 Enhanced(Dflt) Kiwi Wealth KiwiSaver Conservative -3.64 5.05 Kiwi Wealth KiwiSaver Scheme Default Fd -5.86 -Mercer KiwiSaver Conservative (Default) -5.78 6.21 Milford KiwiSaver Conservative Fund 1.55627 7.85 9.59 NZ Defence Force KiwiSaver Conservative -5.11 -OneAnswer KiwiSaver-Conservative 1.6117 3.65 5.78 Westpac KiwiSaver Default 1.146 4.74 -New Zealand Insurance Fund Multisector - Growth AMP KiwiSaver ANZ Balanced Plus 1.8735 9.02 8.41 AMP KiwiSaver ANZ Growth 1.0376 ---
5.12 4.62
8.74 2.78
4 2
9.71 8.64 9.10 9.16 12.11 -11.33 10.20 11.00 9.47 -11.32 11.94 --
247.29 248.21 4.08 33.96 13.51 39.13 6.94 159.60 1239.49 71.12 167.16 951.23 113.80 6.25
3 2 4 3 5 -4 3 4 3 4 4 5 --
---8.56 7.77 6.96 6.73 -5.91 8.35 7.58 8.77 -7.07 6.39 7.09 7.16 9.03 9.56 9.76 9.50 10.66 9.91 -7.57 -6.78 -7.95 8.64 8.74 9.31 12.87 -9.66 9.24 8.06
1.86 2.66 1.84 33.85 770.26 526.66 774.84 0.57 274.24 71.24 154.19 153.77 1.84 3.19 7.27 3.00 47.34 86.36 1601.33 26.43 17.15 95.53 945.46 194.17 345.17 25.12 5.59 226.94 121.28 576.98 1168.85 283.35 134.70 24.16 448.51 1087.96 100.29
---3 3 2 1 -2 3 3 3 -3 2 3 3 3 4 4 4 5 4 4 3 -3 -4 3 3 4 5 -4 4 3
-5.37 3.25 6.36 6.23 7.64 5.98 -----6.51 1.57 6.09 5.82 -6.74 --6.28 --
2.27 1305.89 2.01 1016.16 623.14 75.35 3413.60 369.38 38.93 31.10 47.30 1.35 504.01 22.65 690.65 493.55 97.69 1036.68 33.57 1.27 397.43 94.96
-2 2 4 4 5 3 3 ----4 1 3 3 -5 --4 --
10.45 202.79 -- 1.85
3 --
Latest 1 Yr 3 Yr Transaction Return Return Exit Price % AMP KiwiSaver ASB Growth 1.0521 --AMP KiwiSaver LS Growth Fund 1.4731 14.96 6.98 AMP KiwiSaver Nikko AM Balanced 1.6613 8.62 8.74 AMP KiwiSaver Nikko AM Growth 1.0233 --AMP NZRT AMP Growth 2.07404 13.89 5.99 AMP NZRT ANZ Balanced Plus 2.35976 7.90 7.31 AMP NZRT ANZ Growth 1.03583 --AMP NZRT ASB Growth 1.04427 --AMP NZRT Nikko AM Growth 1.01441 --AMP PSS Lifesteps Growth 1.77209 14.19 6.48 ANZ Default KiwiSaver Scheme1.6178 9.11 8.83 Balanced Gr ANZ Default KiwiSaver Scheme-Growth 1.6064 10.87 9.67 ANZ KiwiSaver-Balanced Growth 1.7181 9.16 8.76 ANZ KiwiSaver-Growth 1.725 11.01 9.59 Aon KiwiSaver Nikko AM Balanced 16.8596 8.56 8.96 Aon KiwiSaver Russell Lifepoints 2035 8.3156 11.80 9.16 Aon KiwiSaver Russell Lifepoints Growth 8.4525 13.83 9.91 ASB KiwiSaver Scheme's Growth 1.6509 15.80 10.40 BNZ KiwiSaver Growth Fund 1.4159 15.38 8.65 Booster KiwiSaver Balanced Growth 1.5916 12.51 8.42 Fidelity Life Growth 4.0573 10.91 7.26 Fidelity Life Super-Super Growth -11.38 7.41 Fisher TWO KiwiSaver Scheme-Gr 1.61543 12.07 8.53 Generate KiwiSaver Growth Fund 1.37 9.27 9.98 Mercer KiwiSaver Growth -13.42 -NZ Defence Force KiwiSaver Growth -13.10 -OneAnswer KiwiSaver-Balanced Growth 