Version 7 – 1 July 2024
We can confirm that we are an Independent Financial Advice provider and have no conflicts or
other relationships that may impact our Independence in providing financial advice services to you.
This FSG will help you decide whether to use the services that we offer. It contains information about:
We are authorised to provide general advice, personal advice and
dealing services in the following areas:
When you become a client of Allied Wealth, we act on your behalf.
The objectives and personal circumstances of each client are different. Where we provide personal advice, we will seek to understand your objectives and circumstances for our advice to be in your best interests.
Our initial advice on suitable financial strategies will be provided in the form of a written Statement of Advice (“SoA”) which you can take away and read. The SoA will explain the basis of our advice, the main risks associated with the advice and the cost to you of implementing the advice
This part of the FSG – about MDA Services – is prepared pursuant to ASIC Corporations (Managed Discretionary Account Services) Instrument 2016/968.
The above outsourcers provide a custodial service and are regulated
by ASIC
Fees and other costs
The following table shows fees and other costs that you may be charged. These fees and costs may be deducted from your money, from the returns on your investment or from the assets held within the MDA service agreement. You should read all the information about fees and costs because it is important to understand their impact on your investment.
In relation to your portfolio we manage for you we advise the following fees and costs will be incurred in the normal course of business
| Type of fee or cost | Amount | How and when paid |
| Fees when your money moves in or out of the portfolio | $0 | Not applicable |
| Establishment fee The fee to open your portfolio | $0 | Not applicable |
| Contribution fee The fee amount contributed to your portfolio | $0 | Not applicable |
| Withdrawal fee The fee amount you take out of your portfolio | $0 | Not applicable |
| Exit fee The fee to close your portfolio | $0 | Not applicable |
| Management costs | ||
| The fees and costs for managing your portfolio by Allied Wealth | $0 | Not applicable |
| Additional fees and costs for managing the investments in the MDA portion of your portfolio (if applicable) | Assets Under Management rate 0% | Not applicable |
| Admin fees to Platforms for MDA portion on a sliding scale (if applicable) | $0 - $250,000 0.36% - 0.32% Plus $250,001-$500,000 0.20% - 0.22% Plus $500,001-$1,000,000 0.10% - 0.12% Plus $1,000,001-$2,500,000 0.04% - 0.05% Plus $2,500,001 and over 0.00% | The fees are deducted from your platform account. |
In relation to your portfolio we manage for you we advise the following fees and costs will be incurred in the normal course of business
| Type of fee or cost | Amount | How and when paid |
| Account keeping fee to Platforms | $180-$360 per account per annum | |
| Service fees | ||
| Switching fee The fee for changing portfolio options | $0 | Not applicable |
| Extra services you request maybe be at a time cost | $500 + GST per hour | Paid when service requested |
The advice preparation fee includes meeting with you, the time we take to determine our advice and the production of the SoA. It is based on the scope and complexity of advice provided to you. We will agree the fee with you before providing you with advice. If you decide to proceed with our advice, we may charge an implementation fee for the time we spend assisting you with implementation. We will let you know what the fee will be in the SoA.
Our annual fees depend on the services that we provide to you. We will charge a flat fee for service which is generally paid monthly and agreed with you on an annual basis.
In limited circumstances, we may provide one- off services and charge a fee at an hourly rate. This will be discussed with you prior to engagement.
In some circumstances we may provide services to you as a wholesale client. We will seek your consent before providing services to you as a wholesale client.
We avoid conflicts of interest including the receipt of commissions. Where we receive commissions, we will rebate this to you within a period of not more than 90 days. We do not retain any commissions.
We act only for you as our client and not for any product issuer or financial institution. We have no financial relationship with any product issuer or financial institution.
At all times you are able to contact us and ask questions about our advice and the products we recommend. You can provide instructions to us in writing, via phone or via email. In some cases, we may require you to provide signed instructions.
Where we receive or pass on a referral to another professional we note that there are no referral fees or any other sort of payment made. As noted above we act only for you.
