Further Harassment Allegations at Amp P.29 a Deep Dive Into Conflicts of Interest P.30 How the Economy Is Recovering from Covid

www.ifa.com.au October 2020 - No. 696 $8.95 (inc GST)

FURTHER HARASSMENT A DEEP DIVE INTO HOW THE ECONOMY IS THE SEISMIC SHIFT OF ALLEGATIONS AT AMP CONFLICTS OF INTEREST RECOVERING FROM COVID ETHICAL INVESTORS P.29 P.30 P.32 P.48

Cover2.indd 1 14/09/2020 11:36:53 AM EDITOR Sarah Kendell

JOURNALISTS Lachlan Maddock Sarah Simpkins

CONTRIBUTORS Nik Albrecht Sonal Desai Jason Hazell Peter Truong

SENIOR DESIGNERS Daniel Berrell Allisha Middleton-Sim Jack Townsend

DESIGNERS Sheriel Paez Dominique Nava

SENIOR PRODUCTION EDITOR Keith Ford

DIRECTOR, COMMERCIAL GROWTH Russell Stephenson

PRODUCTION MANAGER Lyndsey Fall DEPUTY HEAD OF EDITORIAL Sarah Kendell Emma Ryan Editor, ifa SENIOR PARTNERSHIPS MANAGER [email protected] Tom Hales

PARTNERSHIPS MANAGERS Ellen Moran David Stratford FOLLOWING THE MAJOR CHANGES SET FORTH IN THE 2017 BUDGET,

HEAD OF EVENT PRODUCTION Jennifer Hardy THE SUPER SYSTEM WENT THROUGH A FEW YEARS OF RELATIVE

BROADCAST MEDIA MANAGER PEACE WHERE IT LOOKED LIKE IT WAS AT LEAST TEMPORARILY Todd Stevens

DISTRIBUTION REMOVED FROM POLITICAL TINKERING. THEN CAME 2020 Oliver Bouris

MEDIA COORDINATOR Anthony Lee

ACCOUNTS IT SEEMS no facet of Australian social In this month’s cover feature, Lachlan Chris Brace and economic life has been immune Maddock takes a look at some of the key

DIRECTOR from the COVID-19 crisis, and super is submissions to the review to analyse its Alex Whitlock no different. The government’s early possible conclusions.

ADVERTISING ENQUIRIES release scheme is now expected to We also delve into the adviser E: [email protected] remove around $42 billion from the professional year, which has perhaps super system and, combined with the received the least amount of attention EDITORIAL ENQUIRIES rise in the super guarantee expected out of all the FASEA standards but is E: [email protected] next year, this has reignited political arguably the most critical in terms of

SUBSCRIPTIONS ENQUIRIES debate around the purpose of super and ensuring the ongoing viability of the E: [email protected] what it should be used for. advice industry once a large number Treasurer Josh Frydenberg has of retiring practitioners exit. While ifa pointed to trade-offs between wage green shoots are appearing in terms Level 13, 132 Arthur Street, North Sydney, NSW 2060 growth and further rises in the SG as of both graduate and licensee interest T: 02 9922 3300 the economy faces its first recession in taking on the PY program, uptake E: [email protected] in almost 30 years, while a number of of new entrants into the industry is

PRINTED BY: Liberal MPs have also suggested money still worryingly low, which is a concern locked up in super would be better used given the number of advisers expected to alleviate housing affordability issues to retire before the new FASEA exam for younger generations who may not deadline in 2022. Period ending: 12,260 03.20 retire with a home of their own. With the coronavirus crisis having Temper tantrums from both sides taken up so much airtime and twitter.com/ of politics about who benefits most headspace for government, business IFA_AU from super and how it should be and the general population this year, structured in future are taking place it seems we are all rushing towards against a backdrop of the independent the end of the year without having

RSS News feed: review into the retirement system achieved much other than adapting ACCOLADES ifa.com.au which, at time of writing, had not yet to the bizarre set of circumstances been released to the public. With the we find ourselves in. However, as the government holding back the final government’s delayed budget is now report despite having received it more scheduled for October and a number of facebook.com/ ifa is published by Momentum Media ifaOnlineAu than a month ago, it’s expected the royal commission legislation pieces are (ABN 92126853085). All rights reserved. report’s conclusions will be used to set to come back on the government’s Reproduction in full or part is not permitted without the express permission of the publisher. The views make the case for further reforms to the agenda, the final quarter of the year expressed in ifa are not necessarily those of the editor or publisher. No responsibility is accepted rules around the super system in this could still prove a busy one for advisers by Momentum Media for the accuracy of any Email: editor@ year’s budget. and clients. statement, opinion or advice contained in text or ifa.com.au advertisements, and to the full extent allowed by law, the publisher excludes liability for any loss or damage sustained by readers arising from, or in conjunction with, the supply or use of information in this publication through any cause. October 2020 01

Cover2.indd 2 11/09/2020 12:35:41 PM P001_Eds Letter_KF.indd 1 15/09/2020 2:22:48 PM EDITOR Sarah Kendell

JOURNALISTS Lachlan Maddock Sarah Simpkins

CONTRIBUTORS Nik Albrecht Sonal Desai Jason Hazell Peter Truong

SENIOR DESIGNERS Daniel Berrell Allisha Middleton-Sim Jack Townsend

DESIGNERS Sheriel Paez Dominique Nava

SENIOR PRODUCTION EDITOR Keith Ford

DIRECTOR, COMMERCIAL GROWTH Russell Stephenson

PRODUCTION MANAGER Lyndsey Fall DEPUTY HEAD OF EDITORIAL Sarah Kendell Emma Ryan Editor, ifa SENIOR PARTNERSHIPS MANAGER [email protected] Tom Hales

PARTNERSHIPS MANAGERS Ellen Moran David Stratford FOLLOWING THE MAJOR CHANGES SET FORTH IN THE 2017 BUDGET,

HEAD OF EVENT PRODUCTION Jennifer Hardy THE SUPER SYSTEM WENT THROUGH A FEW YEARS OF RELATIVE

BROADCAST MEDIA MANAGER PEACE WHERE IT LOOKED LIKE IT WAS AT LEAST TEMPORARILY Todd Stevens

DISTRIBUTION REMOVED FROM POLITICAL TINKERING. THEN CAME 2020 Oliver Bouris

MEDIA COORDINATOR Anthony Lee

ACCOUNTS IT SEEMS no facet of Australian social In this month’s cover feature, Lachlan Chris Brace and economic life has been immune Maddock takes a look at some of the key

DIRECTOR from the COVID-19 crisis, and super is submissions to the review to analyse its Alex Whitlock no different. The government’s early possible conclusions.

P001_Eds Letter_KF.indd 1 15/09/2020 2:22:48 PM In this Issue Contents Contributors In this Issue

Features

18 THE ELEPHANT IN THE ROOM In the rush to comply with the more “IN THE END, AN ADVISER immediate of FASEA’s requirements, the professional year has become the October. forgotten aspect of the standards WHO DOES THE WRONG THING framework. With less than 200 advisers NIK ALBRECHT, DIRECTOR, ALBRECHT + ASSOCIATES entering the profession this year, is the PY a ticking time bomb licensees can no Nik Albrecht is the managing director of Albrecht & BY THEIR CLIENT WON’T HAVE longer afford to ignore? Associates. He has over 15 years’ experience in legal and commercial roles within leading financial services firms, ORCHESTRA CONDUCTOR, holding positions at UBS, Schroders and Wilsons Advisory. THAT CLIENT FOR VERY LONG” 24 PROJECT MANAGER, CFO, In this issue, he takes advisers through the ins and outs of ADVISER conflicts of interest. Scott Fitzpatrick entered the advice /PAGE 30/ industry in the ’80s working at a large institution, where he quickly became disillusioned. He then started his own group, operating under a different model. The business, Fitzpatricks Private Wealth, now has 100 advisers across Australia – with one of them, “PROGRESS TOWARDS A Dennis O’Callaghan, weighing in on his experience VACCINE WILL IMPACT BOTH 08 SONAL DESAI, FRANKLIN TEMPLETON COVER STORY Regulars POLICY DECISIONS AND One trick pony? Sonal Desai is executive vice president and chief investment As new political battlelines 04 THE WRAP officer of the Franklin Templeton Fixed Income Group. She are drawn, and Australians Major news impacting advisers over holds a PhD in economics from Northwestern University and a INDIVIDUALS’ ATTITUDES” see their nest eggs eroded the past month BA in economics from Delhi University. by the early release scheme, the retirement income /PAGE 32/ SPOTLIGHT review has become more 29 important than ever The airing of new harassment allegations by a Labor senator in Parliament could further threaten the 18 long-promised cultural turnaround at AMP “ISLAMIC INVESTMENT 30 OPINION Confl icts of interest are one of the pillars of all fi nancial services JASON HAZELL, CRESCENT WEALTH PRINCIPLES SPECIFICALLY regulation. Albrecht + Associates’ Nik Albrecht unpacks some of the Jason Hazell is chief investment officer of Australian main confl icts in the industry in superannuation fund Crescent Wealth. He has more than 20 SCREEN OUT SOCIALLY the context of some of the most years’ experience in superannuation, investment management, recent developments and mergers and acquisitions. He was previously head of DETRIMENTAL ACTIVITIES” investment specialists at NAB Asset Management. 38 RISK ADVISER A selection of the month’s top news /PAGE 34/ Contributors stories from riskadviser.com.au

FINTECH BUSINESS 30 40 The latest news from Australia’s fastest growing start-up sector on fintechbusiness.com “YOUR LICENSEE ALREADY HAS YOUR DATA AND SHOULD BE 42 ON THE MOVE PETER TRUONG, CENTREPOINT ALLIANCE 43 OUT AND ABOUT Peter Truong is a business consultant with Centrepoint Alliance. HELPING YOU TO DERIVE SOME He joined the business in February, bringing more than 20 years’ 44 DATA experience in the financial services industry, including a stint as an investment adviser at CommSec. He has also previously worked INSIGHTS FROM IT” 48 FINAL WORD as a practice development manager for Financial Wisdom and a consultant at Evolution Diversified Investment Services. /PAGE 36/ 29

02 October 2020 October 2020 03

P002_Contents_KF.indd 2 15/09/2020 3:44:34 PM P003_Contributors_KF.indd 3 14/09/2020 4:24:16 PM In this Issue Contents Contributors In this Issue

Features

02 October 2020 October 2020 03

P002_Contents_KF.indd 2 15/09/2020 3:44:34 PM P003_Contributors_KF.indd 3 14/09/2020 4:24:16 PM The Wrap News as it breaks from ifa.com.au

“GIVEN THE ONGOING PRESSURES FROM ENFORCED BUSINESS SHUTDOWNS OR ISOLATION, WE MAY SEE MORE LICENCES BEING SHUT DOWN”

two and five advisers to five-adviser self-licensed cancelling their licence, boutiques,” the report said. COVID pressure demonstrating that some The group noted that practices that may have many of the advisers attempted self-licensing working in the ceased sees boutique AFSLs were deciding against licensees – around 24 per continuing down this road. cent – had opted to go on Around 74 per cent of working in the industry but abandon ship licences that ceased in switch to working under a the second quarter were bigger AFSL. five years old or younger, In addition, five licences The number of discontinued advice licences rose up from 65 per cent in the were cancelled by ASIC previous 12 months. over the quarter and two sharply as the 2020 financial year came to a close, Deregistrations were also suspended, which Adviser with the COVID-19 crisis and rising regulatory costs more evenly split among Ratings suggested could one-man band practices be a sign of the distressed placing extreme pressure on many small practices and multi-adviser groups, business environment. and forcing them to abandon self-licensing plans, new with 47 per cent of ceased “Interestingly, two of licensees having one the [ASIC] actions were data has found adviser and 87 per cent due to a perceived lack of having five advisers or less, financial sustainability,” the compared with 65 per cent report said. ADVISER RATINGS’ Musical in the first quarter of over the past 12 months, and 90 per cent over the “Given the ongoing Chairs Report for Q2 2020 the year. and was now almost 3:1 previous 12 months. pressures from enforced found that 83 financial The report noted that “as versus 1.5:1 in the second “These latest results business shutdowns or services licences had more businesses struggle quarter of 2019. show a worrying trend: that isolation, we may see more been discontinued in the with the current economic Further, there was now the sustainability pressure licences being shut down three months to June, a conditions”, the ratio of a trend towards more on younger businesses this way, particularly with significant rise on the 61 licences ceasing versus recently established continues, however it is now the financial [year end] now licences that had ceased forming had accelerated businesses with between spreading to the larger, two behind us.”

04 October 2020

P004_The Wrap_KF.indd 4 14/09/2020 10:59:49 AM The Wrap News as it breaks from ifa.com.au

SAY WHAT? Here’s what ifa readers have been “GIVEN THE ONGOING PRESSURES FROM saying lately. Why not join them now in ENFORCED BUSINESS SHUTDOWNS conversation at ifa.com.au as well OR ISOLATION, WE MAY SEE MORE as on Facebook, LICENCES BEING SHUT DOWN” LinkedIn and Twitter? Wow. If Bert van Manen, a former fi nancial adviser, doesn’t fully appreciate that irreparable damage FASEA is doing, then we are truly stuffed. Why isn’t the message getting through? Why doesn’t he understand the scale of the exodus? Why is he not aware that young advisers are fl eeing the industry, including those who have passed the exam and hold approved degrees? Opposition blasts government Extending the exam deadline did nothing to address ‘failure’ on FASEA the fundamental problems with FASEA and ASIC The federal opposition has blasted the government’s Hume sought to distance which are causing two and five advisers to five-adviser self-licensed the Coalition from FASEA’s the exodus. Ten cancelling their licence, boutiques,” the report said. handling of the FASEA standards framework, saying operational problems, thousand to 15,000 COVID pressure demonstrating that some The group noted that the Prime Minister and Treasurer have “failed in their saying the authority will be gone by the practices that may have many of the advisers was not answerable to end of next year attempted self-licensing working in the ceased duty” to the advice community to properly oversee the government. instead of the end sees boutique AFSLs were deciding against licensees – around 24 per and direct the standards body “I’d love to be able to of this year. What a continuing down this road. cent – had opted to go on say I can direct FASEA bunch of heroes the Around 74 per cent of working in the industry but but I can’t. No one can politicians are. abandon ship licences that ceased in switch to working under a direct FASEA, FASEA is - Anonymous ADDRESSING THE weren’t being listened to, “We believe the the second quarter were bigger AFSL. an independent statutory Stockbrokers and and now we’re having this Coalition has failed on five years old or younger, In addition, five licences body. And it was set up Financial Advisers problem in the sector,” implementing these up from 65 per cent in the were cancelled by ASIC that way intentionally,” The number of discontinued advice licences rose Association virtual Mr Jones said. changes, and the stress previous 12 months. over the quarter and two Ms Hume said. conference, shadow “That’s got to be that has been experienced sharply as the 2020 financial year came to a close, Deregistrations were also suspended, which Adviser “They don’t take financial services minister visited home on the within the advice sector SUBSCRIBE with the COVID-19 crisis and rising regulatory costs more evenly split among Ratings suggested could direction from one-man band practices be a sign of the distressed Stephen Jones said PM and Treasurer, who is a product of that government, so they’re TO OUR placing extreme pressure on many small practices and multi-adviser groups, business environment. the administrative and were overseeing the mishandling,” he said. responsible for those PODCAST! with 47 per cent of ceased “Interestingly, two of leadership issues that had implementation of FASEA. “They built FASEA from standards. I think it’s and forcing them to abandon self-licensing plans, new plagued the authority for They have failed in their the ground up, and the Tune in to The ifa licensees having one the [ASIC] actions were really important that Show to hear from the data has found adviser and 87 per cent due to a perceived lack of the past few years should duty and advisers are under-resourcing and lack the industry voice leading players within having five advisers or less, financial sustainability,” the be “visited home” directly paying the price for that.” of ministerial direction or their opinion on those the fi nancial advice compared with 65 per cent report said. to Scott Morrison, who Mr Jones said while discretion [have] meant standards and how industry as they ADVISER RATINGS’ Musical in the first quarter of over the past 12 months, and 90 per cent over the “Given the ongoing was Treasurer at the time Labor was supportive there [have] been so many workable they might be reveal their thoughts Chairs Report for Q2 2020 the year. and was now almost 3:1 previous 12 months. pressures from enforced FASEA was created. of raising educational problems with the rollout directly to FASEA in any and insights. Listen to The ifa Show on our found that 83 financial The report noted that “as versus 1.5:1 in the second “These latest results business shutdowns or “An organisation that standards and the quality of qualifications and way that it possibly can… website or iTunes. services licences had more businesses struggle quarter of 2019. show a worrying trend: that isolation, we may see more has had three CEOs in of advice, the process accreditation [of courses].” whether it be the guidance Check it out now! been discontinued in the with the current economic Further, there was now the sustainability pressure licences being shut down two years, that is a clear had been “mishandled” In an earlier session, notes or the standards three months to June, a conditions”, the ratio of a trend towards more on younger businesses this way, particularly with indication that there’s by the Coalition, causing Assistant Minister for themselves, I think that significant rise on the 61 licences ceasing versus recently established continues, however it is now the financial [year end] now something wrong – alarm unnecessary anxiety Superannuation, Financial it’s really important to licences that had ceased forming had accelerated businesses with between spreading to the larger, two behind us.” bells were going off and among practitioners. Services and Fintech Jane get this right.”

04 October 2020 October 2020 05

P004_The Wrap_KF.indd 4 14/09/2020 10:59:49 AM P004_The Wrap_KF.indd 5 14/09/2020 11:00:16 AM The Wrap News as it breaks from ifa.com.au

83 Number of AFSLs discontinued in the June quarter

87 PER CENT Proportion of discontinued AFSLs having five advisers or less

Sam Henderson pleads guilty to dishonesty 3:1 Ratio of AFSLs ceasing to those The former adviser and royal commission witness has pleaded guilty to beginning dishonest conduct and two counts of defective disclosure

IN A statement, the the qualification in 115 ASIC further alleged as having the same corporate regulator PowerPoint presentations Mr Henderson had given qualification in a book said its case against between 2010 and 2016, two clients in 2014 and published in 2013, an Sam Henderson on the Henderson 2016 a financial services interview conducted to related to alleged false Maxwell website from guide, also containing promote an educational representations he had October 2012 to August the false representation institution’s master’s 2016, in Henderson made in a number of that he held a master course, and some of his client presentations and Maxwell brochures of commerce. professional biographies marketing materials, distributed between The two defective and descriptions. stating that he held a 2013 and 2017, and in an disclosure offences Following his entering master of commerce information memorandum relating to these incidents when he did not hold dated May 2011. carried a maximum of a guilty plea to one that qualification. The dishonest conduct sentence of 12 months’ “rolled-up” charge 341 ASIC said Mr offence relating to these imprisonment for each. encompassing the three PER CENT Henderson, the former incidents carried a ASIC made further offences, Mr Henderson Rise in Sequoia’s chief executive of advice maximum sentence of allegations that will be sentenced in the EBITDA group Henderson Maxwell, two years’ imprisonment, Mr Henderson had Downing Centre Local year-on-year had purported to hold ASIC said. represented himself Court on 13 October.

06 October 2020

P004_The Wrap_KF.indd 6 14/09/2020 11:00:27 AM The Wrap News as it breaks from ifa.com.au

83 Number of AFSLs discontinued in the June quarter

87 PER CENT Proportion of discontinued AFSLs having five advisers or less

Super noted advisers business performance and Industry funds reveal fell into a salary band individual contribution”. expected to be between Meanwhile, TWU Super Sam Henderson pleads guilty $108,000 and $147,000 for noted its outsourced intra- intra-fund advice the 2021 financial year. fund adviser’s salary came However, the fund’s in at around $107,000. to dishonesty 3:1 enterprise agreement In terms of funding, Cbus noted employees who Ratio of AFSLs spend also declined to answer a ceasing to those exceeded their KPIs were series of questions around The former adviser and royal commission witness has pleaded guilty to beginning entitled to receive up cross-subsidisation of dishonest conduct and two counts of defective disclosure A number of industry funds have revealed details to 2 per cent above the advice from its members, of their intra-fund adviser headcounts and maximum salary band for saying it was “unclear the year. what information is IN A statement, the the qualification in 115 ASIC further alleged as having the same remuneration as part of questioning from the House Prime Super noted the sought” by a series of corporate regulator PowerPoint presentations Mr Henderson had given qualification in a book economics committee “aggregated cost” of its Mr Wilson’s questions. said its case against between 2010 and 2016, two clients in 2014 and published in 2013, an intra-fund advice services MTAA Super noted that Sam Henderson on the Henderson 2016 a financial services for the 2020 financial year the cost of advice was interview conducted to IN RESPONSE to questions advisers, having employed provided through an related to alleged false Maxwell website from guide, also containing was around $770,000, listed as an expense on its promote an educational from committee chair and 24 advisers directly in outsourced arrangement. representations he had October 2012 to August the false representation including its two advisers’ annual report to members, institution’s master’s Liberal MP Tim Wilson, the 2019 financial year. Prime Super stated that made in a number of 2016, in Henderson that he held a master full-salary packages and but that technically no course, and some of his funds including Cbus, This was an increase of it employed two intra- client presentations and Maxwell brochures of commerce. eligible performance fees were charged that professional biographies MTAA Super, Prime Super four advisers since 2017, fund advisers directly, marketing materials, distributed between The two defective payments, as well as related specifically to intra- and descriptions. and TWU Super revealed prior to which the fund while TWU Super used stating that he held a 2013 and 2017, and in an disclosure offences the salary of a business fund advice. Following his entering the extent to which outsourced intra-fund the services of just one master of commerce information memorandum relating to these incidents process manager. Prime Super stated advice services. intra-fund adviser who was when he did not hold dated May 2011. carried a maximum of a guilty plea to one they employ intra-fund The fund stated outsourced from the fund. that its intra-fund advice that qualification. The dishonest conduct sentence of 12 months’ “rolled-up” charge 341 advisers, as well as details MTAA Super noted it performance payments offering was “a service encompassing the three PER CENT employed 11 intra-fund While Cbus declined ASIC said Mr offence relating to these imprisonment for each. around their remuneration were available to both offering” that all members offences, Mr Henderson advisers and had done so to give details of intra- Henderson, the former incidents carried a ASIC made further Rise in Sequoia’s and funding arrangements. intra-fund advisers had access to, and that since 2018, with further fund adviser salary chief executive of advice maximum sentence of allegations that will be sentenced in the EBITDA Of the four funds, and call centre staff “all service offerings of year-on-year phone and online- arrangements citing group Henderson Maxwell, two years’ imprisonment, Mr Henderson had Downing Centre Local Cbus was the largest who provided general the fund are funded by the based intra-fund advice confidentiality, MTAA had purported to hold ASIC said. represented himself Court on 13 October. employer of intra-fund advice, “based on overall established member fees”.