1.7413 9.24 8.82 OneAnswer KiwiSaver-Growth Fund 1.7463 11.07 9.69 SIL 60s + Sup Balanced Fund 3.9566 8.83 8.22 Westpac KiwiSaver-Growth Fund 1.6626 10.48 9.05 Westpac Retirement Plan - Dynamic Port 3.8282 9.45 7.96 New Zealand Insurance Fund Multisector - Moderate AMP KiwiSaver AMP Income Generator 1.0167 --AMP KiwiSaver ASB Moderate 1.0158 --AMP KiwiSaver LS Conservative Fund 1.6601 5.64 4.68 AMP KiwiSaver LS Moderate Fund 1.5932 7.99 5.28 AMP KiwiSaver Nikko AM Conservative 1.0012 --AMP NZRT AMP Capital Assured Fund 2.39947 4.17 4.28 AMP NZRT AMP Conservative 2.64646 4.59 3.68 AMP NZRT AMP Income Generator 1.01615 --AMP NZRT AMP Moderate 2.03022 6.91 4.27 AMP NZRT ASB Moderate 1.02072 --AMP NZRT Nikko AM Conservative 0.99744 --AMP PSS DynamicMkts Conservative 1.74786 4.73 3.88 AMP PSS Lifesteps Maturity 1.6666 4.59 3.93 AMP PSS Lifesteps Stability 1.74918 6.76 4.52 AMP PSS Select Conservative 1.73798 4.73 3.94 ANZ Default KiwiSaver Scheme-Cnsrv Bal 1.6231 5.30 6.82 ANZ KiwiSaver-Conservative Balanced 1.651 5.37 6.79 Aon KiwiSaver Russell Lifepoints 2015 8.7137 6.60 6.99 Aon KiwiSaver Russell Lifepoints Mod 8.9555 9.16 8.04 ASB KiwiSaver Scheme's Moderate 1.6831 8.78 7.51 BNZ KiwiSaver Moderate Fund 1.2896 9.78 7.05 Booster KiwiSaver Asset Class Cnsrv 3.4705 7.52 -Booster KiwiSaver Moderate 1.6057 6.15 5.91 Fisher TWO KiwiSaver Scheme-Cnsrv 1.69463 5.94 6.12 Generate KiwiSaver Conservative Fund 1.2296 4.95 7.36 Mercer KiwiSaver Moderate -7.19 -NZ Defence Force KiwiSaver Moderate -6.96 -OneAnswer KiwiSaver-Conservative Bal 1.666 5.34 6.77 Westpac KiwiSaver - Moderate 1.1715 6.25 -Westpac KiwiSaver-Conservative Fund 1.578 4.90 5.78 New Zealand Insurance Fund NZ Bonds AMP KiwiSaver NZ Fixed Interest 0.9848 --AMP Prem PSS ACI NZ Fixed Interest 2.00214 1.58 5.35 AMP Prem PSS OnePath NZ Fixed Interest 1.82709 0.96 4.82 Fidelity Life NZ Fixed Interest 3.9259 1.48 3.43 Fidelity Life Super-Super Fixed Int -1.49 3.44 OneAnswer KiwiSaver-NZ Fixed Interest 1.6159 1.50 5.29 SIL 60s + Sup NZ Fixed Interest 2.8445 1.02 4.65 Westpac Retirement Plan - Accum Port 3.2208 1.22 2.72 New Zealand OE Cash AMP AIT NZ Cash - UT35 1.09835 1.96 2.87 AMP ARS-Cash 1.93401 2.22 2.99 AMP Capital Cash Advantage Fund 1.41343 1.71 2.69 AMP Capital NZ Cash Fund 1.64265 2.38 3.13 AMP Capital Term Advantage ---AMP Prem PUT OnePath NZ Cash 1.37956 1.81 2.68 AMP PUT Select Cash 1.32168 1.60 2.47 ASB Cash Fund ---Name
