MAY 2017
Moving On, Moving Out Plotting your own business succession
How to build your brand
Advice without sales
Robots are your friend
LEAD STORY
UP FRONT
Moving On, Moving Out
04 EDITORIAL
Advisers need to plan
06 PEOPLE New appointments
08 NEWS
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18 Succession planning: Do you know how you will move on when the time comes?
Hannah McQueen says she is a ďŹ nance personal trainer.
REGULARS
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{OPEN TO QUESTION} { INVESTMENT }
{ INSURANCE } { ASSET ADVISER }
05 Do you have a succession plan?
14 New product updates 30 Don't be scared of robots
28 Time for active managers to shine
22 What will regulation change mean for you? 24 Give yourself certainty about the future. 26 Build your brand online. 03
UP FRONT
{ FROM THE EDITOR }
EYES TO THE FUTURE
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n an industry that is concerned with getting people planning for the future, it is ironic that many financial advisers do not have good strategies in place for what they will do when the time comes to leave their businesses. But when you are busy with the day-today work of finding new clients, helping your existing ones and keeping on top of your regulatory requirements, it can be hard to find the time to do anything else. Just staying afloat and offering advice to those who need it can seem a full workload in itself. Some avoid having the conversations because the idea of retirement seems so far
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off that it isn’t worth considering – or they cannot imagine wanting to do anything else, anyway. But the sooner you start thinking about how you would like to exit your business, the better your result is likely to be. If you know you want to sell your client book eventually, you can put work in now to build up renewal commissions to boost its value, document your systems and processes and generally improve your record-keeping to boost buyer confidence. If you think you might want to pass the business on to someone else, you can start to work on strategies to identify that person and build them up to the point where that is possible. This could be through a gradual shareholding transfer over time. This is a strategy that often appeals to advisers but rarely works. Finding the right person is paramount. You should also have a plan in place for what happens to the business if you are unable to work in it and have to step aside before you planned to. The greatest value in the firm is probably the relationships you hold with your clients. If you were suddenly unable to maintain those, you could find your client base slip away very quickly, eroding the value of your business. Who would you turn to if you suddenly fell ill or had to be off work for a period of time? If you want compensation for the hard work you have put in over the years, it is worth doing everything you can to build and preserve the value of your business. Get professional advice if you need it – advisers should know better than anyone the value of doing so. Susan Edmunds Editor
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, Tony Vidler, Barry Read, Shane Solly DESIGN Jonathan Harding ADVERTISING SALES Kelly Thorpe 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 TMM – The 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
Have you thought about succession planning?
GARTH CLARRICOATS
RICHARD THOMAS
SHARE
SHARE
RICHARD HARDEN
RICHARD HARDEN INVESTMENT SERVICES
DO YOU THINK YOU'LL BE IN YOUR ROLE IN 10 YEARS' TIME? Yes, but only just.
I hope so, but I want it to be by choice, not necessity. And perhaps is a reduced capacity.
I'm currently aged 51 so I think I may still be around in 10 years’ time but perhaps only just.
DO YOU HAVE AN "EXIT STRATEGY"? I already have an exit strategy that involves a timely and gradual withdrawal from the business when I believe it is time to move on. This involves not only having qualified and competent advisers to take on the role of caring for clients, but also a well-structured and workable buy-sell arrangement
I do have an exit strategy. Being part of SHARE has provided me with certainty about my exit plan, which is a major benefit in the way SHARE is structured. While not compulsory/ essential, the SHARE corporatised model has enabled me to remove succession planning from my thought processes, and focus on running my business.
Yes, I'm currently working on this and I'm actually in the process of merging with another adviser. At the same time, we are looking at a new adviser coming on board who will purchase shares in the new company. I'll be looking at selling further shares over the years and gradually reducing my shareholding.
DO YOU THINK FINANCIAL ADVISERS, AS A WHOLE, ARE GOOD AT SUCCESSION PLANNING? In general I don’t believe advisers think too seriously about their own risks when it comes to succession.
I think they are getting better at it, and perhaps becoming more focused on extracting value from their hard work. Certainly I see a lot more focus on building renewal with spread commissions and that is putting focus on building value in their asset, and I do talk to a lot of people about how they are going to extract that value on retirement, or before. I am not sure if my experiences are distorted by my involvement in SHARE where succession is a daily topic, or whether there is just greater awareness over the industry.
From what I've seen, probably not but it is not that simple. It seems that many advisers end up selling to the corporates as in many instances they are the only ones that can afford to purchase reasonable-size businesses. This is unfortunate and it does seem to limit selling options. I'm very keen that our business remains an independent advisory firm therefore we will be looking to bring in new younger advisers who purchase into the business. Let me know if you know of anyone who wants to move to “Sunny Nelson”.
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a new appointment email details { PEOPLE } Ifandyoua have picture to editor@goodreturns.co.nz
NEW CEO FOR NZX
Mark Peterson NZX acting chief executive Mark Peterson is to continue in the job permanently. The board conducted a worldwide search to find a replacement for Tim Bennett. Chairman James Miller said Peterson had more than 25 years’ experience in the financial services sector covering capital markets, share broking, private wealth, and institutional and retail banking. He would bring to the role a continued focus on strengthening NZX’s relationships with its key stakeholders, while strategically growing the business to ensure it was best-placed to compete domestically and internationally. “Mark has shown himself to be a highly capable leader during his time at NZX and more recently as acting CEO. In addition to his extensive markets experience, Mark has been instrumental in transforming staff engagement, with his clear communication skills and collaborative leadership style. He has also led the successful development of NZX’s Wealth Technologies business and has a proven track record of sound commercial judgement. “The board is extremely pleased to make this appointment and we look forward to working alongside Mark.”
strategy, which has seen the bank grow substantially while further enhancing the market-leading customer service for which the bank is renowned. “As a customer-owned bank which exists solely for the benefit of its 157,000 customers, we are well-positioned to continue our growth.”
Peterson said: “It is a privilege to lead NZX, an organisation which plays a pivotal role in supporting New Zealand’s capital markets. I welcome this opportunity to keep growing our markets, and I am committed to building a very collaborative team at the centre of this network, which engages, seeks feedback, and in turn delivers greater value for our customers and shareholders.”
FMA APPOINTS ENFORCEMENT HEAD
CO-OPERATIVE BANK NAMES CEO
The Financial Markets Authority has appointed a prosecutor to oversee its enforcement work. Karen Chang has been hired as head of enforcement. She has moved to the FMA from Meredith Connell, where she worked as a prosecutor representing FMA, particularly on the finance company cases. She has more than 14 years’ experience of commercial litigation and criminal prosecution, in New Zealand, Australia and New York. The FMA said she would be responsible for all aspects of its litigation and enforcement activities
David Cunningham
NEW HEAD OF ASB SECURITIES
The Co-Operative Bank has appointed David Cunningham as chief executive to replace Bruce McLachlan. Cunningham has been a member of the bank’s leadership team since 2012 in the role of general manager customer banking, and has worked in a variety of leadership roles in the banking sector since 1990. He replaces Bruce McLachlan, who left the bank on March 31, to take up the role as CEO of Fisher Funds. Cunningham’s appointment follows a comprehensive process. Chairman Steven Fyfe said Cunningham had been an integral member of the leadership team that has developed and delivered the bank’s
AUCKLAND OPPORTUNITY
ASB has appointed Rachel Whitelaw as general manager of ASB Securities. She has held the role of acting general manager since January 2017. A senior member of the ASB Securities team for a number of years, most recently as senior manager product, Whitelaw has worked across a range of roles and functions within the business including support, margin lending, wholesale broking and product management. ASB executive general manager wealth and insurance Adam Boyd said
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 06
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that experience had given her a deep understanding of ASB Securities and this, combined with her progressive outlook for the future of wealth management in New Zealand, made her a stand-out candidate for the role. “I’m confident Rachel is the right person to lead the team and support our customers as the platform continues to grow,” he said. Whitelaw holds a Bachelor of Business (finance and economics) and has previously been accredited as an authorised financial adviser.
SOVEREIGN EXEC TAKES OVER FINANCE BUSINESS
"We are delighted to welcome Haydee and Rachel to the FSC team," FSC chief executive Richard Klipin said. "These appointments mean we can move forward and deliver on our strategic plan in the marketplace. The FSC strategic plan focusses on three core objectives: improving consumer outcomes; creating a sustainable financial services sector; and increasing professionalism and trust in the industry. Stroud brings more than 20 years’ experience in financial services in New Zealand and the UK, with responsibilities that have included business development, strategy, governance and risk management. Most recently, Stroud gained deep industry knowledge with Sovereign Assurance as head of strategy, planning and governance. Douglas will co-ordinate all FSC activities, enabling a focus on priorities and delivery. She has spent her career in roles across the financial services and consulting sectors.
of contributing to New Zealand’s capital markets and is well respected by the industry. I am confident that given Frank’s strong industry experience he will make a valuable contribution to our Board.” Aldridge was appointed chief executive of Craigs in 2006. He is also chair of Australian-based Wilsons Advisory and Stockbroking, a director of the New Zealand Securities Industries Association and sits on several of Craigs' subsidiaries' boards. He is an accredited NZX adviser.
‘MR ABSOLUTE RETURNS’ REMEMBERED
NEW CHAIR AND DEPUTY FOR ACCURO Chris Lamers Flexi Cards, formerly known as Fisher and Paykel Finance has appointed Chris Lamers as its, new chief executive in New Zealand. Lamers has been Sovereign’s chief officer brand, innovation and marketing for the past three years. During that time, he undertook a number of significant developments, including establishing an online sales channel, customer engagement programmes, and data analytics functions. Prior to Sovereign, Lamers was at Loyalty New Zealand (Fly Buys) for six years, first as head of marketing, then head of customer engagement and lastly as interim CEO. He takes over from Greg Shepherd who resigned recently after more than 12 years with the company. Flexi Cards NZ is relocating from East Tamaki to Newmarket in September. Flexi Cards is part of FlexiGroup NZ, a wholly-owned subsidiary of ASX-listed Flexi Group.
FSC MAKES APPOINTMENTS
The Financial Services Council has appointed a new head of member services, and a business manager. The new additions are designed to strengthen the FSC's core team and deliver the vision of being a voice for financial services in New Zealand. Haydee Stroud joins as head of member services and Rachel Douglas joins as business manager.
Accuro has announced the appointment of Anthony Haycock as chair of the board of directors and Pat Curry as deputy chair. It follows the retirements of the previous chair Jane Bawden, and deputy chair Bridgit Sissons. Haycock has been a director of Accuro since 2013 and is a medical practitioner with 40 years’ health sector experience including 13 years in general practice and 19 years in health management. He has previously held leadership and governance roles in the health sector. He is currently engaged in health consultancy work and is a medical adviser to ACC. Curry was elected to the Accuro board in 2013 and is a registered nurse with a strong background in public and private health care as well as with charitable organisations. Curry is currently deputy chair of Nelson Bays Primary Health Organisation. In addition to governance roles, Curry is engaged in a range of voluntary work.
INVESTMENT ADVISORY BOSS JOINS NZX BOARD
The managing director of one of the country's biggest investment management firms is joining the board of the NZX. Frank Aldridge, managing director of Craigs Investment Partners, has been appointed to the board. Craigs has more than $13 billion in funds under management and the NZX said Aldridge offered an extensive understanding of local capital markets. Chairman James Miller commented: “I am extremely pleased to announce that someone of Frank’s calibre will join the NZX Board. Frank has a proven track record
Greg Jones The man described as “New Zealand’s Mr Absolute Returns”, Greg Jones, has died after a long illness. Jones has not been seen around the industry for a long time, due to poor health. He was diagnosed with motor neurone disease about seven years ago. However, he has left a mark on the industry, especially around absolute returns as an investment strategy. His friends and colleagues remembered him as being held in high regard and considered one of the most "authentic" people in the industry. Jones and his colleagues scoured the world looking of investment talent. These overseas trips were followed up with lengthy, and informative reports. Jones and his cousin, David, founded New Zealand Asset Management (NZAM), in 1991, after the 1987 crash and resulting recession in New Zealand had destroyed investor confidence in the stock market and depressed the availability of cash in general. “Some people undoubtedly looked at us sideways at the time, but in many ways it was a great time to start a business,” he was quoted as saying. “Office space was cheap, business start-up costs were minimal, and we had some beliefs from our previous job that would stand us in excellent stead. “The way to win clients was to offer something that avoided the ups and downs and volatility of the traditional stock-broking model, preserved capital and delivered sustainable returns in a reasonable time.”
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{ NEWS FROM NEW ZEALAND }
Advisers ‘must be represented in working group’ Any working group put together to develop the new Code of Conduct for advisers needs to have current practitioners among its number, one adviser says. Murray Weatherston, of SiFA and an adviser, has expressed concern after a number of advisers missed out in the first cut of the application process. The Ministry of Business, Innovation and Employment is seeking between seven and 11 people to develop the new code and become the code committee administering it.