We endeavor to provide you with the best advice and service at all times. If you are not satisfied with our services, then we encourage you to contact us. Please call us or put your complaint in writing to our
office. If you are not satisfied with our response, you can refer it to the Australian Financial Complaints Authority. You can contact AFCA on 1800 931 678 or via their website www.afca.org.au. This service is
provided to you free of charge.
We believe we have put in place compensation arrangements (via maintenance of professional indemnity insurance and adequate financial provision for any policy excess) that are adequate having regard to the
size, nature and complexity of our business. We believe that these arrangements are sufficient for the purpose of meeting our compliance obligations under section 912B of the Corporations Act.
We are committed to protecting your privacy.
We have a Privacy Policy which sets out how we collect, hold, use and disclose your personal information. It also sets out how you can access the information we hold about you, how to have it corrected and how to complain where you are not satisfied with how we have handled your personal information.
Our Privacy Policy is available on request and on our website.
Approaching retirement age and feeling uncertain about your financial future? You're not alone.
According to AMP's 2022 Financial Wellness report, almost half of working Australians don't know how much they'll need to have saved for retirement. The key to a comfortable and secure retirement is careful planning, so, here are some essential tips to help you get started.
The first step in retirement planning is understanding when you can access your superannuation.
Your preservation age, which is between 55 and 60 depending on when you were born, is the earliest you can withdraw your super. Once you reach 65, you can access your super even if you're still working.
The 4% rule is a popular guideline for retirement spending. It suggests that retirees can safely withdraw 4% of their savings in the first year of retirement, and then adjust that amount for inflation each subsequent year for 30 years.
While it's a useful starting point, it's important to tailor your withdrawal strategy to your specific needs and goals.
To figure out how much you'll need in retirement, consider your lifestyle priorities and estimate your living costs.
As a rule of thumb, aim for two-thirds of your current living costs, assuming you've paid off your mortgage. Use a retirement calculator to estimate how much you'll need to save.
Your main retirement income options are an account-based pension, an annuity, a lump sum, or a combination of these.
You may also be eligible for the Age Pension or other government benefits. Consider a transition to retirement strategy if you want to reduce your work hours but aren't ready to retire completely.
As you approach retirement, review your life insurance coverage to ensure it still meets your needs.
You may no longer need as much coverage if your children are grown and your mortgage is paid off. However, maintaining some life insurance can still be beneficial for covering final expenses or leaving an inheritance.
Preparing for retirement can be complex, so don't hesitate to seek professional advice.
Our independent financial advisor team can help you create a comprehensive retirement plan tailored to your unique circumstances. Plus, we can provide guidance on wealth management, business planning, and aged care financial advice.
Remember, retirement planning is an ongoing process. Regularly review your plan and make adjustments as your circumstances change. With careful planning and the right advice, you can achieve the financially secure retirement you've always dreamed of.
It's never too early to start planning for retirement. Ideally, you should begin saving and investing as soon as you start earning an income. The earlier you start, the more time your money has to grow through compound interest.
The minimum superannuation contribution is currently 110.5% of your gross salary, which your employer must pay. However, to ensure a comfortable retirement, consider making additional voluntary contributions. Salary sacrificing into your super can be a tax-effective way to boost your retirement savings.
The Age Pension is a government benefit that provides income support to eligible older Australians. Eligibility depends on your age, residency status, and income and assets. As of 2024, the qualifying age for the Age Pension is 67 years.
Ideally, yes. Entering retirement debt-free can significantly reduce your financial stress and expenses. Prioritise paying off high-interest debts like credit cards and personal loans, then focus on your mortgage.
To make your retirement savings last, consider implementing a sustainable withdrawal strategy like the 4% rule. Diversifying your investments can also help manage risk and potentially provide a steady income stream. Regularly review your spending and adjust as necessary.
If you're worried you haven't saved enough, there are still steps you can take. Consider delaying retirement by a few years, working part-time in retirement, or downsizing your home. You may also be eligible for government benefits like the Age Pension or Rent Assistance.
As a self-managed super fund (SMSF) trustee, it's crucial to have a well-thought-out estate plan to ensure your wealth is passed on effectively and tax-efficiently to your loved ones.
