Wealth’s Kodak moment?
As it gradually sinks in that we are working in a disrupted industry, it’s becoming increasingly common to hear the Kodak case study being brought up in discussions. Kodak (strictly speaking Eastman Kodak) was the dominant player in the photographic film and supplies industry for pretty much 100 years from the 1890s when the combination […]
Read more...Yes, SMSF growth really has slowed
The ATO quietly released its June 2011 SMSF data a week or so ago. This confirmed what we have been saying for a while – that while the SMSF segment continues to grow, its rate of growth has slowed considerably. Moreover, the SMSF growth rate has converged with the growth rate of the large funds […]
Read more...How to build a zero cost platform
The first ads for ING Direct’s Living Super are now on television, with the focus on the no-fee options as a solution for worried super fund members (picture a visual of a middle aged male – presumably the target market – who can’t sleep). The visual flashes to text outlining the options the no-fee feature […]
Read more...ING Living Super: a first look at “no fee” super
David Hartley, CIO of Sunsuper, is well known for his critique of the cost agenda of MySuper, which I will summarise as “If you want low cost, I can give you a zero cost portfolio today – I’ll just invest it all in bank deposits”. Deposits have no explicit management costs, but generate plenty of […]
Read more...Engaging the direct investor: Montgomery’s way
Given the gloominess of the mood in equities funds management, and the persistence of net outflows from Australian equities funds in particular, it can be hard to pick out any bright spots. But there are a few success stories which offer hints around product and marketing. We have previously noted Denning Pryce, which offers a […]
Read more...Portfolio holdings disclosure – yes you do need to know
Portfolio holdings disclosure (PHD) is coming. Sounds boring? Well you need to know about PHD, because it is going to radically change how funds will communicate their investments and exposures to members going forward. The origins of PHD are now part of industry legend. This holds that the ASIC chairman was unable to get a […]
Read more...Getting to grips with residential real estate returns
Retail players in wealth management face competitors on several dimensions. Firstly, there is the asset manager or platform provider down the road providing a similar product. Sizing up this type of competitor is straightforward as most of the key attributes – performance, pricing, features and so on – can be readily observed. Another type of […]
Read more...How platforms can take on SMSFs
Last week we proposed a simple but effective regulatory response which would eliminate some of the more extreme investment practices being seen in SMSFs. Adopting the UK SIPP “taxable” property concept would have four key benefits: – Eliminate a range of dubious and / or high risk strategies involving residential real estate and personal / […]
Read more...How to bring SMSFs back under control? Take a SIPP.
We had an enthusiastic (and alarmed) response to last week’s Trialogue example of an SMSF geared to the hilt to buy a crane. It’s pretty clear that there was a lack of awareness of the more adventurous SMSF strategies being proposed out there. A couple asked “ok, so what can we do about it?”. Very […]
Read more...Now I really know SMSFs are out of control
I’ve been dropping in on some SMSF seminars lately. At the start, I was amazed. Now I’m aghast. My amazement sprang from the attendance at these seminars. I went to a widely advertised seminar series targeting members of collective funds, where there were 60 attendees (and this firm runs hundreds of seminars annually). At a […]
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