Bank staff: Target pressure not in customer best interests
Bank staff are worried that sales targets are causing them to sell products, including KiwiSaver and insurance, that are not a good fit with their customers’ needs, the union that represents them says. First Union is calling for New Zealand banks to adopt the retail banking practice and culture changes recommended by Australia’s
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Sedgwick report, including an overhaul of targets for staff. Spokeswoman Tali Williams said bank staff were under pressure to sell things like KiwiSaver and insurance. New rules introduced as part of the rewrite of the Financial Advisers Act will require banks not to incentivise their staff in a way that does not put customer interests first. There will also be wider "client first" obligations. But Williams said the changes made with the initial introduction of the Financial Advisers Act had made little difference, so she was not confident that the coming changes would make a difference. Williams said financial incentives on offer were so small that they were not a concern. She said staff were mainly worried about the possibility of being "performance managed" out of a role if they did not hit their targets. Many felt they were put under pressure that was not in customers’ best interests, she said. “A recent survey of our members showed about 60% feel pressure to sell products beyond the customers’ needs.”
Weatherston said it was “absolutely critical” that the working group included practising advisers. But he said anyone who had been on the board of an investment advisory body had been discounted by those reviewing the applications. He said, if that was the case, it was important that the rule was fairly applied and those who had been involved with other industry groups were similarly disqualified. “I would be very interested to see how they deal with former members of the boards of association groups as opposed to current members.” An MBIE spokeswoman said it was not possible to comment on specifics of the appointment process while it was happening.
Start-up drops out of fintech programme One of the Kiwibank Fintech Accelerator’s seven start-ups has pulled the pin on its business. The accelerator revealed the participants in its first programme in January. They were offered support through Creative HQ's Lightning Lab acceleration programme, with 20% seed funding in exchange for 6% equity in their businesses. One of the companies chosen was Investful, set up by former NZX employees Andrew Montague and Carl Douglas. It was hoped that it would be a platform to give New Zealanders access to financial advice, assessing their risk profile and financial goals to build a portfolio, and rebalance as required. Montague said he saw demand from investors who did not want to pay high fees. He said it was difficult to beat the market in the long term and automating portfolio management would remove the need for multiple fund managers. But he announced Investful would be shutting down. "We are very proud and thankful to all of you who have shown your interest and supported us along the way," he said in an email. "While this is the end of the road for Investful, the team still believe the financial services industry needs to provide more value to consumers and will continue to work on problems to help solve this problem."
UP FRONT
{ NEWS FROM AUSTRALIA }
Demand for faceto-face advice
The $60 billion superannuation fund for Australia’s higher education and research sector said a growing number of members wanted face-to-face advice from an adviser, not robo solutions.
UniSuper offers members a financial planning solution, with nearly 50 financial advisers nationally providing advice across superannuation, investments, insurance and retirement strategies. Demand for initial advice appointments with members is up over 20% year-onyear. Review advice, where an adviser reviews an existing financial advice plan, is up over 70%, with demand spiking as members prepare for the upcoming superannuation changes due to come into effect in July. Jack McCartney, UniSuper Executive Manager – Advice, said more than 50% of UniSuper’s initial advice appointments across its adviser network were now occurring face-to-face.
Big data should help advisers
More use of big data by financial services companies in the coming years will see financial products increasingly tailored to consumers and compliance costs for advisers reduce, according to Midwinter. Managing director Julian Plummer said big data – datasets that monitored individual consumer activity on a massive scale – was already having an effect on the way overseas financial services companies were designing products, as well as filtering through to
the local advice market. “One industry that is benefiting from big data is life insurance – insurers have more access to information about consumer purchasing habits and are able to structure their products around when people are likely to buy life insurance,” he said. “We are getting to the point in the US where you have personalised premiums because insurers have access to a customer’s FitBit and understand what kind of lifestyle they are leading, so you can get products tailored to people’s individual circumstances.” Big data was also having an effect on compliance processes for Australian advisers, with local risk management firm Frisk Retrieval working with a number of industry players including Midwinter to revolutionise the way practices’ data could be stored and accessed.
Trust most important
Sunsuper, a $40 billion Australian super fund, says trust was the most important thing when it came to offering advice and helping people reach their goals. At a workshop in Brisbane, Sunsuper's head of advice and retail distribution Anne Fuchs told financial advisers that maintaining a client's trust will be one of the most important commodities in future. "We know that getting the right financial advice can make a huge difference to our members' lifestyle in retirement. But often trust is the roadblock to people seeking advice," Fuchs said.
NAB advisers move to IOOF At least 21 financial advisers have left a NAB-owned dealer group to join IOOF. According to ASIC data, 21 advisers previously licensed by NAB’s Meritum Financial Group crossed over since February 2017 to IOOF’s Consultum dealer group. Last week, IOOF chief executive Chris Kelaher told both Fairfax Media and News Corp Australia the group had recently poached 50 financial advisers, but declined to name the institution they came from. ASIC data shows IOOF has 1007 advisers within its network.
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Moving On, Moving Out Plotting your own business succession
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Advisers are good at talking about their clients’ financial plans – but less equipped for plotting their own business succession.
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fter a lifetime in insurance, Tom Somerville was not sure what he would do if he gave up his work as a financial adviser. But his daughter and business operations manager told him last year it was time that something changed. “Eva pointed out that I wasn’t having fun any more,” he said. She had noticed that he had lost his spark and was coming back from holidays halfheartedly, instead of bounding back into work as he once had. But getting him to agree to hang up his adviser hat was another thing entirely. “I had real difficulties giving it away. I had done pretty well in the industry over my time and hadn’t been able to see anything else that would replace that. I was holding on because there was nothing else to do.” As a first step, he decided to sell 80% of the business, and just hold on to his favourite clients. He figured he could work three days a week, and fit other things around that. He took up pottery and quickly developed a passion for it. But then Somerville realised that being a part-time adviser was not as easy as he had hoped. “There I was, six months ago, with 20% of my clients and a fraction of the workload, in a downsized operation with one staff member. “But I’d always told people you can’t do insurance part-time and that proved correct for me as well. I was really afraid of missing some information or letting a client down. Insurance is not simple. One of the sayings you hear is ‘casualness causes casualties’ and in our world it definitely does. I was so busy thinking about pottery that I wasn’t thinking about clients.” Last November, he decided to give it up altogether. Now, he is running a sandblasting business. Somerville says the big lesson for other advisers is that, if you think you want to get out, make a clean break. Dragging it out just costs time and money. Market commentators say succession is something that many financial advisers do not give enough thought to. Although about a quarter of the country’s AFAs are aged between 56 and 65, very few have a plan for how they might move on. There is less data available on the demographic profile of RFAs. Mike Moore, who specialises in marketing advisers’ books of business, said the current market offered the best conditions in 10 or 15 years for those who wanted to sell, but some of the worst for people wanting to buy. He said the introduction of regulation eight years ago shook out a lot of people who did not want to make any changes to their business. What followed afterwards was a
period of consolidation. Now, any moves to sell client books were driven by advisers wanting to retire, or needing to quit their business for personal reasons. He said his firm would deal with about 500 a year. As regulation bedded in and advice firms required economies of scale, the value of the businesses being turned over had increased from an average of about $150,000 to $400,000. An ageing workforce meant Moore’s office had dealt with more death and disability cases in the past two years than it had in its history before that, he said. It would often hear from solicitors, accountants or other trustees wanting to sell a business on an advisers’ behalf. Moore said a good risk business book would have eight buyers for every seller if it was going for less than $400,000. Investment books would have 10 buyers for every seller.
" More so than ever we are gettingapproached. Advisers are looking ahead three, four, five years and thinking what can I do with my business?" Scott Edmund While a number of books of business were worth more than $1 million, Moore said it was hard to find buyers for them. People with the resources and experience to handle a business that size were usually already running their own, successful enterprises. But he said buying client books was the way that most advisers built their businesses now. While the industry had previously been made up of client hunters, they were now mostly farmers. “It’s cheaper and less draining to buy them. “The cost of getting investment clients is so high, it’s cheaper to buy them. If you handle it correctly, you keep the vast majority. If you sell for two times recurring income, that’s about four times the profit. That’s about right for a small business. Compared to the cost of acquiring the customers, banging on doors, attending rotary meetings…”
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"I’d always told people you can’t do insurance part-time and that proved correct for me as well. I was really afraid of missing some information or letting a client down. Insurance is not simple. " Tom Somerville
Risk businesses would go for 3.5 to five times recurring income. “If you bought it at five times, you’re still getting a 20% rate of return, if it’s a business with a minimum of 100 individuals you might lose five because they were going to go anyway. If you get around the rest of them asking new questions – because the previous owner was not doing a lot with them – almost overnight you get a good return on your investment. Economically, it makes sense.” He said it was in the interests of the buyer, seller and clients that the best price possible was paid. “If you have paid a big bunch of cash you will service the hell out of those clients.” Moore said few advisers had been able to bring in new partners to work alongside them, and eventually take over the business. “Has anyone ever met anyone like that, that worked? If a person is any good they are already building a business and they are too busy.” AMP’s general manager of wealth Therese Singleton said succession was something much of the industry was still unsure about. She said a recent succession session at the PAA professional development days had highlighted how few had a set plan. Singleton said that could be because advisers were traditionally relationship people who were focused on serving their
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clients rather than working on their own businesses. “It’s starting to be highlighted that this is an issue, they are starting to question what the plan is.” She said it was important that advisers did not leave it until they wanted to retire to think about how they might move on. They should start thinking about how they could maximize the value of their business much earlier, she said. It would also be important to compare any plan to the regulatory changes in the pipeline and ensure the business was future-proofed. “What does your situation look like, where does the value sit, are you structuring it appropriately, who is going to be available to sell it to? Get advice when you need it.” A lack of continuity planning was also an issue, she said. AMP would often encounter situations where an adviser was suddenly taken critically ill or died, and there were no plans in place for managing their clients. All their net worth was tied up in the business but there were no plans in place to protect the value of it while it was worked out what would happen. “It could be worth nothing very quickly because so much is based on those relationships,” she said. Scott Edmond, executive director of Forsyth Barr, said more and more advisers were coming to organisations such as his,
looking for opportunities to sell their books of business. “The regulatory framework is making people question what they are going to do, what are their options.” He said the most important thing for his firm was to find businesses that were a good fit, in terms of people and the structure of the business. All administration and paperwork would have to be kept in excellent order, he said, because a significant amount of due diligence would be required. Some of the advisers Forsyth Barr would talk to would not want to stick around once the book sold but others still had many years in the industry ahead of them and were part of the package deal. “It’s very people-specific and business-specific,” he said. Adviser group SHARE tries to make the most of retiring advisers’ books, to help its members grow their businesses. It works through a process of purchasing books of business from those looking to leave. It has signed up 10 new associates in the last nine months, specifically based on the opportunity SHARE could create for them based on the purchase of the books. “More so than ever we are getting approached. Advisers are looking ahead three, four, five years and thinking what can I do with my business? What plan do I have to
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extract the equity out? How do I hang up my boots and extract the full value? “In many cases we have the funding lines available. We have a look at the book and have a valuation matrix. If it looks right, and smells right, we can make a market offer and feel comfortable knowing we are going to have the backing of the banks.” SHARE has bought $5.5 million of books since March last year, which it then made available to its adviser members. He said product providers such as Sovereign and AMP were actively buying books. “Advisers are not giving enough attention to succession planning. If they are serious, they need to start to think about things like what is the state of their database, is the information on all clients clear to hand over to the new adviser? What state are the files? An office that is run well is going to command a higher multiple. What’s the relationship with clients, is it all about me and my personality, or have I built a business that could roll forward without me?”
Insurance advisers who could sacrifice upfront commission in favour of more renewal would boost the value of their businesses, he said. “Every dollar you earn as renewal, you are adding $4 to the book value.” Phil Menzies opted to sell his book of business to Apex Insurance, and then contract to them for 12 months. He had built up a strong book of renewal business and struggled to find a buyer who had the resources to pay for it. “I didn’t want a bit now and a bit later, I wanted a clean break.” He is now handing over the last of the work and is preparing to sign off from insurance for good. He said he had told some clients he would be available to talk if they wanted to check in from time to time – but not to provide insurance advice. “We built strong relationships over many years – they like to know what we are doing, not just wandering off into the sunset.” He said he was happy with the outcome. “You always want more for a business after a lifetime
of work but a lot are not worth a lot these days.” Others remain in the industry. Lisa Dudson is now working as a consultant, property finder and financial educator, after giving up her investment advice business and selling her client book. She said the flexibility of her new role suited her, not having to be in the office during business hours and not having to worry about staff. “Although I still mainly work Monday to Friday I can work from a hotel room if I want to. The change was driven by how do I want my life to work and implementing the things I talked to my clients about. One of my top values is freedom.” She said, while she still offered financial advice in a general sense, she no longer offered product advice. She would refer people to an AFA or insurance adviser as they needed it. “The day-in, day-out work of what an adviser does is now what I wanted to be doing.” She is still a shareholder and director of Saturn Portfolio.
"Although I still mainly work Monday to Friday I can work from a hotel room if I want to. The change was driven by how do I want my life to work and implementing the things I talked to my clients about" Lisa Dudson
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New products and updates What's new in insurance, for the first quarter of 2017? We asked New Zealand players what they had to offer advisers and their clients.