5 Yr Size Morningstar Rating Return $M Overall -- 1.42 -8.90 588.23 2 9.78 39.69 3 -- 1.25 -7.85 190.49 2 9.44 264.00 3 -- 3.22 --- 0.68 --- 2.96 -8.36 0.40 2 10.51 94.32 3 11.89 77.78 5 11.18 1329.82 4 12.68 2104.10 5 9.94 7.10 3 10.93 15.01 3 11.81 29.77 4 11.80 1028.40 4 -- 161.89 3 8.94 188.88 2 8.18 3.04 2 8.28 89.77 2 10.39 236.37 3 -- 139.35 5 -- 40.60 --- 6.35 -11.26 392.93 4 12.77 295.34 5 10.37 93.66 4 10.86 781.06 3 9.74 106.07 3 --5.20 6.15 -3.14 4.17 -5.10 --4.41 4.42 5.38 4.44 7.59 7.94 7.98 9.15 7.88 --5.70 6.47 ---7.95 -6.30
1.19 0.34 303.00 371.13 1.06 100.16 294.18 0.30 113.99 0.72 1.40 0.93 3.27 5.69 9.82 29.93 754.83 4.87 18.02 1203.91 257.03 13.57 125.15 123.04 79.68 52.99 1.50 150.04 174.46 2080.94
--3 3 -1 2 -2 --3 3 3 3 4 4 5 5 4 4 -3 3 5 --5 -3
-- 0.27 4.45 11.66 4.03 2.24 3.37 0.21 3.43 1.24 4.41 7.21 3.82 7.65 2.55 18.32
-4 3 1 2 3 2 1
1.90 3.05 2.98 3.16 -2.71 2.47 --
---------
11.54 12.83 123.10 4443.89 -3.10 3.30 298.74
ASSET ADVISER
Latest 1 Yr Transaction Return Exit Price % BT Enhanced Cash Fund 2.0658 2.38 Fisher Cashplus Fund 1.2929 2.11 Nikko AM NZ Cash 1.025 2.86 NZ Funds Core Cash 1.32391 2.04 New Zealand OE Equity Region Australasia AMP AIT Australasian Shrs-Multi 2.77254 17.65 Mgr-UT07 AMP ARS-NZ & Australian (multi3.21807 18.64 manager) AMP ARS-NZ & Australian (Value) 3.58931 11.70 AMP NZRT Australasian Shares 1.26603 19.22 AMP Prem PUT OnePath NZ Shares 2.20692 14.10 BT PS Australasian Diversified Share 1.9787 14.32 Castle Point Ranger Fund 1.3133 19.64 Devon Alpha Fund 1.5727 7.11 Devon Dividend Yield 1.8655 -Devon Trans-Tasman Fund 3.6836 16.35 Forte Equity Trust 1.30029 28.15 Harbour Australasian Equity 2.1482 15.07 Harbour Australasian Equity Focus Fund 1.3277 11.16 Harbour Australasian Equity Income 1.6817 10.65 Milford Active Growth 2.96146 11.13 Milford Trans-Tasman 2.19099 18.10 Mint Australia NZ Active Equity 2.3849 14.99 Nikko AM Australasian Small Companies 1.7398 2.39 Nikko AM Concentrated Equity 1.8795 14.31 OneAnswer SAC Equity Selection 2.2139 14.52 Pie Australasian Dividend 2.2216 15.48 Pie Australasian Emerging Companies 2.8798 9.69 Pie Australasian Growth Fund 4.5017 1.49 Pie Growth 2 Fund 1.302 16.49 New Zealand OE Equity Region Australia AMP Capital Australian Share Fund 2.46708 14.09 Devon Australian 1.4188 17.49 Fisher Funds Australian Growth Fund 3.1528 5.91 Fisher Funds Premium Australian Fund 1.3849 5.89 Milford Dynamic 1.44168 11.43 OneAnswer SAC Australian Share 3.8512 8.20 New Zealand OE Equity Region Emerging Markets AMP AIT Emerging Markets - UT65 1.27074 16.13 New Zealand OE Equity Region NZ AMP Capital NZ Shares Fund 2.64566 14.66 AMP Capital RIL NZ Shares 1.78215 17.04 AMP Prem PUT ACI NZ Shares 2.4437 13.88 AMP Prem PUT ACI NZ Shares Index 1.84657 13.93 BT Dividend Share Fund 2.172 18.82 Fisher Funds NZ Growth Fund 7.1419 17.77 Fisher Funds Premium New Zealand Fund 1.6769 