06 October 2020 October 2020 07

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ONE TRICK PONY? How the retirement income review could change superannuation forever

Some people think it’s a secret plan to destroy super. Others warn that it will prop up a system long past its use-by date. But as new political battlelines are drawn, and everyday Australians see their nest eggs eroded by volatility and the early release scheme, the retirement income review (RIR) has become more important than ever

/BY LACHLAN MADDOCK/

THE RIR was announced they work in changes. an independent panel – but points in the retirement by Treasurer Josh Its purpose isn’t to make lobby groups have already income review is that its Frydenberg on 27 recommendations, but accused the government findings might lead the September 2019 – 27 years to consider the fiscal of using it as a “stalking government to freeze the after the establishment of sustainability of the system, horse” to weaken the legislated increase of the compulsory superannuation the role of the three pillars superannuation system and super guarantee to 12 per by prime minister Paul of the retirement income warned that the process cent. The guarantee is set Keating. The review will system (the age pension, hasn’t been transparent. to increase to 10 per cent examine the state of the superannuation, and So, how did the next year, rising 0.5 per superannuation system and voluntary savings) and the retirement income review cent every year until 2025. how it will perform in the level of support provided to become the centre of a But compulsory super was future as Australians live different generations. The political firestorm? put in place decades ago. longer and the economy review was undertaken by One of the most divisive Is increasing the guarantee

08 October 2020

P008_Cover Story_KF.indd 8 14/09/2020 2:49:48 PM Cover story Retirement

ONE TRICK PONY? How the retirement income review could change superannuation forever

/BY LACHLAN MADDOCK/

08 October 2020 October 2020 09

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“THE RATE WAS DELAYED IN 2014 UNDER THE PROMISE OF A WAGE RISE FOR WORKERS THAT NEVER MATERIALISED – WORKERS CANNOT

– in the middle of a impact could be as high the election which have Even the independent Industry Super Australia, and government to its global pandemic – still a as 100 per cent – that’s made that the case, and Reserve Bank believes citing the RBA’s own credit has been responsive AFFORD TO MISS OUT ON BOTH AGAIN” good idea? what international prior to the election it that the super increase February Statement on with a range of measure “While employers studies of similar schemes was certainly my view and will hit wage growth, with Monetary Policy, said that in supporting businesses might hand over the typically find.” I articulated that those governor Philip Lowe the legislated increase during COVID.” “puppet masters” in of its usual attack points “If Scott Morrison cheque for super, workers Many members of the were legislated changes expressing reservation in 2021 will be worth That hasn’t stopped industry super funds. on the government as breaks his promise ultimately pay for almost Morrison government have and increases and we on the matter before less than 0.1 per cent of a small band of MPs – “Economic recovery it attempts to shepherd Australians will be losing all of it through lower voiced the same concerns. had no plans to change the standing committee total compensation to comprising Tim Wilson, is so much harder when the country through its out on billions of dollars wages,” Brendan Coates, Despite previously any of those and that on economics while employees – what it calls the chair of the standing government backbench biggest recession in a in retirement savings,” Grattan program director supporting the increase, was certainly our view,” refusing to be drawn “a rounding error” – and committee on economics; MPs – intent on hundred years – digs Mr Jones said. for household finances, Assistant Minister for Mr Morrison told media into the political side of that attempts to claim the James Paterson; Andrew undermining the super in over a familiar and “And with wages tells ifa. Superannuation Jane in August. 470 the debate. increase will hit business Bragg; and fellow travellers rate rise well before emotive issue. stagnant or frozen for The number of “Using administrative Hume now says that “COVID-19 has occurred, Australians that turn But the Australian aren’t credible. Jason Falinski and Craig COVID – are more focused Former prime minister the vast majority of the data on 80,000 federal she is “ambivalent” and people’s jobs are at risk 75 every day Institute of “The rate was delayed Kelly – using the claim on verballing the RBA and Paul Keating has already workforce – a rise in workplace agreements that the decision was and I note, whether Superannuation Trustees in 2014 under the promise to start a brushfire war raising their own profile blasted the government super is the only increase made between 1991 and “political”. Prime Minister it’s Ross Gittins or any (AIST) says there’s “no of a wage rise for workers with the superannuation than improving the lives for using superannuation in remuneration most 2018 we show that about Scott Morrison says his number of others who’ve evidence” to support that never materialised industry. Mr Wilson has of Australian workers and to support the recovery, Australians are likely 80 per cent of the cost government will “carefully spoken on this issue, an automatic trade- – workers cannot afford been a vocal critic of their families,” Mr Dean while shadow finance to see. of increases in super is consider” freezing the normally those you off between wages and to miss out on both the increase, saying “if tells ifa. minister Stephen Jones “This is business as passed to workers through increase, signalling an wouldn’t necessarily put super and that the next again,” ISA chief executive we go down this path at If Scott Morrison moves has accused Scott usual for the Liberals – low wage rises within abrupt about-face on a key in the same group as being scheduled rise to 10 per Bernie Dean tells ifa. this time it will increase to freeze the increase, Morrison of breaking a who have opposed every the life of an agreement, election promise. agreeing on everything cent would amount to the “This small, incremental unemployment” and that he’ll be opening himself key election promise and single dollar that has been typically two-to-three “It is the circumstances seem to be agreeing a lot equivalent of $5 a week rise is affordable for the Labor Party needed up to vicious attacks from undermining the savings put into a superannuation years. And the long-term that have occurred since on that.” for a median wage earner. businesses of all sizes, to move away from its Labor, which – deprived of everyday Australians. account since 1993.”

10 October 2020 October 2020 11

P008_Cover Story_KF.indd 10 15/09/2020 2:26:34 PM P008_Cover Story_KF.indd 11 14/09/2020 10:26:06 AM Cover story Retirement

“THE RATE WAS DELAYED IN 2014 UNDER THE PROMISE OF A WAGE RISE FOR WORKERS THAT NEVER MATERIALISED – WORKERS CANNOT

10 October 2020 October 2020 11

P008_Cover Story_KF.indd 10 15/09/2020 2:26:34 PM P008_Cover Story_KF.indd 11 14/09/2020 10:26:06 AM Cover story Retirement

“IF SCOTT MORRISON BREAKS HIS PROMISE AUSTRALIANS WILL BE LOSING OUT ON BILLIONS

retirement, as well as OF DOLLARS IN RETIREMENT SAVINGS” management of downside risks – the sort of medical or life events for which it’s useful to have a In July, Industry Super Over the hill indefinitely – and as our sizeable chunk of change Australia hit out at the But talk aside, what will population gets older, and on hand. The stakes are Morrison government happen if the guarantee is the workforce becomes less even higher in the wake of for its handling of the frozen? Superannuation dynamic, it probably won’t. the early release scheme, which has seen many RIR, suggesting the is still one of the pillars Demographic change Australians access their government was using of the retirement income is one of the biggest retirement savings early – it as a “stalking horse” system, and doing away issues facing Australia’s to undermine the retirement income system. something ISA warns will with it could leave many superannuation system Around 470 Australians leave younger Australians Australians vulnerable and warning that it relied turn 75 every day, and $50,000 worse off, but to poverty. Today’s on data that was not advances in medical which Grattan says is no arguments, made in the available to the public or science and technology big deal. middle of a pandemic that external experts. mean they’ll live longer “Retirement incomes will is radically altering the “The community and healthier lives. While fall for workers who have supports and expects way we live, are emotive that’s a good thing, it also withdrawn their super, this rise to go ahead and and often partisan. means they’ll be retired – but not by as much as you remembers the many times As the Business Council and drawing on a pension might expect,” Mr Coates the Prime Minister and of Australia notes in its or superannuation – tells ifa. Treasurer have backed it submission to Treasury, for longer. “The government, Australia’s economy was The ifa Show podcast is in,” Mr Dean tells ifa. The Association of your guide to the stories via higher age pension “The community wouldn’t being “shaped by forces Superannuation Funds of behind the headlines in payments, will bear much take kindly to federal beyond our control” even Australia (ASFA) believes financial advice. Join the of the cost.” politicians, who themselves before COVID-19. The raising superannuation to ifa team as they discuss “Nor is the pension take home more than 15 per growth and prosperity that 12 per cent is imperative to the latest developments unsustainable. Rice cent super, cutting workers’ we’ve taken for granted ensuring more Australians in the advice sector. Warner expects age remuneration when they for decades cannot be reach a comfortable Listen now. pension spending to need it most.” expected to continue standard of living in ifa.com.au/podcast decline from 2.7 per cent of

12 October 2020

P008_Cover Story_KF.indd 12 15/09/2020 2:27:12 PM Cover story Retirement

19,998 women men “IF SCOTT MORRISON BREAKS HIS PROMISE +170 AUSTRALIANS WILL BE LOSING OUT ON BILLIONS retirement, as well as OF DOLLARS IN RETIREMENT SAVINGS” management of downside Australians will risks – the sort of medical or life events for which be diagnosed it’s useful to have a In July, Industry Super Over the hill indefinitely – and as our sizeable chunk of change with breast Australia hit out at the But talk aside, what will population gets older, and on hand. The stakes are Morrison government happen if the guarantee is the workforce becomes less even higher in the wake of for its handling of the frozen? Superannuation dynamic, it probably won’t. the early release scheme, cancer in 2020 which has seen many RIR, suggesting the is still one of the pillars Demographic change Australians access their government was using of the retirement income is one of the biggest retirement savings early – it as a “stalking horse” system, and doing away issues facing Australia’s 20,168 to undermine the retirement income system. something ISA warns will with it could leave many superannuation system Around 470 Australians leave younger Australians Australians vulnerable and warning that it relied turn 75 every day, and $50,000 worse off, but to poverty. Today’s on data that was not advances in medical which Grattan says is no arguments, made in the available to the public or science and technology big deal. middle of a pandemic that external experts. mean they’ll live longer “Retirement incomes will is radically altering the “The community and healthier lives. While fall for workers who have way we live, are emotive BCNA IS THERE FOR supports and expects that’s a good thing, it also withdrawn their super, this rise to go ahead and and often partisan. means they’ll be retired – but not by as much as you remembers the many times As the Business Council and drawing on a pension might expect,” Mr Coates the Prime Minister and of Australia notes in its or superannuation – tells ifa. Treasurer have backed it submission to Treasury, for longer. “The government, Australia’s economy was The ifa Show podcast is in,” Mr Dean tells ifa. The Association of your guide to the stories via higher age pension “The community wouldn’t being “shaped by forces Superannuation Funds of behind the headlines in payments, will bear much take kindly to federal beyond our control” even Australia (ASFA) believes financial advice. Join the of the cost.” politicians, who themselves before COVID-19. The raising superannuation to ifa team as they discuss “Nor is the pension take home more than 15 per growth and prosperity that 12 per cent is imperative to the latest developments unsustainable. Rice cent super, cutting workers’ we’ve taken for granted ensuring more Australians in the advice sector. Warner expects age Listen now. | remuneration when they for decades cannot be reach a comfortable pension spending to 1800 500 258 BCNA.ORG.AU need it most.” expected to continue standard of living in ifa.com.au/podcast decline from 2.7 per cent of Ensuring all Australians affected by breast cancer receive the very best care, treatment and support 12 October 2020

P008_Cover Story_KF.indd 12 15/09/2020 2:27:12 PM Ad template.indd 1 14/09/2020 1:04:44 PM Cover story Retirement

GDP today to 2.5 per cent by 2038, despite the ageing of the population. Nor would higher compulsory super contributions help offset any increase in pension spending on the federal budget.” Grattan also believes the shortfall in the SG increase will be at least partially made up by a higher age pension, and that early super isn’t a good reason to push ahead to 12 per cent. But ISA believes that’s a “bleak outcome” that relies on “highly questionable assumptions”, including assuming that everyone retires as a single (entitling them to a higher rate of pension) and deflating the value of the pension to CPI. That doesn’t mean Australians don’t need more support in retirement. One pressing issue is a lack of home ownership among young Australians. For 25 to 34-year-olds, home ownership among the poorest 20 per cent has fallen from 63 per cent to 22 per cent. And Grattan predicts that by 2056 just two- thirds of retirees will own their homes, down from nearly 80 per cent today. For Australians on the age pension, that could eat up a substantial chunk of money. “The real policy priority should be to boost Commonwealth Rent Assistance,” Mr Coates tells ifa. “Rent assistance materially reduces housing stress among low-income “The number one “We are concerned and a source of shelter, ownership that Australia Australians. But the value priority for retirement that housing costs for community and social has come to take for of rent assistance has incomes should be raising the current cohort of cohesion. Its major granted – including stable not kept pace with rent the rate of rent assistance retirees who do not have financial benefit for and high employment and increases. The maximum by 40 per cent.” the benefit of a lifetime of widespread cheap land for rent assistance payment retirees is not having is indexed in line with Grattan estimates the super savings could face to pay rent, which gives development – may have CPI, but rents have been move would cost about hardship in retirement,” an immediate cash been unique. growing faster than CPI for $300 million a year if First State Super said in its flow benefit to retirees “If there is no change a long time. provided just to retirees, submission to Treasury. (once mortgages have to present policy settings, “That’s why the number or $1.5 billion a year total “This will be exacerbated been discharged).” we can expect a decline one priority for retirement if extended to working-age if the objective remains The Australian Housing in home ownership rates incomes should be Australians who are on anchored to the age and Urban Research and increased numbers raising the rate of Rent income support and who pension as an implicit Institute (AHURI) sees of people reliant on the Assistance by 40 per rent. And super funds agree measure of adequacy. housing as the “fourth private rental system in cent, and benchmarking that something needs to be Housing is a key pillar” of the retirement retirement,” AHURI says. the payment to the rents done to provide shelter for component of the system, but warns that the “This is likely to entail actually paid by low- Australians who otherwise retirement picture. It conditions that have led increased expenditure on income renters. might not have it. is primarily a home, to the high level of home housing assistance and

14 October 2020

P008_Cover Story_KF.indd 14 15/09/2020 2:27:31 PM Cover story Retirement

GDP today to 2.5 per cent by 2038, despite the ageing “WE CANNOT STAND BY AND WATCH MORE of the population. Nor would higher compulsory super contributions help GENERATIONS FACE THE SAME PLIGHT” offset any increase in pension spending on the federal budget.” Grattan also believes the part-time while juggling female staff, including “Without this coverage, shortfall in the SG increase other commitments. through “nationally the only fall-back people will be at least partially While the retirement consistent anti- will have where they made up by a higher age gap is closing – Treasury discrimination legislation” have not made private pension, and that early estimates the gap will be and by allowing couples to provision will be the age super isn’t a good reason at 10 per cent less super hold joint superannuation pension. This cost will be to push ahead to 12 per by 2060, compared with accounts, as they might borne by all taxpayers, cent. But ISA believes 30 per cent today, off through an SMSF. including those that saved that’s a “bleak outcome” the back of rising female That approach would through the SG and other that relies on “highly employment – it’s clear “automatically remove voluntary savings.” questionable assumptions”, more needs to be done. gender differences in including assuming that “We are seeing superannuation balances” The golden years everyone retires as a increasing numbers and lead to a noticeable There are good reasons single (entitling them to a of older women facing reduction in the number of for people to get fired higher rate of pension) and poverty in retirement,” superannuation accounts – up about the RIR. As the deflating the value of the says Cate Wood, national and therefore a reduction Prime Minister has noted – pension to CPI. chair of Women in Super. in the total cost of the and regardless of political That doesn’t mean “We cannot stand by and superannuation system. views – superannuation is Australians don’t watch more generations The rise of the gig money earned and owned need more support in face the same plight. It economy is also a pressing by Australians, being retirement. One pressing is important that we act issue. While there are more managed exclusively for issue is a lack of home now to ensure that women ways to work than ever, their use in retirement. But ownership among young are at the centre of any this flexibilisation doesn’t is weakening the system Australians. For 25 to post-COVID super or always provide good that has preserved that 34-year-olds, home other economic recovery outcomes for retirement. money the best route to ownership among the policy measures.” People working within take as COVID-19 impacts poorest 20 per cent has In the wake of the early the gig economy are often lives and livelihoods? fallen from 63 per cent to release scheme, the AIST casuals or contractors, But regardless of 22 per cent. and Women In Super have working for multiple whether the guarantee And Grattan predicts recommended a range companies across different rises to 12 per cent, that by 2056 just two- of measures to improve industries. And while that’s it’s clear that the thirds of retirees will own retirement outcomes fine for making a quick superannuation system their homes, down from for low-income women, buck, it means they’re has a long way to go. nearly 80 per cent today. For Australians on the age including moving ahead less likely to receive super Women and gig workers pension, that could eat with the legislated super contributions, even if their are unlikely to achieve up a substantial chunk increase and payment of monthly income exceeds the same outcomes as of money. super on government paid the $450 threshold – the people the system “The real policy priority parental leave. potentially creating a was set up for nearly should be to boost “Women who accessed higher burden for the 30 years ago, while the Commonwealth Rent their super through the age pension. basic need of housing is Assistance,” Mr Coates scheme – often because One possible solution still not being met – and tells ifa. they had no other place to is for workers to pay likely won’t be unless “Rent assistance turn for financial support themselves their the government takes materially reduces housing – are now even further super. Others aren’t dramatic action soon. stress among low-income behind the eight ball when so forthcoming. The The RIR has been “The number one “We are concerned and a source of shelter, ownership that Australia potentially undermine to increase residential Australians. But the value it comes to retirement superannuation system catapulted into relevance priority for retirement that housing costs for community and social has come to take for income adequacy, equity mobility, like reforms to of rent assistance has savings,” says AIST head of was designed when by the COVID-19 crisis. incomes should be raising the current cohort of cohesion. Its major granted – including stable and sustainability for a stamp duty, could also not kept pace with rent advocacy Melissa Birks. looking for work online Policy reforms that the rate of rent assistance retirees who do not have financial benefit for and high employment and substantial segment of make housing a more increases. The maximum “In normal times, the was something out of were previously in the by 40 per cent.” the benefit of a lifetime of widespread cheap land for the population.” achievable dream. rent assistance payment retirees is not having gender super gap starts to science fiction – and that “too hard” pile are now is indexed in line with Grattan estimates the super savings could face to pay rent, which gives development – may have One possible fix is to become more evident when shortcoming has only at the forefront of the CPI, but rents have been move would cost about hardship in retirement,” an immediate cash been unique. help younger Australians The great economic many women take a career become more obvious as government’s plan for growing faster than CPI for $300 million a year if First State Super said in its flow benefit to retirees “If there is no change access home ownership leveller? break to care for their first the years go on. recovery, while economic a long time. provided just to retirees, submission to Treasury. (once mortgages have to present policy settings, through increased Of course, retirement child in their 30s. Some of “Going forward, moves that would “That’s why the number or $1.5 billion a year total “This will be exacerbated been discharged).” we can expect a decline subsidies for deposit and outcomes aren’t the same these women will now be universal coverage for all previously have taken one priority for retirement if extended to working-age if the objective remains The Australian Housing in home ownership rates entry – something that across the board. Women saving for their retirement workers should be a goal years are now made in a incomes should be Australians who are on anchored to the age and Urban Research and increased numbers would shore up the old are less likely to retire pretty much from scratch of the SG system whether matter of weeks. One way raising the rate of Rent income support and who pension as an implicit Institute (AHURI) sees of people reliant on the system, and might not with the same amount when they return to work.” people are employees, or another, the question Assistance by 40 per rent. And super funds agree measure of adequacy. housing as the “fourth private rental system in solve the problems of low of income as men due to The FSC has also self-employed or of what to do about cent, and benchmarking that something needs to be Housing is a key pillar” of the retirement retirement,” AHURI says. income earners – while the gender pay gap, the recommended measures participate as part of the superannuation will soon the payment to the rents done to provide shelter for component of the system, but warns that the “This is likely to entail reducing tax advantages time they take away from to make it easier for growing gig economy,” the have an answer – one actually paid by low- Australians who otherwise retirement picture. It conditions that have led increased expenditure on of home ownership and the workforce for caring employers to make higher Actuaries Institute said in that could change the way income renters. might not have it. is primarily a home, to the high level of home housing assistance and introducing policies responsibilities, or working super contributions to its submission. Australians live forever.

14 October 2020 October 2020 15

P008_Cover Story_KF.indd 14 15/09/2020 2:27:31 PM P008_Cover Story_KF.indd 15 14/09/2020 2:52:01 PM Sponsored Content

The future retirement income vehicle

How to drive returns safely in a post COVID-19 world

16 October 2020

P016_Allianz_KF3.indd 16 14/09/2020 5:41:16 PM Sponsored Content

The future retirement income vehicle

How to drive returns safely in a post COVID-19 world

with growth assets – assets over time is “the stocks and private equity equivalent of a 3 per cent AS INTEREST rates hover nearer to zero, retirees making up around three- increase in superannuation must drive faster, on quarters of the portfolio,” contribution”. narrower roads, or face a the Callan study says. While the Drew study higher probability of never “Return-seeking focuses primarily on portfolios are now more portfolio construction /BY CAITRIONA WORTLEY, reaching their destination. complex and expensive for those still working, it HEAD OF DISTRIBUTION, However, forced to take on ALLIANZ RETIRE+/ ever-increasing levels of than ever.” also highlights one of the risk just to stay on pace, Financial advisers, biggest issues inherent to “WHILE MANY RETIREES MAY NOT GRASP THE traditional retirement then, can no longer simply holding a greater exposure investment approaches now cushion portfolios with to equities as retirement pose a serious danger. a higher proportion of looms: sequencing risk – TECHNICAL DETAILS OF SEQUENCING RISK, Even before the COVID-19 fixed income securities, to or the risk that the order achieve target returns of and timing of investment crisis further dampened Lonsec labels the years general people feel the pain returns at the expense of this magnitude, as clients returns are unfavourable, THEY DO APPEAR TO HAVE AN INTUITIVE global growth prospects of 55-75 as especially of a loss twice as much as the upside potential.” move closer to retirement. resulting in less money and squeezed interest rates prone to sequencing risk joy that is felt from a gain. Caught between the need Inevitably, retirement in retirement. closer to zero, the level of as individuals prepare to “Interestingly, and to take more risk to generate UNDERSTANDING OF IT” additional risk required to income portfolios will “Sequencing risk is highly maximise retirement savings perhaps not surprisingly, returns and a strong match returns had at least have to fuel up on growth relevant to the issue of and then look to sustain a this ratio increases as people psychological desire to play it tripled over two decades. assets such as equities to retirement adequacy because certain level of income. approach retirement,” the safe, retirees rely on financial sustain returns over the a large market downturn According to a Lonsec report says. “What advisers to help them that only half of Australian the study reveals that a retirees to set a limit on September 2016 study by longer term. occurring close to retirement Foot on the accelerator is surprising is that the navigate this challenge. retirees said their financial significant proportion of their exposure to market US investment research could deplete a worker’s (and the brake) magnitude of this increase; losses while still providing adviser presented retirees are interested in house Callan Institute, in Out of order retirement nest egg to the While many retirees may not retirees fear losses 10 times Safer travelling: Why the potential to earn the investment options that products that offer some 1995 investors would have Adding more equities to point where it may never grasp the technical details as much… (a 10:1 margin)”. investors want seatbelts upside gains of growth assets, earned 7.5 per cent on a the mix certainly improves recover,” the Drew paper says. of sequencing risk, they do “In practical terms, and airbags made them feel safe. insurance from market Future Safe is one of the few portfolio consisting entirely the theoretical retiree Australian investment appear to have an intuitive this means many retirees Interestingly, research Of course, advisers downturns, like Future Safe retirement income vehicles of low-risk bonds – a pretty investment outcomes and research house and understanding of it. are willing to reduce the commissioned by Allianz are obliged to point out by Allianz Retire+. designed for the risky compelling investment expected returns over time. consulting firm Lonsec The Lonsec report, for probability of negative Retire+ this May found investment risks but With features that enable road ahead. proposition for retirees. For example, a 2014 further elaborates on instance, notes the now “... by 2015 to achieve paper by noted Australian sequencing risk in its well-accepted concept of comparable returns that academic Michael Drew May 2020 analysis of the ‘loss aversion risk’ – a notion 1. Allianz Retire+ Future Safe Portfolio Construction for Retirement report published by Lonsec Investment Solutions Pty Ltd ABN 95 608 837 583 (LIS) authorised representative 1236821 of Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445. LIS was remunerated for the provision of the report. The report is not an endorsement of any financial product. Opinions are reasonably held by LIS at compilation and LIS assumes fixed income portion was (and others) found that Allianz Retire+ ‘Future Safe’ based on behavioural finance no obligation to update this document after publication. Except for liability which can’t be excluded, LIS, its directors, officers, employees and agents disclaim all liability for any error, inaccuracy, misstatement or down to just 12 per cent, investing more in growth retirement income product1. research that shows in omission, or any loss suffered through relying on the document or any information.