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INSURANCE
lth. For more 800 242.
y wordings for full details.
Real Health
Fertility Treatment Loyalty Benefit – Recently launched as an in-built loyalty benefit of AIA’s Real Health cover. After two years of continuous cover AIA may provide up to $25,000 for in vitro fertilisation (IVF) if a couple has met local district health board (DHB) criteria and fully exhausted their publicly funded treatment options. This benefit is available regardless of which partner has the fertility issue, whether it’s the policy-holder or not. This applies to existing policies but terms and conditions apply.
AIA Cancer Treatment Benefit AIA’s Cancer Treatment Benefit (nonsurgical) is an add-on to AIA Real Trauma Cover that provides up to $500,000 cover per year for specialist consultations and diagnostic tests including, diagnostic imaging and tests oncologist consultations and laboratory tests for the diagnosis of cancer. Should cancer be diagnosed it provides access to the latest Medsafe-approved cancer immunotherapy medicines including both Pharmac or non-Pharmac Treatments.
AIA level premiums AIA now offers level premiums on AIA Real Life, AIA Real Trauma and AIA Real TPD for both personal and business products. Level premiums can be from a 10-year minimum term up until the policy expiry age. Also available with the level premium product is the indexation adjusted option. Cover will increase each year based on the indexation percentage selected, while premiums remain the same. Clients choose an indexation option of 0%, 1%, 2%, 3%, 4% or 5%.
AIA Real Trauma
AIA’s inbuilt Children's Trauma Benefit is now from birth as part of an AIA trauma policy, previously it was from three years of age. The in-built Children’s Trauma Benefit covers 20% of a parent’s sum assured up to $50,000. This also means the Optional Children’s Top-Up Trauma Benefit is now from birth, meaning you can increase cover by a further $75,000, giving a maximum benefit of up to $125,000 per child. This applies to existing policies but terms and conditions apply.
Fast App
Partners Life has introduced Fast App, an alternative to traditional underwriting for life, disability, trauma and medical insurance and designed to be attractive to clients who choose not to go through the traditional disclosure and assessment process. Partners Life’s research shows that there are plenty of healthy people, many in the younger Gen Y generation, who buy online and without advice and who want a simple process, minimum fuss and a speedy outcome. Fast App is also available to increase cover for existing clients but it is not available for replacement business. Fast App is available on all Partners Life personal and business products, the same products and benefits clients get if they are underwritten, and, at exactly the same premium. Applications using Fast App are not medically underwritten at application but are underwritten at claim time. This provides a better outcome than traditional guaranteed acceptance insurance were claims caused directly or indirectly by pre-existing conditions are typically simply excluded without being underwritten and considered. Under Fast App, any preexisting conditions will be covered if they would have been accepted had the client been underwritten, even if the condition would have given rise to a loading. Preexisting conditions that would have been excluded if underwritten will be excluded at claim time with Fast App but only if: ► the condition would not have been accepted at any time prior to claim; and ► the pre-existence of the condition does not cause the claim. The aim is to try to achieve the same claims outcome whether underwritten at
" Applications using Fast App are not medically underwritten at application but are underwritten at claim time." application time or claim time. Fast App will be beneficial to those who are healthy or who might be happy to accept an exclusion for a known pre-existing condition. Fast App is a quick and easy way to get access to Partners Life’ s exceptional products without health underwriting at application, providing an opportunity to advisers to offer their advice services to a range of new clients who, until now, have typically not used advisers or not taken any insurance
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Asteron Life
Asteron Life has enhanced its group product offer and changed the name to Asteron Life Employee Insurance. Key changes to Income Protection Cover: ► New income support benefit replaces the total disablement benefit and partial disablement benefit. Total and partial disablement concepts have been removed completely to align with the personal insurance product range. The degree to which a member is disabled will determine the benefit payment for which they are eligible. ► The new income support benefit will simplify the payment calculations for both indemnity and loss of earnings cover. ►No requirements for any period of total disablement. ► Revised rehabilitation and retraining support benefit is available to members during the waiting period and is not contingent on being paid a monthly benefit. ►All monthly payments are now made in advance, where previous payments were made in arrears. ►There is a new optional specific injury support benefit which pays a monthly benefit for a set period of time for specific injuries. Key changes to trauma cover: ► Asteron Life has added three more conditions (peripheral neuropathy, severe peripheral vascular disease and systemic sclerosis) to the trauma cover to match the number of conditions in the personal insurance trauma cover.
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" Clients only ever pay premiums for two children on the policy at any one time. Even if they have six children insured, they only pay premiums for two." clients with greater clarity and certainty at claim time.
OnePath
OnePath have made some enhancements to its trauma cover, providing more competitive and comprehensive cover.
Trauma definition enhancements OnePath has enhanced its heart attack, benign brain tumour and severe rheumatoid arthritis policy wording definitions across their product suite. The new definitions are now more closely aligned with criteria used by medical professionals and will provide
Complimentary children’s benefit In addition to the current optional children’s benefit on assurance extra trauma cover, OnePath has now introduced a new complimentary children’s benefit. This benefit provides up to $50,000 of trauma cover for each child of clients who hold OnePath Life Assurance Extra Trauma Cover. The child must be between the ages of three months and 18 years inclusive. Any congenital or pre-existing conditions are excluded.
INSURANCE
Sothern Cross
Southern Cross has this month launched Cancer Assist, a new product add-on designed to complement members’ health insurance plans by providing a one-off payment after a qualifying cancer diagnosis.
Key benefits:
► Clients can choose the level of cover that suits them - from $20,000 to $300,000. ► Premiums are set at an affordable level. For example Cancer Assist costs from just 43 cents a week for children, or from $1.15 per week for a 30 year old female non-smoker (based on $50,000 of cover)**. ► Child rates apply from birth until 21 years. ► Only pay for two children, the rest are free. ► Continued cover of $20,000 beyond 65 years. ► Tax-free payment
financial support so time can be taken off from work to be with a child diagnosed with a qualifying cancer. ► Staying on top of bills – helping with mortgage payments or rent and credit card payments. ► Treatment travel costs – covering flight or petrol costs if travel is required. ► Childcare and home help – making sure the kids are cared for while treatment takes place. ► Overseas travel – taking a holiday or visiting loved ones overseas.
Special offer: Clients who add Cancer Assist to their policy by June 30, 2017 get the first two months free.
Cancer assist could be used for:
► Additional treatments – paying for treatments that may not be covered by the public system or health insurance. These could include new treatment options or nonPharmac approved drugs. ► Taking time off – taking the pressure off needing to work, or reducing the work hours while being treated. ► Cover the family’s income – providing
Accuro
Accuro has launched KidSmart, a policy that offers standalone cover for children. KidSmart is designed to be taken out by parents and guardians for the kids under their care, without having to have cover themselves.
The underwritten insurance policies can be given as a gift to children. Anyone under 16 can be insured as a child under the KidSmart policy. They then remain on that policy until they reach the age of 25, when they transfer to a SmartCare+ policy. The policy will pay all reasonable and customary charges for a medically necessary procedure or treatment up to a maximum cover amount – such as $500,000 per year for general surgery, $300 per night up to 10 nights a year for public hospital stays and $3000 per minor surgery claim. There is a benefit for lip and tongue tie release. Clients only ever pay premiums for two children on the policy at any one time. Even if they have six children insured, they only pay premiums for two. Cover starts at $24 a month. There is free cover for babies under six months.
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CLIENTS’ FINANCIAL PERSONAL TRAINER Hannah McQueen keeps people on track to achieve financial goals.
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he’s a “financial personal trainer” with thousands of clients on her books. But Hannah McQueen makes no money from commission and sells no products. McQueen started EnableMe nine years ago, after taking out her own first mortgage. “I’m a chartered accountant with a master’s in tax,” she says. “I’m financially literate. But when I needed to get my first mortgage, I was about 21 or 22, the mortgage was $350,000. I did what everyone does – I played the banks off against each other to get the best possible deal. “I got a really good deal but I was still going to be paying close to $1 million back to the bank and the interest rate I had negotiated was going to save me 1% out of the total repayment to the bank so it wasn’t really substantial. I thought wouldn’t it be great to structure my mortgage to pay it back as quickly as possible but I didn’t want my mortgage to dictate the lifestyle I was going to live.” She got in touch with the calculus department at the University of Auckland and asked for a formula that would help her do that. Over six months, she would visit a professor there regularly to work on it. Eventually,
ADVISER PROFILE
she had eight pages of the formula that showed her how to structure her loan. “On average that would save me the size of my mortgage in interest costs. I thought ‘that’s pretty compelling. Let’s patent that formula’.” But for it to work, she needed money left over to put towards extra payments on the mortgage. “Despite being financially literate and able to set a budget and colour code a budget I still couldn’t stick to it. “Telling me to spend less than I earned didn’t engage me. There was a pair of shoes I wanted to buy - I was 22 years old. I thought ‘this isn’t my lack of financial acumen that’s holding me back it’s just a problem with my psychology’. I needed to work out the process that someone like me needs to go through. The natural savers of this world are like people with a fast metabolism - some of us just don’t have that – the rules that apply to them don’t apply to us from a financial perspective because they’re just different.” Over a year she worked with people on a pro bono basis, developing processes and systems and did research to work out the path that someone needed to go on to turn the formula into real-life results. “Just having this amazing formula in isolation isn’t going to fix the problem.”
You’ll know whatever we say is right for you, not because we get a backhander. That’s been quite a clear point of difference. - Hannah McQueen The experience led her to form EnableMe, to work as a type of personal trainer to guide people to financial success. “I think that’s the best analogy for what we do. Some people can go to the gym and they’re self-motivated and they probably don’t have kids. And they probably had a good night’s sleep. And there are others of us who need a personal trainer to get the best out of themselves and I’m in that latter category.” Since then, the business has worked with close to 6,000 clients and now has 10 offices around New Zealand. While the initial focus was getting rid of clients’ mortgages, it has evolved as more clients become mortgage-free and want to focus on retirement planning instead. EnableMe is also engaging new clients who are not yet property owners and want to
discuss ways to get into the market. “They want a strategy to have a property whether they live in it or not. We started with a small business offering and it’s widened to what our clients need.” EnableMe refers out clients’ insurance needs and those who want to make investments are also passed on to advisers who can help with that. Any commissions earned on mortgages are rebated to the clients. “We pride ourselves on being the experts. The problem with a lot of financial advice here is that anyone giving it to you is trying to flog a product. You don’t know if what they are telling you is because it’s the right thing or because they are trying to flog it. One of the things I wanted to make really clear to clients is you will work with us for a year – we’re like a gym membership and we’re going to charge a fee. You’ll know whatever we say is right for you not because we get a backhander. That’s been quite a clear point of difference.” Consultants employed by EnableMe are chartered accountants. McQueen said it was also important that they had life experience and emotional intelligence. They are not AFAs but go through a year-long training process. “Sometimes it’s less about the finance and more about the life coaching or the career coaching or the counselling and it’s those things that are stopping [clients] getting ahead - it’s not their pay packet - but there’s seldom a safe environment to discuss that.” Some clients prefer coaching on property investment rather than investing in shares, she said, which the EnableMe team offers. McQueen said there was no trouble getting clients to pay a fee for the service, as long as they could see value. “Some of the other advisers in the market are peddling a product. What value are you adding and with the advancement of IT, all these people will be able to do it themselves because there is no value, it’s just transactional. We deal with the more complicated scenarios or the more motivated clients, where they want to be in a better place. They’re not necessarily sinking, they’re just not getting ahead at the rate they should and they see the value.” Clients pay between $2,000 to $4,000 a year for the first year for a plan that is measured regularly so they can see the value they get from working with the EnableMe team. The second year costs between $600 and $2,000 depending on the complexity of what has been decided needs to happen. About 80% of clients renew each year. “The idea is it goes into a maintenance programme that’s less onerous for clients.” Client net worth ranges from negative $100,000 to $400 million. Most of their household incomes are between $100,000 and $200,000 a year. “Some people are sinking, some are flying but the consistent thing is they want to be better or do better or they think they should be able to do better.”
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The more things change... Your day-to-day processes may not have to change much even when the law changes.
