Investment PlanningNews Investment Planning in Investing in Australian Banks

Outlook for Investing in Australian Banks

We have been providing investment planning services to clients in the Perth area since 2005 and have more than 40 years’ combined experience in the financial industry. We are now affiliated with AMP Capital, who provide us with even more resources to help us help you.

Recently, on the AMP Capital blog, Investment Director Jeff Brunton, Head of Credit Research Sonia Baillie and Portfolio Manager and Analyst Tom Young, all of AMP Capital, discussed the outlook for investing in banks from their respective perspectives. We would like to provide you with a “short version” of the information.*

Equity Perspective

In the last 12 months, the major banks have been under some pressure. For some of the banks, share valuation levels are similar to those during the Global Financial Crisis (GFC). During the same period, dividend yields of major banks have seen a rise of 2%. Share prices could become more volatile in the near future, as lower commodity prices and a housing market slowdown could exert a “drag” on earnings growth.*

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NewsSuperannuation Fund Self Managed Superannuation Fund Suite with Core Infrastructure Fund

AMP Capital Expands SMSF Suite with Core Infrastructure Fund

If you are one of our self managed superannuation fund (SMSF) clients in the Perth area, you may be interested in this news. Our parent company, AMP Capital, has just added its Core Infrastructure Fund to their SMSF suite due to a growing number of SMSF trustees expressing interest in the class of infrastructure assets.*

Entitled the “AMP Capital Core Infrastructure Fund,” this fund provides retail investors with access to an asset class that is usually available only to large institutional investors: direct infrastructure assets. The AMP Capital Core Infrastructure Fund invests in what AMP Capital calls a “targeted 50-50 mix” of listed infrastructure securities and direct infrastructure. The listed infrastructure securities provide investors with a degree of liquidity.*

According to the AMP Capital website, the AMP Capital Core Infrastructure Fund provides SMSF trustees with the opportunity to own “high quality direct assets” such as Angel Trains in the UK or Melbourne Airport in Australia. The minimum investment for the AMP Capital Core Infrastructure Fund is $10,000.*

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Financial PlannersNews Financial Planners Discuss Bear Market

The “Bear” Facts about Bear Markets

Perth financial planners are responsible for helping their clients navigate the markets during good times and bad times. At Approved Financial Planners, we have a great resource that helps us do just that. His name is Dr Shane Oliver. He is not only the Chief Economist for our parent company AMP Capital; he is also the Head of Investment Strategy and Economics and is responsible for their diversified investment funds. (1)

In mid-February, shares on the ASX 200 index temporarily entered “bear market” status. It is considered a “bear market” when shares declined 20% from their most recent high. For this instance, that “high” took place in April 2015. Media coverage helped generate great concern for this development. Dr Oliver responded with a post in his “Oliver’s Insights” column explaining why bear markets are “not always of the grizzly variety.” (1)

According to Dr Oliver, it is unfortunate that there is no true definition of what separates a bear market from a correction market. In addition, there is no industry official who is responsible for making that kind of declaration. Dr Oliver prefers to view a correction market as “sharp falls” within a rising market that only last a few months until the market continues its previous trend of rising, reaching a new “high” within 6 months of the low. (1)

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Financial PlannersNews Financial Advice Providers Annouces Property Leadership Team Expands

Property Leadership Team Prepares for Expanded Role at AMP Capital

When we provide financial advice to our clients in the Perth area, we use every resource we have at our disposal. One of our best resources is the property leadership team of our parent company, AMP Capital.

Recently, AMP Capital announced that they are expanding their property leadership team. Luke Briscoe has been appointed as Managing Director, Office and Industrial. Louise Mason has been appointed as Chief Operating Officer. They will report to Carmel Hourigan, who is the Global Head of Property for AMP Capital.*

Ms Mason’s role will be to manage the Property business operations, while managing the teams who are responsible for mixed use strategies, business asset creation and office development pipeline. One of her duties will be to deliver premier opportunities for development to clients of AMP Capital, such as Quay Quarter Sydney.*

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Financial PlannersNews Perth Financial Planners Discuss 2016 Real Estate Outlook

Outlook for Real Estate Assets in 2016

Perth financial planners who recommend real estate as a way to diversify portfolios are on the right track if a recent AMP Capital blog entry is any indication. The blog post being referenced is called, “Strength in real assets to continue – 2016 outlook.” The article had contributions from AMP Capital’s Heads of Infrastructure Equity, Infrastructure Debt, Global Listed Infrastructure, Property and the Deputy Head of Global Listed Real Estate.*