16 October 2020 October 2020 17

P016_Allianz_KF3.indd 16 14/09/2020 5:41:16 PM P016_Allianz_KF3.indd 17 14/09/2020 5:41:35 PM Feature Professional year

“WE’VE FOUND THERE IS INTEREST, PARTICULARLY IN THE GROWING PRACTICES WHERE PRINCIPALS ARE LOOKING TO ENGAGE MORE ADVISERS”

18 October 2020

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“WE’VE FOUND THERE IS INTEREST, The PARTICULARLY IN THE GROWING PRACTICES WHERE PRINCIPALS ARE LOOKING TO ENGAGE MORE ADVISERS” elephant roomin the Amid the rush to comply with the more immediate of FASEA’s requirements, the professional year has become the forgotten aspect of the standards framework. With less than 200 advisers entering the profession this year so far, is the PY a ticking time bomb licensees can no longer afford to ignore?

/BY SARAH KENDELL/

18 October 2020 October 2020 19

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THE PROFESSIONAL year is perhaps the forgotten aspect of FASEA’s standards framework, but it’s arguably the most important. As of 1 January 2019, all new entrants to the advice industry have had to undertake 1,600 hours of work as a provisional adviser before they can be fully licensed to practice independently. At least 100 of these hours must be structured training undertaken between the provisional adviser and their supervisor. As existing advisers and licensees have rushed to comply with the other parts of the standards framework necessary for advisers to remain in the industry - most notably undertaking an approved education pathway to a bachelor level qualification, and the gruelling industry exam - professional year requirements have largely been left by the wayside. With industry data indicating around 5,000 advisers have left the industry in the 18 months to June 2020, FASEA has revealed that professional year students currently number around 150. However, with some much-needed breathing space being provided in June in the form of a deadline extension for education and exam requirements, licensees are reporting that more inquiries are starting to come through from the documentation ready train and mentor new would like to start, so we practices interested in to go.” advisers, if they have are working collaboratively taking on professional Having a handful of the capacity to do so,” with that current group,” year trainees. trainee advisers currently Ms Dummett says. Mr Younger said at “We’ve found that there going through the program “FASEA’s requirements the time. is interest, particularly seems to be the norm for for new entrants formalises in the growing practices a number of licensees. our existing processes.” Onerous requirements where principals are on Allison Dummett, chief In an ifa webcast earlier 1,600 While enthusiasm appears top of things and they executive of Clearview in the year, Fortnum HOURS to be slowly growing from are looking to engage dealer groups Matrix Private Wealth group The amount of work both practices and new more advisers,” Synchron Planning Solutions and managing director and new entrants to the starters around the idea of director John Prossor says. Clearview Financial Advice, chief executive Neil advice industry have the program, the practical “It wasn’t initially a says there are currently Younger said the dealer had to undertake as a requirements themselves high priority because we four provisional advisers group also had just three provisional adviser at best take some getting didn’t have high inquiries going through the PY advisers going through used to for principals early in the piece. But program at Matrix. the program. and managers, and at we are now talking to “We have always “We’ve got demand from worst could be a hurdle five or six [provisional encouraged and supported some additional people for businesses to take advisers] and we have all our practices to recruit, across the network who on graduates.

20 October 2020

P018_Secondary Feature_KF.indd 20 14/09/2020 10:29:10 AM Feature Professional year

THE PROFESSIONAL year is perhaps the forgotten aspect of FASEA’s standards framework, “OF COURSE, THERE IS A RISK THAT but it’s arguably the most important. As of 1 January 2019, all new AN ADVISER WILL LEAVE SHORTLY entrants to the advice industry have had to undertake 1,600 hours AFTER COMPLETING THEIR PY” of work as a provisional adviser before they can be fully licensed to practice Mr Younger also noted independently. At least that the costs to a practice 100 of these hours must of longer lead times for be structured training training now have to undertaken between the be factored in to any provisional adviser and recruitment budget they their supervisor. are planning. As existing advisers “As an industry we and licensees have rushed were getting our heads to comply with the other around how does the parts of the standards program work in a framework necessary practical sense, what for advisers to remain does it cost to get people in the industry - most through the program, notably undertaking because traditionally the an approved education time frame for getting pathway to a bachelor an adviser from starting level qualification, and into being productive in the gruelling industry an adviser practice was exam - professional year shorter,” Mr Younger said. requirements have largely “Now it’s longer, so the been left by the wayside. cost to sustain through With industry data that period is longer and indicating around 5,000 I think adviser practices advisers have left the have had to prepare for industry in the 18 months that at the same time.” to June 2020, FASEA has revealed that professional Improving guidance year students currently for licensees number around 150. Opinions are divided However, with some among licensees around much-needed breathing how the standards space being provided authority has embedded in June in the form of the professional year a deadline extension program so far. Mr for education and exam Prossor says the guidance requirements, licensees provided by FASEA has are reporting that more been comprehensive, and inquiries are starting in Synchron’s case delays to come through from the documentation ready train and mentor new would like to start, so we Mr Prossor says once a none of us have gone 1,500 hours of on-the- Being able to get with getting professional practices interested in to go.” advisers, if they have are working collaboratively practice agrees to take on a into a lot of detail about job development plus provisional advisers to year students signed up taking on professional Having a handful of the capacity to do so,” with that current group,” provisional adviser, there’s it with advisers - there’s 100 hours of education the stage where they can have been more internal. year trainees. trainee advisers currently Ms Dummett says. Mr Younger said at a significant process for been so much else in hope that their be productive, profitable “We were a bit slow off “We’ve found that there going through the program “FASEA’s requirements the time. the licensee to properly happening that we’ve provisional adviser will and work independently the mark - we couldn’t is interest, particularly seems to be the norm for for new entrants formalises onboard the adviser’s had to deal with since stay with the business is a key concern for cope with it at all last in the growing practices a number of licensees. our existing processes.” Onerous requirements supervisor and make sure January that it hasn’t for a reasonable period practices. A spokesperson calendar year, our where principals are on Allison Dummett, chief In an ifa webcast earlier 1,600 While enthusiasm appears they’re aware of their been a huge focus of and become a successful for FASEA says that of the attention was directed to top of things and they executive of Clearview in the year, Fortnum HOURS to be slowly growing from responsibilities under the the industry.” adviser,” she says. more than 450 inquiries it getting existing advisers are looking to engage dealer groups Matrix Private Wealth group The amount of work both practices and new PY framework. Ms Dummett says the “Of course, there is has received around the focused on the code of more advisers,” Synchron Planning Solutions and managing director and new entrants to the starters around the idea of “I don’t think the investment of time and a risk that an adviser professional year in the ethics and the relevance of director John Prossor says. Clearview Financial Advice, chief executive Neil advice industry have the program, the practical supervisors were across money is significant for will leave shortly after last 12 months, the most that,” he says. “It wasn’t initially a says there are currently Younger said the dealer had to undertake as a requirements themselves their obligations initially, practices, especially completing their PY. In frequently asked questions “There are practices high priority because we four provisional advisers group also had just three provisional adviser at best take some getting but as they start inquiring taking into account the many cases, it may make relate to accelerating that have been ready didn’t have high inquiries going through the PY advisers going through used to for principals and we start providing them growing tendency of more sense for a business quarters one and two for longer than that early in the piece. But program at Matrix. the program. and managers, and at with information, they are a younger workers to move to hire an experienced, for trainees, as well as and that has held up we are now talking to “We have always “We’ve got demand from worst could be a hurdle bit surprised,” he says. jobs every few years. qualified adviser that can questions around the some of them - we lost a five or six [provisional encouraged and supported some additional people for businesses to take “That’s probably a “Employers are paying immediately see clients structured training and practice who were ready advisers] and we have all our practices to recruit, across the network who on graduates. feature of the fact that a salary and facilitating and generate revenue.” supervisor requirements. to go when we weren’t,

20 October 2020 October 2020 21

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I don’t want to call it a behind the eight ball on the office who have been “An effective PY pilot program, but it’s starting up their own PY studying, bring them into framework is critical to a mechanism to refine program as they assumed advice [as a] future career.” ensure that graduates the program we use to when the FASEA standards Ultimately, licensees are have every chance of effect not just education were initially constructed hopeful that the program success and employers but also appropriate that the institutions would will grow significantly in receive a return on their “IN MANY CASES IT MAY MAKE MORE SENSE FOR A levels of supervision,” have a bigger role to play. the years to come as the significant investment.” Mr Younger said. “When it was originally other FASEA standards get With just a handful BUSINESS TO HIRE AN EXPERIENCED ADVISER THAT “In my mind this is not a announced, if you make bedded down, but whether of new entrants so far Fortnum-specific solution the comparisons to the the growth will be sizable making their way through but this is an industry- accounting industry, the enough to make up for the PY training across some CAN IMMEDIATELY GENERATE REVENUE” required solution - we are way people would come thousands of practitioners licensees, it’s also critical working with a number of 450 into the profession is they exiting advice is the industry turns their external licensees to share The number of would go and join one of still questionable. mind to this to offset some ideas around how we professional year the large chartered firms Tweaks may need to of the exodus of retiring function the professional inquiries FASEA and do their graduate be made, and further advisers and capitalise year with a view to getting has received in program and then start resources provided, to on the green shoots as many people through the last 12 months to move out into the ensure the program appearing in the industry, the program as we smaller firms down the is easy for the smaller with FASEA reporting possibly can. track. Perhaps there was licensees who are now around 900 students are “We think it’s incumbent a view that maybe that’s likely to dominate the now studying an approved upon the industry to be the way it would work industry going forward to undergraduate course. working collaboratively with financial planning,” adopt and operationalise “The increased interest to avail as many people Mr Ashenden says. in their businesses. is a good thing - we were pathways into advice in as “With the changes we’ve “The issue is not really concerned that no best and as supervised a seen in the industry, we so much about the PY one would want to go to way as we can do.” don’t have large firms program itself, as the uni and come out and BT’s head of financial doing that sort of thing positive long-term be a financial adviser,” literacy and advocacy, and I think people now benefits are clear, but Mr Prossor says. Bryan Ashenden, also have to start turning there are potential “In terms of numbers adds that many smaller their mind to saying how business issues,” it’s really only a trickle, licensees may have been can I bring some staff in Ms Dummett says. but that will grow.”

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Growth Fund more about those who are training, monitoring and “A logbook is a good “Furthermore, at In May’s webcast, Mr involved, the trainee and assessment of provisional record of time spent, but present there isn’t a Younger flagged that his the supervisor, being fully advisers as well as a logbook cannot tell you professional body that licensee was working across their obligations.” FASEA exam preparation if someone has developed licensees and advisers can in collaboration with a MILFORD DISCLAIMER: Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298), AFSL 240975, is the responsible Entity for the Australian Absolute Growth Fund. Equity Trustees is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian A spokesperson for AMP and coaching. adequate listening turn to for assistance if number of other dealer Securities Exchange (ASX: EQT). Milford Australia Pty Ltd ABN 65 169 262 971 (AFSL 461253) has prepared this advertisement as investment agreed that challenges in “A number of practices and soft skills, and they have any questions.” groups to develop their manager of the Milford Australian Absolute Growth Fund. Please read the Milford Product Disclosure Statement at www.milfordasset.com.au LONSEC DISCLAIMER: The rating issued 08/2020 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). getting the program up have taken part in the demonstrated competence With the government’s own training standard for Ratings are general advice only, and have been prepared without taking account of your objectives, fi nancial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent fi nancial advice before investing. The rating and running had centred program although uptake in key areas,” she says. disciplinary body for the program, in lieu of a is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. around other obligations has been limited by the “As a licensee, we are advisers being delayed clear industry consensus Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2020 Lonsec. All rights reserved. for licensees that took challenges faced this year, required to conduct an to the end of 2021, on how PY training should ZENITH DISCLAIMER: The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned June/2020) precedence over getting and the additional support audit before a provisional responsibility for guiding be structured. referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, fi nancial situation or needs of any individual and is subject to change at any time new recruits signed up to our advisers have been adviser is released but licensees through “We’ve got some without prior notice. It is not a specifi c recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent fi nancial advice before making an investment decision and should consider the appropriateness of this advice in light a PY program, as well as providing clients,” the AMP there is no standard their professional demand from some of their own objectives, fi nancial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance the increased workload spokesperson said. industry audit to follow. year requirements will additional people across is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings defi nitions and regulatory compliance are of many practices due However, Ms Dummett This creates a problematic continue to fall to FASEA. the network who would available on our Product Assessments and at http://www.zenithpartners. com.au/RegulatoryGuidelines milfordasset.com.au to COVID-19. believes materials could situation where one The authority says it will like to start, so we’re The spokesperson be improved in order to person’s audit could be “continue to assist where working collaboratively declined to specify how create a clearer standard markedly different to possible” as licensees with that current group.

22 October 2020 October 2020 23

P018_Secondary Feature_KF.indd 22 14/09/2020 10:29:30 AM P018_Secondary Feature_KF.indd 23 14/09/2020 10:29:43 AM Feature Professional year

In good times and bad, our focus is resolute. Beat the market.

22 October 2020 October 2020 23

P018_Secondary Feature_KF.indd 22 14/09/2020 10:29:30 AM P018_Secondary Feature_KF.indd 23 14/09/2020 10:29:43 AM Practice Profile Denis O’Callaghan Orchestra conductor, project manager, CFO, adviser /BY SARAH SIMPKINS/

Scott Fitzpatrick entered the advice industry in the ’80s working at a large institution, where he quickly became disillusioned. He then started his own group, operating under a different model. The business, Fitzpatricks Private Wealth, now has 100 advisers across Australia – with one of them, Denis O’Callaghan, weighing in on his experience

about selling product. charging fees, years before service, and what I call And then he bumped into fee for service became an sending on the family board SCOTT FITZPATRICK Peter Bobbin, the principal established model in advice. style of advice that we want entered the advice lawyer from Argyle Lawyers “It really led me into to give people.” industry in the ’80s (which since merged with this project management In 1987, he founded working at a large Coleman Greig Lawyers of people’s affairs,” Fitzpatricks Private Wealth institution, “as was the last year). he comments. in Sydney, charging fixed way back in the day”, he It was Mr Bobbin, Mr “We had a vision of fees rather than relying says. He quickly became Fitzpatrick says, who having a whole bunch of on commissions. By the disillusioned with the compelled him towards professional advisers out early 2000s, Mr Fitzpatrick job, which he felt was all estate planning, and there, charging fees for and his business partner,

24 October 2020

P024_PProf_Denis OCallaghan_KF.indd 24 14/09/2020 2:53:57 PM Practice Profile Denis O’Callaghan Orchestra conductor, project manager, CFO, adviser /BY SARAH SIMPKINS/ “IT’S A COMPREHENSIVE Scott Fitzpatrick entered the advice industry in the ’80s working at a large institution, where he quickly became disillusioned. He then FINANCIAL SOLUTION, WHICH started his own group, operating under a different model. The business, Fitzpatricks Private Wealth, now has 100 advisers across Australia – TO MY KNOWLEDGE DOESN’T with one of them, Denis O’Callaghan, weighing in on his experience EXIST IN AUSTRALIA OUTSIDE OF about selling product. charging fees, years before service, and what I call OUR GROUP. AND THAT IS NOT And then he bumped into fee for service became an sending on the family board SCOTT FITZPATRICK Peter Bobbin, the principal established model in advice. style of advice that we want entered the advice lawyer from Argyle Lawyers “It really led me into to give people.” TRADITIONAL FINANCIAL PLANNING, industry in the ’80s (which since merged with this project management In 1987, he founded working at a large Coleman Greig Lawyers of people’s affairs,” Fitzpatricks Private Wealth institution, “as was the last year). he comments. in Sydney, charging fixed WHICH HAS ALWAYS BEEN way back in the day”, he It was Mr Bobbin, Mr “We had a vision of fees rather than relying says. He quickly became Fitzpatrick says, who having a whole bunch of on commissions. By the disillusioned with the compelled him towards professional advisers out early 2000s, Mr Fitzpatrick AROUND INVESTMENTS” job, which he felt was all estate planning, and there, charging fees for and his business partner,

24 October 2020 October 2020 25

P024_PProf_Denis OCallaghan_KF.indd 24 14/09/2020 2:53:57 PM P024_PProf_Denis OCallaghan_KF.indd 25 14/09/2020 11:07:59 AM Practice Profile Denis O’Callaghan

John Woodley, were being approached by other advisers who were attracted to the model. One of these advisers was Melbourne-based Denis O’Callaghan, who had previously worked as an accountant. He claims that at the time he had the 42nd licence issued by ASIC, and was the first licensee to hand it back. His practice, Alliance Advisers, was established in 1998 with another organisation, before joining Fitzpatricks Private Wealth in 2002. It now operates with two advisers and two additional part-time staff. The group it operates under, Fitzpatricks, is now national, with around practices and 100 advisers across Victoria, NSW, Queensland, the ACT, Western Australia and South Australia. A further 16 advisers are currently in training to join under the licence. The group operates what it calls a “lead advice approach”, where its advisers manage other professionals, such as accountants, lawyers, insurance advisers, among others. “Our model is that one person takes control of that whole process and coordinates with the other their insurances… this whole as a lead adviser or CFO,” planning, which has always professionals within a Name: jigsaw puzzle is very hard for Mr O’Callaghan says. been around investments.” context about what makes Denis O’Callaghan, the client to put together.” “So that the client Other professionals’ Alliance Advisers a great life for the client,” The goal is to get clients can really focus on the business models are Mr Fitzpatrick says. AFSL service provider: financially organised. As things that are important not set up to manage “They become a Fitzpatricks Private Mr O’Callaghan describes for them.” services for one individual, client’s advocate.” Wealth it, the approach includes As clients are being Mr Fitzpatrick adds, Mr O’Callaghan, who uses clients’ personal goals but charged fixed fees, Mr pointing to law firms as the model in his practice, Number of clients: 44 it also entails their whole O’Callaghan notes that his being transactional and likens it to an orchestra. balance sheet, including firm does not receive any approached during crises, The adviser, or the CFO as Total staff: 4 all assets, liabilities, cash, referral fees from any of while a typical accounting Fitzpatricks likes to refer Number of advisers: 2 anything around asset the external professionals practice can have around to them, is the orchestra protection. For him, it is also they consult with. Unlike 200 to 2,000 clients. conductor, organising the Platforms: HUB24, BT about securing how assets other businesses that Typically, a practice in the other professionals and are passed on to the next may operate as a one- Fitzpatricks group will have coordinating their outputs Software providers: generation, challenging the stop shop, with lawyers, a small number of clients into one cohesive result. Office 365, Xplan, clients and holding their advisers, accountants or – with the service being “The important part Moneysoft, Lucid Charts other professional providers stockbrokers under one more complex and requiring of that is it gets a better to account towards what roof, Fitzpatricks’ advisers more time and relationship result for the client,” they’re trying to achieve. review and manage building to deal with each Mr Fitzpatrick says. “Our approach is getting recommendations from individual. Mr O’Callaghan’s “Because if a client clear about what’s important third parties. practice has 44. comes in with a complex to them, and then getting “It’s a comprehensive But it also isn’t a tax matter, and then has clear about what their goals financial solution, which to model that is suitable for to try to articulate that are, both personal and my knowledge doesn’t exist everyone, with some clients back to the lawyer, who’s financial and then looking in Australia outside of our preferring to maintain got to try and figure that at their financial position, group,” he says. control of their affairs, out for their wills, and then which is the area that in our “And that is not rather than outsourcing try to figure that out for world we can co-ordinate traditional financial the co-ordination of it

26 October 2020

P024_PProf_Denis OCallaghan_KF.indd 26 14/09/2020 11:08:11 AM “I FEEL WE’RE LEADING THE INDUSTRY TO A PROFESSION. AND THE SOONER WE ACT LIKE PROFESSIONAL PRACTICES, THE BETTER”

And our methodology gives opportunities”, now being them insight into thinking, able to meet and deal with ‘Oh wow I reckon I can stay clients and advisers in the in this for another 20 years’.” group online. If advisers do join the “I still miss the personal group, they are then placed touch of things, but it into a 12-month program, seems to be the world we’re before a final two-year operating in,” he says. program of refining their “We’re engaging new business. The process has clients, we still run our adapted to COVID with the process of engagement inclusion of online training. with clients via Zoom. We’re “Typically advisers join us still dealing with other for connection or direction,” professionals, maintaining Mr Fitzpatrick says. contact with them.” “So connection is, they’re Mr Fitzpatrick comments already doing this style of that he has seen a rise work, but they’re doing it in clients that have been by themselves. They haven’t orphaned as a result of got the bandwidth, to get institutions exiting wealth, or to the marketing, to get that have been dissatisfied to the events, to improve with previous advice. their collateral, improve “They’re looking for an their thinking – they want adviser to take that whole to be part of or connected of balance sheet approach,” with a group of like- he says. minded individuals. For Mr O’Callaghan, “If they’re searching for he is focusing on what is direction, he says “they are under his control, being aspirational and don’t know sure to stay versatile. But where to start”. human interaction remains all. Fitzpatricks targets business and if they Fitzpatricks also operates non negotiable. business clients and can contribute back to a lead adviser program, “Will we do online successful families with Fitzpatricks Private Wealth. where advisers across the meetings? Possibly, but we its specialist skills, “people He adds it helps if they are group’s practices gather on do believe we are in the with some complexity”, the already operating with a a regular basis, to discuss human business,” he says. founder says. small number of clients. where their businesses “And because we generally “It is just very hard for are headed and the future work with couples, that Joining Fitzpatricks us to take on new advisers of advice. human interaction is always Advisers that join if they are operating in an When asked where the so important, because they Fitzpatricks are placed in old model with a couple of industry could perform often have to do things that training and transitioning thousand clients,” he says. better, Mr Fitzpatricks they may be uncomfortable programs for three years, “You need to have a answers: “I feel we’re leading doing to get to where they reshaping their businesses desire that you want to be the industry to a profession. want to go. And it’s always and offerings. When in higher relationships with And the sooner we act like much better to have a couple people join the group, they your clients, which leads to professional practices, in the same room, at the participate in a two-day lead smaller client numbers.” the better.” same time, committed to the adviser induction, where 67The number of Fitzpatricks will also same goal and committed to they learn about the group’s practices within seek out advisers around Operating post-COVID the actions that they need to Fitzpatricks Private prescribed advice model. 40 years of age, who are COVID has had its do to get there. Wealth Fitzpatricks decides if they seeking a challenge. challenges for many, but “That’s one of the big are suitable, sometimes “We quite often have had the business has been able thrills of the role that we play asking other advisers to advisers look at us and join to adapt. Mr Fitzpatrick as a lead adviser, it’s seeing screen the candidate before us because they’re career- notes virtual meetings are people achieve their goals, they can join. bored,” Mr Fitzpatrick says. now standard. He admits whether they’re financial or Mr Fitzpatrick says he “I think that if someone’s he has enjoyed a cutback whether they’re personal looks for a desire from been in the industry for on his own flights around and ultimately it’s the advisers to operate under 20 years, they may well be the country. personal that drives them in the group’s model, as well bored with the way they’re Working remotely has the end. The financials can as ambition to grow their operating at the moment. opened up “a world of new just be taken care of.”