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ASSET LEAD REGULATION Y R ODATA TS ADVISER STORY DAEL
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BIE is now assessing the consultation feedback on the draft Financial Services Legislation Amendment Bill and proposed transitional arrangements. While the timeline has been set, the main issue now is when the bill will pass. There is a possibility it will pass before the election in September, but there is also a chance it could pass after. There appears to be support from both sides of the house for the bill, so we can assume it will start to take effect from 2019. We have discussed previously the proposed changes and how they will affect advisers and advice businesses. These include: ➜ Licensing – This means the way you currently engage with the regulator will change. The licensing process approves your business model, processes and agrees ongoing requirements. There will be a cost to this and could affect how you structure your business and adviser relationships. ➜ Conduct obligations – You will have to meet these obligations and these will apply across all adviser types rather than just AFAs, as is the case now, and is a more level playing field. Currently the Code of Conduct doesn’t apply to RFAs or QFE advisers. The Code Committee working group have a lot of work to do to get this right. ➜ Labelling – AFA, QFE and RFA was confusing terms for 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. The proposed labels do need some work. ➜ Disclosure – What and how you disclose to clients is likely to change and hopefully there will be an improvement over the current regulations. There is still a lot of the detail that is unknown and won’t be known for a while yet. However, there are a lot of things that advisers do today that won’t change because of the new laws. The key to compliance for an advice business is do what you say you do and make sure you can evidence what you did. This is achieved by having good systems and processes in place when giving clients advice. If you have in place good systems and processes to document your advice, then it is unlikely that they will need to change. Also, there is a chance that we can simplify some of the regulatory jargon that was introduced after the Financial Advisers Act was originally introduced. You don’t have to look to far to see some of the confusing jargon used when describing what advisers can do, “I am an authorised financial adviser who has been authorised to provide financial advice and investment planning services, I can provide personalised services to retails clients and wholesale clients, who opt in to a retail service, on category one and category
two products. I can also provide limited or class advice services as well as generic information, I am registered on the FSPR with the FMA and also have an internal disputes resolution and am a members of an external disputes resolution service… How can I help you today?’ You can start by putting that all into English. I don’t ever hear doctors, lawyers or accountants describing their services in this way and I also don’t think clients want advisers talking like this. What we could be saying is something like this; ‘I am an INSERT TYPE adviser I can help you with INSERT TYPE planning to help achieve your financial goals or objectives and I also provide advice and implementation services for INSERT TYPE products.” The fact that you are registered or authorised or the products are category one or two are redundant for the consumer, they already assume because you are an adviser that you are up-to-date with the regulations. So, if we are clearly stating what we do the next step is to have a robust process to give the clients the advice;
Until the changes do come into effect, all advisers have the opportunity to review what they say they do and how they do it.
➜ Clarify the scope of service the clients want, ➜ Gather relevant facts and identify their needs, ➜ Complete the analysis and research required, ➜ Give the advice, ➜ Implement agreed solutions and a review process. If your current process records how you do this and documents the advice given then it is unlikely this is going to change in 2019 when the Act comes into force and you are also likely to be compliant today if your advice is ever challenged. So, until the changes do come into effect, all advisers have the opportunity to review what they say they do and how they do it. An example of how advisers adapted to change in the past gives some insight. Some insurance advisers used to give advice on retail superannuation pre-2011 but dropped the service when they decided to not become an AFA. Then over the last six years some have added class avice on KiwiSaver to their offer to clients. This comes with some risk in the fact that you can’t give a client personalised advice and therefore have to ensure your advice is covered by disclaimers and you hope the clients understand the difference. If those advisers had become AFAs they could offer personalised services and would likely have an easier run through the upcoming changes. So, if you are worrying about the changes coming, take some comfort that the main day-to-day activities of a professional advice practice won’t change much at all. Take the opportunity to develop your offer and think about the services you want to offer in the future. Once the changes have been finalised you’ll then know what the requirements are for your ideal advice business of the future.
- Barry Read Barry Read runs Independent Development Solutions (IDS), specialising in helping advisers meet their compliance requirements.
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SUCCESSION PLANNING IS SOMETHING YOU DO EVERY DAY ISN’T IT? Make sure you have a Plan A and Plan B in place for when you want to get out of your business, Tony Vidler writes.
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n the USA there is a rule requiring investment advisers to “establish, implement and maintain written procedures relating to business continuity and succession”. It is a compliance requirement. Yet, according to research by Cerulli in the USA just 25% to 38% of planning firms have a succession plan in place. Those who don’t are mainly (and unsurprisingly) the solo practitioners who make up the bulk of the market – just like here. In NZ I would suggest that the proportion with an actual plan is substantially lower. Why is this an issue when the no-brainer option is to never sell the practice, but
to just keep a slowly diminishing passive income called renewals rolling in during your retirement? After all, it isn’t like there is any legal requirement for you to do anything to or for the clients in order to retain the rights to a contractual income stream, is there? Let us put the ethics and morality of that question to one side, and refrain from the temptation to indulge in crystal ball gazing on whether advisers will be able to retain renewals without being ongoing licensed advisers with full compliance requirements. Instead we should consider why today’s adviser might actually need to do something about succession.
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is a need to create certainty too, it is perhaps just not as urgent. Given that “creating certainty” is something which financial advisers practice regularly on behalf of their clients it is remarkable that so little attention is given to creating it by them and for themselves.
So what should advisers do to create certainty in succession for themselves? Three things should be done: ➤ Manage the risk of you not getting to choose your timing ➤ Create an optimal strategy ➤ Have a “Plan B” Advisers are humans and face all the same risks and probabilities that other humans do: they are not exempt from normal mortality risks. Prudent business management of our own practices would begin by putting in place a catastrophe plan. The potential risks for a practitioner that are pertinent to being able to exit a practice at premium value and an ideal time are:
This is why you should worry about it: ➤ For advisers planning to be in business in 10 years’ time it will probably become a requirement to practice. As regulators globally increasingly align regulatory principles and standards it is not unreasonable to assume that in time there will be a legal requirement for firms in NZ to have a written succession plan too. ➤ For advisers planning to be out of business within 10 years it is about creating certainty for yourself, your estate and your clients. Of course, for those wanting a longer career there
a: Death b: Long-term disability c: Serious medical event d: Business partnership dissolution e: Marital Breakdown f: Loss of other key person g: Loss of regulatory license Some are clearly insurable events, which can potentially entirely mitigate the financial impact to a business owner of the catastrophe. Some are not insurable, but they are transferrable. That is, sound estate planning structures and contracts can help mitigate or even potentially completely avoid the financial impact of some catastrophes. Just as importantly as arranging capital injection from insurers where possible, and protecting and shielding through contract and structure, is having a conditional sale and purchase for the business to a pre-approved buyer. Most advisers have (or can find relatively easily) someone in the business who they would be happy to have take over their business and look after their clients. Some may have even had conversations about that happening in the event of a disaster, but few go so far as to arrange a conditional sale and purchase agreement that can be triggered by one of the defined events. Of course, it is a touch more difficult to organise from the grave, so one really should consider it beforehand. One of the catastrophe risks is “manageable”. The “cost” in creating the solution to the potential loss of regulatory licensing is the investment in internal compliance systems, external or outsourced verification of those internal systems, and an ongoing “safety” culture, which emphasises maintenance of the agreed standards.
These actions, which are so often overlooked by financial advisers, are in fact an essential aspect of ensuring that a successful exit from a practice can occur even in the event of personal catastrophe. These actions buy time to create and put in place the optimal strategy, which is Plan A really. That is the one where you plan to dictate the timing, the terms of transfer of responsibility, and have an orderly handover of responsibilities and relationships. The optimal strategy may not necessarily aim at a specific buyer (though I believe it ideally will), but it will definitely aim at a specific outcome. Leading up to execution of the plan there will be careful consideration given to organising the practice and systems, enhancing the residual value and profitability, structuring the funding or buyout terms and laying the foundations for the necessary transfer of trust by clients which will make it a success.
Advisers are humans and face all the same risks and probabilities that other humans do: they are not exempt from normal mortality risks. Not all plans go according to plan though, so a Plan B is required. This is the suboptimal version of Plan A of course. Plan B is about acceptable compromise. Is a BOLR valuation acceptable? Do I have a person I could transfer to at a reasonable value, but where I would have to modify transfer or payment terms, and if so, what is acceptable? Should I semi-retire – staying compliant and licensed of course – and let the business wind down over the years? Regardless of the decisions one eventually makes, getting what you want from succession is about being thoughtful, deliberate and then taking the actions necessary to achieve the outcome you planned for. It is about creating certainty. But for yourself. It is just like the process you use with clients everyday isn’t it? Tony Vidler is an adviser to financial advisers, helping them to grow their businesses via his coaching firm, Strictly Business.
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Time to get social Want to get your name out there? Here’s how to build your brand.
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PRACTICE ASSET REGULATION DATA MANAGEMENT ADVISER
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veryone seems to know someone who is a social media success. They have thousands of followers, their face pops up mid-screen whenever you log on to Facebook or LinkedIn and every photo they post seems to go viral. If you are plugging away trying to build your brand, this sort of profile may seem unobtainable. But marketing and social experts say it is easier to craft an online presence than you might expect, and to use it to grow your client base.
Many advisers have put off getting their businesses on Facebook, thinking it is a young person’s space and unlikely to generate leads. But the huge social network is no longer the domain of the under-30s, and used well, it is paying off for countless small businesses. The best way to start is to set up a Facebook page for your firm. There is no charge associated with this. The page should have a strong profile photo – preferably of your firm’s lead adviser if you have one, or the key staff. The cover photo should then include your full team, or a unique identified to give context to your business. That could be a local landmark, an image of a product or the type of clients you deal with. Then, get your clients and existing business networks to like the page. The key to getting it to really take off is to provide good content. Post regular updates to the page and a variety of different things – an interesting news piece, a useful tip for clients, a photo of your team at work, a “behind-thescenes” video or a funny meme. Videos are particularly popular and posts that include some personal information generate good levels of engagement, too. Your goal is to make yourself and your business seem like approachable experts. Let your personality and your skills shine through. Don’t neglect the page: Have someone in the business keep an eye on it so that any messages and reviews are responded to quickly. Paying to boost a post or promote the page can have a big payoff. It is possible to do this for anything from $3 a day and reach thousands more people. A Facebook page might not generate direct leads but it builds a relationship and brand recognition, so that when someone needs advice, or is asked for a recommendation, your name is top of mind. Insurance adviser Alysha Mackenzie says Facebook is a key part of her marketing. She has a professional page as well as her own personal profile. Her Facebook page has just over 300 likes but Mackenzie says it is the engagement that matters rather than direct likes. She said she spent very little on promoting her Facebook page. “I sponsored a post
last week but that’s the second time since January. I try keep a mix of posts, biz related, tips, funny, behind the scenes.” The majority of her referrals now come from social media connections. She is a member of local Facebook groups, which helps to build her business profile among her target market.
LinkedIn is Facebook’s more professional cousin. But while many people are familiar with Facebook through their own personal use, LinkedIn can seem a little strange and intimidating at first. Should you add everyone you have ever known as contacts? What is the protocol for people you have never met but would like to do business with? Research shows that LinkedIn is populated with higher-paid and higher-educated people – so even though you may not reach such a large number of people, more of them may be ideal clients.
If you can provide great stories about the financial sector, you’ll bag yourself heaps of free publicity, boost your profile and brand. Christine Allen Set up your own personal profile with an appealing headshot, and a compelling summary. Include details about what you do for people and what you can offer new clients, not just how experienced you are. You can then also set up a company page and interact between the two pages – share posts from your business page on your personal profile, and vice versa. Post regular status updates and include information about things you are working on, as well as items of news that are relevant to your target audience. Endorse people you have done business with and engage with those who read your profile. Post about your connections – if you write a blog about your experience with another business, tag them in it so they will share it with their followers, too. Join relevant groups and participate in discussion. Your goal should be to be seen as a trusted expert, not just someone engaging in mindless banter. Auckland advisers Ken Holmes, of AdviceFirst, uses LinkedIn to grow his
business. He said he was constantly working to connect with people, identifying people he had met previously and people and companies he would like to build relationships with. Then he made sure to congratulate them on every work anniversary and wish them a happy birthday each year. “That’s what I consider low-level relationship building. If I wish you a happy birthday every year for three years it builds recognition and I use that to build the basis of trust.” He now employs a staff member to handle the maintenance of the account and devote about an hour a day to it. Holmes said it paid off for his business.
If it sometimes seems like your Facebook posts get a bit lost in the noise, Twitter can be a lot worse. But there are ways to start engaging. Small businesses can use Twitter as a way to have direct conversations with followers and others in the industry. Tweets are now displayed according to their relevance to users, rather than chronologically, so if you build up a track record of content your followers engage with, you are more likely to be seen. Post videos and photos, and keep referring back to other people in your network and beyond. If you’re at a conference and take a snap of the slide to tweet, tag the presenter at the same time. They are likely to retweet your tweet and expose your brand to their followers, too. Add value with what you are tweeting. Use hashtags well. Search for those that fit what you are posting about and use them, rather than crafting your own. The best way to get a lot of followers is to follow a lot of others. Pick a great handle that will stick in people’s minds.
PR
Christine Allen, owner of Solas Media Solutions, says it is worth considering PR to build your brand, too. “Journalists are always looking for great stories. If you can provide great stories about the financial sector, you’ll bag yourself heaps of free publicity, boost your profile and brand and, increase your client base,” she said. “Journalists want people in their communities who have their ear to the ground for them and can report back with reliable and interesting information for stories. Track economic trends, provide local comment on national issues in your industry, explain quarterly GDP adjustments or forecasts in real English. Always ask yourself – what does this mean for the average Kiwi?” Advisers could get in touch with local or national journalists to offer news tips if they did not want to send full press releases.
