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Archive for financial planning in Perth

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.*

Financial Planning Explores Food and Beverage Industry

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.*

Asian demographics such as rising income levels and continued population growth.*

Consumer trends such as “healthy living,” affordability and convenience.*

Regulatory changes caused by increased attention to issues such as the environmental and social effects of various food products. Obesity is also garnering increased scrutiny.*

Shrinking natural resources in the face of growing competition: both potable water and arable land are becoming more scarce in many areas of the world.*

Consumers are becoming more and more aware of sustainability and ethical issues. A combination of scrutiny and increasingly complex global supply chains is resulting in a greater demand for stronger supply chain management.*

Climate change: weather trends and patterns affect natural resources and assets.*

What the Obesity Issue Means to Investors

According to Mr Woods, the simplest way to navigate a changing world is to “invest in companies that are changing the world.” According to Mr Woods, investors can avoid buying into the “culprits” and buy into firms which are providing solutions.*

Mr Woods cited that investment firms with high ESG profiles outperform those with lower ESG profiles.

Need Financial Planning Advice?

For an individual consult or to learn more, call us today: 08 6462 0888.

*AMP Capital. Ian Woods. “Part 4 of the ESG Series: Food trends and investor impacts.” 27 January 2016.

Is Financial Planning the Solution to Financial Stress?

According to a recent survey by the Australian Psychological Society, financial stress was the leading cause of stress among Australians in 2014. Approved Financial Planners in Perth is aware of how financial stress can affect families and we are here to help you alleviate that stress.*

Financial Planning Perth For Financial Stress

By the Numbers

Stress can not only affect your mental health, but your physical health, too. Seven out of ten who responded to the survey said that their current levels of stress were affecting their physical health. One out of five reported that impact to be from strong to very strong.*

49% reported personal financial issues as a source of stress in 2014, compared to 52% in 2013. However, this is not a trend, as 48% reported financial stress in 2012 and 53% reported financial stress in 2011, the first year of the survey.*

When the numbers are broken into age groups, a trend appears: financial stress affects less people as they get older. 59% of those from 18-25 reported financial stress, compared to 57% of those 26-35, 58% from 36-45, 50% from 46-55, 38% from 56-65 and 25% of those 66 and above.*

Financial issues are the leading cause of stress for those from 18-45 and the fourth leading stressor for those 46-65. It decreases sharply to the eighth leading stressor for those over 66.*

More than half of women, 53%, reported financial issues as a stressor, while “only” 44% of men reported financial issues as a stressor.*

Call Approved Financial Planners Today

At Approved Financial Planners, we are one of the most trusted names in Perth when it comes to financial advice and financial planning. We do our best to help you alleviate financial issues as a stressor. To learn more or for a free consult, call us today: 08 6462 0888.

*Australian Psychological Society, “Stress and Wellbeing Survey in Australia, 2014.” October, 2014.

Why Real Estate Investment Trusts are So Popular

Some financial planning professionals in Perth are recommending real estate trusts as an investment vehicle. Recently, the Head of Listed Real Estate for AMP Capital, Mark Ferguson, wrote an article for the AMP Capital blog, called “Australian real estate investment trusts—the right time to invest?”*

The article referenced the fact that Australian Real Estate Investment Trusts (REITs) on the S&P/ASX 200 A-REIT list have delivered a three year return to investors of 18.4$ in the three years ending 31 July 2015. Past performance is not indicative of future performance. They listed four main reasons for investing in REITs.*

Real Estate Investment Trusts Popular In Perth

Strong Risk-Adjusted Returns

The REIT sector is now seen as a “defensive” investment that offers a high yield. They became popular as a defensive investment shortly after the Global Financial Crisis (GFC). Mr Ferguson expects the market to “be more discriminating,” making the highest quality property portfolios managed by the most conservative capital policies more popular.*

REITs have outperformed cash, direct property, Australian bonds and Australian shares over the last three years. Mr Ferguson doesn’t believe they can continue to perform quite as well as they have, but that they will still remain a good medium to long term investment.*

Strong Balance Sheets

Most REITs are very well-capitalised. This is due to some post-GFC policies but is also a result of conservative capital management techniques, such as sustainable distribution payout ratios, prudent gearing levels and good sell discipline.*

Strong Liquidity

A-REITs offer investors access to high-quality, diversified investment portfolios while providing liquidity if needed. An A-REIT allows an investor to invest in high-quality properties without a prohibitive entry cost.*

Higher than Average Yields Compared to Other Asset Classes

A-REITs are currently offering higher distribution yields to their investors, due to the aforementioned capitalisation level, the increase in value of commercial property and current low interest rates.