October 2020 27

P024_PProf_Denis OCallaghan_KF.indd 27 14/09/2020 11:08:16 AM AMP Spotlight

“AT AMP, THE GATEKEEPERS HAVE UNTIL NOW CONTINUED TO ENABLE A SYSTEM WHERE WOMEN AND THE MOST VULNERABLE, AS I ONCE WAS, ARE ABUSED”

O’Neill’s office, and would was, are abused,” the welcome an opportunity woman said. to meet or engage with the “This sends a clear former employee referred message not only to the to by the [senator] to offer good people at AMP but to our support to her.” our broader communities The spokesperson added about what is acceptable. that complaints can be For past, present and sent in anonymously future victims, what hope through its whistleblowing do we have?” service or through the The unnamed woman’s company’s People & allegations are another Culture process. But blow to Francesco the woman’s statement De Ferrari’s cultural calls into question how turnaround of the AMP handles internal 170-year-old financial matters, saying that a services giant. While the Fresh AMP manager “well known for woman does not name his uninvited canvassing any high-profile figures, of younger female her claim that she was allegations could be employees” stepped in to harassed by men at handle the investigation the executive level – as into her complaints well as a string of peers the tip of the iceberg and that the process and middle managers left her “systematically – indicates a systemic The airing of new harassment allegations by a Labor broken down, isolated problem, rather than one senator in Parliament could further threaten the and bullied”. isolated to AMP high- After two months of flyers like Mr Pahari and long-promised cultural turnaround at AMP proceedings “she was a Alex Wade. shadow of her former Senator O’Neill’s office self”. No reparations has confirmed to ifa /BY LACHLAN MADDOCK/ The woman said that she “The behaviour and were made to the woman, that a number of women endured constant sexual conduct described in while the men involved from across the financial harassment from men “at Senator O’Neill’s speech “have gone on to thrive”, services have now come THE DUST had barely the peer level to executive [are] distressing and and she ultimately forward with similar settled on Boe Pahari’s level”, including in front unacceptable to AMP,” left the company after complaints, some of which demotion when Labor of some of AMP’s largest an AMP spokesperson signing an NDA and being involve AMP. senator Deborah O’Neill clients, and that her direct told ifa. demoted from her client- “This cannot continue,” used parliamentary manager had threatened “AMP takes any facing position. Senator O’Neill said. privilege to air allegations to end her career if she complaint or issue raised “At AMP, the gatekeepers “Australia is better than of sexual harassment did not follow his “sexual seriously, including from have until now continued this. Come on corporate brought to her by a former wishes” while on a work employees who have now to enable a system where Australia, surely you can junior female employee trip. The woman escaped left the organisation … We women and the most destroy this cultural stain of AMP. the situation. are in contact with Senator vulnerable, as I once on our nation.”

October 2020 29

Risk Adviser Advert.indd 1 16/08/2018 11:46:17 P029_Spotlight_KF.indd 29 14/09/2020 11:30:07 AM AMP Spotlight

“AT AMP, THE GATEKEEPERS HAVE UNTIL NOW CONTINUED TO ENABLE A SYSTEM WHERE WOMEN AND THE MOST VULNERABLE, AS I ONCE WAS, ARE ABUSED”

October 2020 29

Risk Adviser Advert.indd 1 16/08/2018 11:46:17 P029_Spotlight_KF.indd 29 14/09/2020 11:30:07 AM Opinion Conflicts

AS OF LATE, there has been increasing uncertainty “IN THE END, AN ADVISER around the rules in this area, with FASEA’s Code of Ethics appearing to move WHO DOES THE WRONG THING the bar well beyond where ASIC had set it. Whether this is justified or not is in BY THEIR CLIENT WON’T HAVE many ways a policy issue, but it certainly means that THAT CLIENT FOR VERY LONG” conflicts of interest are more Feeling relevant than ever to every financial services provider. include a small allocation to On that basis, let’s unpack small-cap equities, but the some of the main conflicts relevant adviser considers in financial services in the the investments they context of some of the most currently hold in this bracket recent developments. conflicted? to be at least as good as this company. A temptation exists The conflict on conflicts Never have conflicts of here to sell down an existing interest been at the heart of small cap to participate in so much conflict. The issue, the offer. In this scenario, like a few others, stems the adviser has an actual Join the from the fact the FASEA conflict of interest — and Code of Ethics appears you are trusting the adviser to be inconsistent with to manage that conflict by established law. passing on the offer and The now infamous thereby also missing out on standard 3 of the FASEA the commission. Code of Ethics states that an Whether the average club adviser “must not act” where adviser can be trusted in this an adviser has a conflict of scenario is at the core of the interest or duty. stamping fee and conflicted Conflicts of interest are one of the pillars of This is (arguably) in direct remuneration debates. all financial services regulation. They were conflict with the established The recent ban on LIC regulatory view, most directly stamping fees implies that at the heart of the FoFA regulation in 2012, illustrated in RG 181, where the prevailing political/social and they have recently been brought sharply ASIC states: “The conflicts view is that they can’t — and the temptation should just management obligation does but made some notable hand, to end stamping fees securities those advisers considering the impact owe another individual or back into focus by recent events — most be removed. not prohibit all conflicts of exceptions. Most notably, for all securities (including manage to place with of FASEA’s standard 3. organisation … The code does In general, your view on notably the infamous standard 3 of the FASEA interest. It does not provide stamping fees on corporate company issues and IPOs). their clients. The initial assumption not seek to ban particular the second scenario is a that a licensee can never deals and brokerage The point of this is not to For an adviser, a potential was that the standard in forms of remuneration, Code of Ethics, and the heated debate and good way to assess where provide financial services if a were excluded. express a particular opinion conflict now exists. Why do effect banned all potential nor does it determine you stand on the conflicts eventual banning of stamping fees for LICs conflict of interest exists.” This is what created on what the right outcome I say “potential”? Because conflicts — and under that particular forms of and stamping fee issue. As The ability to manage the now also infamous was, but to illustrate that the whether it’s an actual that approach, a whole remuneration would always and LITs. The issue of conflicts and how we someone who has worked conflicts rather than “loophole” for LICs and line of what constitutes an conflict depends on the range of currently legal be an actual conflict.” regulate them is inherently subjective, and avoid them makes a huge LITs, whereby product “acceptable” conflict is hazy circumstances of the client. fee arrangements would While this certainly with many advisers, my in many ways represents a barometer of how difference — and if standard commissions remained legal at best, and is constantly It is easily conceivable breach the code including, doesn’t alleviate all ambiguity experience has been that the 3 was interpreted to for listed products and not changing based on publicly that ANZ is a good most notably, stamping around how the code fits in average adviser is not only the regulator and society view the financial require the avoidance of all for unlisted — a loophole held beliefs around the investment for certain fees on securities (not just with existing regulation, the morally equipped to manage services industry conflicts, including potential that was very recently closed moral integrity of financial clients — it may be that a LICs and LITs) and even difference between avoiding this conflict, but is in fact or perceived conflicts, it when, after heated public services providers. In client has a growth portfolio potentially brokerage. a potential conflict and an strongly incentivised to do would represent a very debate and a lightning-fast, many ways, LICs fell victim with a significant allocation In its response to actual conflict is vast — and so. In the end, an adviser significant change to our six-day consultation period, to the aftermath of the to blue-chip, high-dividend submissions issued makes adherence with the who does the wrong thing by regulatory framework. My stamping fees for LICs and royal commission. stocks. Perhaps they already in December last year, code very much around doing their client won’t have that view is that FASEA’s latest LITs were banned. Let’s examine this in the hold some ANZ and the issue however, FASEA walked the right thing on a case- client for very long — and response to these concerns This outcome was at least context of stamping fees. comes with an attractive this back. FASEA said the by-case basis, rather than that’s before we even start firmly indicates it does not somewhat driven by political discount. This is an example code didn’t have the effect making wholesale changes to thinking about AFCA or other intend for the code to go and commercial interests, Are stamping fees where the interests of the of banning any particular the way advisers operate. regulatory consequences. this far, but the concern is and was in many ways fundamentally adviser and the client are forms of remuneration, In that sense, every adviser certainly warranted. arbitrary. In the end, the conflicted? aligned — both benefit and noted: “Standard 3 Can advisers be trusted has a very natural alignment banning of these fees was not A stamping fee is a volume- from the client making this of the code is concerned to manage conflicts? of interest with their client /BY NIK ALBRECHT, The story so far so much closing a loophole as based commission paid to investment. So, while the with an actual conflict Let’s take another stamping which can go a long way to DIRECTOR, ALBRECHT Back in 2012, when FoFA (and it was adjusting an existing an adviser or stockbroker stamping fee arrangement between duties advisers fee scenario: this time we balancing potential conflicts. + ASSOCIATES/ conflicted remuneration) one. If the climate was for selling a particular here causes a potential owe their client and any have a raising for a small- Many would disagree with was implemented, ASIC drew different, arguments could security. As an example, let’s conflict, there is in fact no personal interest they cap mining company. The me, and the challenge for the a line in the sand, basically just as easily have been made assume ANZ does a capital actual conflict. have or an actual conflict relevant client is middle- industry is to start winning banning any product-based to allow unlisted funds to pay raising and agrees to pay This distinction becomes between duties they owe aged and has a moderate risk this debate in the forum of commissions and payments, commissions or, on the other all advisers 1 per cent of all very relevant when their client and duties they profile. Their portfolio does public opinion.

30 October 2020 October 2020 31

P030_Opinion_KF.indd 30 14/09/2020 11:50:22 AM P030_Opinion_KF.indd 31 14/09/2020 11:50:26 AM Opinion Conflicts

30 October 2020 October 2020 31

P030_Opinion_KF.indd 30 14/09/2020 11:50:22 AM P030_Opinion_KF.indd 31 14/09/2020 11:50:26 AM Opinion COVID-19

SINCE JUNE, activity data has shown that the US economy can still stage a strong rebound. Non-farm payrolls surprised on the Testing the upside for two consecutive months, bringing back nearly 7.5 million jobs. Weekly jobless claims dropped sharply, retail sales bounced and recovery consumer sentiment recovered in June. High- frequency indicators like the Google mobility Six months into the pandemic-driven index and OpenTable disruption of our lives and the economy, we reservations confirmed a have learnt a lot; but, in many ways, we face brisk rebound in activity. New COVID-19 cases greater economic uncertainty than we did have also risen again, back in March however. This in part reflects more testing, but the positivity rate — the

32 October 2020

P030_Opinion_KF.indd 32 14/09/2020 11:50:47 AM “PROGRESS TOWARDS A VACCINE WILL IMPACT BOTH POLICY DECISIONS AND INDIVIDUALS’ ATTITUDES”

and production. A vaccine will impact both dynamics of the virus: under development by policy decisions and in a recent study, Gallup AstraZeneca and Oxford individuals’ attitudes. chief economist Jonathan University has just been To get a deeper insight Rothwell and Professor shown to successfully into these dynamics, Christos Makridis of trigger an immune we are launching a new Arizona State University response, and AstraZeneca Franklin Templeton–Gallup found that political said it could manufacture Economics of Recovery affiliation is the primary billions of doses; parallel Study in collaboration driver of people’s response efforts by US biotech firm with Gallup. to the pandemic — the Moderna and by a team We will conduct a extent to which they are of Pfizer and Germany’s monthly survey to assess a worried about the virus BioNTech are in relatively wide range of behavioural and willing to go back to advanced stages. Experts and economic factors, work or to shop, depends believe a vaccine might be including under what largely on whether they ready in 12–18 months. conditions people would identify as Democrats be ready to go back to their or Republicans. This is 2. Policy decisions: previous spending habits somewhat discouraging, Whether different US and patterns of behaviour; and our research will track states and counties will go to what extent they whether political affiliation back into a full lockdown support the reopening of continues to play a or try to implement a specific activities; and how dominant role, or whether more targeted strategy, they have been impacted better information on now that we have a better by the virus in their healthcare and economic understanding of how the everyday behaviour and developments will carry an virus spreads and how economic prospects. increasing weight. different segments of the We will combine the A V-shaped recovery population are more or results of this large- could still happen; so could less at risk. scale survey with high- a new great depression. share of new tests that counties to close most frequency activity data The stakes are higher turn out positive — has indoor activities, and 3. People’s behaviour: to better understand how than ever, and so is the also risen. The good other states have How quickly and under economic activity will uncertainty we face. The news is that compared halted or reversed the what conditions people respond in the coming unprecedented nature of with the first wave of easing of restrictions. A are willing to go back to months, what the “new this economic disruption contagion, fewer of preliminary reading of the their former activities normal” will look like once has made the traditional those infected appear July Michigan consumer and spending and the situation stabilises, gauges of economic to need hospitalisation confidence index shows working habits. and the short-term and developments woefully and intensive care, and a drop after two months long-term implications inadequate. So, we’re hospital stays seem to of recovery. These three factors are, for financial markets and rolling up our sleeves to be shorter. This is in part Going forward, I see of course, interrelated. investment strategies. find out what’s happening because less-vulnerable three “known unknowns” People’s behaviour is While much of the and what lies ahead. people account for a larger that will determine how influenced by policy existing analysis and share of the new cases the recovery unfolds: restrictions, benefits discussion centres on the (many are younger), and and incentives. In turn, dynamics of the pandemic partly because hospitals 1. Progress towards policymakers’ decisions itself — too often with have gotten better at a vaccine: A few are impacted by the a narrow focus on the treating COVID-19 patients. frontrunners have degree to which people number of new cases — the This second wave already emerged, and are afraid of contagion, attitudes of individuals of contagion, however, a government-private eager to go back to work play an equally important threatens to derail the sector collaboration or shopping, and are role in the economic economic recovery. (ambitiously dubbed ready to comply with recovery, if not even California has already “Operation Warp Speed”) safety recommendations. more decisive. /BY SONAL DESAI, reinstituted a full has accelerated the usual Additionally, progress And, people’s attitudes FRANKLIN TEMPLETON lockdown, ordering timeline of development towards a vaccine don’t just depend on the FIXED INCOME/

October 2020 33

P030_Opinion_KF.indd 33 14/09/2020 11:50:56 AM Opinion Faith-based investing

Investing according to your values and faith The world of investing was changing rapidly before the impact of COVID-19 distorted global and Australian markets. Increasingly, Australian investors and their global counterparts have been demanding their retirement savings be invested according to their values and beliefs

FOR MANY Australians, year shows 86 per cent education and explanation for Islamic Financial word for permitted — the fixed income markets due as price or quantity must As a result of complying this has meant investing of Australians now of the myriad options Institutions (AAOIFI). yardstick of judgement to the charging or receipt be clearly determined at with these principles, their super in ESG-driven expect their savings and available to accommodate is what results in the of interest — or riba — 86 the outset. investment strategies of responsible investment superannuation to be their beliefs and values. For Avoiding the increase of one’s wealth. Is being prohibited. PER CENT Islamic investment funds funds, or ethical options invested responsibly some advisers, questions payment and receipt the target one is investing Avoiding are inherently conservative, 1 of Australians now expect within super funds that and ethically. about Islamic investing will of interest into an activity or asset Investigating their savings and super to 4speculation have high cash holdings and invest in ways that seek Fortunately, the be their first. The prohibition of interest that Islam allows? If not, ethically and Investments that rely on are designed to withstand /BY JASON HAZELL, 2 be invested responsibly to reduce the impact superannuation system Put simply, Islamic arises from the Islamic the resulting increase in morally chance or speculation, the market volatility that CRESCENT WEALTH/ and ethically of climate change or — the use of which is investing is the practice of view that money should be wealth is deemed “haram”, Consistent with socially rather than the efforts comes with high levels of environmental damage. mandatory for all workers investing in alignment with used only as a medium of or forbidden. responsible investing, or profit from the sale of of the investor to equity holdings, investment According to the — offers Australians an Islamic finance principles exchange, a store of value The charging or receipt Islamic investment alcohol, gambling, tobacco, produce a return, are in non-sustainable Responsible Investment array of options to invest and values. and a unit of measurement. of interest — or “riba” — is principles specifically weapon manufacturing, also prohibited. Normal industries and debt. Association Australasia, for their future. For faith- From an investment Money itself possesses therefore prohibited. Any screen out socially pornography and commercial risk-taking For clients, investing in more than 44 per cent based investors, including governance perspective, no intrinsic value. You return on money invested detrimental activities. pork products. and related speculation is accordance with Islamic of totally professionally the growing number of there are a few core cannot use money to make should be linked to the Islamic investing is otherwise permitted. investment principles managed funds in Muslim Australians looking principles that must be more money, there must profits of an enterprise. consistent with positive Avoiding Additionally, under means a narrower choice Australia have been to invest in accordance with followed in order for a be an underlying asset or Crescent Wealth, which social values and good 3uncertainty Islamic investment of investment options and placed with responsible Islamic investing principles, fund to be considered production of some sort is Australia’s only APRA- governance and expressly The existence of uncertainty principles, Crescent Wealth more conservative and investment managers, there is a number of super Shariah-compliant, and to produce an increase regulated Islamic super prohibits investment in in a contract is prohibited. screens out companies with stable investment returns, and this is expected to funds available. these principles are set in wealth. fund, holds no exposure non-permissible activities. Everyone participating in a more than 33.33 per cent but it does deliver 100 per increase significantly. For financial advisers, and maintained by the Thus, when it comes to to banks and insurance In line with this, Crescent financial transaction must leverage, because of the cent compliance with what Research commissioned the implication of this trend Dubai-based Accounting investments and wealth companies and does not Wealth does not invest in be adequately informed and risk of investing into highly is most important for them by RIAA earlier this is that clients will seek and Auditing Organisation being “halal” — the Islamic invest into traditional any companies that sell all fundamental terms such indebted companies. — their faith.

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P030_Opinion_KF.indd 34 14/09/2020 11:51:20 AM P030_Opinion_KF.indd 35 14/09/2020 11:51:27 AM Opinion Faith-based investing

34 October 2020 October 2020 35

P030_Opinion_KF.indd 34 14/09/2020 11:51:20 AM P030_Opinion_KF.indd 35 14/09/2020 11:51:27 AM Strategy Data

“YOUR LICENSEE ALREADY HAS YOUR DATA AND SHOULD BE HELPING YOU TO DERIVE Uncover the SOME INSIGHTS FROM IT”

Source of revenue you to identify whether Your data should identify you need so many clients which product providers – and more importantly, future of you are using and the level if you have the resources of revenue you are receiving to provide all promised from these providers. This services to them. Often this will assist you to evaluate is a trigger for the practice your products/service to assess their cost to serve. offering. If your product is Once you have identified your business concentrated with a few this, the process can be providers, you’ll have to much easier. In fact, you are evaluate whether you are probably going to find that meeting your best interests you will save clients’ money duty requirements. Ask by only charging for services yourself: are these products they need. This will then still relevant to your clients’ allow you to work out how through data much to charge and what needs and will they allow services to offer. Knowing them to continue to achieve this information will enable their goals and objectives? you to consolidate your The financial planning landscape is going through Are there other products client base and provide and services that best significant changes. From new education standards better services to clients. meets their objectives and such as FASEA, to changing revenue models to increased goals where necessary? Demographics of compliance costs, principals and advisers are struggling your clients Comparison of clients’ Knowing your target to keep up with such rapid change. They simply do not historical costs and fees market is critical to your Your data should provide have the time to focus on their business and even when success. The data should insight into what services provide insight on client they do, practices aren’t sure where to start because the you are offering clients. segmentation and how task seems so daunting Historical information much your clients have should help you understand contributed to your whether your fees were fair business over the years. and reasonable to ensure Who are your top clients you are adhering to the and are the services you So, how do you access and some data points that FASEA Code of Ethics. You provide consistent with the use your data to gain insight can help you develop a need to understand your ONE SOLUTION is to bring cost and charges? The data about your business? sustainable strategy. cost of operating and cost in external consultants; if will help you to identify Building your internal to serve for each client as areas for improvement you can afford it, I highly system to help you analyse Summary of revenue a minimum. Once you have and/or opportunities to recommend it. If you your data can be time This will help you identify this information you should add relevant services that cannot afford it due to consuming and costly. revenue that is stable or at review your service package are important to your increased operating costs, /BY PETER TRUONG, Getting an Excel expert to risk. At risk revenue can be to align it to your operating client demographic. CENTREPOINT ALLIANCE/ increased compliance help decipher the numbers grandfathered commissions, cost. It is important that This should help you requirements, ASIC can help, but they may trail commissions and you clearly differentiate start your analysis to get levies, staff salaries and not know what they’re any potential conflicted your services and ensure a better understanding increased professional looking for and what data remunerations. You will they are consistent, fair of your business. Seeking indemnity, where do you is important. The simplest need to have a clear strategy and reasonable. guidance and help from find the extra $30,000+ to and easiest way is to ask on how to address clients your licensee is the first cover the cost? your licensee. Your licensee who have these fees, so Number of clients who port of call. With increases Before you panic, there already has your data and you’re prepared when receive ongoing services in fees as a result of the are a few ideas that can should be helping you to they end. Your business Your data will tell you the end of the grandfathered help you start the process derive some insights from it. revenue can be impacted number of clients you commissions and rebates, of identifying, evaluating Ask them for support significantly, if you have currently have, from total licensees should do more and redesigning your Looking at your data not adapted to the fee for clients to ongoing service to assist practices to business to adapt to a new can uncover a lot about service model, you need to clients. This information adapt to the new world of world of advice. your business. Here are act quickly. is useful because it allows financial advice.