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A time for actively managed equity funds By Shane Solly, director and portfolio manager at Harbour Asset Management
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quity markets have experienced stellar returns in recent years. With individual stocks all boosted by the common factor of ultra-low interest rates, volatility has been relatively low, and correlations between stocks have been high. Passive equity funds have enjoyed this environment where nearly all boats have been lifted by the same tide. However, the backdrop may be changing. As the influence of macroeconomic drivers wane, correlations are likely to fall and volatility rise. As we move into this new phase, we believe now is the time for active management.
MACROECONOMICS DRIVING EQUITIES
Equity markets are normally driven by a combination of four factors: inflation, earnings, dividend yield and price earnings multiple expansion. Compared to the last eight US equity bull markets, the current
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rally has been disproportionately driven by expanding price earnings multiples. Since the global financial crisis (GFC), the dominant macroeconomic influence over the last decade has been the implementation of unprecedented monetary policy stimulus. In this environment, the correlation between individual stocks has been high. Simply put, all the stock boats have lifted driven by the dominant macroeconomic factor of falling interest rates, with underlying investment fundamentals such as earnings having a much lower impact on returns than has historically been the case. Equity funds that seek out low volatility have been doubly blessed by falling interest rates and investor thirst for lower risk investments. This double blessing has meant low volatility equity strategies have had a larger-than-normal influence on the expansion in price earnings multiples.
NEW ZEALAND EQUITY MARKET HAS BEEN A SIGNIFICANT BENEFICIARY
Locally we have seen the macro risk of lower interest rates significantly influencing equity market returns. The NZ market, which is dominated by relatively low volatility, high earnings certainty, high yielding stocks, has been very attractive in this environment. Figure 1 shows the return profiles for NZ bonds and NZ equities over the past five years. At first glance, it is difficult to tell which line is for which asset class, they have moved together in lock step. The blue line in the chart shows the return profile for long dated New Zealand bonds, while the gold line shows the return profile of the NZ equity market. The New Zealand market's desirability
in this environment has contributed to an increase in offshore ownership of the NZ market. As at the end of February 2017, Forsyth Barr estimate that offshore investors owned more than 50% of the New Zealand equity market, up from below 30% five years ago. While not necessarily a bad thing - indeed this increased offshore ownership may have contributed to the NZ market’s recent strong performance - this high-level offshore ownership may increase the NZ market’s sensitivity to global macro change, such as changes in monetary policy settings.
REVERSION TO MEAN MAY ASSIST ACTIVE FUND MANAGERS
While interest rates may stay below longterm averages, the unwinding of ultra-loose monetary policy settings may result in a reversion in the key influencers of equity market returns. The other three factors that normally influence stock returns - inflation, earnings and dividend yield - may have a greater impact on stock market returns than has been the case over the last 10 years, where falling interest rates have resulted in price earnings multiple expansion being the dominant driver of markets. The key thing for investors is that (while all stocks benefit from price earnings multiple expansion to some degree) inflation, earnings and dividend yield factors are often stock-specific in influence, leading to widening of return outcomes between stocks. Such a decrease in pairwise correlation (the degree to which stock prices move together) may assist active fund manager’s relative returns. Active fund managers tend to generate excess return when correlation of
INVESTMENT
returns between stocks is low. Figure 2, from UBS Research, shows that over the last 40 years active US equity mutual funds tend to deliver excess returns against benchmark indices when stock correlations within the market are low. UBS's research highlights that active fund managers tend to underperform in periods when return correlation is high - such as has been experienced over the last 10 years. As aggressive monetary policy is unwound, the falling influence of a common macroeconomic factor on markets may reduce pairwise correlation. Actively managed equity funds make investments that are different to underlying benchmarks, and tend to be less influenced by macroeconomic factors. As return dispersion between stock increases, it may be time to invest in funds that select stocks which produce returns regardless of market tailwinds. As aggressive monetary policy settings are unwound, active managers may be able to improve relative returns by reducing exposure to assets that have been inflated by unusual monetary policy settings. While the unwinding of aggressive monetary policy may be slow, and come in fits and starts, the decline in pairwise correlation has begun. Since September 2016, investment performance surveys have shown that New Zealand active equity funds have generally delivered excess returns versus benchmark indices. In our opinion, some of these active funds, where supported by a proven investment process, may continue to deliver excess returns versus benchmark indices as we move into an environment where all boats are not being lifted by the same tide. We believe it is the time to get active.
This column does not constitute advice to any person. www.harbourasset.co.nz/disclaimer/
Figure 1: New Zealand equity market echoing bond market moves
Source: Harbour Asset Management, Bloomberg
Figure 2: Active fund managers outperform when pairwise correlation falls
Source: Harbour Asset Management, Bloomberg
029
PRACTICE ASSET REGULATION DATA MANAGEMENT ADVISER
ROBOTS ON YOUR SIDE Could you automate parts of your business to become much more efficient?
R
{ RUSSELL HUTCHINSON } 030
WWW.GOODRETURNS.CO.NZ
obots do not get many good roles in films. They mainly feature as villains. The same usually happens when they come up in discussions about financial advice. That is a shame, because I think that robots are actually going to save advisers from being completely suffocated by regulation. There is a possible future in which endlessly increasing regulatory requirements place endlessly increasing cost burdens on advisers, which have to get passed on to clients, which gradually prices personalised advice out of the reach of progressively more people. In the end, most consumers would have to rely on what they read in newspapers and consumer reviews
and place themselves at the mercy of salespeople with no requirement to give advice. Obviously this future keeps the folks at MBIE worried too, because they talk about avoiding that fate, while trying to tighten up the law anyhow. We hear a lot about balance. Instead of worrying about whether the lawmakers and regulators have got it right, consider the other side of the equation: Could we change our processes to become much, much more efficient? One of my favourite quotes about technology is that it is always slower than you think over five years but faster than you think over 10. It follows a curve like compounding interest, accelerating near the end of whatever period you are thinking about. That’s a long-winded way
PRACTICE ASSET REGULATION DATA MANAGEMENT ADVISER
of saying that things we cannot imagine automating today, are probably going to be automated just fine in a few years. A lot of discussion about robots, though, focuses on how they are going to put you out of work. There is a trend to equate technology with direct to consumer approaches. Some software engineers are attracted to the idea of a world where everything is done via a website or messenger, and they never have to actually talk to a person. Some insurance executives, weary of dealing with advisers, love the idea too. Some customers have a genuine requirement for fast, private, and online fulfilment. There will be a place for that, and it will be a large and valuable segment of the market, but I don’t think the advice market will shrink much, if at all, and this is why: Life is complicated. In fact, life has a way of getting more complicated, not less, the more technology there is. Technology isn’t the only force driving up complexity either. I have noticed that Auckland has changed a lot since I got here in 1989, there are many more languages and cultures, there’s complexity. People are wealthier, and with more money, there is more financial complexity. People have more mixed families – and with longer lives and more relationships… there is more complexity again. The regulatory burden doesn’t just fall on financial advisers either. Other businesses must cope with increasing regulation, too. The recent changes to health and safety laws are just one example. There is complexity. When people have more complex lives they need that taken into account when they buy insurance coverage. Some clients might have lives so complicated that you could take forever filling in the needs analysis and working out the right insurance programme, plus completing all the necessary documentation to make sure your recommendation isn’t just sensible, but is recorded and justified in a full compliant way.
How could the robots help you?
Marketing is the single most timeconsuming aspect of most financial advisers’ businesses. Already great robots exist to help you create all sorts of ways to engage with more people than you have ever spoken to before. If you do a great presentation you can share it with thousands of people online (either written, audio, or video). If you want to find specific people, or groups of people, there are dozens of sites and tools online which will help you. If you want help developing your presentation skills, you can find that too. When you meet people, you
" There is a possible future in which endlessly increasing regulatory requirements place endlessly increasing cost burdens on advisers, which have to get passed on to clients, which gradually prices personalised advice out of the reach of progressively more people."
can deliver more effective presentations with better tools than you ever could in the past. The opportunities are almost endless. The greatest difficulties in applying technology to the challenge of marketing is being selective, choosing the right approach and content, and sustaining your focus. After marketing, needs analysis and writing statements of advice also consume a lot of time. Whether you use a system developed by someone else, or combine some standard components, or you follow a completely unique advice process for each individual client, it doesn’t matter. There are technology solutions to help you out. Voice recognition and automated transcription are two interesting ones. A friend who is a lawyer has never learned to type – she went from dictating to a secretary to dictating to her computer. Her secretary now handles more marketing and client service tasks. Handwritten notes can often be automatically transcribed as well. I have a notepad that does this. New needs analysis tools and SOA tools are being delivered all the time to push down the time necessary to develop a good recommendation. I could go on for pages about each possible innovation you could adopt. But instead, consider a comparison of consumer robots, and professional robots. Consumers have wearable health tech: Pedometers, trackers, wi-fi scales, and more. Those are all cool things to help manage activity, diet, and weight – all major contributors to overall health. Doctors and
nurses do not seem to be any less needed than before. Professional health robots do complex scanning and assist with delicate surgery. One day 3D print shops will be as common as copy and bind shops are today, spreading manufacturing around the world and making the supply of rarely used parts to New Zealand much easier, but very complex components will still be manufactured by industrial robots in specialist facilities that make integrated circuits, sensors, and whole products under the supervision of professionals. If you are wondering whether this is all a bit far-fetched, let me tell you how voice recognition combined with artificial intelligence is changing banking. A system already exists which allows you to talk to your phone and ask complex questions about your bank accounts. Your voice is converted to words, the words turned into queries against your banking records, the answers turned back into words, and delivered to your smartphone. The whole process uses infrastructure hosted around the world, but the application was written here, in New Zealand, and demonstrated live late last year. Robots such as these could be vital in enabling you to reinvent your business for the future. Russell Hutchinson is director of Chatswood Consulting and Quality Product Research, which operates Quotemonster.