17.15 Fisher Trans Tasman Equity Trust 4.6186 13.37 Forsyth Barr New Zealand Equities 2.3584 16.88 Harbour NZ Equity Advanced Beta Fund 1.2939 14.26 Nikko AM Core Equity 1.8641 16.95 NZ Funds Dividend and Growth 1.6925 17.39 OneAnswer SAC NZ Share 4.0714 15.77 Russell Investments NZ Shares 1.532 15.62 Smartshares NZ Core Equity Trust 1.2614 16.68 New Zealand OE Equity Region World AMP AIT Global Equities-Multi Mgr-UT28 1.13628 21.13 AMP AIT Global Infrastructure - UT04 2.45456 12.79 AMP ARS-International Shares (Growth) 1.31836 13.87 AMP ARS-International Shares (Passive) 1.54482 21.99 AMP ARS-International Shares (Value) 1.27619 25.11 AMP Capital Core Global Shares Fund 1.33366 11.54 AMP Capital Core Hedged Global 1.40341 27.47 Shares Fd AMP Capital Emerging Markets Share 1.00156 17.98 AMP Capital Global Listed Infrastructure 1.67009 14.06 AMP Capital Global Shares Fund 2.56141 19.58 AMP Capital Resp Invest Leaders Gl Sh 1.48173 16.36 AMP NZRT International Shares 1.33418 19.88 AMP NZRT Passive International Shares 1.33236 19.62 AMP Prem PUT FD Intl Share Fund 1 Value 1.28352 12.79 AMP Prem PUT FD Intl Share Fund 1.38641 11.71 3 Growth AMP Prem PUT SSgA Global Shares Index 1.70991 10.49 AMP Prem PUT SSgA Global Shares 2.19932 21.07 IndexHdg ASB World Shares 1.4786 20.67 BT PS International Diversified Share 1.6163 14.32 Elevation Capital Value Fund 1.5549 10.35 Fisher Funds International Growth Fund 1.6243 10.24 Fisher Funds Premium International Fund 1.6894 10.39 Fisher Global Fund 4.8831 15.36 Milford Global Fund 1.32584 8.73 Name
3 Yr 5 Yr Size Morningstar Rating Return Return $M Overall 3.03 3.01 134.66 -2.64 2.52 35.99 ---- 204.93 -2.83 2.71 60.22 -8.44 10.53 20.83
2
9.06 12.67 8.05 9.02 12.59 8.96 6.85 -11.58 -11.11 -12.29 10.21 10.00 13.71 6.88 15.21 8.75 12.97 19.97 11.82 --
11.15 16.20 -14.07 17.04 -14.13 -14.61 -16.42 -15.13 15.50 14.59 18.24 9.22 16.37 13.52 18.56 -16.75 --
7.61 5.46 8.60 2.04 183.79 16.89 100.07 75.10 126.63 14.43 152.82 9.32 48.95 723.37 262.95 66.79 1.12 29.85 16.78 73.63 85.50 75.43 125.89
2 3 1 3 5 2 2 -3 -4 -3 3 3 5 1 4 2 5 5 3 --
5.10 10.30 6.48 6.65 9.95 2.11
5.47 11.05 6.92 7.25 -5.06
168.17 31.52 58.85 60.80 162.67 30.59
2 5 3 4 4 1
3.14 -0.86 3.68
--
14.46 15.20 14.00 12.77 17.78 12.64 12.86 11.53 15.36 -15.06 13.94 12.08 13.15 --
17.17 -16.72 16.72 19.21 16.87 17.01 15.03 17.26 -17.94 12.82 16.77 ---
459.39 11.06 1.89 4.29 19.32 140.71 78.66 45.65 14.87 91.90 39.04 76.32 112.30 184.87 35.13
4 4 4 3 5 2 3 2 4 -5 2 3 3 --
8.79 9.10 12.69 8.89 10.77 11.13 10.13 5.92 8.18 9.87 6.96 9.67 9.10 8.68 10.10 9.67 9.65 11.33 8.99 7.41 4.82 5.44 6.22 6.06