36 October 2020 October 2020 37

P036_Strategy_Peter Truong_KF.indd 36 14/09/2020 12:12:22 PM P036_Strategy_Peter Truong_KF.indd 37 14/09/2020 12:12:30 PM Strategy Data

“YOUR LICENSEE ALREADY HAS YOUR DATA AND SHOULD BE HELPING YOU TO DERIVE Uncover the SOME INSIGHTS FROM IT”

36 October 2020 October 2020 37

P036_Strategy_Peter Truong_KF.indd 36 14/09/2020 12:12:22 PM P036_Strategy_Peter Truong_KF.indd 37 14/09/2020 12:12:30 PM A selection of the month’s top news stories

$1.3 BILLION The amount life insurers lost in 2019

affordable for clients in the long run, as premium prices between true- level and non-true-level products were essentially the same for the first five years of a policy, but by the 11th year, the cheapest non-true-level product was more expensive than all available true- level products. Given the disastrous revenue figures coming out of the life insurance sector at present, Mr Pillemer said the study may give insurers another incentive to look at new business strategy and product options to improve outcomes has adopted initial short- for policyholders Discounted premiums term discounts for new and advisers. business premiums. The “In 2019, life insurers research demonstrates lost $1.3 billion, lapse rates leave risk advice how over five to 20 for traditional life insurers years, policies with remained stubbornly high front loaded discounts at about 17 per cent and customers worse off have significantly higher policyholders have had premium increases to endure significant and Retail insurance products that offer first-year relative to the first policy repeated increases in year,” Mr Pillemer said. premiums, in some cases premium discounts are likely to be substantially “By way of example, by more than 35 per cent more expensive for clients in the long run and are customers of one insurer year-on-year,” he said. who have been offering “While many of the contributing to poor business outcomes for insurers, a 25 per cent up-front issues the industry new research has found discount could face is grappling with increases of 50 per cent are a function of the plus in premiums in the macro socio-economic second year once you environment, a historic THE RESEARCH undertaken Further, while three out paid to the fact that also take into account and aggressive chase for by Rice Warner and of the five cheapest advised the strategy of many age-based increases market share by various commissioned by insurance insurance policies on the insurers to aggressively and indexation. insurers has created company PPS Mutual, market were front-loaded gain market share by “The effect that these highly undesirable revealed that while risk discount products in the discounting premiums up sharp premium increases outcomes for consumers. products offering first-year first year of a policy, four front was not meaningfully have psychologically on a “We believe that discounts were 2.5 per cent out of five of the cheapest contributing to their client, and the increased there has never been a cheaper than the market policies in the long term bottom line, as clients likelihood the client will more important time to average in the first year, were non-front loaded would switch out of lapse as a result, should reassess past dynamics they were 3.5 per cent more discount products, the the products after the not be underestimated.” of the sector, and work expensive than average in report said. discounts finished. The research also towards building a the second year and 5 per PPS Mutual chief “Increasingly, in a bid to concluded that policies strong and sustainable cent more expensive in executive Michael Pillemer secure market share, the offering true-level insurance industry for subsequent years. said the research put retail insurance industry premiums were more all Australians.”

38 October 2020

P038_Risk Adviser News_KF.indd 38 14/09/2020 12:22:03 PM riskadviser.com.au

Life insurance shake-up to have drastic consequences

ADVISERS ARE likely to see continuing increases to retail life insurance premiums and significant cuts to the benefits clients have grown accustomed to as part of APRA’s drastic shake-up of income protection products slated to come into effect next year. Addressing the recent AIOFP virtual conference, MetLife head of advice strategy Jeffrey Scott said changes introduced earlier this year to restrict the sale of agreed value policies were just the beginning of a significant overhaul of the income protection insurance sector that Mr Scott likened to “using a sledgehammer to “OUR OPERATIONS crack open a walnut”. “With regards to the proposals to be implemented LEADERSHIP TEAM IS ONE OF on 1 January [2021], life companies are now going to be required to review their premiums every 18 months based on industry claims statistics,” Mr Scott said. THE STRONGEST AND MOST “We have seen volatility with most IP policies in the past three to five years, so expect that to continue going RESPECTED IN THE INDUSTRY” forward. These first proposals that APRA had were interesting, but the next eight that are proposed to come in on 1 July 2021 are the ones that scare me the most.” Mr Scott said the further rules proposed to come into effect from 1 July 2021 would involve “stripping away” Zurich unveils reshuffle in significant IP benefits including assessing an insured person’s income over the previous 36 months before claims, operations their claim, and including the full extent of an insured person’s income in any assessment. The life insurer has made a number of appointments “Under these proposals, the maximum benefit you can receive is capped at 100 per cent of your pre- across its operations, claims and underwriting teams disability income – that includes your sick leave, your as it further integrates its recent acquisition of rental income, that will all be included as offsets to your income,” he said. another insurance brand “Most of the good income protection policies don’t offset sick leave or long service leave, whereas these policies will automatically do this. And if you go on claim IN A STATEMENT, Zurich said it had and best-practice service, and to support appointed former chief underwriting our people on this journey. for more than six months, the maximum benefit will officer Tina Beilby to the role of head of “Peter, as chief underwriting officer, will automatically reduce to 75 per cent. operations, integration, and previous ensure that the underwriting approaches “So w,e have these situations where for new policies OnePath head of claims Joanne Faglioni to across the Zurich and OnePath retail issued after 1 July 2021, it will strip away benefits the position of chief claims officer. portfolio remain distinctly different, we’ve become accustomed to since these policies were Further, the insurer said its chief so true product choice is available to introduced back in 1965.” underwriter Peter Tilocca had also Australian customers across Zurich’s Other policy benefits proposed to be removed by the been elevated to the role of chief Wealth Protection, Active and Sumo range, new APRA rules included own-occupation rather than underwriting officer. and OnePath’s OneCare retail proposition.” any-occupation definitions, and additional trauma The new appointments follow Zurich’s Zurich and OnePath chief operations benefits paid out on IP policies, Mr Scott said. acquisition of formerly ANZ-owned life officer Gavin Pearce said the He urged risk advisers to take action through their insurance group OnePath in mid-2019, appointments were the next step in the industry bodies and make direct submissions to the which saw more than 500 employees join integration of the two insurance brands’ regulator pointing to the impact of such changes to Zurich from ANZ. operational teams. clients’ financial stability. “These changes will formally bring “The structure has been designed to “The first thing you can do is talk to your industry the Zurich and OnePath underwriting support excellent customer and adviser body and encourage them to lobby APRA, and the second and claims teams together under the service outcomes both now and into the thing is talk to APRA yourself – provide a submission, functional leadership of Peter and Joanne, future,” Mr Pearce said. make sure they understand what the impacts are on respectively, creating one of the largest “Our operations leadership team is your clients, that when they need the cover the most, groups of specialised life underwriters one of the strongest and most respected they are going to have that cover,” Mr Scott said. and claims personnel in Australia,” in the industry, and we are delighted to “Talk to your local member, because if clients can’t get Zurich said. retain the prowess of individuals from adequate income protection insurance, “The head of operations, integration, both the OnePath and Zurich businesses. they become a drain on society. Make under Tina’s leadership, will be These appointments reflect the career sure you are active in this, otherwise responsible for key initiatives to support aspirations of our team members, which the new policies you can offer to a our claims, underwriting and service is one of our ambitions as an employer client will have far fewer benefits in leaders to drive a more integrated, flexible of choice.” there to help the clients out.”

October 2020 39

P038_Risk Adviser News_KF.indd 39 14/09/2020 12:22:15 PM News from Australia’s fastest growing start-up sector ﬁ ntechbusiness.com

Platforms Revolut gears up for consolidate Aus growth gains as advisers The neobank has ended its beta switch stage and rolled out its app to As advisers continue the broader Australian market, to migrate to “new with plans to give customers generation” platforms, access to features including two of the major cryptocurrencies, stock trading, providers in the market customer rewards and a junior have provided an update banking version on their growing funds UK FINTECH Revolut has revealed plans to roll out a under advice suite of new features for its Australian clientele after recently gaining its Australian Financial Services IN A statement, Netwealth reported its Licence and onboarding 30,000 customers in the last funds under advice had risen to $31.5 two weeks. billion at 30 June 2020, a 35 per cent rise The neobank is targeting consumers who frequently over the 2020 financial year. FUA growth spend and transfer money abroad, with its foreign exchange product allowing customers to spend and from new advisers using the platform Open banking will transfer money globally at the interbank rate. accounted for around 44 per cent of total The app allows customers to hold 27 currencies via growth, the group said. multi-currency accounts. The group saw net inflows of $9.1 billion not drive major bank Revolut co-founder and global chief executive Nik during the financial year and reached $7.3 Storonsky said that establishing the bank’s presence in billion in funds under management by 30 Australia is an exciting opportunity for the business. June, the majority of which came from exodus: BankVic “When it comes to exchanging currencies or the ways managed accounts. in which they can manage their money, Australians Digital advice driving cost In its results presentation, Netwealth have been at a disadvantage for far too long,” The open banking regime is unlikely to spark customer said it had almost 3,000 intermediaries Mr Storonsky said. movement away from the major banks into smaller now using its platform, an increase of Revolut is also marketing itself as helping cuts for planners 10 per cent since the previous year. The younger consumers gain more financial control and banks and fintechs, according to a mutual bank group flagged it would soon release a independence. Other app features include automatic mobile client portal app that would cater categorisation of spending, instant payment talk to a human adviser and the SCOTT WALL account throughout their “We’ve had fintechs for Advisers are lowering their prices to for “the entire wealth needs” of clients. notifications, monthly budget alerts and a split , chief often still-limited investment adult life. quite some time now and compete with automated investment Meanwhile, Westpac’s BT Panorama bills function. information officer of range of robo services represent “Also, in Australia, mostly the penetration is good in announced it had grown adviser take-up Revolut Australia chief executive Matt Baxby said Melbourne-headquartered there’s a lot of fee-free some areas, but it’s not what offerings as their clients increasingly the two main deterrents.” by 78 per cent over the past two years, the platform’s launch will be followed by a number of mutual bank BankVic, banking. So, as long as people expected,” he said. look to digital tools to manage their Globally, eight out of 10 wealth and also had nearly 3,000 advisers using feature releases. told the IQPC’s Open you’re putting money into Furthermore, Australian managers agreed that high-net- its platform. Panorama’s funds under “Revolut is building a financial super app that enables Banking Virtual Event that the account, you’re not being customers are more likely money, according to new research worth clients were becoming administration had reached $30 billion in Australians to truly take control of their finances in one customers in Australia have increasingly fee sensitive as a charged,” he said. “It’s just to buy products across early August. place,” Mr Baxby said. always shown reluctance to result of digital offerings. change banks because it is easier to leave it there.” multiple banks rather than BT said around 60,000 clients were “There are so many existing financial products THE GLOBAL Wealth Managers traditional wealth managers to However, Ms van den Hoevel difficult to do so. Mr Wall’s comments switch banks altogether. Panorama users, with SMSFs making that are either too complicated or inaccessible for Survey, conducted by analytics try and compete with robo- added that trust was the main “If you look at the were made in response to a “We find that most people up almost a third of the platform’s total Australians. We want to break that down and put the firm GlobalData, surveyed 371 advice firms. issue advisers had to contend Australian market, I think question by panel member are multi-banked because wealth management executives GlobalData senior wealth funds under administration. Managed power back into our customers’ hands. with in the Australian market, “Our plan is to rapidly introduce a range of new 90 per cent of mortgages Simon Kirby, director, people buy products. They in markets including Australia, management analyst Heike accounts also made up a significant and that they should focus on features, such as simple access to cryptocurrencies, are still [housed] with the financial services industry don’t buy institutions,” the UK, the US and Hong Kong van den Hoevel said while proportion of total funds, sitting at over building this given how much commodities and fractional ownership of US stocks, as big four banks,” he said solutions, at data analytics Mr Wall said. and found that three-quarters Australian clients were $4.5 billion. support clients needed through well as accounts to help children learn better financial during a panel discussion in solutions provider Qlik. The open banking regime of Australian respondents were increasingly interested in Combined with the group’s legacy the COVID crisis. habits, a rewards program to save money on day-to-day the webinar. Mr Kirby asked if the big officially began in July lowering their costs to compete trying out digital advice, there platform, BT Wrap, BT made up the “As long as an impersonal purchases and ways for customers to easily give back to “I think, [if] you go to banks possibly feared losing with the launch of the CDR, with robo-advisers. were also still significant largest share of the adviser platform algorithm enjoys greater levels their communities.” any comparison website some of their business to which allows consumers This was a higher percentage barriers to doing so that market, with around $141 billion in funds of trust, any fee reductions are The neobank had launched a beta version of its and look at the rates the smaller players and to securely share their than the 61 per cent of represented an opportunity under administration. However, the unlikely to entice investors,” product for the Australian market in mid-2019. between the big four and fintechs who may see the banking data to access wealth managers globally for advisers. group flagged it would begin migrating she said. Revolut also recently raised smaller players and other open banking regime as an bespoke financial products who said they were lowering “The two single most customers from BT Wrap to Panorama in “In addition, highlighting US$580 million in lenders, the big four charge opportunity to adapt and and services. their prices to compete with important reasons why late 2020. a positive track record and Series D funding a premium. But people are seize some customer share The CDR currently allows automated offerings. Australian HNW investors opt “As we embark on the next stage of the benefits of a wide range at a valuation of willing to pay the premium from the major banks. data sharing of deposit and developing BT Panorama, we remain The results of the survey for robo-advisers are a loss of of investments – especially $5.5 billion. because it’s just so hard Mr Wall said that while transaction accounts, and also revealed that wealth trust in traditional advisory as ongoing market volatility focused on achieving our mission to help to move.” every bank would be credit and debit cards. management clients in channels and a belief that these calls for greater levels of advisers deliver advice more efficiently, Mr Wall observed that concerned about losing From 1 November 2020, Australia were using four services yield similar or better diversification – will be with platform technology as the backbone many Australians open customer share to fintechs, they will also be able to different digital providers on returns than other options,” critical in retaining clients of their operations,” BT general manager a bank account at their the fintechs have not yet share data relating to home average to manage their money, Ms van den Hoevel said. in the current crisis- platforms, investments and operations nearest branch when they achieved the penetration loans, personal loans and creating more incentive for “On the flipside, a desire to plagued environment.” Kathy Vincent said. are young and maintain that that was expected. joint accounts.

40 October 2020 October 2020 41

P040_Fintech News_KF.indd 40 15/09/2020 9:08:29 AM P040_Fintech News_KF.indd 41 15/09/2020 9:08:50 AM ﬁ ntechbusiness.com

Revolut gears up for Aus growth

The neobank has ended its beta stage and rolled out its app to the broader Australian market, with plans to give customers access to features including cryptocurrencies, stock trading, customer rewards and a junior banking version

UK FINTECH Revolut has revealed plans to roll out a suite of new features for its Australian clientele after recently gaining its Australian Financial Services Licence and onboarding 30,000 customers in the last two weeks. The neobank is targeting consumers who frequently spend and transfer money abroad, with its foreign exchange product allowing customers to spend and Open banking will transfer money globally at the interbank rate. The app allows customers to hold 27 currencies via multi-currency accounts. not drive major bank Revolut co-founder and global chief executive Nik Storonsky said that establishing the bank’s presence in Australia is an exciting opportunity for the business. exodus: BankVic “When it comes to exchanging currencies or the ways in which they can manage their money, Australians have been at a disadvantage for far too long,” The open banking regime is unlikely to spark customer Mr Storonsky said. movement away from the major banks into smaller Revolut is also marketing itself as helping younger consumers gain more financial control and banks and fintechs, according to a mutual bank independence. Other app features include automatic categorisation of spending, instant payment account throughout their “We’ve had fintechs for notifications, monthly budget alerts and a split SCOTT WALL, chief adult life. quite some time now and bills function. information officer of “Also, in Australia, mostly the penetration is good in Revolut Australia chief executive Matt Baxby said Melbourne-headquartered there’s a lot of fee-free some areas, but it’s not what the platform’s launch will be followed by a number of mutual bank BankVic, banking. So, as long as people expected,” he said. feature releases. told the IQPC’s Open you’re putting money into Furthermore, Australian “Revolut is building a financial super app that enables Banking Virtual Event that the account, you’re not being customers are more likely Australians to truly take control of their finances in one customers in Australia have charged,” he said. “It’s just to buy products across place,” Mr Baxby said. always shown reluctance to easier to leave it there.” multiple banks rather than “There are so many existing financial products change banks because it is Mr Wall’s comments switch banks altogether. that are either too complicated or inaccessible for difficult to do so. Australians. We want to break that down and put the “If you look at the were made in response to a “We find that most people power back into our customers’ hands. Australian market, I think question by panel member are multi-banked because “Our plan is to rapidly introduce a range of new 90 per cent of mortgages Simon Kirby, director, people buy products. They features, such as simple access to cryptocurrencies, are still [housed] with the financial services industry don’t buy institutions,” commodities and fractional ownership of US stocks, as big four banks,” he said solutions, at data analytics Mr Wall said. well as accounts to help children learn better financial during a panel discussion in solutions provider Qlik. The open banking regime habits, a rewards program to save money on day-to-day the webinar. Mr Kirby asked if the big officially began in July purchases and ways for customers to easily give back to “I think, [if] you go to banks possibly feared losing with the launch of the CDR, their communities.” any comparison website some of their business to which allows consumers The neobank had launched a beta version of its and look at the rates the smaller players and to securely share their product for the Australian market in mid-2019. between the big four and fintechs who may see the banking data to access Revolut also recently raised smaller players and other open banking regime as an bespoke financial products US$580 million in lenders, the big four charge opportunity to adapt and and services. Series D funding a premium. But people are seize some customer share The CDR currently allows at a valuation of willing to pay the premium from the major banks. data sharing of deposit and $5.5 billion. because it’s just so hard Mr Wall said that while transaction accounts, and to move.” every bank would be credit and debit cards. Mr Wall observed that concerned about losing From 1 November 2020, many Australians open customer share to fintechs, they will also be able to a bank account at their the fintechs have not yet share data relating to home nearest branch when they achieved the penetration loans, personal loans and are young and maintain that that was expected. joint accounts.

October 2020 41

P040_Fintech News_KF.indd 41 15/09/2020 9:08:50 AM Movers and shakers The latest financial services personnel movements Best stories of the month Eye on the industry

1 2 3 Sequoia proﬁ ts ANZ chairman exits Boe Pahari steps down, Synchron appoints soar after Murray to exit AMP compliance head DAVID GONSKI will step down advice group as ANZ chairman after the BOE PAHARI will resume work at IN A statement, Synchron said it finalisation of the bank’s full- his previous level with a focus had appointed Hanna Abdullah, buying spree year results in October. He will be on AMP Capital’s infrastructure currently head of compliance and succeeded by Paul O’Sullivan. equity business. Francesco chief risk officer for independent IN A statement, Sequoia Financial “It has been an honour to work De Ferrari will assume direct licensee Sentry Group, to fill the Group reported a net profit after with my fellow directors and the leadership of the AMP Capital role of head of compliance, policy tax of $1.93 million for the 2020 management team on delivering business on an interim basis. and regulatory. year, a 293 per cent increase on the the best possible outcomes for David Murray has resigned The dealer group said its general previous financial year. our customers and shareholders,” as AMP Limited chairman and manager of legal and compliance, The group’s earnings before Mr Gonski said. stepped down from the board. He Michael Jones, who was promoted interest, tax, depreciation and “ANZ has a long history as one will be replaced by Debra Hazelton, into the role in February, had amortisation also surged by 341 of Australia’s leading international effective immediately. resigned effective 14 August. per cent over the year to reach On the move companies, and my time here “The board has made it clear Ms Abdullah, who was currently $4.8 million, compared with $1.1 will remain a key highlight of my that it has always treated the based in Perth, would commence million the previous year. corporate career.” complaint against Mr Pahari in the role on 17 August and The majority of this was Mr Gonski was a member of the seriously,” Mr Murray said. relocate to Synchron’s head achieved in the second half of ANZ board between February 2002 “My view remains that it was office in Melbourne when COVID the year, as Sequoia completed and June 2007. He returned to the dealt with appropriately in 2017 restrictions permitted. a number of advice acquisitions, board as chairman in 2014, and and Mr Pahari was penalised Mr Jones, a former director including the purchase of Yellow has now served as a non-executive accordingly. However, it is clear of compliance for UBS Wealth Brick Road’s wealth arm, as director for more than 11 years. to me that, although there is Management, joined the company well as the advice business of “I feel it’s the right time to hand considerable support for our in 2016. stockbroking group Philip Capital over the reins,” Mr Gonski said. strategy, some shareholders Synchron director Don Trapnell Advisers “The ‘unique’ skill and and former Interprac practice “We have in place an did not consider Mr Pahari’s said Mr Jones’ role would be insight a founder mindset Total Cover Australia. experienced, diverse and talented promotion to AMP Capital CEO to eliminated in favour of two heads brings are working Sequoia chief executive Garry management team as well as be appropriate.” of compliance, with Ms Abdullah adopting a systematically to achieve Crole said the group was pleased having made significant progress In light of Mr Murray’s to work alongside Synchron’s head product/market fit.” with its progress over the course on our ambitions to simplify and resignation, John Fraser has of compliance, advice assurance, “Basically, a process of the year, which had seen its improve our operations.” also decided to resign as a non- Allison Massey. ‘ﬁ ntech start- to really, really know wealth subsidiary Sequoia Wealth Mr O’Sullivan is currently executive director on the AMP “We have decided not to fill the your customer.” Group become the fourth-largest chairman of Optus and a director Limited board and as a chairman role vacated by Michael, but in Though automated advice, privately owned advice licensee of Coca-Cola Amatil. He has and non-executive director recognition of the importance of up’ mindset fintechs and robo-advisers in Australia. previously held senior executive on the AMP Capital Holdings compliance, instead to elevate both are making headway, Mr “In possibly the most difficult roles with Singtel and was CEO of Limited board. heads of compliance so that they MacLeod said advice tech will year for business in more than half Optus between 2004 and 2012. “We would like to thank report directly to the Synchron can thrive not replace advisers. a century, we were able to grow “My focus as chairman will be to both David and John for their board,” Mr Trapnell said. “I feel this is a fear held our business, return to paying a continue the work we have been professionalism, dedication and “We thank Michael for the MARK MACLEOD chief adopting a start-up by many in the profession. dividend and report some much doing over many years to improve commitment to AMP,” Ms Hazelton valuable contribution he made executive at Rollit Wealth mindset difficult. Technology replacing jobs, improved divisional results,” our operations and simplify the said. “Under my leadership, the to Synchron during his time and speaker at the Adviser “Start-up founders have reducing revenue and Mr Crole said. bank to benefit not only the board will focus on working with with us. He leaves with our very ‘cheapening’ an adviser’s “We have further strengthened owners of our company but also Innovation Summit, said assumptions, not answers,” Francesco and his leadership best wishes.” skills,” he said. our balance sheet and are well our customers and our staff,” that with the advice industry he said. team to deliver long-term The group had also promoted “Advice tech will evolve, not positioned to deal with challenging Mr O’Sullivan said. being a high-profile, highly “Assumptions are tested on value for our shareholders senior compliance officer Stefanie destroy the profession. market conditions, should “The banking industry is at an regulated profession, customers with incomplete and clients by executing the Georgiades to the role of team “The way customers they continue.” important inflection point as we “advisers are expected services that often fail. These transformation strategy. leader, regulator compliance, are provided services will The group said it aimed to do all we can to help the economy to be experts and not failures inform the next “I am determined to restore the reporting to Ms Abdullah. change and advice will become “Australia’s leading advice recover from the impacts of make mistakes”. assumption and the services trust and confidence of our clients, & about Out “It is very difficult for an continue to pivot until they become cheaper. But this and financial licensee services COVID-19, and ANZ will remain shareholders and employees.” adviser to admit that they fit the customer need in an is not a threat, it is an group” in the longer-term, and committed to that cause.” increase revenue in its wealth, do not know an answer. It is explorative, iterative process.” opportunity to service more professional services harder still to make mistakes In transitioning that customers, better.” and equity markets or to fail,” he said. thought process to advice, the Mr MacLeod believes that businesses by 20 per Mr MacLeod said “assumptions” and “failures” the winners in the future of cent in the current customers place a huge are how advisers should look advice will be able to embrace financial year. amount of trust in their to continually pivot advice technological change and adviser and for many tech in the future, according grow market share. advisers, “who you are as a to Mr MacLeod. The losers will persist with person is linked closely with “Fintech assumes the “outdated business models.” what you do as a profession.” advice process can be “It is the banking “This makes it an ego- automated as a service, and equivalent of sitting in a driven profession,” he said. adviser knowledge can be branch when customers are “I don’t mean arrogant, replicated or improved by online, or the accounting but instead centred around tech,” he said. equivalent of sending self-confidence and holding “For advisers, customer customers complex, bespoke a ‘unique’ set of skills trust is therefore achieved spreadsheets when your and insights.” when a service meets a customers wanted Xero,” /DAVID GONSKI/ /BOE PAHARI/ /HANNA ABDULLAH/ As a result, this makes customer need. he said.