031
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 1.0794 2.58 --Booster KiwiSaver Options 1.2202 0.57 --Fidelity Life Super-Sup Options -0.07 4.81 6.01 Kiwi Wealth KiwiSaver Scheme ----CashPlus Fd NZ Funds KiwiSaver Growth Strategy 1.6212 12.86 7.69 11.27 NZ Funds KiwiSaver Income Strategy 1.3061 3.64 3.86 4.01 NZ Funds KiwiSaver Inflation Strategy 1.3385 4.59 3.67 5.85 Westpac KiwiSaver-Capital Protect Plan 1 2.2963 12.34 11.83 13.64 Westpac KiwiSaver-Capital Protect Plan 2 2.0612 12.32 11.83 13.64 Westpac KiwiSaver-Capital Protect Plan 3 1.9761 12.31 11.83 13.64 Westpac KiwiSaver-Capital Protect Plan 4 2.0411 12.33 11.82 13.63 Westpac KiwiSaver-Capital Protect Plan 5 1.7746 12.33 11.83 -NZ Insurance Cash AMP KiwiSaver Cash Fund 1.4692 1.71 2.52 2.60 AMP NZRT Cash Fund 1.46228 0.65 1.50 1.58 AMP Prem PSS OnePath NZ Cash 1.56429 1.99 2.70 2.75 AMP PSS Select Cash 1.47508 1.80 2.50 2.52 ANZ Default KiwiSaver Scheme-Cash 1.3987 2.31 2.95 2.94 ANZ KiwiSaver-Cash 1.3037 2.32 3.02 2.96 Aon KiwiSaver ANZ Cash 15.0542 1.88 2.50 2.50 Aon KiwiSaver Nikko AM Cash 14.0692 2.32 2.93 3.06 ASB KiwiSaver Scheme's NZ Cash 1.4231 2.18 2.97 2.90 BNZ KiwiSaver Cash Fund 1.1283 2.59 2.84 -Booster KiwiSaver Enhanced Income 1.4816 1.89 2.76 2.91 Fidelity Life Super-Super Cash Portfolio 2.8344 0.93 1.45 1.55 Fisher TWO KiwiSaver Scheme-Presv 2818.44311 2.33 2.94 3.08 Kiwi Wealth KiwiSaver Scheme Cash Fund ----Mercer KiwiSaver Cash -2.18 2.94 2.96 NZ Defence Force KiwiSaver Cash -1.97 --OneAnswer KiwiSaver-Cash Fund 1.3535 2.18 2.88 2.83 SIL 60s + Sup Cash Fund 2.16 2.01 2.52 2.43 Westpac KiwiSaver-Cash Fund 1.3645 2.31 2.96 2.93 NZ Insurance Equity Region Australasia AMP Prem PSS OnePath NZ Shares 2.14968 6.40 7.60 13.35 Aon KiwiSaver Milford 3.0344 8.83 10.56 14.86 Booster KiwiSaver Socially Rsp Inv Gr 1.6562 12.19 9.52 9.66 Booster KiwiSaver Trans-Tasman Share 1.4165 15.07 9.28 5.63 Milford Active Growth KiwiSaver 3.05481 8.93 10.69 15.02 OneAnswer KiwiSaver-Australasian Share 1.7047 7.24 10.79 15.90 NZ Insurance Equity Region Australia AMP KiwiSaver Australasian Shares 1.0652 ---New Zealand Insurance Fund Equity Region NZ AMP Prem PSS ACI NZ Shares 2.43284 6.49 13.00 15.97 AMP Prem PSS ACI NZ Shares Index 2.15092 8.68 12.82 16.34 Fidelity Life NZ Shares Portfolio 6.1252 8.23 10.64 11.00 Fidelity Life Super-Super NZ Share -13.88 12.24 11.97 SIL 60s + Sup NZ Share Fund 5.3402 7.37 10.26 15.51 New Zealand Insurance Fund Equity Region World AMP KiwiSaver International Shares 1.1469 ---AMP KiwiSaver Passive International 1.1426 ---AMP Prem PSS ACI Global Shares Index 2.07127 15.36 13.48 13.27 AMP Prem PSS ACI Global Shares 2.16487 18.55 8.69 12.46 Index Hdg AMP Prem PSS FD Intl Share Fund 1 Value 1.2889 15.22 10.97 11.96 AMP Prem PSS FD Intl Share Fund 1.43294 17.98 14.23 13.10 3 Growth Booster KiwiSaver International Share 1.8209 16.73 11.22 12.07 FANZ Lifestages KiwiSaver High Growth 1.14314 13.49 --Fidelity Life Aggressive 3.4678 8.29 10.01 10.04 Fidelity Life International 2.4175 12.08 7.97 9.21 Fidelity Life Super-Sup Intl -16.57 9.41 10.08 Fidelity Life Super-Super Aggressive -11.65 11.10 10.69 Fisher FuturePlan - Intl Coms 2.9825 14.75 6.95 9.38 Fisher TWO KiwiSaver Scheme-Eq 4133.54026 12.68 9.28 11.52 Mercer KiwiSaver Shares -15.84 --NZ Defence Force KiwiSaver Shares -15.62 --OneAnswer KiwiSaver-Intl Share 1.7502 17.11 15.12 14.71 OneAnswer KiwiSaver-Sustainable Int Shr 1.6533 13.79 11.41 10.56 SIL 60s + Sup International Share Fund 3.328 16.87 14.65 14.16 New Zealand Insurance Fund Equity Sector Global - Real Estate AMP KiwiSaver Property 0.9577 ---OneAnswer KiwiSaver-Intl Property 1.3204 1.56 8.51 10.20 New Zealand Insurance Fund Equity Sector NZ - Real Estate MFL Property Fund 3.849 2.83 11.05 13.43 OneAnswer KiwiSaver-Australasian Prpty 1.7051 0.53 12.83 13.35 New Zealand Insurance Fund Global Bond AMP KiwiSaver International Fxd Intr 0.9945 ---AMP Prem PSS Blackrock Global Fixed Int 1.96652 2.46 5.22 5.32 AMP Prem PSS PIMCO Global Fixed 2.29942 4.63 5.90 6.16 Interest AMP Prem PSS SSgA Global Fixed 1.95186 1.09 5.30 5.16 Int Index Name
Size Morningstar Rating $M Overall 45.13 89.92 13.06 78.21 85.31 18.20 61.15 12.34 10.23 16.01 22.81 18.90
-------------
83.95 114.54 4.06 1.10 4.30 320.80 4.01 1.33 405.06 115.53 18.73 4.03 27.67 117.46 15.40 0.36 33.62 1.72 303.65
--------------------
4.41 115.79 26.37 5.96 662.78 25.48
2 3 2 1 3 4
0.52
--
4.77 8.70 1.40 6.66 23.55
4 3 1 1 3
0.52 0.54 9.93 11.19 6.04 6.00 9.00 43.60 0.62 0.45 22.44 9.54 25.06 81.86 12.25 2.72 39.67 5.72 13.58
--4 3 2 3 3 -3 2 3 4 2 3 --5 2 5
1.08 8.44
-4
508.87 16.72
3 4
0.27 2.22 2.40
-3 5
8.76
4
Latest 1 Yr 3 Yr Transaction Return Return Exit Price % OneAnswer KiwiSaver-Intl Fxd Int 1.6627 1.39 5.15 New Zealand Insurance Fund Multisector - Aggressive AMP KiwiSaver LS Aggressive Fund 1.4683 13.67 8.11 AMP NZRT AMP Aggressive 3.00801 12.57 7.30 AMP PSS DynamicMkts Growth 1.82607 13.04 7.63 AMP PSS Select Growth 1.7207 12.93 7.61 Aon KiwiSaver Russell Lifepoints 2045 8.3168 12.32 11.17 Booster KiwiSaver Asset Class Growth 8.1949 13.20 -Booster KiwiSaver Geared Growth 1.9644 17.47 12.35 Booster KiwiSaver High Growth 1.456 12.63 9.80 Fisher Funds Growth KiwiSaver Fund 1.8931 11.28 9.38 Fisher FuturePlan - Growth 2.84758 9.17 7.83 Generate KiwiSaver Focused Growth Fund 1.439 10.09 11.51 Kiwi Wealth KiwiSaver Growth ---Mercer KiwiSaver High Growth -13.89 11.04 NZ Defence Force KiwiSaver High Growth -13.63 -New Zealand Insurance Fund Multisector - Balanced AMP KiwiSaver AMP Global Multi-Asset 1.0582 --AMP KiwiSaver AMP Responsible 1.0532 --Invmt Bal AMP KiwiSaver ASB Balanced 1.0546 --AMP KiwiSaver Fisher Balanced 1.7249 6.95 7.80 AMP KiwiSaver LS Balanced Fund 1.6017 9.40 6.66 AMP KiwiSaver LS Moderate Balanced 1.5852 7.80 6.14 Fund AMP NZRT AMP Balanced Fund 2.8338 8.41 5.84 AMP NZRT AMP Global Multi-Asset 1.05526 --AMP NZRT AMP Moderate Balanced 2.0806 6.74 5.26 AMP NZRT ASB Balanced Fund 1.96582 8.09 8.02 AMP NZRT Fisher Balanced 2.32362 5.92 6.82 AMP NZRT Nikko AM Balanced 2.49054 5.28 8.53 AMP NZRT Responsible Investment Bal 1.05739 --AMP PSS DynamicMkts Balanced 1.83998 8.75 6.10 AMP PSS Lifesteps Consolidation 1.7615 7.03 5.66 AMP PSS Lifesteps Progression 1.85369 8.61 6.00 AMP PSS Select Balanced 1.78252 8.72 6.10 ANZ Default KiwiSaver Scheme-Balanced 1.6555 7.01 8.37 ANZ KiwiSaver-Balanced 1.7284 7.10 8.40 Aon KiwiSaver ANZ Balanced 23.8482 7.52 8.24 Aon KiwiSaver Russell Lifepoints 2025 8.6686 8.06 8.73 Aon KiwiSaver Russell Lifepoints Bal 8.8107 10.48 10.12 ASB KiwiSaver Scheme's Balanced 1.7198 10.02 9.47 BNZ KiwiSaver Balanced Fund 1.3849 10.34 8.57 Booster KiwiSaver Balanced 1.6649 8.60 7.90 Booster KiwiSaver Socially Rsp Inv Bal 1.2689 8.23 -Fidelity Life Balanced 4.3155 5.42 6.34 Fidelity Life Super-Super Balanced -7.86 -Fisher FuturePlan - Balanced 3.911 7.08 6.93 Fisher TWO KiwiSaver Scheme-Bal 4681.65956 7.98 7.69 Kiwi Wealth KiwiSaver Balanced ---Mercer KiwiSaver Balanced -9.10 8.54 Milford KiwiSaver Balanced 2.00865 10.51 11.13 NZ Defence Force KiwiSaver Balanced -8.89 -OneAnswer KiwiSaver-Balanced 1.7516 7.13 8.49 Westpac KiwiSaver-Balanced Fund 1.673 7.78 8.52 Westpac Retirement Plan - Balanced Port 3.4927 6.71 7.38 New Zealand Insurance Fund Multisector - Conservative AMP KiwiSaver ANZ Conservative 1.015 --AMP KiwiSaver Default (Default) 1.5845 5.39 5.54 AMP PSS Select Income 1.74193 1.11 3.82 ANZ Default KiwiSaver Scheme Cnsrv(Dflt) 1.6519 4.04 6.30 ANZ KiwiSaver-Conservative 1.6175 3.62 6.00 Aon KiwiSaver Russell Lifepoints Cnsrv 9.288 5.69 7.24 ASB KiwiSaver Scheme's Cnsrv (Default) 1.6733 5.10 6.17 BNZ KiwiSaver Conservative (Default) 1.2479 5.95 6.13 BNZ KiwiSaver First Home Buyer Fund 1.0755 4.94 -Booster KiwiSaver Default Saver 1.1744 4.42 -FANZ Lifestages KiwiSaver Income 1.05812 3.26 -Fisher Funds Conservative KiwiSaver Fund 1.5196 4.81 5.97 Fisher FuturePlan - Capital Prot 1.20944 1.50 1.50 Fisher TWO KiwiSaver Cash 1.65524 4.70 6.04 Enhanced(Dflt) Kiwi Wealth KiwiSaver Conservative ---Kiwi Wealth KiwiSaver Scheme Default Fd ---Mercer KiwiSaver Conservative (Default) -5.27 6.36 Milford KiwiSaver Conservative Fund 1.58419 7.49 9.26 NZ Defence Force KiwiSaver Conservative -4.62 -OneAnswer KiwiSaver-Conservative 1.634 3.70 6.02 Westpac KiwiSaver Default 1.1609 4.04 -New Zealand Insurance Fund Multisector - Growth AMP KiwiSaver ANZ Balanced Plus 1.9267 8.18 9.21 AMP KiwiSaver ANZ Growth 1.0713 --AMP KiwiSaver ASB Growth 1.0814 --AMP KiwiSaver LS Growth Fund 1.5107 12.21 7.55 Name
5 Yr Size Morningstar Rating Return $M Overall 4.62 2.70 2 10.36 9.29 9.57 9.63 13.19 -11.86 10.40 11.05 9.67 --12.41 --
254.87 256.06 4.20 34.42 14.23 42.16 7.49 167.85 1294.46 72.14 183.54 1008.76 120.62 7.42
3 2 4 4 5 -4 4 4 3 5 -5 --
---8.81 8.11 7.27 7.08 -6.22 8.52 7.83 8.97 -7.31 6.59 7.32 7.39 9.12 9.55 9.65 10.07 11.45 9.83 -7.59 -6.88 -8.03 8.81 -9.53 12.91 -9.66 9.47 8.28
2.55 2.98 2.09 34.60 794.54 541.08 791.04 0.59 278.78 72.83 157.31 155.26 1.91 3.16 7.40 2.83 48.11 90.21 1664.31 27.44 17.62 101.92 990.83 206.77 359.28 26.72 5.54 238.13 122.29 590.45 1227.14 294.34 147.07 26.89 461.37 1132.26 101.24
---3 3 2 2 -2 3 4 3 -3 2 3 3 3 4 4 4 5 4 4 2 -2 -4 3 -4 5 -4 4 2
-5.64 3.13 6.31 6.18 7.86 5.94 ----6.59 1.55 6.08 --6.79 --6.23 --
2.42 1321.91 1.95 1029.90 640.54 75.48 3468.37 392.45 44.21 34.93 52.10 525.40 21.82 702.11 510.20 107.29 1054.74 35.30 1.36 402.29 103.59
-3 2 4 4 5 3 4 ---4 1 3 --5 --4 --
10.66 --9.47
209.85 2.31 1.94 607.37
3 --2