10.58 12.41 16.17 12.70 13.61 13.32 14.12 3.81 -12.81 10.53 --10.81 12.20 12.15 14.07 12.99 11.01 9.43 8.28 8.66 10.00 --
24.25 17.07 6.83 3.59 5.37 848.54 527.65 68.33 291.37 136.59 56.70 8.08 4.30 2.46 2.14 4.63 7.52 149.22 290.43 23.42 30.02 66.25 90.69 270.52
3 3 5 4 4 4 4 1 2 4 2 4 3 2 3 3 5 4 3 2 1 2 2 2
Latest 1 Yr Transaction Return Exit Price % Nikko AM Global Equity Hedged 1.6008 20.92 Nikko AM Global Equity Unhedged 1.6441 7.95 NZ Funds Equity Inflation 0.8768 2.38 OneAnswer SAC International Share 1.8855 8.41 Pathfinder Global Water 1.7301 11.89 Pathfinder World Equity Fund 1.6044 13.29 Pie Global Small Companies Fund 1.3187 13.54 Russell Investments Global Shares 1.7235 11.36 Russell Investments Hedged Global 1.876 23.92 Shares T.Rowe Price Global Equity Growth 1.2196 8.77 New Zealand OE Equity Sector Global - Real Estate AMP AIT Global Property - UT54 3.06599 6.23 AMP ARS-Listed International Property 3.78351 8.12 AMP Capital Global Propty Securities Fd 1.51001 7.65 NZ Funds Property Inflation 1.5093 5.80 OneAnswer SAC International Property 1.3259 9.85 New Zealand OE Equity Sector NZ - Real Estate AMP ARS-Listed NZ & Australian Property 3.1746 5.30 AMP Capital Listed Property Secs Fd 2.29522 5.57 AMP Capital NZ Property Fund 2.1557 6.55 BT Property Fund 3.9388 8.13 Mint Australia NZ Real Estate Investment 1.7069 4.88 OneAnswer SAC Property Securities 3.0227 6.94 New Zealand OE Global Bond AMP AIT Fixed Interest Income - UT36 1.18983 2.34 AMP AIT Global Bonds-Multi Mgr-UT13 1.95354 1.04 AMP ARS-International Fixed Interest 2.43094 1.74 AMP Capital Global Short Duration 1.08381 3.07 AMP Capital Hdgd Gbl Fixed Intrst Fund 2.29556 3.68 AMP NZRT International Fixed Interest 1.13816 2.11 AMP Prem PUT Blackrock Global Fixed Int 1.80414 2.61 AMP Prem PUT PIMCO Global Fixed 2.27106 5.53 Interest AMP Prem PUT SSgA Global Fixed 1.788 1.02 Int Index ASB World Fixed Interest 1.1092 1.69 BT PS International Diversified Bond 2.1482 2.99 Fisher BondPlus Fund 2.1265 4.34 Fisher Funds High Income 1.0271 5.39 Nikko AM Global Bond 1.1397 4.12 NZ Funds Global Income 1.4236 6.12 OneAnswer SAC International Fixed Intrst 1.1817 1.10 Russell Investments Global Fixed Int 1.1728 4.76 New Zealand OE Miscellaneous AMP ARS-UK Cash 0.66937 -17.19 BT PS Alternative Investments 1.0865 2.34 Fisher Funds Property and Infrastructure 2.0859 15.47 KTAM NZ Australian Long Short Equity 1.27666 -Nikko AM Income 1.2226 2.74 Nikko AM Multi-Strategy 1.1087 5.97 NZ Funds Core Inflation 1.3158 7.73 NZAM Alpha Fund 1.1431 -NZAM Global Growth 1.4214 -Pathfinder Commodity Plus Fund 0.9192 0.68 Salt Long Short Fund 1.4578 11.37 Salt Long Short Fund 1.4209 14.27 New Zealand OE