42 October 2020 October 2020 43

P042_On The Move_KF.indd 42 14/09/2020 12:34:11 PM P043_Out and About_KF.indd 43 14/09/2020 12:42:14 PM Movers and shakers The latest financial services personnel movements Best stories of the month Eye on the industry

42 October 2020 October 2020 43

P042_On The Move_KF.indd 42 14/09/2020 12:34:11 PM P043_Out and About_KF.indd 43 14/09/2020 12:42:14 PM Intelligence Data

NAME NET ASSETS 3 MTH 1 YR 3 YR 5 YR 200 largest funds AU$M % % %PA %PA Janus Henderson Tactical Income 3388.58 2.2 3.05 3.09 3.07 A list of the 200 largest Australian managed La Trobe Financial 12 Month Term Account 3375.99 1.16 4.99 5.21 5.26 ANZ Smart Choice Super-1980S 3349.71 5.08 -3.45 5.66 5.37

funds, including industry super funds, Vanguard Australian Property Secs Idx 3253.55 6.49 -22.25 2.46 3.63 with the latest 3-month, 1-year, 3-year and IOOF Balanced Investor Trust 3197.54 3.98 0 6.75 6.01 5-year returns Macquarie Income Opportunities 3190.1 2.81 1.05 2.31 2.84 AustralianSuper Australian Shares 3161.13 NAv NAv NAv NAv

LATEST TOTAL RETURNS AS AT 1 AUGUST 2020 iShares Wholesale Indexed Aust Bd Z 3126.34 NAv NAv NAv NAv AMP MySuper 1970s 3115.26 4.2 -2.18 4.82 4.93 NAME NET ASSETS 3 MTH 1 YR 3 YR 5 YR AU$M % % %PA %PA AMP FLS&CS-AMP Balanced Growth 3064.47 3.98 -1.93 4.47 3.46 AustralianSuper Balanced 120986.75 NAv NAv NAv NAv Vanguard High Growth Index 3026.02 6.06 -1.66 7.51 6.29

REST Super Core Strategy 45162.68 4.8 -1.47 4.69 4.92 PIMCO Australian Bond W 2979.08 2.23 2.72 5.01 4.21

CBUS Super Growth (MySuper) 44168.03 NAv NAv NAv NAv Antipodes Global Fund - Class P 2968.14 -0.57 -2.47 4.17 6.6

HESTA Super Core Pool 40102.21 NAv NAv NAv NAv Bentham Syndicated Loan 2925.84 7.24 -4.89 0.7 2.85

Sunsuper Lifecycle Balanced Pool 35045.34 4.05 -2.26 5.87 6.18 Walter Scott Global Equity 2909.35 1.89 4.67 15.22 10.34

HOSTPLUS Balanced 33836.33 NAv NAv NAv NAv AMP SigSup-Woolworths MySuper Fut Dns Ba 2854.51 4.12 -0.87 5.01 5.16

Vanguard International Shares Index 15372.52 2.87 3.5 11.7 8.23 CBUS Super High Growth 2714.09 NAv NAv NAv NAv

MySuper Growth Portfolio 14304.2 3.28 -2.6 NAv NAv iShares Global Bond Index 2676.02 1.8 5.25 4.76 4.52

VicSuper FutureSaver Growth 13464 3.17 0.6 6.34 5.96 BT Australian Shares Index W 2665.33 7.66 -9.79 5.16 4.97

Vanguard Australian Shares Index 12656.25 7.85 -9.69 5.35 5.1 Dimensional Australian Core Equity Trust 2579.05 8.67 -11.82 4.06 5.42

AustralianSuper High Growth 12212.64 NAv NAv NAv NAv AustralianSuper International Shares 2578.02 NAv NAv NAv NAv

Magellan Global 11597.64 1.05 5.83 16.44 10.49 MLC MKey Super F Hor 5 Gr Port 2550.87 3.73 -3.63 5.13 4.82

Care Super Balanced 11438.99 NAv NAv NAv NAv Vanguard Conservative Index 2538.57 3.14 2.74 5.68 5.01

Platinum International Fund 8021.68 -1.22 -6.92 2.76 4 MyNorth Index Balanced 2518.37 5.01 -2.07 6.21 NAv

Orbis Global Eq LE Fd (Aus Registered) 8009 5.45 5.13 6.8 NAv AMP MySuper 1980s 2450.32 4.73 -2.36 5 5.04

AustralianSuper Cash 7206.13 NAv NAv NAv NAv Bennelong ex-20 Australian Equities 2415.33 15.64 8.96 10.47 10.95

Macquarie Treasury 7044.21 NAv NAv NAv NAv Schroder Fixed Income Fund - Wholesale 2364.93 2.56 4.07 5.54 4.31

Vanguard Australian Fixed Interest Index 6939.96 0.82 3.25 5.36 4.35 JANA High Alpha Global Share Trust 2294.7 4.1 1.07 9.58 7.18

PIMCO Global Bond W 6806.81 3.67 4.63 4.48 4.85 Janus Henderson Cash Institutional 2244.31 0.01 0.73 1.53 1.76

Sunsuper Balanced 6717.53 4.14 -2.27 5.89 6.19 AMP FS Super-AMP Super Easy Balanced 2241.7 4.08 -2.08 5.27 4.38

Sunsuper Growth 6271.83 4.76 -3.14 6.32 6.73 Magellan Infrastructure 2237.35 2.64 -8.97 4.4 6.99

Statewide Super MySuper (Super) 5736.69 3.29 -1.81 5.85 6.24 Packer & Co Investigator Trust 2151 -5.29 -6.96 9.58 7.16

BT Super for Life 1970s Lifestage Sav 5726.15 5.64 -3.63 5.37 4.64 Energy Super MySuper 2119.52 3.32 -2.65 4.02 5.22

MFS Global Equity Trust 5598.04 2.42 -1.16 10.23 7.68 Strategic Australian Equity 2086.89 7.89 -13.34 3.03 4.59

Vanguard International Shrs Idx Hdg AUD 5349.17 10.75 3.58 7 7.58 PIMCO Australian Bond Fund 2078.82 2.24 2.76 5.05 4.25

Vanguard Growth Index 5348.07 5.16 -0.02 7.06 6.01 AMP MySuper 1960s 2064.13 3.53 -0.76 4.31 4.25

Vanguard Balanced Index Fund 5246.55 4.24 1.51 6.56 5.62 Investors Mutual WS Australian Share 2060.7 0.23 -15.1 0.49 2.41

Fidelity Australian Equities 5151.03 9.13 -7.3 6.04 5.26 Bentham Global Income 2060.09 6.48 0.52 2.16 3.53

Vanguard Global Agg Bd Indx Fd (Hdg) 5116.4 2.44 5.57 4.93 NAv Kapstream Absolute Return Income Class I 2055.67 1.41 0.79 2.53 2.81

BT Super for Life 1980s Lifestage Sav 5109.16 5.68 -3.53 5.46 4.63 Dimensional Five-Year Diversified F/I 2031.43 NAv NAv NAv NAv

Sunsuper Lifecycle Retirement Pool 5061.42 3.21 -1.71 4.77 4.97 Dimensional Five-Year Diversified F/I 2031.43 NAv NAv NAv NAv

Ardea Real Outcome Fund 4751.12 2.45 6.37 5.89 4.69 Vanguard International Fxd Intr Idx Hdg 2025.56 0.87 5.17 4.88 4.48

BT International Shares Index W 4621.39 2.92 3.52 11.74 8.31 Strategic Fixed Interest 1966.55 0.82 0.88 1.97 2.55

AMP Capital FD Balanced 4576.53 NAv NAv NAv NAv Energy Super Balanced 1956.76 3.32 -2.65 4.02 5.22

ANZ Smart Choice Super-1970S 4514.25 4.74 -2.92 5.49 5.17 Mercer Cash Fund - Term Deposit Units 1945.56 0.11 1.05 1.69 1.88

Platinum Asia 4218.86 10.2 20 12.14 8.9 AustralianSuper Sustainable Balanced 1919.09 NAv NAv NAv NAv

AustralianSuper Conservative Balanced 4189.76 NAv NAv NAv NAv Sunsuper Conservative 1903.2 2.67 -0.5 4.01 4.28

BT Super for Life 1960s Lifestage Sav 4112.98 4.22 -2.06 4.45 3.79 Advance Balanced Multi-Blend W 1882.37 5.42 -2.89 5.31 4.89

AustralianSuper Stable 3968.61 NAv NAv NAv NAv BT Super Active Balanced - Super & TTR 2 1880.93 4.59 -3.03 NAv NAv

AMP Wealth Balanced Gr 3959.01 NAv NAv NAv NAv AMP Capital W Australian Property 1867.75 0.83 -1.37 4.94 5.98

MLC MKey Super F Hor 4 Balanced Port 3935.64 3.42 -2.54 4.85 4.53 MLC Wholesale Horizon 4 Balanced 1864.11 4.54 -3.03 4.69 4.35

PIMCO Diversified Fixed Interest W 3774.43 2.97 3.7 4.74 4.54 Vanguard International Property Secs Idx 1840.34 -2.44 -15.9 3.09 2.4

T. Rowe Price Global Equity I 3643.71 11.99 20.13 19.73 13.62 Dimensional Global Core Equity Trust 1831.21 1.77 -4.04 6.95 5.47

CFS Wholesale Institutional Cash 3612.31 0 0.54 1.29 NAv GMO Systematic Global Macro Trust B 1822.99 4.38 4.28 2.31 3.1

ANZ Smart Choice Super-1960S 3452.49 4.02 -2.08 5.03 4.67 Australian Ethical Balanced 1820.71 3.64 -0.82 6.06 5.4

Kapstream Absolute Return Income 3400.1 1.38 0.68 2.3 2.55 Strategic International Equity 1811.91 5.58 -3.34 4.97 5.42

44 October 2020

P044_Data.indd 44 14/09/2020 12:44:30 PM Intelligence Data

NAME NET ASSETS 3 MTH 1 YR 3 YR 5 YR NAME NET ASSETS 3 MTH 1 YR 3 YR 5 YR NAME NET ASSETS 3 MTH 1 YR 3 YR 5 YR 200 largest funds AU$M % % %PA %PA AU$M % % %PA %PA AU$M % % %PA %PA Janus Henderson Tactical Income 3388.58 2.2 3.05 3.09 3.07 AMP FLS&CS-Future Directions Balanced 1784.72 3.61 -2.16 3.57 3.62 iShares Emerging Markets IMI Equity Idx 1263.69 7.89 1.58 5.8 5.8 A list of the 200 largest Australian managed La Trobe Financial 12 Month Term Account 3375.99 1.16 4.99 5.21 5.26 AMP SigSup-FD Balanced 1775.08 3.77 -1.56 4.19 4.25 Charter Hall Direct Office Wholesale A 1258.11 0.57 9 11.99 14.74 ANZ Smart Choice Super-1980S 3349.71 5.08 -3.45 5.66 5.37 Schroder Real Return CPI Plus 5% Fnd -WC 1771.38 2.48 0.57 3.29 3.28 Magellan Global (Hedged) 1246.38 8.98 6.14 11.27 9.9 funds, including industry super funds, Vanguard Australian Property Secs Idx 3253.55 6.49 -22.25 2.46 3.63 IOOF MultiMix Balanced Growth Trust 1770.91 3.17 1.12 7.42 6.3 AMP Wealth Conservative 1243.57 NAv NAv NAv NAv with the latest 3-month, 1-year, 3-year and IOOF Balanced Investor Trust 3197.54 3.98 0 6.75 6.01 MyNorth Index Moderately Defensive 1688.31 3.88 -0.73 5.35 NAv Winton Global Alpha 1242.71 -9.62 -17.88 -3.53 -2.52 5-year returns Macquarie Income Opportunities 3190.1 2.81 1.05 2.31 2.84 CBUS Super Cash Savings 1678.51 NAv NAv NAv NAv BT Super for Life 1950s Lifestage Sav 1242 2.82 -0.58 3.56 2.98 AustralianSuper Australian Shares 3161.13 NAv NAv NAv NAv Partners Group Global Value (AUD) W 1664.33 NAv NAv NAv NAv PIMCO Global Credit W 1241.33 4.47 4.47 4.16 4.55

LATEST TOTAL RETURNS AS AT 1 AUGUST 2020 iShares Wholesale Indexed Aust Bd Z 3126.34 NAv NAv NAv NAv Sunsuper Retirement 1659.25 3.29 -1.74 4.81 5.04 UBS Cash Fund 1232.26 -0.01 0.68 1.42 1.63 AMP MySuper 1970s 3115.26 4.2 -2.18 4.82 4.93 HESTA Super Conservative Pool 1645.05 NAv NAv NAv NAv CFS FC PSup-FirstChoice Growth 1232.06 5.16 -2.05 3.89 3.88 NAME NET ASSETS 3 MTH 1 YR 3 YR 5 YR AU$M % % %PA %PA AMP FLS&CS-AMP Balanced Growth 3064.47 3.98 -1.93 4.47 3.46 AMP SigSup-AMP MySuper 1970s 1639.12 4.2 -2.18 4.82 4.93 CFS FC W PSup-FirstChoice W Moderate 1227.33 4.15 -0.42 4.21 4.12 AustralianSuper Balanced 120986.75 NAv NAv NAv NAv Vanguard High Growth Index 3026.02 6.06 -1.66 7.51 6.29 Vanguard Cash Reserve 1634.29 0.03 0.68 1.42 1.64 Aus Unity Healthcare Property Wholesale 1213.32 1.17 8.03 11.08 12.61

REST Super Core Strategy 45162.68 4.8 -1.47 4.69 4.92 PIMCO Australian Bond W 2979.08 2.23 2.72 5.01 4.21 REST Super High Growth 1630.36 5.92 -2.2 5.49 5.65 CFS FC W PSup-FirstChoice W Growth 1203.8 5.18 -1.52 4.61 4.64

CBUS Super Growth (MySuper) 44168.03 NAv NAv NAv NAv Antipodes Global Fund - Class P 2968.14 -0.57 -2.47 4.17 6.6 Plato Australian Shares Income 1625.76 10.8 -8.01 4.62 4.05 Hyperion Australian Growth Companies 1202.77 13.65 16.45 14.37 11.18

HESTA Super Core Pool 40102.21 NAv NAv NAv NAv Bentham Syndicated Loan 2925.84 7.24 -4.89 0.7 2.85 Schroder Real Return CPI Plus 5% Fnd -PC 1621.43 2.54 0.86 3.6 3.59 HESTA Super Shares Plus 1200.53 NAv NAv NAv NAv

Sunsuper Lifecycle Balanced Pool 35045.34 4.05 -2.26 5.87 6.18 Walter Scott Global Equity 2909.35 1.89 4.67 15.22 10.34 AustralianSuper Diversified Fixed Int 1609.59 NAv NAv NAv NAv Legg Mason Western Asset Aus Bd A 1199.14 1.8 3.63 5.68 4.73

HOSTPLUS Balanced 33836.33 NAv NAv NAv NAv AMP SigSup-Woolworths MySuper Fut Dns Ba 2854.51 4.12 -0.87 5.01 5.16 Sunsuper Cash 1589.08 0.16 1.21 1.72 1.89 Vanguard Cash Plus 1179.39 0.22 1.14 1.84 2

Vanguard International Shares Index 15372.52 2.87 3.5 11.7 8.23 CBUS Super High Growth 2714.09 NAv NAv NAv NAv CFS FC ESup-FirstChoice Lifestage1970-74 1582.08 4.33 -7.11 3.26 4.35 MyNorth Index Growth 1175.5 5.79 -3.19 6.53 NAv

MySuper Growth Portfolio 14304.2 3.28 -2.6 NAv NAv iShares Global Bond Index 2676.02 1.8 5.25 4.76 4.52 Schroder WS Australian Equity Fund - WC 1577.25 4.6 -13.33 2.84 3.63 Macquarie True Index Aust Fixed Interest 1174.11 1.05 3.59 5.64 4.58

VicSuper FutureSaver Growth 13464 3.17 0.6 6.34 5.96 BT Australian Shares Index W 2665.33 7.66 -9.79 5.16 4.97 State Street International Eqs Idx Tr 1571.31 2.97 3.63 11.75 8.26 Vanguard Emerging Markets Shares Index 1167.96 7.81 1.8 6.11 6.19

Vanguard Australian Shares Index 12656.25 7.85 -9.69 5.35 5.1 Dimensional Australian Core Equity Trust 2579.05 8.67 -11.82 4.06 5.42 MyNorth Index High Growth 1536.33 6.47 -3.23 7.16 NAv CFS FC W PSup-FirstRate W Saver 1165.45 0.05 0.52 1.01 1.19

AustralianSuper High Growth 12212.64 NAv NAv NAv NAv AustralianSuper International Shares 2578.02 NAv NAv NAv NAv Advance Growth Multi-Blend W 1533.18 6.13 -3.9 5.56 5.14 iShares Australian Listed Property Index 1150.97 6.36 -22.35 2.41 3.55

Magellan Global 11597.64 1.05 5.83 16.44 10.49 MLC MKey Super F Hor 5 Gr Port 2550.87 3.73 -3.63 5.13 4.82 VicSuper FutureSaver Balanced 1531 2.99 1.18 5.91 5.72 Perpetual Wholesale Diversified Income 1150.93 2.97 1.19 2.49 3.12

Care Super Balanced 11438.99 NAv NAv NAv NAv Vanguard Conservative Index 2538.57 3.14 2.74 5.68 5.01 CFS FC ESup-FirstChoice Lifestage1975-79 1501.68 4.32 -7.49 3.04 4.19 Janus Henderson Australian Fxd IntstInst 1148.67 2.71 4.82 5.73 4.74

Platinum International Fund 8021.68 -1.22 -6.92 2.76 4 MyNorth Index Balanced 2518.37 5.01 -2.07 6.21 NAv Fulcrum Div Absolute Return Fund 1491.8 0.85 8.09 4.37 2.18 VicSuper FutureSaver Capital Stable 1145 2.38 1.74 5.04 5.02

Orbis Global Eq LE Fd (Aus Registered) 8009 5.45 5.13 6.8 NAv AMP MySuper 1980s 2450.32 4.73 -2.36 5 5.04 iShares Hedged International Equity Idx 1491.46 10.58 3.36 6.9 7.48 MLC MKey Super F Horizon 6 Share Port 1135.04 4.08 -4.26 6.04 5.63

AustralianSuper Cash 7206.13 NAv NAv NAv NAv Bennelong ex-20 Australian Equities 2415.33 15.64 8.96 10.47 10.95 North Index Balanced 1491.24 5 -2.02 6.34 5.49 CFS FC W PSup-CFS W Index Aus Share 1114.94 6.73 -7.84 5.73 5.53

Macquarie Treasury 7044.21 NAv NAv NAv NAv Schroder Fixed Income Fund - Wholesale 2364.93 2.56 4.07 5.54 4.31 TPS Cash Management 1481.88 0.03 NAv NAv NAv Wingate Investment Partners Trust No. 3 1113.22 NAv NAv NAv NAv

Vanguard Australian Fixed Interest Index 6939.96 0.82 3.25 5.36 4.35 JANA High Alpha Global Share Trust 2294.7 4.1 1.07 9.58 7.18 Summit Select Income Generator 1469.71 4.23 -4.35 3.18 3.48 Advance Moderate Multi-Blend W 1112.78 4.16 -1.79 4.76 4.33

PIMCO Global Bond W 6806.81 3.67 4.63 4.48 4.85 Janus Henderson Cash Institutional 2244.31 0.01 0.73 1.53 1.76 BT Super for Life 1990s Lifestage Sav 1468.81 5.75 -3.36 5.62 4.73 AMP SigSup-AMP MySuper 1960s 1108.8 3.53 -0.76 4.31 4.32

Sunsuper Balanced 6717.53 4.14 -2.27 5.89 6.19 AMP FS Super-AMP Super Easy Balanced 2241.7 4.08 -2.08 5.27 4.38 UBS Australian Bond Fund 1464.78 1.78 3.17 5.39 4.5 CBUS Super Conservative 1108.75 NAv NAv NAv NAv

Sunsuper Growth 6271.83 4.76 -3.14 6.32 6.73 Magellan Infrastructure 2237.35 2.64 -8.97 4.4 6.99 Equip Growth Plus 1448.45 NAv NAv NAv NAv CFS FC W PSup-FirstChoice W M-Index Bal 1108.03 3.37 -5.57 3.24 4.3

Statewide Super MySuper (Super) 5736.69 3.29 -1.81 5.85 6.24 Packer & Co Investigator Trust 2151 -5.29 -6.96 9.58 7.16 Sandhurst Select Mortgage 1412.76 NAv NAv NAv NAv MLC MKey Bus Sup - Horizon 5 - Growth 1102.7 3.66 -3.87 4.92 4.53

BT Super for Life 1970s Lifestage Sav 5726.15 5.64 -3.63 5.37 4.64 Energy Super MySuper 2119.52 3.32 -2.65 4.02 5.22 CFS FC ESup-FirstChoice Lifestage1980-84 1412.53 4.32 -7.54 3.01 4.17 Mercer Emerging Markets Shares Fund 1101.55 10.18 1.72 6.37 6.24

MFS Global Equity Trust 5598.04 2.42 -1.16 10.23 7.68 Strategic Australian Equity 2086.89 7.89 -13.34 3.03 4.59 BT Super for Life Super Cash Sav 1408.82 NAv NAv NAv NAv Payden Global Income Opportunities 1096.85 7.28 -1.98 1.18 2.34

Vanguard International Shrs Idx Hdg AUD 5349.17 10.75 3.58 7 7.58 PIMCO Australian Bond Fund 2078.82 2.24 2.76 5.05 4.25 Lazard Global Listed Infrastructure 1396.36 1.69 -8.38 2.38 7.71 CFS FC PSup-FirstChoice Moderate 1091.98 4.12 -0.99 3.53 3.41

Vanguard Growth Index 5348.07 5.16 -0.02 7.06 6.01 AMP MySuper 1960s 2064.13 3.53 -0.76 4.31 4.25 Ausbil Australian Active Equity 1389.3 9.76 -8.1 5.47 5.06 Dimensional Global Core Equity AUD Hgd 1088.95 NAv NAv NAv NAv

Vanguard Balanced Index Fund 5246.55 4.24 1.51 6.56 5.62 Investors Mutual WS Australian Share 2060.7 0.23 -15.1 0.49 2.41 Epoch Gbl Eq Shldr Yld Fd Uhgd 1377.14 -1.98 -9.24 3.41 2.51 Dimensional Global Core Equity AUD Hgd 1088.95 NAv NAv NAv NAv

Fidelity Australian Equities 5151.03 9.13 -7.3 6.04 5.26 Bentham Global Income 2060.09 6.48 0.52 2.16 3.53 Australian Ethical Balanced (Acc) 1375.14 3.7 0.24 6.78 6.35 AMP Wealth Moderate Growth 1088.12 NAv NAv NAv NAv