To learn more or for an individual consult, call Approved Financial Planners today: 08 6462 0888.

*AMP Capital: “Australian real estate investment trusts — the right time to invest?” 10 September, 2015.

Is it Time to Start Protecting Your Hard-Earned Money?

Wealth protection is an important component for those planning their financial futures. We have helped many Perth residents do just that since 2005. When helping our clients save and produce income for their retirements, we see protecting that money as equally important. So do our friends at the Financial Planning Association of Australia (FPA), who recently wrote an article called “You’ve worked hard for the money, now it’s time to protect it.”*

Start Protecting Your Hard-Earned Money

According to the FPA, statistics indicate that Australians approaching retirement can expect to spend an average of 23 years between retiring and passing on. For some, their money could run out in as little as ten years, forcing them to rely on age pension as their sole source of income.*

According to the FPA, saving for retirement should be a “fundamental financial priority,” but so should protecting that income, especially for those in their “last few years in the workforce.” Many who are in their last few years of working aren’t as healthy as they were when they were younger and may not have enough sick leave to cover illness.*

At the age of 50, the risk of cancer or heart attack increases; this makes it more difficult or expensive for many to obtain insurance. Life cover and income protection are both available through your super, but the premiums affect your super’s balance. *

Many people buying cover have to decide between long term availability and short term affordability, causing many to choose stepped premiums that cost more when reaching retirement age. Because there are so many variables when purchasing wealth protection products, the FPA advises using a financial planner.*

Call Approved Financial Planners Today

At Approved Financial Planners, we can explain your options to you fully and help you select the wealth protection products that are the best for your individual situation. To learn more, call our Perth office today: 08 6462 0888.

*Financial Planning Association of Australia, “You’ve worked hard for the money, now it’s time to protect it.” 20 August 2015.

Does Your Financial Advisor Understand Duty of Care?

If you are looking for a financial advisor in Perth, you have probably noticed that there are a lot of choices out there. Financial advisors are bound by a concept called “duty of care.” The concept of having a “duty of care” is communicated in many different ways by statutes involving the provision of financial advice.

Financial Advisor's Duty Of Care

What is “Duty of Care”?

“Duty of care” basically means that your financial advisor is required to look out for your best interests and inform you of developments that may increase the risk of any investment they have recommended to you.*

Swan and Baker Pty Limited vs. Marando

It is best illustrated by a decision which was upheld by the NSW court of appeal last year: Swan and Baker Pty Limited vs. Marando. A financial advisor and the firm he worked for were accused of misleading and deceptive conduct by two investors. They were also accused of a breach of professional duty because they had provided negligent advice.*

In 2008, Mr and Mrs Marando invested $500,000 in the City Pacific Ltd Mortgage Fund on the advice of accounting firm Swan & Baker. The funds were to be invested for 90 days and available for reinvestment after the term had elapsed. Swan & Baker gave the Marandos a copy of a document called the Fund Product Disclosure Statement. Within the statement was a 14-day “cooling off” period that applied to new investments.*

During the cooling off period, the local media published articles questioning the financial security of the company. Immediately, investors wanted their money back. City Pacific Ltd barred investors from withdrawing their funds, but the cooling off period was still in effect. Because Swan & Baker had failed to notify the Marandos of the cooling off period, they didn’t request to withdraw their capital in time and were prevented from doing so.*

The Marandos were awarded $377,390 in damages.*

Contact Approved Financial Planners

At Approved Financial Planners, we take our duty of care seriously. Cases like Swan & Baker vs Marando simply don’t happen with us. To learn more, call 08 6462 0888.

*Sparke Helmore Lawyers, 24 March 2014: “Beyond advice–the financial advisor’s extended duty of care.”