Multisector - Aggressive AMP AIT Aggressive Portfolio - UT31 1.8359 15.29 AMP AIT eInvest - Aggressive - MDF7 1.2792 16.63 AMP AIT Growth Portfolio - UT03 1.76335 13.80 AMP Capital Growth Fund 2.44858 14.40 AMP PUT DynamicMkts Growth 1.81102 15.58 AMP PUT Select Growth 1.6042 15.72 New Zealand OE Multisector - Balanced AMP AIT eInvest - Balanced - MDF5 1.2137 11.23 AMP AIT Moderate Portfolio - UT01 1.78891 7.07 AMP ARS-Balanced 1.93884 11.94 AMP Capital Global Multi Asset Fund 1.19145 8.96 AMP Capital Responsible Inv Leaders Bal 1.77586 9.45 AMP PUT DynamicMkts Balanced 1.78104 10.29 AMP PUT Select Balanced 1.68122 10.45 ANZ Invmt Fds Balanced 1.6523 6.91 ASB Balanced 1.515 11.54 Milford Balanced 1.91668 11.40 NZ Funds Core Growth 1.4 7.58 OneAnswer MAC Balanced 1.6523 6.91 Westpac Active Balanced Trust 2.0474 7.89 New Zealand OE Multisector - Conservative AMP PUT Select Income 1.60789 0.83 ANZ Invmt Fds Conservative 1.452 3.38 ASB Conservative 1.5331 5.50 Name
3 Yr 5 Yr Size Morningstar Rating Return Return $M Overall 9.86 -- 224.46 3 9.89 -- 128.45 3 5.83 5.57 81.68 1 11.67 14.90 169.31 5 6.83 11.56 11.05 3 10.40 -- 32.09 4 7.42 -- 66.64 2 10.00 -- 57.39 4 9.60 -- 57.19 3 --- 14.69 -10.45 9.50 9.44 6.34 9.80
11.56 11.72 12.19 7.32 --
3.15 5.71 198.12 81.44 5.22
5 2 3 1 3
12.26 13.49 9.90 15.03 12.57 13.38
12.37 14.03 9.61 14.28 12.88 14.42
4.64 21.71 116.86 75.83 50.97 126.40
1 3 -4 2 3
3.43 3.96 4.64 3.50 5.03 4.25 5.12 6.00
3.30 3.89 4.58 -4.95 -5.02 6.34
110.21 12.78 1.87 194.90 86.57 2.17 1.45 2.59
1 2 2 1 3 2 3 5
5.38 3.68 4.09 5.48 5.16 5.48 3.73 5.02 6.17
5.04 3.22 4.67 5.72 5.16 -3.70 -6.42
4.95 302.00 358.47 154.58 65.36 21.90 116.54 3.25 522.50
3 1 2 4 3 4 2 3 5
-5.04 0.70 11.74 -6.09 -3.61 ---0.52 ---
-2.22 1.57 13.27 -6.36 -4.43 ---2.69 ---
9.70 9.37 66.85 23.70 10.38 116.82 125.34 47.60 57.07 72.11 209.11 176.26
-------------
5.91 6.97 5.85 6.75 6.88 6.83
7.16 -7.02 9.03 9.01 9.02
119.75 75.28 37.61 5.56 3.93 13.97
1 3 1 4 3 2
6.05 4.44 6.61 5.92 6.03 5.53 5.54 7.42 8.38 10.05 3.86 7.42 7.08
-5.00 7.68 -8.49 6.99 7.00 9.25 9.30 12.48 8.37 9.25 8.73
89.02 106.74 154.09 157.95 43.72 5.08 38.98 188.53 145.53 363.47 97.00 32.54 209.96
2 1 3 2 3 3 3 4 4 5 2 4 4
3.76 5.49 5.42
3.22 2.87 5.99 51.76 5.35 134.45
1 3 2
Latest Transaction Exit Price Milford Conservative 1.06712 OneAnswer MAC Conservative 1.452 New Zealand OE Multisector - Growth AMP AIT Balanced Portfolio - UT 02 1.84951 AMP AIT eInvest - Growth - MDF6 1.26116 AMP ARS-High Growth 1.72623 ANZ Invmt Fds Balanced Growth 1.7716 ANZ Invmt Fds Growth 1.8608 ASB Growth 1.4694 Fisher Multi Sector Fund 3.0113 NZ Funds Global Equity Growth 1.469 OneAnswer