Vanguard Global Agg Bd Indx Fd (Hdg) 5116.4 2.44 5.57 4.93 NAv Kapstream Absolute Return Income Class I 2055.67 1.41 0.79 2.53 2.81 Allan Gray Australia Equity A 1373 2.44 -23.38 -0.8 6.39 AMP SigSup-AMP MySuper 1980s 1081.23 4.73 -2.36 5 5.14

BT Super for Life 1980s Lifestage Sav 5109.16 5.68 -3.53 5.46 4.63 Dimensional Five-Year Diversified F/I 2031.43 NAv NAv NAv NAv JANA High Alpha Australian Share Trust 1369.16 6.02 -11.16 3.14 4.14 HOSTPLUS Shares Plus 1075.23 NAv NAv NAv NAv

Sunsuper Lifecycle Retirement Pool 5061.42 3.21 -1.71 4.77 4.97 Dimensional Five-Year Diversified F/I 2031.43 NAv NAv NAv NAv Vanguard International Prpty Secs IdxHdg 1353.89 4.9 -15.81 -1.31 1.7 ANZ Smart Choice Super-1950S 1066.24 2.61 -0.9 4.56 4.1

Ardea Real Outcome Fund 4751.12 2.45 6.37 5.89 4.69 Vanguard International Fxd Intr Idx Hdg 2025.56 0.87 5.17 4.88 4.48 AMP Capital FD Growth 1349.15 NAv NAv NAv NAv Vanguard International Small Companies 1057.3 3.67 -6.2 5.96 5.45

BT International Shares Index W 4621.39 2.92 3.52 11.74 8.31 Strategic Fixed Interest 1966.55 0.82 0.88 1.97 2.55 EISS Super MySuper Balanced 1342.65 NAv NAv NAv NAv UBS Diversified Fixed Income Fund 1052.48 2.27 4.11 4.9 4.33

AMP Capital FD Balanced 4576.53 NAv NAv NAv NAv Energy Super Balanced 1956.76 3.32 -2.65 4.02 5.22 CFS MIF-Imputation 1339.71 11.27 -4.65 8.52 5.01 CFS FC ESup-FirstChoice Lifestage1960-64 1052.2 3.24 -3.36 3.36 4.01

ANZ Smart Choice Super-1970S 4514.25 4.74 -2.92 5.49 5.17 Mercer Cash Fund - Term Deposit Units 1945.56 0.11 1.05 1.69 1.88 Plum Superannuation -Pre-mixed Moderate 1310 NAv NAv NAv NAv AB Managed Volatility Equities 1049.98 6.67 -3.59 9.26 8.42

Platinum Asia 4218.86 10.2 20 12.14 8.9 AustralianSuper Sustainable Balanced 1919.09 NAv NAv NAv NAv Equip Balanced Growth 1292.59 NAv NAv NAv NAv Sunsuper Shares 1045.45 7.33 -2.22 7.34 6.77

AustralianSuper Conservative Balanced 4189.76 NAv NAv NAv NAv Sunsuper Conservative 1903.2 2.67 -0.5 4.01 4.28 IFP Global Franchise 1289.53 -0.68 1.32 10.13 7.55

BT Super for Life 1960s Lifestage Sav 4112.98 4.22 -2.06 4.45 3.79 Advance Balanced Multi-Blend W 1882.37 5.42 -2.89 5.31 4.89 CFS FC ESup-FirstChoice Lifestage1965-69 1284.62 3.95 -6.37 3.31 4.4

AustralianSuper Stable 3968.61 NAv NAv NAv NAv BT Super Active Balanced - Super & TTR 2 1880.93 4.59 -3.03 NAv NAv Perpetual Wholesale Industrial 1278.57 3.2 -14.21 -0.76 0.73

AMP Wealth Balanced Gr 3959.01 NAv NAv NAv NAv AMP Capital W Australian Property 1867.75 0.83 -1.37 4.94 5.98 Arrowstreet Global Equity 1275.25 5.44 3.66 11.32 8.18

MLC MKey Super F Hor 4 Balanced Port 3935.64 3.42 -2.54 4.85 4.53 MLC Wholesale Horizon 4 Balanced 1864.11 4.54 -3.03 4.69 4.35 REI Super Balanced 1270.69 NAv NAv NAv NAv

PIMCO Diversified Fixed Interest W 3774.43 2.97 3.7 4.74 4.54 Vanguard International Property Secs Idx 1840.34 -2.44 -15.9 3.09 2.4 Russell Balanced A 1268.84 4.93 -3.97 3.52 3.59

T. Rowe Price Global Equity I 3643.71 11.99 20.13 19.73 13.62 Dimensional Global Core Equity Trust 1831.21 1.77 -4.04 6.95 5.47 DISCLAIMER - © Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely CFS Wholesale Institutional Cash 3612.31 0 0.54 1.29 NAv GMO Systematic Global Macro Trust B 1822.99 4.38 4.28 2.31 3.1 nor will they have any liability for its use or distribution. Any general advice has been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), a subsidiary of Morningstar, Inc., without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider ANZ Smart Choice Super-1960S 3452.49 4.02 -2.08 5.03 4.67 Australian Ethical Balanced 1820.71 3.64 -0.82 6.06 5.4 the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. The Morningstar Rating is an assessment of a fund’s past performance – based on both return and risk – which shows how Kapstream Absolute Return Income 3400.1 1.38 0.68 2.3 2.55 Strategic International Equity 1811.91 5.58 -3.34 4.97 5.42 similar investments compare with their competitors. A high rating alone is insufficient basis for an investment decision. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser.

44 October 2020 October 2020 45

P044_Data.indd 44 14/09/2020 12:44:30 PM P044_Data.indd 45 14/09/2020 12:44:43 PM Intelligence Data

ASX-listed ETFs Every single exchange-traded fund listed on NAME ASX TICKER LISTING DATE ASSETS $M FEE %PA 1YR % PA 3 YR %PA NAME ASX TICKER LISTING DATE ASSETS $M FEE %PA 1YR % PA 3 YR %PA NAME ASX TICKER LISTING DATE ASSETS $M FEE %PA 1YR % PA 3 YR %PA Betashares India Quality ETF IIND 2/08/2019 22.37 0.72 iShares Global Consumer Staples ETF (AU) IXI 11/03/2009 115.47 0.48 -0.72 6.52 VanEck Emerging Income Opps Actv ETF EBND 11/02/2020 20.29 0.95

the ASX, with 1-year and 3-year returns BetaShares Japan ETF-Ccy Hdg HJPN 10/05/2016 31.92 0.56 4.8 0.37 iShares Global Healthcare ETF (AU) IXJ 11/03/2009 705.07 11.81 13.08 VanEck Vectors Australian Banks ETF MVB 14/10/2013 126.68 0.28 -23.45 -4.72

BetaShares Legg Mason Australian Bd ETF BNDS 7/11/2018 128.77 0.42 4.07 iShares Global High Yield Bond AUDH ETF IHHY 4/12/2015 62.88 0.56 -3.08 2.26 VanEck Vectors Australian Corp Bd+ ETF PLUS 9/05/2017 230.8 0.32 3.78 5.73 Source: Morningstar BetaShares Legg Mason Em Mkts ETF EMMG 29/05/2019 11.09 1 9.39 iShares Government Inflation ETF ILB 12/03/2012 142.24 0.18 3.21 5.15 VanEck Vectors Australian Equal Wt ETF MVW 4/03/2014 1,051.94 0.35 -9.13 5.16

BetaShares Legg Mason Equity Income ETF EINC 13/02/2018 24.62 0.85 -12.9 iShares JP Morgan USD EmMkts Bd AUDH ETF IHEB 4/12/2015 30.8 0.51 -5.36 -0.15 VanEck Vectors Australian Fltng Rt ETF FLOT 6/07/2017 262.96 0.22 1.51 2.33

BetaShares Legg Mason Real Income ETF RINC 13/02/2018 39.39 0.85 -20.61 iShares MSCI EAFE ETF (AU) IVE 14/08/2001 354.28 0.32 -4.36 3.89 VanEck Vectors Australian Property ETF MVA 14/10/2013 211.06 0.35 -26.39 3.49

NAME ASX TICKER LISTING DATE ASSETS $M FEE %PA 1YR % PA 3 YR %PA BetaShares Managed Risk AUS Shr ETF AUST 9/11/2015 48.02 0.39 -7.85 3.45 iShares MSCI Emerging Markets ETF (AU) IEM 10/10/2007 706.18 0.69 2.48 6.48 VanEck Vectors Australian Resources ETF MVR 14/10/2013 71.56 0.35 -2.13 14.79 Activex Ardea Real Outcome Bond ETF XARO 6/12/2018 198.88 0.5 2.64 BetaShares Managed Risk Global Share ETF WRLD 16/12/2015 67.45 0.39 0.33 7.06 iShares MSCI Japan ETF (AU) IJP 12/03/1996 263.66 0.49 2.41 6.19 VanEck Vectors Australian Sbdntd Dbt ETF SUBD 28/10/2019 100.64 0.29 ActiveX Kapstream Absolute Ret Inc ETF XKAP 15/10/2019 3 0.55 BetaShares NASDAQ 100 ETF NDQ 26/05/2015 963.9 0.38 33.71 27 iShares MSCI South Korea ETF (AU) IKO 9/05/2000 83.24 0.62 2.31 -0.37 VanEck Vectors China New Economy ETF CNEW 8/11/2018 93.41 0.95 51.59 AMP Capital Dynamic Markets ETF (Hedge) DMKT 18/07/2016 6.36 0.48 -13.53 -4.67 BetaShares S&P 500 Yield Maximiser ETF UMAX 17/09/2014 82.96 0.55 -10.23 4.42 iShares S&P 500 AUD Hedged ETF IHVV 15/12/2014 502.96 0.1 3.75 9.22 VanEck Vectors FTSE China A50 ETF CETF 24/06/2015 22.3 0.72 13.11 7.97 AMP Capital Global Infras Secs Unhdg ETF GLIN 25/05/2016 29.85 0.8 -8.87 6.22 BetaShares S&P/ASX Australian Tech ETF ATEC 4/03/2020 60.45 0.48 iShares S&P 500 ETF IVV 15/05/2000 3,204.79 0.04 7.66 14.54 VanEck Vectors FTSE Glbl Infras(Hdg)ETF IFRA 29/04/2016 216.89 0.52 -11.67 2.68 AMP Capital Global Property Secs UnH ETF RENT 25/05/2016 20.95 0.97 -12.63 5.05 BetaShares Sstby Ldrs Dvrs Bd ETF Ccy Hd GBND 26/11/2019 63.32 0.39 iShares S&P Mid-Cap ETF IJH 10/10/2007 115.64 0.07 -8 4.9 VanEck Vectors FTSE Intl Prop Hdg ETF REIT 21/03/2019 43.87 0.43 -21.1 Antipodes Global Shares ETF AGX1 5/11/2018 23.37 1.1 -0.58 BetaShares Strong Australian Dllr H ETF AUDS 28/11/2016 6.47 1.19 -11.29 -12.21 iShares S&P Small-Cap ETF IJR 10/10/2007 162.66 0.07 -13.07 2.91 VanEck Vectors Gold Miners ETF GDX 24/06/2015 330.02 0.53 48.15 25.55 BetaShares Active Australian Hybrids ETF HBRD 13/11/2017 732.17 0.45 0.82 BetaShares Strong US Dollar Hedge ETF YANK 28/11/2016 11.88 1.19 -9.06 2.62 iShares S&P/ASX 20 ETF ILC 6/12/2010 322.19 0.24 -9.41 4.52 VanEck Vectors Morningstar Wide Moat ETF MOAT 24/06/2015 161.84 0.49 10.05 15.27 BetaShares Agriculture ETF CcyHgd(Synth) QAG 30/11/2011 2.95 0.69 -16.41 -13.52 BetaShares US Dollar ETF USD 31/01/2011 289.58 0.45 -0.23 3.68 iShares S&P/ASX Dividend Opps ETF IHD 6/12/2010 277.87 0.3 -11.51 0.69 VanEck Vectors MSCI AUS Sust Eq ETF GRNV 29/04/2016 56.21 0.35 -7.86 5.46 BetaShares Asia Technology Tigers ETF ASIA 18/09/2018 189.6 0.57 63.48 BetaShares US Eqs Strong Bear H CcyH ETF BBUS 24/08/2015 305.56 1.19 -32.72 -29.47 iShares S&P/ASX Small Ordinaries ETF ISO 6/12/2010 94.06 0.55 -8.2 5.46 VanEck Vectors MSCI Intl Sust Eq ETF ESGI 6/03/2018 38.39 0.55 7.56 Betashares Aus Bank Sr Fltng Rt Bd ETF QPON 1/06/2017 713.38 0.19 2.04 2.8 eInvest Cash Booster ETF ECAS 11/11/2019 8.87 0.15 iShares Treasury ETF IGB 12/03/2012 84.23 0.18 4.18 5.34 VanEck Vectors MSCI Mltfac EmMkts Eq ETF EMKT 10/04/2018 30.23 0.69 0.4 BetaShares Aus Equities Bear Hedge ETF BEAR 6/07/2012 116.83 1.29 0.33 -6.85 eInvest Core Income ETF ECOR 22/11/2019 2.1 0.45 iShares Yield Plus ETF IYLD 27/05/2020 10.06 0.12 VanEck Vectors MSCI Wld ex Aus Qlty ETF QUAL 29/10/2014 1,112.42 0.4 15.81 17.43 BetaShares Aus Ex-20 Port Divrs ETF EX20 5/10/2016 116.92 0.2 -8.13 5.51 eInvest Future Impact Small Caps ETF IMPQ 17/06/2019 1.68 0.99 K2 Australian Small Cap ETF KSM 15/12/2015 7.62 1.31 -12.15 -4.34 VanEck Vectors MSCI Wld ex AUS Qul H ETF QHAL 21/03/2019 198.7 0.43 11.31 BetaShares Aus High Interest Cash ETF AAA 6/03/2012 1,989.29 0.18 1.07 1.7 eInvest Income Generator ETF EIGA 7/05/2018 21.71 0.8 -12.78 K2 Global Equities ETF KII 20/07/2015 3.57 2.05 2.33 3.08 VanEck Vectors S&P/ASX MidCap ETF MVE 14/10/2013 119.51 0.45 -0.75 6.33 BetaShares Aus Inv Grd Corp Bd ETF CRED 31/05/2018 359.84 0.22 4.58 eInvest Income Maximiser ETF EMAX 22/11/2019 2.17 0.65 Magellan Global Equities Currency H ETF MHG 4/08/2015 224.24 1.35 1.91 10.54 VanEck Vectors Small Coms Masters ETF MVS 26/05/2015 61.03 0.49 -12.68 2.98 BetaShares Aus Top 20 Eq Yld Mxmsr ETF YMAX 22/11/2012 246.43 0.59 -10.97 1.31 ETFS Battery Tech and Lithium ETF ACDC 30/08/2018 22.12 0.69 19.7 Magellan Global Equities ETF MGE 2/03/2015 1,695.19 1.35 5.73 15.15 Vanguard All-World ex-US Shares ETF VEU 8/05/2009 1,543.50 0.11 -2.73 5.21 BetaShares Australia 200 ETF A200 7/05/2018 797.03 0.07 -9.05 ETFS Enhanced USD Cash ETF ZUSD 10/06/2015 11.83 0.3 0.8 4.22 Magellan Infrastructure Ccy Hdg ETF MICH 18/07/2016 625.39 1.05 -9.85 4.51 Vanguard Australian Corp Fxd Intr ETF VACF 23/05/2016 337.74 0.26 3.67 5.07 BetaShares Australian Div Harvester ETF HVST 29/10/2014 126.15 0.65 -11.24 -1.42 ETFS EURO STOXX 50. ETF ESTX 19/07/2016 49.89 0.35 -4.85 3.22 Montaka Global Extension ETF MKAX 24/06/2020 0 1.25 Vanguard Australian Fixed Interest ETF VAF 29/10/2012 1,402.44 0.2 2.79 5.06 BetaShares Australian Eqs Strong BrH ETF BBOZ 17/04/2015 483.06 1.19 -14.43 -20.89 ETFS FANG+ ETF FANG 27/02/2020 51.61 0.35 Montgomery Global Equities ETF MOGL 19/12/2017 85.15 1.32 -6.78 Vanguard Australian Government Bond ETF VGB 24/04/2012 513.19 0.2 4.22 5.74 BetaShares Australian Fincls Sect ETF QFN 10/12/2010 24.15 0.34 -21.74 -5.33 ETFS Global Core Infrastructure ETF CORE 19/09/2017 19 0.45 -18.68 Morningstar International Shrs Actv ETF MSTR 26/08/2019 91.83 0.39 Vanguard Australian Property Secs ETF VAP 11/10/2010 1,534.81 0.23 -24.69 2.28 BetaShares Australian Government Bd ETF AGVT 5/07/2019 20.86 0.19 5.96 ETFS Morningstar Global Technology ETF TECH 7/04/2017 150.13 0.45 27.31 25.78 Perth Mint Gold ETF PMGOLD 9/05/2003 0 0.15 27.94 16.73 Vanguard Australian Shares ETF VAS 4/05/2009 5,557.99 -8.13 5.32 BetaShares Australian Res Sect ETF QRE 10/12/2010 65.84 0.34 -6.77 13.67 ETFS Physical Gold ETC GOLD 31/03/2003 1,841.36 0.4 27.44 17.07 Pinnacle aShares Dynamic Cash ETF Z3RO 26/08/2019 4 0 Vanguard Australian Shares High Yld ETF VHY 23/05/2011 1,344.37 0.25 -12.58 0.73 BetaShares Australian Small Coms Sel ETF SMLL 7/04/2017 34.91 0.32 -7.49 4.45 ETFS Physical Palladium ETC ETPMPD 19/12/2008 6.07 0.49 22.36 36.06 Pinnacle aShares Global Dynamic Inc ETF SAVE 26/08/2019 4.14 0.5 Vanguard Diversified Balanced ETF VDBA 20/11/2017 257.67 0.27 2.09 BetaShares Australian Sustnby Ldrs ETF FAIR 27/11/2017 534.45 0.39 -4.84 ETFS Physical Platinum ETC ETPMPT 19/12/2008 6.21 0.49 0.9 0.11 Platinum Asia ETF PAXX 12/09/2017 137.92 12.77 Vanguard Diversified Conservative ETF VDCO 20/11/2017 111.07 0.27 3.03 BetaShares British Pound ETF POU 8/07/2011 16.32 0.45 0.7 2.21 ETFS Physical PM Basket ETC ETPMPM 19/12/2008 14.43 0.44 23.54 18.29 Platinum International ETF PIXX 12/09/2017 317.52 -6.39 Vanguard Diversified Growth ETF VDGR 20/11/2017 255 0.27 0.73 BetaShares Com Basket ETF Ccy Hgd(Synth) QCB 13/12/2011 7.57 0.69 -22.19 -8.26 ETFS Physical Silver ETC ETPMAG 19/12/2008 131.43 0.49 23.66 9.87 Russell Inv Australian Government Bd ETF RGB 13/03/2012 82.64 0.24 5.25 6.62 Vanguard Diversified High Growth ETF VDHG 20/11/2017 421.23 0.27 -0.75 BetaShares Crude Oil ETF Ccy Hgd(Synth) OOO 16/11/2011 235.6 0.69 -73.23 -29.06 ETFS Reliance India Nifty 50 ETF NDIA 21/06/2019 11.35 0.85 -15.4 Russell Inv Australian Rspnb Inv ETF RARI 1/04/2015 203.63 0.45 -17.31 0.9 Vanguard Etclly Cons Gbl Aggt Bd H ETF VEFI 11/09/2018 18.44 0.26 5.74 BetaShares Diversified Balanced ETF DBBF 9/12/2019 2.42 0.26 ETFS ROBO Glbl Robotics and Atmtn ETF ROBO 13/09/2017 124.74 0.69 13.59 Russell Inv Australian Select CorpBd ETF RCB 13/03/2012 233.35 0.28 4.97 5.04 Vanguard Etclly Cons Intl Shrs ETF VESG 11/09/2018 122.9 0.18 9.65 BetaShares Diversified Cnsrv Inc ETF DZZF 10/12/2019 3.53 0.26 ETFS S&P 500 High Yield Low Volatil ETF ZYUS 10/06/2015 63.51 0.35 -22.41 -1.09 Russell Inv Australian Semi-Govt Bd ETF RSM 13/03/2012 59.93 0.26 3.81 4.48 Vanguard FTSE Asia ex Japan Shrs ETF VAE 9/12/2015 184.53 0.4 10.14 8.73 BetaShares Diversified Growth ETF DGGF 5/12/2019 2.42 0.26 ETFS S&P Biotech ETF CURE 8/11/2018 12.64 0.45 31.83 Russell Inv High Dividend Aus Shrs ETF RDV 14/05/2010 238.91 0.34 -19.92 -1.98 Vanguard FTSE Emerging Markets Shrs ETF VGE 18/11/2013 346.46 0.48 2.82 6.85 BetaShares Diversified High Growth ETF DHHF 3/12/2019 4.65 0.26 ETFS S&P/ASX 300 High Yield Plus ETF ZYAU 10/06/2015 113.8 0.35 -17.53 -0.64 Schroder Absolute Return Income ETF PAYS 19/11/2019 26.46 0.54 Vanguard FTSE Europe Shares ETF VEQ 9/12/2015 174.31 0.35 -3.86 3.14 BetaShares Euro ETF EEU 8/07/2011 11.51 0.45 -0.29 2.15 Fidelity Global Emerging Markets ETF FEMX 28/10/2018 89.1 0.99 5.68 Schroder Real Return ETF GROW 9/08/2016 38.38 0.9 -0.11 2.9 Vanguard Global Aggregate Bd Hdg ETF VBND 10/10/2017 152.71 0.2 5.5 BetaShares Europe ETF-Ccy Hdg HEUR 10/05/2016 22.5 0.56 -6.03 0.83 InvestSMART Australian Equity Income ETF INIF 18/06/2018 25.54 0.97 -14.46 SelfWealth SMSF Leaders ETF SELF 8/11/2019 86.76 0.88 Vanguard Global Infrastructure ETF VBLD 8/10/2018 91.6 0.47 -5.67 BetaShares FTSE 100 ETF F100 12/07/2019 129.19 0.38 InvestSMART Ethical Share ETF INES 12/06/2019 18.99 0.97 4.79 SPDR. Dow Jones Global Real Estate ETF DJRE 1/11/2013 277.72 0.5 -21.49 -0.22 Vanguard Global Minimum Volatil Act ETF VMIN 13/04/2018 12.33 0.28 -5.54 BetaShares FTSE RAFI Australia 200 ETF QOZ 10/07/2013 249.86 0.3 -13.89 1.89 iShares Asia 50 ETF (AU) IAA 13/11/2007 570.57 0.5 15.66 12.09 SPDR. MSCI Australia Sel Hi Div Yld ETF SYI 28/09/2010 166.18 0.35 -13.69 -0.12 Vanguard Global Multi-Factor Active ETF VGMF 14/03/2019 16.34 0.33 -10.43 BetaShares FTSE RAFI US 1000 ETF QUS 17/12/2014 44.34 0.3 -11.42 4.54 iShares China Large-Cap ETF (AU) IZZ 5/10/2004 103.73 0.74 7.11 9.51 SPDR. MSCI World Quality Mix ETF QMIX 11/09/2015 22.67 0.4 1.58 10.89 Vanguard Global Value Equity Active ETF VVLU 13/04/2018 26.38 0.28 -19.58 BetaShares Geared Australian Equity ETF GEAR 29/04/2014 187.24 0.74 -31.03 0.01 iShares Core Cash ETF BILL 2/06/2017 540 0.07 0.81 1.52 SPDR. S&P 500 ETF SPY 22/01/1993 43.54 0.1 7.75 14.59 Vanguard Intl Credit Secs (Hdg) ETF VCF 4/12/2015 179.1 0.3 5.57 4.96 BetaShares Geared US Eq Ccy Hdg ETF GGUS 17/08/2015 44.8 0.74 -3.31 12.06 iShares Core Composite Bond ETF IAF 12/03/2012 1,272.73 0.15 4.07 5.49 SPDR. S&P Emerging Markets ETF WEMG 11/11/2013 21.45 0.65 1.59 8.1 Vanguard Intl Fxd Intr (Hdg) ETF VIF 4/12/2015 510.04 0.2 5.33 4.94 BetaShares Glb Agltr Coms ETF-Ccy Hdg FOOD 2/08/2016 16.43 0.47 -15.04 -2.9 iShares Core Corporate Bond ETF ICOR 27/05/2020 10.12 0.15 SPDR. S&P Global Dividend ETF WDIV 1/11/2013 242.8 0.5 -18.13 -0.33 Vanguard MSCI Australian Large Coms ETF VLC 23/05/2011 105.69 0.2 -9.07 4.79 BetaShares Glb Banks ETF-Ccy Hdg BNKS 28/07/2016 26.97 0.47 -28.08 -10.31 iShares Core Global Corp Bd AUDH ETF IHCB 4/12/2015 293.15 0.26 6.27 5.17 SPDR. S&P World ex Australia ETF WXOZ 18/03/2013 194.19 0.3 4.81 10.67 Vanguard MSCI Australian Small Coms ETF VSO 23/05/2011 366.89 0.3 -2.58 7.5 BetaShares Glb Energy Coms ETF-Ccy Hdg FUEL 16/06/2016 185.84 0.47 -40.24 -11.41 iShares Core MSCI World All Cap AUDH ETF IHWL 22/04/2016 133.86 0.12 -0.98 5.48 SPDR. S&P World ex Australia(Hedged) ETF WXHG 8/07/2013 95.55 0.35 1.82 6.5 Vanguard MSCI International SC ETF VISM 24/10/2018 35.48 0.32 -5.52 BetaShares Glb Gold Miners ETF-Ccy Hdg MNRS 27/07/2016 30.98 0.47 68.73 25.7 iShares Core MSCI World All Cap ETF IWLD 22/04/2016 117.88 0.09 2.38 9.6 SPDR. S&P/ASX 200 ETF STW 24/08/2001 3,682.29 0.13 -8.34 5.14 Vanguard MSCI Intl (Hdg) ETF VGAD 18/11/2014 1,027.22 0.21 2.22 7.02 BetaShares Glb Healthcare ETF-Ccy Hdg DRUG 4/08/2016 48.26 0.47 9.45 8.86 iShares Core S&P/ASX 200 ETF IOZ 6/12/2010 2,055.60 0.09 -8.42 5.14 SPDR. S&P/ASX 200 Fincls EX A-REIT ETF OZF 13/04/2011 72.41 0.4 -21.54 -5.29 Vanguard MSCI Intl ETF VGS 18/11/2014 2,118.59 4.85 11.03 BetaShares Glb Rbtc & Artfcl Intlgc ETF RBTZ 12/09/2018 38.86 0.47 21.64 iShares Edge MSCI Australia Mini Vol ETF MVOL 11/10/2016 62.74 0.3 -8.05 4.78 SPDR. S&P/ASX 200 Listed Property ETF SLF 15/02/2002 461.86 0.4 -25.22 1.73 Vanguard US Total Market Shares ETF VTS 8/05/2009 1,816.90 7.99 14.38 Betashares Global Cybersecurity ETF HACK 30/08/2016 217.84 0.57 5.91 16.74 iShares Edge MSCI Australia Mltfctr ETF AUMF 11/10/2016 19.52 0.3 -7.95 5.77 SPDR. S&P/ASX 200 Resources ETF OZR 13/04/2011 78.52 0.4 -5.05 14.25 WCM Quality Glbl Gr ETF (Quoted Mgd) WCMQ 31/08/2018 123.65 1.25 BetaShares Global Gov Bd 20+Yr ETF Ccy H GGOV 7/05/2020 1.97 0.19 iShares Edge MSCI World Minimum Vol ETF WVOL 11/10/2016 121.31 0.3 -3.31 9.18 SPDR. S&P/ASX 50 ETF SFY 24/08/2001 600.4 0.29 -9.91 4.7 BetaShares Global Income Leaders ETF INCM 19/10/2018 14.85 0.39 -24.5 iShares Edge MSCI World Multifactor ETF WDMF 11/10/2016 219.13 0.35 -2.23 6.73 SPDR. S&P/ASX Australian Bond ETF BOND 27/07/2012 48.75 0.24 4.29 5.72 BetaShares Global Quality Ldrs ETF Ccy H HQLT 5/06/2020 3.07 0.03 iShares Enhanced Cash ETF ISEC 2/06/2017 194.16 0.12 0.9 1.72 SPDR. S&P/ASX Australian Govt Bd ETF GOVT 27/07/2012 28.68 0.22 4.36 5.92 BetaShares Global Quality Leaders ETF QLTY 4/11/2018 58.72 0.29 17.14 iShares Europe ETF (AU) IEU 10/10/2007 526.65 0.6 -5.05 2.94 SPDR. S&P/ASX Small Ordinaries ETF SSO 13/04/2011 21.44 0.5 -6.38 6.17 BetaShares Global Sstnbty Ldrs ETF ETHI 5/01/2017 690.98 0.49 12.19 17.6 iShares Global 100 AUD Hedged ETF IHOO 15/12/2014 86.86 0.43 8.37 10.26 Switzer Dividend Growth ETF SWTZ 23/02/2017 75.56 0.89 0.49 BetaShares Gold Bullion ETF Ccy Hedged QAU 5/05/2011 255.11 0.49 25.56 12.05 iShares Global 100 ETF (AU) IOO 10/10/2007 1,812.98 0.4 11.11 14.17 UBS IQ MSCI Australia Ethical ETF 18/02/2015 125.09 0.17 -12.64 3.65