Generally, the real estate and infrastructure managers of AMP Capital expect global demand to strengthen in 2016 for all of the above listed categories. Here are capsules of each asset class projections for 2016 according to their respective managers.*

Boe Pahari, Global Head of Infrastructure Equity

Mr Pahari expects the markets to be the most active in North America and Western Europe. More managers are expected to launch funds during 2016, making this segment more competitive. Also, larger investors appear to be developing a preference for direct investments in infrastructure assets.*

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Financial PlannersNews Financial Services Provider Discuss Failling Oil Prices

What Falling Oil Prices Could Mean to Your Investments

We provide a full menu of financial services in Perth. While we can only provide specific information and recommendations during an individual consult, we do have access to a lot of information we can pass on to consumers. We came across some information we think is relevant to a lot of Perth households: the effects of falling oil prices.

Recently, in his column “Oliver’s Insights,” Dr Shane Oliver covered the effect of falling oil prices. Dr Oliver is the Chief Economist for our parent company, AMP Capital. He is also the AMP Capital Head of Investment Strategy and Economics. His article was called, “The plunging oil price – why and what it means.” We would like to pass on some of the information to you.*

In two years, oil prices have gone down 70%. This is because supply has surged in comparison to demand and because the US dollar is high. The price could fall as low as $20 per barrel, but Dr Oliver believes the supply will decrease soon.*

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Financial PlannersNews Financial Planning Explores Food and Beverage Industry

What Drives the Food and Beverage Sharemarket Sector?

If you are looking for financial planning help in Perth, you may or may not be aware of the many sectors of the sharemarket. Recently, our parent company, AMP Capital, reviewed the food and beverage sector on their website. The article was called, “Part 4 of the ESG Series: Food trends and investor impacts.”

The article was written by Ian Woods, who is the Head of Environmental, Social and Governance (ESG) Investment Research for AMP Capital. He explored some of the industry’s drivers, providing the perspective of an investor. Here are some of the highlights.*

Sustainability Drivers in the Food and Beverage Industry

Mr Woods believes that the food and beverage industry is connected to stronger sustainability drivers when compared to other sectors. Here are some of those drivers.*

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Financial PlannersNews Chinese Consumer Shifts Affect Your Investment With Financial Planning

Can Chinese Consumer Shifts Affect Your Investment?

Financial planning encompasses a number of factors. The economies of Perth, WA, Australia and the world could play an important role in how your investments perform. Recently, Andy Gardner, the Australian Resources Analyst on the AMP Capital Fundamental Equities team, wrote a post on the AMP Capital blog exploring the connection between Chinese consumer habits and the Australian economy.

The post was called, “The Chinese consumer shift to experience over ‘things.’” We would like to provide you with some of the highlights.

How Chinese Consumer Attitudes can Affect Australia

Mr Gardner sees a connection between changing Chinese consumer attitudes and the Australian economy. For his broad conclusions, Mr Gardner believes that the Chinese and many others across the globe are beginning to value experiences over material products.*

Mr Gardner sees this trend resulting in a boost for the Australian economy in the tourism, education and housing sectors as Chinese Nationals will be more likely to come to Australia and those who immigrate here will need housing and education.*

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Investment PlanningNews Investment Planning Tips to Long Term Investors

Nine Tips for Long Term Investors

We would like to tell you about nine investment planning tips for investors in Perth and across Australia. The tips are courtesy of Dr Shane Oliver, who is the Head of Investment Strategy and Economics and Chief Economist for our parent company, AMP Capital.

On the AMP Capital company blog, Dr Oliver recently provided a massive document containing his investment outlook for 2016. He covered numerous topics, the most important of which we have covered here on this blog. The article was called, “2016 – a list of lists regarding the macro investment outlook.”

Here are nine tips Dr Oliver feels that investors “should remember.”*

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Financial PlannersNews Fear a Recession in 2016 By Financial Advisors

Do You Fear a Recession in 2016?

If you fear that there will be a recession in 2016, the financial advisors in our Perth office would like to give you some information that may help allay your fears.

This information comes from Dr Shane Oliver, the Chief Economist for AMP Capital, our parent company. Dr Oliver also serves as AMP Capital’s Head of Investment Strategy and Economics. Recently, Dr Oliver provided an extensive document on the AMP Capital website, filled with predictions and projections for 2016.*

In that article, he covered the chances of recession, both global and in Australia. He rated the chances of global recession in 2016 unlikely, while saying that there will not be a recession in Australia in 2016. We would like to provide you with the points made by Dr Oliver.*

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