MAC Balanced Growth 1.7716 OneAnswer MAC Growth 1.8608 OneAnswer SAC Balanced 2.8194 Westpac Active Growth Trust 1.9812 New Zealand OE Multisector - Moderate AMP AIT eInvest - Conservative - MDF2 1.15311 AMP AIT eInvest - Moderate - MDf3 1.18729 AMP ARS-Conservative 2.14782 AMP Capital Conservative Fund NZ 2.3103 AMP Capital Income Generator Fund 1.09559 AMP PUT DynamicMkts Conservative 1.694 AMP PUT Select Conservative 1.7048 ANZ Invmt Fds Conservative Balanced 1.5507 ASB Conservative Plus 1.5201 ASB Moderate 1.5294 Harbour Income 0.9912 Milford Diversified Income 1.59212 Mint Diversified Income Fund (Retail) 1.0388 NZ Funds Global Multi-Asset Growth 0.6598 OneAnswer MAC Conservative Balanced 1.5507 Westpac Active Conservative Trust 1.7874 Westpac Active Moderate Trust 1.3959 New Zealand OE NZ Bonds AMP AIT NZ Bond - UT36 1.17439 AMP AIT NZ Fixed Interest - UT60 1.69647 AMP ARS-NZ Fixed Interest 2.42457 AMP Capital NZ Fixed Interest Fund 1.65949 AMP Capital NZ Short Duration 1.26315 AMP NZRT NZ Fixed Interest 1.18653 AMP Prem PUT ACI NZ Fixed Interest 1.9891 AMP Prem PUT OnePath NZ Fixed Interest 1.70345 BT Corporate Bond Fund 1.6118 BT PS NZ Diversified Bond 1.2985 Fisher New Zealand Fixed Inc Trust 1.2325 Forsyth Barr NZ Fixed Interest 1.6272 Forsyth Barr Premium Yield 1.6601 Harbour NZ Core Fixed Interest 1.0921 Harbour NZ Corporate Bond 1.0562 Nikko AM NZ Bond 1.0057 Nikko AM NZ Corporate Bond 1.142 NZ Funds Core Income 1.52615 OneAnswer SAC NZ Fixed Interest 1.6194 Russell Investments NZ Fixed Interest 1.1602 Westpac Active Income Strategies Trust 1.1721 Name
1 Yr Return % 7.98 3.38
3 Yr 5 Yr Size Morningstar Rating Return Return $M Overall --- 116.45 -5.49 5.99 9.36 3
10.56 14.45 15.29 8.82 10.65 15.15 8.23 9.95 8.82 10.65 8.40 9.59
5.29 6.56 7.21 8.40 9.20 9.75 6.64 8.16 8.40 9.20 8.18 8.14
6.15 -8.83 10.94 12.33 11.12 8.23 11.10 10.94 12.33 10.46 10.24
112.51 34.17 53.66 138.34 65.21 29.39 11.60 59.63 23.76 17.37 50.89 69.54
1 1 2 4 5 4 3 2 4 5 4 3
5.40 7.77 6.01 4.48 10.93 4.45 4.31 5.00 6.71 8.20 4.83 13.03 4.07 21.57 5.00 4.00 5.73
4.29 4.95 5.02 4.46 -3.83 3.77 6.43 6.21 6.93 -12.35 --7.16 6.43 4.87 5.99
--5.47 4.95 -4.30 4.32 7.57 6.28 7.29 -13.64 --5.15 7.57 5.47 6.97
31.19 97.40 54.98 8.15 101.06 2.23 16.59 163.68 626.27 261.66 2.51 1562.14 38.82 35.27 9.49 214.40 370.12
2 3 3 4 -2 2 4 3 4 -5 -1 4 3 3
2.17 1.22 1.82 1.90 2.97 1.91 1.53 0.76 2.73 1.97 0.78 2.37 2.84 2.78 2.64 1.75 2.79 5.72 1.42 2.23 2.33
5.06 4.93 5.47 5.56 4.53 5.60 5.32 4.72 4.67 5.08 4.53 5.26 5.46 5.12 4.87 5.22 5.66 4.28 5.12 5.16 3.09
2.99 4.08 4.63 4.68 4.30 -4.46 3.93 4.88 4.66 3.87 4.35 4.88 4.69 4.88 5.04 5.70 4.86 4.09 -3.16