46 October 2020 October 2020 47

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NAME ASX TICKER LISTING DATE ASSETS $M FEE %PA 1YR % PA 3 YR %PA NAME ASX TICKER LISTING DATE ASSETS $M FEE %PA 1YR % PA 3 YR %PA

iShares Global Consumer Staples ETF (AU) IXI 11/03/2009 115.47 0.48 -0.72 6.52 VanEck Emerging Income Opps Actv ETF EBND 11/02/2020 20.29 0.95

iShares Global Healthcare ETF (AU) IXJ 11/03/2009 705.07 11.81 13.08 VanEck Vectors Australian Banks ETF MVB 14/10/2013 126.68 0.28 -23.45 -4.72

iShares Global High Yield Bond AUDH ETF IHHY 4/12/2015 62.88 0.56 -3.08 2.26 VanEck Vectors Australian Corp Bd+ ETF PLUS 9/05/2017 230.8 0.32 3.78 5.73

iShares Government Inflation ETF ILB 12/03/2012 142.24 0.18 3.21 5.15 VanEck Vectors Australian Equal Wt ETF MVW 4/03/2014 1,051.94 0.35 -9.13 5.16

iShares JP Morgan USD EmMkts Bd AUDH ETF IHEB 4/12/2015 30.8 0.51 -5.36 -0.15 VanEck Vectors Australian Fltng Rt ETF FLOT 6/07/2017 262.96 0.22 1.51 2.33

iShares MSCI EAFE ETF (AU) IVE 14/08/2001 354.28 0.32 -4.36 3.89 VanEck Vectors Australian Property ETF MVA 14/10/2013 211.06 0.35 -26.39 3.49

iShares MSCI Emerging Markets ETF (AU) IEM 10/10/2007 706.18 0.69 2.48 6.48 VanEck Vectors Australian Resources ETF MVR 14/10/2013 71.56 0.35 -2.13 14.79

iShares MSCI Japan ETF (AU) IJP 12/03/1996 263.66 0.49 2.41 6.19 VanEck Vectors Australian Sbdntd Dbt ETF SUBD 28/10/2019 100.64 0.29

iShares MSCI South Korea ETF (AU) IKO 9/05/2000 83.24 0.62 2.31 -0.37 VanEck Vectors China New Economy ETF CNEW 8/11/2018 93.41 0.95 51.59

iShares S&P 500 AUD Hedged ETF IHVV 15/12/2014 502.96 0.1 3.75 9.22 VanEck Vectors FTSE China A50 ETF CETF 24/06/2015 22.3 0.72 13.11 7.97

iShares S&P 500 ETF IVV 15/05/2000 3,204.79 0.04 7.66 14.54 VanEck Vectors FTSE Glbl Infras(Hdg)ETF IFRA 29/04/2016 216.89 0.52 -11.67 2.68

iShares S&P Mid-Cap ETF IJH 10/10/2007 115.64 0.07 -8 4.9 VanEck Vectors FTSE Intl Prop Hdg ETF REIT 21/03/2019 43.87 0.43 -21.1

iShares S&P Small-Cap ETF IJR 10/10/2007 162.66 0.07 -13.07 2.91 VanEck Vectors Gold Miners ETF GDX 24/06/2015 330.02 0.53 48.15 25.55

iShares S&P/ASX 20 ETF ILC 6/12/2010 322.19 0.24 -9.41 4.52 VanEck Vectors Morningstar Wide Moat ETF MOAT 24/06/2015 161.84 0.49 10.05 15.27

iShares S&P/ASX Dividend Opps ETF IHD 6/12/2010 277.87 0.3 -11.51 0.69 VanEck Vectors MSCI AUS Sust Eq ETF GRNV 29/04/2016 56.21 0.35 -7.86 5.46

iShares S&P/ASX Small Ordinaries ETF ISO 6/12/2010 94.06 0.55 -8.2 5.46 VanEck Vectors MSCI Intl Sust Eq ETF ESGI 6/03/2018 38.39 0.55 7.56

iShares Treasury ETF IGB 12/03/2012 84.23 0.18 4.18 5.34 VanEck Vectors MSCI Mltfac EmMkts Eq ETF EMKT 10/04/2018 30.23 0.69 0.4

iShares Yield Plus ETF IYLD 27/05/2020 10.06 0.12 VanEck Vectors MSCI Wld ex Aus Qlty ETF QUAL 29/10/2014 1,112.42 0.4 15.81 17.43

K2 Australian Small Cap ETF KSM 15/12/2015 7.62 1.31 -12.15 -4.34 VanEck Vectors MSCI Wld ex AUS Qul H ETF QHAL 21/03/2019 198.7 0.43 11.31

K2 Global Equities ETF KII 20/07/2015 3.57 2.05 2.33 3.08 VanEck Vectors S&P/ASX MidCap ETF MVE 14/10/2013 119.51 0.45 -0.75 6.33

Magellan Global Equities Currency H ETF MHG 4/08/2015 224.24 1.35 1.91 10.54 VanEck Vectors Small Coms Masters ETF MVS 26/05/2015 61.03 0.49 -12.68 2.98

Magellan Global Equities ETF MGE 2/03/2015 1,695.19 1.35 5.73 15.15 Vanguard All-World ex-US Shares ETF VEU 8/05/2009 1,543.50 0.11 -2.73 5.21

Magellan Infrastructure Ccy Hdg ETF MICH 18/07/2016 625.39 1.05 -9.85 4.51 Vanguard Australian Corp Fxd Intr ETF VACF 23/05/2016 337.74 0.26 3.67 5.07

Montaka Global Extension ETF MKAX 24/06/2020 0 1.25 Vanguard Australian Fixed Interest ETF VAF 29/10/2012 1,402.44 0.2 2.79 5.06

Montgomery Global Equities ETF MOGL 19/12/2017 85.15 1.32 -6.78 Vanguard Australian Government Bond ETF VGB 24/04/2012 513.19 0.2 4.22 5.74

Morningstar International Shrs Actv ETF MSTR 26/08/2019 91.83 0.39 Vanguard Australian Property Secs ETF VAP 11/10/2010 1,534.81 0.23 -24.69 2.28

Perth Mint Gold ETF PMGOLD 9/05/2003 0 0.15 27.94 16.73 Vanguard Australian Shares ETF VAS 4/05/2009 5,557.99 -8.13 5.32

Pinnacle aShares Dynamic Cash ETF Z3RO 26/08/2019 4 0 Vanguard Australian Shares High Yld ETF VHY 23/05/2011 1,344.37 0.25 -12.58 0.73

Pinnacle aShares Global Dynamic Inc ETF SAVE 26/08/2019 4.14 0.5 Vanguard Diversified Balanced ETF VDBA 20/11/2017 257.67 0.27 2.09

Platinum Asia ETF PAXX 12/09/2017 137.92 12.77 Vanguard Diversified Conservative ETF VDCO 20/11/2017 111.07 0.27 3.03

Platinum International ETF PIXX 12/09/2017 317.52 -6.39 Vanguard Diversified Growth ETF VDGR 20/11/2017 255 0.27 0.73

Russell Inv Australian Government Bd ETF RGB 13/03/2012 82.64 0.24 5.25 6.62 Vanguard Diversified High Growth ETF VDHG 20/11/2017 421.23 0.27 -0.75

Russell Inv Australian Rspnb Inv ETF RARI 1/04/2015 203.63 0.45 -17.31 0.9 Vanguard Etclly Cons Gbl Aggt Bd H ETF VEFI 11/09/2018 18.44 0.26 5.74

Russell Inv Australian Select CorpBd ETF RCB 13/03/2012 233.35 0.28 4.97 5.04 Vanguard Etclly Cons Intl Shrs ETF VESG 11/09/2018 122.9 0.18 9.65

Russell Inv Australian Semi-Govt Bd ETF RSM 13/03/2012 59.93 0.26 3.81 4.48 Vanguard FTSE Asia ex Japan Shrs ETF VAE 9/12/2015 184.53 0.4 10.14 8.73

Russell Inv High Dividend Aus Shrs ETF RDV 14/05/2010 238.91 0.34 -19.92 -1.98 Vanguard FTSE Emerging Markets Shrs ETF VGE 18/11/2013 346.46 0.48 2.82 6.85

Schroder Absolute Return Income ETF PAYS 19/11/2019 26.46 0.54 Vanguard FTSE Europe Shares ETF VEQ 9/12/2015 174.31 0.35 -3.86 3.14

Schroder Real Return ETF GROW 9/08/2016 38.38 0.9 -0.11 2.9 Vanguard Global Aggregate Bd Hdg ETF VBND 10/10/2017 152.71 0.2 5.5

SelfWealth SMSF Leaders ETF SELF 8/11/2019 86.76 0.88 Vanguard Global Infrastructure ETF VBLD 8/10/2018 91.6 0.47 -5.67

SPDR. Dow Jones Global Real Estate ETF DJRE 1/11/2013 277.72 0.5 -21.49 -0.22 Vanguard Global Minimum Volatil Act ETF VMIN 13/04/2018 12.33 0.28 -5.54

SPDR. MSCI Australia Sel Hi Div Yld ETF SYI 28/09/2010 166.18 0.35 -13.69 -0.12 Vanguard Global Multi-Factor Active ETF VGMF 14/03/2019 16.34 0.33 -10.43

SPDR. MSCI World Quality Mix ETF QMIX 11/09/2015 22.67 0.4 1.58 10.89 Vanguard Global Value Equity Active ETF VVLU 13/04/2018 26.38 0.28 -19.58

SPDR. S&P 500 ETF SPY 22/01/1993 43.54 0.1 7.75 14.59 Vanguard Intl Credit Secs (Hdg) ETF VCF 4/12/2015 179.1 0.3 5.57 4.96

SPDR. S&P Emerging Markets ETF WEMG 11/11/2013 21.45 0.65 1.59 8.1 Vanguard Intl Fxd Intr (Hdg) ETF VIF 4/12/2015 510.04 0.2 5.33 4.94

SPDR. S&P Global Dividend ETF WDIV 1/11/2013 242.8 0.5 -18.13 -0.33 Vanguard MSCI Australian Large Coms ETF VLC 23/05/2011 105.69 0.2 -9.07 4.79

SPDR. S&P World ex Australia ETF WXOZ 18/03/2013 194.19 0.3 4.81 10.67 Vanguard MSCI Australian Small Coms ETF VSO 23/05/2011 366.89 0.3 -2.58 7.5

SPDR. S&P World ex Australia(Hedged) ETF WXHG 8/07/2013 95.55 0.35 1.82 6.5 Vanguard MSCI International SC ETF VISM 24/10/2018 35.48 0.32 -5.52

SPDR. S&P/ASX 200 ETF STW 24/08/2001 3,682.29 0.13 -8.34 5.14 Vanguard MSCI Intl (Hdg) ETF VGAD 18/11/2014 1,027.22 0.21 2.22 7.02

SPDR. S&P/ASX 200 Fincls EX A-REIT ETF OZF 13/04/2011 72.41 0.4 -21.54 -5.29 Vanguard MSCI Intl ETF VGS 18/11/2014 2,118.59 4.85 11.03

SPDR. S&P/ASX 200 Listed Property ETF SLF 15/02/2002 461.86 0.4 -25.22 1.73 Vanguard US Total Market Shares ETF VTS 8/05/2009 1,816.90 7.99 14.38

SPDR. S&P/ASX 200 Resources ETF OZR 13/04/2011 78.52 0.4 -5.05 14.25 WCM Quality Glbl Gr ETF (Quoted Mgd) WCMQ 31/08/2018 123.65 1.25

SPDR. S&P/ASX 50 ETF SFY 24/08/2001 600.4 0.29 -9.91 4.7

SPDR. S&P/ASX Australian Bond ETF BOND 27/07/2012 48.75 0.24 4.29 5.72

SPDR. S&P/ASX Australian Govt Bd ETF GOVT 27/07/2012 28.68 0.22 4.36 5.92

SPDR. S&P/ASX Small Ordinaries ETF SSO 13/04/2011 21.44 0.5 -6.38 6.17

Switzer Dividend Growth ETF SWTZ 23/02/2017 75.56 0.89 0.49

UBS IQ MSCI Australia Ethical ETF 18/02/2015 125.09 0.17 -12.64 3.65

October 2020 47

P044_Data.indd 47 14/09/2020 12:45:03 PM Final word AMP

“NOT ONLY WAS PRICELESS HERITAGE DESTROYED AND THE COSTS BORNE BY SHAREHOLDERS AS A RESULT, BUT WE HAD BELIEVED THIS RISK TO BE WELL MANAGED IN OUR PORTFOLIO”

There was nothing to “Today’s announcements industry fund HESTA has Pahari proves suggest the performance signal change in the now warned that mining of any of the men was organisation. Clearly, companies can expect in question — Mr Pahari AMP’s initial response their direct engagement Wellness Daily is on a mission to help all working Australians it’s not about is apparently the key to to community, staff and on matters involving AMP Capital’s success shareholder concerns traditional landowners, find a better way of living. Through the latest research, — and aside from Mr around the appointment of saying that investors the money Murray’s questionable Pahari and the treatment were “dismayed” at the expert opinion and unique profiles we aim to help professionals boost perspectives on of sexual harassment destruction of the sites at performance and find fulfilment in their busy lives. The events of the last several months climate change, they was inadequate.” Juukan Gorge. were all, more or less, Elsewhere, the “Not only was priceless have been a seismic shift. From straight shooters. destruction of an heritage destroyed Juukan Gorge to the AMP boardroom, But people are Aboriginal site at and the costs borne by increasingly conscious Juukan Gorge became an shareholders as a result, Wellness Daily complements Momentum Media’s existing platforms, which engage with an active it’s clear the times are changing about where and how enormous embarrassment but we had believed this audience of over 1 million investors and professionals. Our aim is to raise awareness of mental their money is invested to mining giant Rio Tinto risk to be well managed in health issues in the workplace, offer guidance around managing stress and burn out, healthy eating /LACHLAN MADDOCK / — something the people — one that culminated in our portfolio,” said HESTA who invest it for them are a number of executives CEO Debby Blakey. and exercise, and cultivate a culture of compassion among Australian businesses. taking very seriously. losing more than While AMP shareholders WHEN AMP CEO Francesco AMP finally had a clear “Investors will be $7 million in short- have suffered years De Ferrari told journalists plan to turn itself around. continuing to engage with term remuneration. of fumbling, Rio Tinto that he would not be AMP Capital — with the AMP to understand how Where the loss of delivered strong returns answering questions about controversial Boe Pahari these decisions were made bonuses (a punishment and upped its dividend the recently departed at its head — would be the and how the company that has really always at its half-year results. Alex Wade at the top of an centrepiece of that plan. intends to strengthen been a slap on the wrist) The reaction to Juukan www.wellnessdaily.com.au earnings call, he was doing But it wasn’t good company culture,” used to be good enough for Gorge suggests that’s not what CEOs have always enough. Within weeks, Mr said Louise Davidson, many shareholders, ACSI good enough. And with done: focusing on results, Pahari would be demoted, CEO of the powerful questioned why greater companies like Australian the hard financial data and chairman David Australian Council of accountability hadn’t been Ethical now seeing a tidal by which companies live Murray and director John Superannuation Investors applied to the executives, wave of interest, it’s clear or die. Mr De Ferrari had Fraser would both step (ACSI), upon news of the and others outright called that it’s no longer just plenty to be pleased about. down from AMP’s board. executive changes at AMP. for their firing. $52 billion about the money. wellnessdailyhq

48 October 2020

P048_Final Word_KF.indd 48 14/09/2020 12:52:08 PM BarndoorWellness print Cover_ALL.indd ad_IFA SPECS.indd 10 1 08/03/201809/02/2018 14:12:0109:00:08 Wellness Daily is on a mission to help all working Australians find a better way of living. Through the latest research, expert opinion and unique profiles we aim to help professionals boost performance and find fulfilment in their busy lives.

Wellness Daily complements Momentum Media’s existing platforms, which engage with an active audience of over 1 million investors and professionals. Our aim is to raise awareness of mental health issues in the workplace, offer guidance around managing stress and burn out, healthy eating and exercise, and cultivate a culture of compassion among Australian businesses.

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Morningstar Awards 2020 © Morningstar, Inc. All Rights Reserved. Awarded to Fidelity International for 2020 Morningstar Australia Fund Manager of the Year. This document has been prepared without taking into account your objectives, financial situation or needs. You should consider these matters and seek independent financial advice before acting on the information. You should also consider the Product Disclosure Statement for the Fidelity Asia Fund before making any decision about whether to acquire the product. This can be obtained by contacting Fidelity on 1800 119 270 or online at www.fidelity.com.au. Investments in small and emerging markets can be more volatile than investments in developed markets. Investments in overseas markets can be affected by currency exchange and this may affect the value of your investment. The issuer of Fidelity’s managed investment schemes is FIL Responsible Entity (Australia) Limited ABN 33 148 059 009, AFSL No. 409340 (‘Fidelity Australia’). Fidelity Australia is a member of the FIL Limited group of companies commonly known as Fidelity International. ©2020 FIL Responsible Entity (Australia) Limited. Fidelity, Fidelity International, the Fidelity International logo and F symbol are trademarks of FIL Limited.

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