Latest 1 Yr 3 Yr Transaction Return Return Exit Price % AMP KiwiSaver Nikko AM Balanced 1.7027 6.29 9.56 AMP KiwiSaver Nikko AM Growth 1.0547 --AMP NZRT AMP Growth 2.12721 11.10 6.76 AMP NZRT ANZ Balanced Plus 2.42692 7.11 8.29 AMP NZRT ANZ Growth 1.06927 --AMP NZRT ASB Growth 1.07108 --AMP NZRT Nikko AM Growth 1.04266 --AMP PSS Lifesteps Growth 1.81359 11.57 7.10 ANZ Default KiwiSaver Scheme1.6615 8.96 9.58 Balanced Gr ANZ Default KiwiSaver Scheme-Growth 1.6569 10.66 10.61 ANZ KiwiSaver-Balanced Growth 1.764 9.01 9.62 ANZ KiwiSaver-Growth 1.7791 10.76 10.66 Aon KiwiSaver Nikko AM Balanced 17.2715 6.91 9.62 Aon KiwiSaver Russell Lifepoints 2035 8.5655 10.46 10.13 Aon KiwiSaver Russell Lifepoints Growth 8.7433 12.32 11.12 ASB KiwiSaver Scheme's Growth 1.6982 12.81 11.02 BNZ KiwiSaver Growth Fund 1.4621 13.18 9.67 Booster KiwiSaver Balanced Growth 1.6275 10.61 8.98 Fidelity Life Growth 4.1578 8.03 7.71 Fidelity Life Super-Super Growth -9.71 8.18 Fisher TWO KiwiSaver Scheme-Gr 1.65273 10.12 8.59 Generate KiwiSaver Growth Fund 1.3956 7.29 10.58 Mercer KiwiSaver Growth -12.06 -NZ Defence Force KiwiSaver Growth -11.77 -OneAnswer KiwiSaver-Balanced Growth 1.7885 9.03 9.65 OneAnswer KiwiSaver-Growth Fund 1.8014 10.79 10.73 SIL 60s + Sup Balanced Fund 4.0636 8.84 9.09 Westpac KiwiSaver-Growth Fund 1.7116 9.17 9.86 Westpac Retirement Plan - Dynamic Port 3.9344 8.13 8.78 New Zealand Insurance Fund Multisector - Moderate AMP KiwiSaver AMP Income Generator 1.031 --AMP KiwiSaver ASB Moderate 1.032 --AMP KiwiSaver LS Conservative Fund 1.6826 4.63 4.83 AMP KiwiSaver LS Moderate Fund 1.6195 6.48 5.53 AMP KiwiSaver Nikko AM Conservative 1.0171 --AMP NZRT AMP Capital Assured Fund 2.42125 4.10 4.27 AMP NZRT AMP Conservative 2.68341 3.57 3.89 AMP NZRT AMP Income Generator 1.02938 --AMP NZRT AMP Moderate 2.06403 5.41 4.61 AMP NZRT ASB Moderate 1.03833 --AMP NZRT Nikko AM Conservative 1.01318 --AMP PSS DynamicMkts Conservative 1.76797 3.79 4.11 AMP PSS Lifesteps Maturity 1.68412 3.55 4.05 AMP PSS Lifesteps Stability 1.77475 5.57 4.81 AMP PSS Select Conservative 1.75824 3.80 4.11 ANZ Default KiwiSaver Scheme-Cnsrv Bal 1.6515 5.20 7.15 ANZ KiwiSaver-Conservative Balanced 1.6803 5.28 7.20 Aon KiwiSaver Russell Lifepoints 2015 8.8745 5.69 7.32 Aon KiwiSaver Russell Lifepoints Mod 9.1727 7.98 8.66 ASB KiwiSaver Scheme's Moderate 1.7145 7.07 7.75 BNZ KiwiSaver Moderate Fund 1.3194 8.42 7.58 Booster KiwiSaver Asset Class Cnsrv 3.518 6.11 -Booster KiwiSaver Moderate 1.6277 5.26 6.15 Fisher TWO KiwiSaver Scheme-Cnsrv 1.7185 5.06 6.15 Generate KiwiSaver Conservative Fund 1.2341 2.13 6.93 Mercer KiwiSaver Moderate -6.49 -NZ Defence Force KiwiSaver Moderate -6.26 -OneAnswer KiwiSaver-Conservative Bal 1.6958 5.28 7.17 Westpac KiwiSaver - Moderate 1.1947 5.53 -Westpac KiwiSaver-Conservative Fund 1.6019 4.19 5.93 New Zealand Insurance Fund NZ Bonds AMP KiwiSaver NZ Fixed Interest 0.9976 --AMP Prem PSS ACI NZ Fixed Interest 2.03075 1.76 5.44 AMP Prem PSS OnePath NZ Fixed Interest 1.84954 1.05 4.94 Fidelity Life NZ Fixed Interest 3.9603 1.66 3.55 Fidelity Life Super-Super Fixed Int -1.57 3.51 OneAnswer KiwiSaver-NZ Fixed Interest 1.6363 1.52 5.41 SIL 60s + Sup NZ Fixed Interest 2.8794 1.08 4.80 Westpac Retirement Plan - Accum Port 3.2438 1.10 2.69 New Zealand OE Cash AMP AIT NZ Cash - UT35 1.10174 1.93 2.79 AMP ARS-Cash 1.94096 2.18 2.95 AMP Capital Cash Advantage Fund 1.41617 1.55 2.57 AMP Capital NZ Cash Fund 1.63238 2.30 3.07 AMP Capital Term Advantage ---AMP Prem PUT OnePath NZ Cash 1.38409 1.84 2.60 AMP PUT Select Cash 1.32559 1.64 2.39 ASB Cash Fund ---BT Enhanced Cash Fund 2.0738 2.33 2.98 Fisher Cashplus Fund 1.2983 2.17 2.64 Name
5 Yr Size Morningstar Rating Return $M Overall 9.99 40.93 3 -- 1.53 -8.41 196.92 2 9.65 271.18 3 -- 3.45 --- 1.15 --- 3.28 -8.79 0.40 2 10.66 98.61 3 12.12 82.19 4 11.21 1390.94 4 12.77 2188.49 5 10.08 7.52 3 11.78 16.09 4 12.83 31.86 5 11.72 1095.43 4 -- 177.02 3 9.03 198.63 2 8.43 3.12 2 8.72 97.05 2 10.56 245.03 3 -- 154.16 4 -- 43.46 --- 7.63 -11.30 405.18 4 12.85 306.33 5 10.46 97.05 4 11.13 823.87 3 10.01 107.03 3 --5.31 6.38 -3.25 4.28 -5.32 --4.45 4.44 5.53 4.49 7.60 7.90 8.24 9.65 7.77 --5.56 6.48 ---7.92 -6.29
1.26 0.41 309.46 381.96 0.99 101.21 299.12 0.27 116.22 0.94 1.46 0.94 3.34 5.66 9.80 31.00 781.09 4.92 18.65 1243.36 272.89 13.70 128.82 123.78 86.01 55.30 1.74 152.31 195.84 2126.39
--3 3 -1 2 -2 --3 3 3 3 4 4 5 5 4 5 -3 3 4 --5 -3
-- 0.28 4.33 11.79 3.77 2.26 3.25 0.21 3.28 1.26 4.16 7.10 3.58 7.57 2.54 18.30
-4 3 1 2 3 2 1
1.95 3.02 2.91 3.12 -2.67 2.44 -2.99 2.54
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10.72 12.16 107.43 4508.61 -3.01 3.15 289.02 131.36 35.04
ASSET ADVISER
Latest 1 Yr Transaction Return Exit Price % Nikko AM NZ Cash 1.0233 2.85 NZ Funds Core Cash 1.32755 1.93 New Zealand OE Equity Region Australasia AMP AIT Australasian Shrs-Multi 2.8272 11.28 Mgr-UT07 AMP ARS-NZ & Australian (multi3.34643 12.11 manager) AMP ARS-NZ & Australian (Value) 3.67551 3.50 AMP NZRT Australasian Shares 1.28777 12.90 AMP Prem PUT OnePath NZ Shares 2.17937 6.24 BT PS Australasian Diversified Share 2.0419 7.03 Castle Point Ranger Fund 1.335 18.11 Devon Alpha Fund 1.5828 -Devon Dividend Yield 1.8973 -Devon Trans-Tasman Fund 3.6614 -Forte Equity Trust 1.32897 25.72 Harbour Australasian Equity 2.2523 12.77 Harbour Australasian Equity Focus Fund 1.4103 13.59 Harbour Australasian Equity Income 1.7123 7.09 Milford Active Growth 3.02799 8.56 Milford Trans-Tasman 2.25874 15.35 Mint Australia NZ Active Equity 2.4427 8.20 Nikko AM Concentrated Equity 1.9344 10.72 OneAnswer SAC Equity Selection 2.1894 6.52 Pie Australasian Dividend 2.2114 10.45 Pie Australasian Emerging Companies 2.8285 4.96 Pie Australasian Growth Fund 4.252 -5.83 Pie Growth 2 Fund 1.2733 7.42 New Zealand OE Equity Region Australia AMP Capital Australian Share Fund 2.44476 12.20 Devon Australian 1.3786 -Fisher Funds Australian Growth Fund 3.2832 5.68 Fisher Funds Premium Australian Fund 1.4423 6.06 Milford Dynamic 1.49957 9.03 OneAnswer SAC Australian Share 3.8235 7.95 New Zealand OE Equity Region Emerging Markets AMP AIT Emerging Markets - UT65 1.36447 17.57 New Zealand OE Equity Region NZ AMP Capital NZ Shares Fund 2.65786 6.99 AMP Capital RIL NZ Shares 1.81147 7.99 AMP Prem PUT ACI NZ Shares 2.4937 6.42 AMP Prem PUT ACI NZ Shares Index 1.88993 7.97 BT Dividend Share Fund 2.167 4.93 Fisher Funds NZ Growth Fund 7.2137 10.42 Fisher Funds Premium New Zealand Fund 1.6929 10.55 Fisher Trans Tasman Equity Trust 4.7318 7.64 Forsyth Barr New Zealand Equities 2.4341 10.36 Harbour NZ Equity Advanced Beta Fund 1.3325 7.52 Nikko AM Core Equity 1.9034 10.54 NZ Funds Dividend and Growth 1.7588 13.48 OneAnswer SAC NZ Share 4.1743 7.54 Russell Investments NZ Shares 1.545 9.11 Smartshares NZ Core Equity Trust 1.2847 11.02 New Zealand OE Equity Region World AMP AIT Global Equities-Multi Mgr-UT28 1.15398 17.19 AMP AIT Global Infrastructure - UT04 2.53399 11.92 AMP ARS-International Shares (Growth) 1.41545 18.47 AMP ARS-International Shares (Passive) 1.57958 17.47 AMP ARS-International Shares (Value) 1.33457 22.65 AMP Capital Core Global Shares Fund 1.40074 16.48 AMP Capital Core Hedged Global 1.4443 19.69 Shares Fd AMP Capital Emerging Markets Share 1.05926 19.26 AMP Capital Global Listed Infrastructure 1.75845 13.61 AMP Capital Global Shares Fund 2.66277 18.05 AMP Capital Resp Invest Leaders Gl Sh 1.54057 15.60 AMP NZRT International Shares 1.37925 18.14 AMP NZRT Passive International Shares 1.37484 17.35 AMP Prem PUT FD Intl Share Fund 1 Value 1.34535 14.98 AMP Prem PUT FD Intl Share Fund 1.47276 17.88 3 Growth AMP Prem PUT SSgA Global Shares Index 1.80733 15.09 AMP Prem PUT SSgA Global Shares 2.25731 17.38 IndexHdg ASB World Shares 1.5203 18.37 BT PS International Diversified Share 1.6966 17.37 Elevation Capital Value Fund 1.6497 14.34 Fisher Funds International Growth Fund 1.7651 16.34 Fisher Funds Premium International Fund 1.8325 16.05 Fisher Global Fund 5.0413 14.67 Milford Global Fund 1.37464 12.50 Nikko AM Global Equity Hedged 1.6629 14.08 Nikko AM Global Equity Unhedged 1.7503 13.75 NZ Funds Equity Inflation 0.8502 -1.48 Name
3 Yr 5 Yr Size Morningstar Rating Return Return $M Overall --- 118.91 -2.77 2.68 60.88 -8.38 10.50 20.01
2
9.03 11.00 9.39 7.51 12.40 9.03 ----12.24 11.92 11.48 10.41 10.96 13.73 15.83 7.41 11.69 18.71 9.76 --
11.12 15.34 -13.37 16.55 -----16.62 -14.49 14.81 14.75 17.59 16.71 12.85 18.10 -14.85 --
7.59 5.44 8.93 1.96 187.84 18.33 99.61 76.98 126.47 14.43 163.24 10.35 49.26 733.98 278.21 56.31 32.81 16.54 83.19 84.10 71.51 124.21
2 3 3 3 4 2 3 5 3 -4 3 3 3 3 5 4 2 5 5 3 --
5.32 -8.87 9.02 10.13 3.29
6.24 -7.96 8.30 -5.91
173.78 31.92 59.84 63.60 168.28 29.65
2 5 3 4 5 1
5.53
1.45
3.29
--
13.32 14.04 12.82 12.05 15.28 11.92 12.10 10.42 15.02 -14.55 14.04 10.59 12.99 --
16.31 -15.84 15.85 17.52 16.29 16.41 13.76 17.23 -17.33 13.01 15.79 ---
468.67 12.27 1.82 4.16 19.12 141.91 79.22 47.24 15.36 100.08 7.51 81.83 116.48 207.62 36.80
4 4 4 3 5 2 3 2 5 -4 2 3 3 --
9.43 9.40 15.78 9.32 12.69 14.66 9.93 8.45 8.25 11.52 8.40 10.92 11.12 10.85 14.09 12.67 9.96 12.71 11.68 10.30 8.64 9.09 7.12 8.72 10.06 13.70 3.90
10.90 13.08 17.04 12.87 15.13 14.56 14.26 5.34 -13.56 11.33 --11.96 13.04 13.09 14.29 13.13 12.54 10.66 8.73 9.05 10.53 ---5.41
22.64 17.76 7.19 3.62 5.49 868.24 521.20 74.04 308.38 140.27 59.23 8.10 4.34 2.53 2.24 4.61 7.25 148.74 293.57 25.98 33.14 72.91 91.69 298.53 95.11 129.35 81.32
3 3 5 3 5 4 3 1 2 4 3 3 3 2 3 4 4 4 3 2 1 1 2 2 3 4 1