32.11 7.35 6.99 1859.18 356.08 8.04 8.90 1.89 68.61 230.57 56.10 14.21 59.19 147.79 296.03 62.48 344.77 126.90 12.13 152.20 14.90
2 3 3 4 3 5 4 3 3 4 2 3 5 4 4 5 5 3 3 3 1
Returns are calculated to 28/02/17 Returns are calculated before tax and after fees, except for the non-PIE categories, which are after tax and after fees. For more information about this table and the methodology behind the data, contact helpdesk.nz@morningstar.com or go to www.morningstar.com.au © 2016 Morningstar, Inc. All rights reserved. Neither Morningstar, nor its affiliates nor their content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. To the extent that any of this information constitutes advice, it is general advice and has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 and/or Morningstar Research Limited (subsidiaries of Morningstar, Inc.) without reference to your objectives, financial situation or needs. You should consider the advice in light of these matters and, if applicable, the relevant Product Disclosure Statement (in respect of Australian products) or Investment Statement (in respect of New Zealand products) before making any decision to invest. Neither Morningstar, nor Morningstar’s subsidiaries, nor Morningstar’s employees can provide you with personalised financial advice. To obtain advice tailored to your particular circumstances, please contact a professional financial adviser. Please refer to our Financial Services Guide (FSG) for more information www.morningstar.com.au/fsg.asp
DATA
HOW KIWIS MIGHT USE ROBO ADVICE
Kiwi Wealth recently conducted research on New Zealanders' attitude to roboadvice. In this snapshot we look at how likely investors would use roboadvice and what services they may use. The data is, usefully, broken into age brackets. The full report, Rise of the Money Robots: Kiwis’ attitudes to robo-advice, can be downloaded from goodreturns.co.nz/roboreport WOULD YOU CONSIDER USING A ROB O-ADVISER? (by gender and age) TOTAL
37%
21%
18-24 YEARS
42%
15%
25-34 YEARS
24%
30%
35-44 YEARS
31%
25%
45-54 YEARS
34%
20%
55-64 YEARS
39%
18%
65+ YEARS
51%
15%
Unlikely
Likely
Source: Kiwi Wealth
HOW MIGHT YOU USE A ROBO-ADVISER? (by gender and age) 41% 41%
PROVIDE RECOMMENDATIONS ON HOW TO ACHIEVE MY GOALS
42% 42%
31% 38% 38%
HELP DETERMINE MY RISK PROFILE AND/OR ASSET ALLOCATION
36%
46%
35%
REPORT ON HOW WELL I AM DOING AGAINST MY GOALS
39% 38%
33%
19%
31%
34% 10%
19%
UNSURE/I WOULDN’T USE ROBO-ADVISER
26%
18-24 years
25-34 years
35-44 years
29% 29% 29%
45-54 years
47% 44%
38%
29%
HELP SET UP MY RETIREMENT GOALS
49%
41%
35%
29%
Total
45%
47%
38% 37%
35%
41%
55-64 years
54% 65+ years
Source: Kiwi Wealth