Latest 1 Yr Transaction Return Exit Price % OneAnswer SAC International Share 1.9965 16.93 Pathfinder Global Water 1.8156 11.42 Pathfinder World Equity Fund 1.6474 14.19 Pie Global Small Companies Fund 1.3749 15.55 Russell Investments Global Shares 1.7806 17.20 Russell Investments Hedged Global 1.9262 19.25 Shares T.Rowe Price Global Equity Growth 1.3256 17.53 New Zealand OE Equity Sector Global - Real Estate AMP AIT Global Property - UT54 3.04778 -0.43 AMP ARS-Listed International Property 3.73851 0.69 AMP Capital Global Propty Securities Fd 1.49999 -1.13 NZ Funds Property Inflation 1.5395 3.04 OneAnswer SAC International Property 1.336 1.28 New Zealand OE Equity Sector NZ - Real Estate AMP ARS-Listed NZ & Australian Property 3.2007 -0.27 AMP Capital Listed Property Secs Fd 2.24044 -0.29 AMP Capital NZ Property Fund 2.18497 2.10 BT Property Fund 3.9216 1.66 Mint Australia NZ Real Estate Investment 1.7087 0.04 OneAnswer SAC Property Securities 2.9972 0.49 New Zealand OE Global Bond AMP AIT Fixed Interest Income - UT36 1.19635 2.08 AMP AIT Global Bonds-Multi Mgr-UT13 1.96686 0.62 AMP ARS-International Fixed Interest 2.44618 1.35 AMP Capital Global Short Duration 1.08242 2.43 AMP Capital Hdgd Gbl Fixed Intrst Fund 2.3176 2.30 AMP NZRT International Fixed Interest 1.14667 1.69 AMP Prem PUT Blackrock Global Fixed Int 1.82294 2.28 AMP Prem PUT PIMCO Global Fixed 2.2974 4.42 Interest AMP Prem PUT SSgA Global Fixed 1.80784 1.19 Int Index ASB World Fixed Interest 1.1087 1.41 BT PS International Diversified Bond 2.1748 2.81 Fisher BondPlus Fund 2.1483 3.29 Fisher Funds High Income 1.0261 4.02 Nikko AM Global Bond 1.1461 2.68 NZ Funds Global Income 1.4222 3.33 OneAnswer SAC International Fixed Intrst 1.1921 1.32 Russell Investments Global Fixed Int 1.1707 3.82 New Zealand OE Miscellaneous AMP ARS-UK Cash 0.72596 -10.83 BT PS Alternative Investments 1.0873 4.18 Fisher Funds Property and Infrastructure 2.1887 13.32 KTAM NZ Australian Long Short Equity 1.3161 -Nikko AM Income 1.2276 2.19 Nikko AM Multi-Strategy 1.1086 4.64 NZ Funds Core Inflation 1.3231 5.65 NZAM Alpha Fund 1.1316 -NZAM Global Growth 1.4192 -Pathfinder Commodity Plus Fund 0.8379 -8.87 Salt Long Short Fund 1.4734 7.07 New Zealand OE Multisector - Aggressive AMP AIT Aggressive Portfolio - UT31 1.87825 12.36 AMP AIT eInvest - Aggressive - MDF7 1.31061 13.48 AMP AIT Growth Portfolio - UT03 1.80308 11.19 AMP Capital Growth Fund 2.50925 11.67 AMP PUT DynamicMkts Growth 1.85402 12.62 AMP PUT Select Growth 1.64294 12.62 New Zealand OE Multisector - Balanced AMP AIT eInvest - Balanced - MDF5 1.2374 9.21 AMP AIT Moderate Portfolio - UT01 1.81459 5.61 AMP ARS-Balanced 1.99777 9.83 AMP Capital Global Multi Asset Fund 1.2113 8.13 AMP Capital Responsible Inv Leaders Bal 1.80951 7.63 AMP PUT DynamicMkts Balanced 1.814 8.37 AMP PUT Select Balanced 1.71272 8.42 ANZ Invmt Fds Balanced 1.688 6.71 ASB Balanced 1.5494 9.42 Milford Balanced 1.97346 10.34 NZ Funds Core Growth 1.3753 6.25 OneAnswer MAC Balanced 1.688 6.71 Westpac Active Balanced Trust 2.0981 7.09 New Zealand OE Multisector - Conservative AMP PUT Select Income 1.62346 1.00 ANZ Invmt Fds Conservative 1.4715 3.43 ASB Conservative 1.551 4.49 Milford Conservative 1.07898 7.58 OneAnswer MAC Conservative 1.4715 3.43 Westpac Active Conservative Trust 1.8113 3.54 New Zealand OE Multisector - Growth Name
3 Yr 5 Yr Size Morningstar Rating Return Return $M Overall 16.00 16.10 177.89 5 10.19 12.57 12.00 3 11.70 -- 32.83 4 8.97 -- 72.07 2 13.89 -- 59.31 4 10.63 -- 57.48 3 --- 16.50 -9.12 10.16 2.72 7.71 10.04 5.57 6.92 10.31 190.49 6.76 7.34 85.07 8.13 -- 5.18
5 3 2 2 3
11.64 13.17 10.35 14.28 12.16 12.73
11.38 12.90 9.46 13.16 12.09 13.16
4.56 20.98 119.68 75.06 48.00 123.77
1 3 -4 2 3
3.38 3.91 4.65 3.48 4.95 4.33 4.95 5.72
3.24 3.80 4.50 -4.92 -5.12 6.15
101.41 11.97 1.80 196.59 82.80 1.98 1.42 2.39
1 2 2 1 3 2 3 5
5.19 3.52 3.96 5.33 5.01 5.22 3.47 5.00 6.11
5.10 3.21 4.68 5.54 5.11 -3.53 -6.40
4.80 304.21 355.90 154.96 66.47 21.66 116.52 3.35 528.93
3 1 2 4 3 4 1 3 5
-2.07 1.09 12.46 -6.18 3.51 3.02 ---3.13 --
-1.47 1.77 13.25 -6.26 -4.78 ---3.54 --
10.73 9.38 71.57 22.33 10.60 119.14 123.62 47.07 57.47 63.49 236.71
------------
6.54 7.72 6.44 7.17 7.48 7.45
7.77 -7.57 9.38 9.47 9.49
112.58 66.97 36.98 5.76 4.02 14.19
1 3 1 4 3 3
6.42 4.69 7.07 6.21 6.36 5.93 5.95 8.03 8.88 10.70 3.73 8.03 7.80
-5.20 8.02 -8.53 7.22 7.24 9.25 9.23 12.51 8.30 9.25 8.98
93.24 103.02 156.06 166.56 45.39 5.15 39.23 208.01 152.32 390.81 93.43 35.78 222.83
3 1 3 2 3 3 3 4 4 5 2 4 4
3.78 5.74 5.55 -5.74 5.02
3.10 5.94 5.32 -5.94 5.47
2.83 50.91 135.70 122.94 9.52 217.79
1 3 2 -3 2
Latest Transaction Exit Price AMP AIT Balanced Portfolio - UT 02 1.88404 AMP AIT eInvest - Growth - MDF6 1.29021 AMP ARS-High Growth 1.79085 ANZ Invmt Fds Balanced Growth 1.8183 ANZ Invmt Fds Growth 1.9182 ASB Growth 1.5083 Fisher Multi Sector Fund 3.0645 NZ Funds Global Equity Growth 1.508 OneAnswer MAC Balanced Growth 1.8183 OneAnswer MAC Growth 1.9182 OneAnswer SAC Balanced 2.8909 Westpac Active Growth Trust 2.0364 New Zealand OE Multisector - Moderate AMP AIT eInvest - Conservative - MDF2 1.16795 AMP AIT eInvest - Moderate - MDf3 1.20571 AMP ARS-Conservative 2.18522 AMP Capital Conservative Fund NZ 2.33332 AMP Capital Income Generator Fund 1.10486 AMP PUT DynamicMkts Conservative 1.71299 AMP PUT Select Conservative 1.72396 ANZ Invmt Fds Conservative Balanced 1.5775 ASB Conservative Plus 1.5344 ASB Moderate 1.5549 Harbour Income 0.9946 Milford Diversified Income 1.63475 Mint Diversified Income Fund (Retail) 1.0403 NZ Funds Global Multi-Asset Growth 0.5892 OneAnswer MAC Conservative Balanced 1.5775 Westpac Active Moderate Trust 1.4219 New Zealand OE NZ Bonds AMP AIT NZ Bond - UT36 1.18441 AMP AIT NZ Fixed Interest - UT60 1.7196 AMP ARS-NZ Fixed Interest 2.45645 AMP Capital NZ Fixed Interest Fund 1.65633 AMP Capital NZ Short Duration 1.25676 AMP NZRT NZ Fixed Interest 1.20359 AMP Prem PUT ACI NZ Fixed Interest 2.01694 AMP Prem PUT OnePath NZ Fixed Interest 1.72382 BT Corporate Bond Fund 1.6256 BT PS NZ Diversified Bond 1.3138 Fisher New Zealand Fixed Inc Trust 1.25 Forsyth Barr NZ Fixed Interest 1.6434 Forsyth Barr Premium Yield 1.6775 Harbour NZ Core Fixed Interest 1.0957 Harbour NZ Corporate Bond 1.0585 Nikko AM NZ Bond 1.0178 Nikko AM NZ Corporate Bond 1.1486 NZ Funds Core Income 1.53039 OneAnswer SAC NZ Fixed Interest 1.6393 Russell Investments NZ Fixed Interest 1.1639 Westpac Active Income Strategies Trust 1.1785 Name
1 Yr Return % 8.55 11.93 12.52 8.59 10.35 12.17 6.67 16.83 8.59 10.35 8.22 8.40
3 Yr 5 Yr Size Morningstar Rating Return Return $M Overall 5.72 6.53 111.36 1 7.22 -- 32.82 2 7.83 9.33 54.58 2 9.27 10.96 151.47 3 10.28 12.40 72.42 5 10.38 11.05 30.38 3 6.68 8.24 11.74 3 9.80 11.66 61.79 2 9.27 10.96 33.22 3 10.28 12.40 18.63 5 8.99 10.43 51.38 4 9.08 10.55 70.33 3
4.48 6.30 5.04 3.56 6.41 3.59 3.57 4.92 -6.50 3.96 10.53 --1.23 4.92 5.02
4.52 5.25 5.22 4.49 -3.97 3.91 6.86 -7.17 -12.24 --10.85 6.86 6.38
--5.55 4.91 -4.34 4.36 7.53 -7.19 -13.40 --6.48 7.53 7.08
26.75 95.45 54.29 8.00 110.19 2.17 15.89 167.89 651.74 272.08 2.66 1612.16 39.54 30.60 10.85 400.35
2 3 3 4 -2 2 4 3 4 -5 -1 4 3
2.17 1.38 1.98 2.01 2.90 2.05 1.74 0.87 2.74 1.84 0.89 2.24 2.55 2.34 2.79 1.92 2.97 3.09 1.42 1.97 2.36
5.10 5.01 5.59 5.65 4.55 5.73 5.35 4.80 4.72 5.15 4.72 5.32 5.56 5.28 5.05 5.40 5.82 4.18 5.27 5.33 3.08
2.95 3.93 4.47 4.52 4.20 -4.29 3.67 4.57 4.44 3.68 4.10 4.75 4.56 4.73 4.82 5.42 4.73 3.85 -3.04
29.33 7.04 6.88 1884.62 370.64 8.02 8.65 1.86 71.07 226.37 60.06 13.97 57.03 148.98 309.60 62.42 340.44 126.27 12.73 166.22 14.45
2 3 3 5 3 5 4 3 3 3 2 3 5 4 4 5 5 3 2 3 1
Returns are calculated to 30/04/17 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
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Top 10 The top 10 stories on our website included the possibility of adviser numbers dropping dramatically and the naming of the Co-Operative's new CEO.
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Adviser numbers might halve It has been predicted that the number of advisers in the market could drop by up to 50% as the new regime beds in.
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. Bank staff: Target pressure not in customer best interests Bank staff are worried that sales targets are causing them to sell products, including KiwiSaver and insurance, that are not a good fit with their customers’ needs, the union that represents them says. .Advisers can work with many entities: MBIE MBIE has confirmed that a financial adviser will be able to work for more than one licensed financial advice provider under the new regime.
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. Co-Operative Bank appoints new CEO Following the departure of Bruce McLachlan in March, the bank has now named his permanent replacement.
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. Advisers 'must be represented in working group' Any working group put together to develop the new Code of Conduct for advisers needs to have current practitioners among its number, one adviser says.
Jennings working on churn solution The former chief executive of Fidelity Life says insurance advisers should come up with their own solution to the problem of churn. .Advice firms give up on pursuing restraint of trade cases through court Advice firms that acquire other businesses are being caught out by restraint of trade clauses that turn out to be unenforceable. .Getting to Know: David Boyle He was known to many advisers as ANZ's distribution boss, but now David Boyle is building a wider profile at the CFFC.
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Obituary - Greg Jones T The man who has been described as "New Zealand's Mr Absolute Returns" man, Greg Jones, died recently after a long illness.
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. Ballantyne: Advice businesses should be more businesslike Insurance advisers should take some tips from other industries when it comes to investing in their own practices, Partners Life's managing director says.