Working with experienced SMSF advisors can help you navigate the complexities and develop strategies to minimise tax and maximise the benefits for your beneficiaries.
SMSFs offer greater control and flexibility over your retirement savings compared to APRA-regulated funds.
However, this also means you are responsible for ensuring your SMSF assets are distributed according to your wishes when you pass away. Without proper estate planning, your SMSF wealth could end up in the wrong hands, be eroded by unnecessary taxes, or face legal challenges from family members.
Over 1.1 million Australians held $885 billion in SMSF assets as of September 2023, highlighting the importance of careful SMSF estate planning for a significant portion of the population.
By taking the time to review and document your plans with the help of an SMSF financial advisor, you can ensure greater certainty and security for your beneficiaries.
While Australia no longer has an inheritance tax, your SMSF may still be subject to a "death benefit" of up to 32% when you pass away, depending on factors like the tax components of your balance, whether proceeds are from an insurance payout, if benefits are paid as a lump sum or income stream, and who the recipient is.
However, with prior planning and the guidance of SMSF strategic advisors, much of this tax can be legally reduced or eliminated using strategies such as:
An independent financial advisor, like Allied WealthWeath, can assess your situation and recommend the most suitable strategies for your estate planning needs.
For your SMSF estate plans to be carried out efficiently, it's vital to have all the necessary documents in place, up-to-date, and stored securely. This includes your:
SMSF trust deed: The rules governing how your fund operates and distributes benefits. It should be reviewed regularly to ensure it reflects current super laws and your wishes.
Will: Specifies how you want your personal assets and SMSF death benefits paid via your estate to be distributed. It should align with your SMSF estate plans.
Enduring power of attorney: Gives someone you trust the authority to manage your SMSF if you lose capacity. They must be appointed as a trustee.
Death benefit nominations: Binds or guides your SMSF trustees on how to pay your death benefits. They should be renewed every 3 years or made non-lapsing.
Wealth management firms can assist with drafting and reviewing these documents to ensure they are valid and effective.
Even the best-laid plans can go awry if unexpected events occur. That's why it's crucial to have contingencies and exit strategies in place for scenarios such as:
Overseas relocation: Understand the residency rules and tax implications for your SMSF if you move abroad permanently or temporarily.
Retirement financial planning specialists can help you prepare for these eventualities and make any necessary adjustments to your SMSF estate plans.
Passing on your SMSF wealth effectively requires careful planning, expert advice, and regular reviews to ensure your estate plans remain relevant and compliant. By working with a qualified SMSF advisor, you can have peace of mind knowing your hard-earned super savings will be distributed according to your wishes with minimal tax and complications.
To discuss your SMSF estate planning needs and explore tailored solutions, contact the team at Allied Wealth, your trusted ally in wealth management and retirement planning. With their expertise and personalised approach, you can secure your financial legacy for generations to come.
Are you considering working with a financial planner but not sure what to expect? A financial planner is a professional who helps individuals and families manage their money, plan for the future, and achieve their financial goals.
Let's take a closer look at what financial planners do, how to find a good one, and what questions to ask in your first meeting.
A financial planner provides personalised advice to help you make smart decisions about your money. They can assist with a wide range of financial matters, including:
Financial planners take a holistic view of your finances and help you see the big picture. And because they create customised plans based on your unique circumstances and goals, they offer a much more individualised approach to other options out there.
While you can manage your own finances, there are many benefits to working with a professional financial planner:
Studies show that people who work with a financial planner feel more confident and secure about their finances. While there is a cost involved, the value and peace of mind can be well worth it.
Not all financial planners are created equal. It's critical to do your due diligence and choose a trustworthy planner. Here are some key things to look for:
Beware of financial planners who guarantee specific investment returns, pressure you to act quickly, or seem more interested in selling products than understanding your needs. Take your time to find the right fit.
When meeting with a potential financial planner, come prepared with questions to assess whether they match you. Here are some key things to ask:
Listen carefully to the planner's responses and consider whether they take the time to understand your needs, goals and concerns fully. The right planner will happily answer all your questions and demonstrate their expertise and commitment to your success.
For example, at Allied Wealth, we make sure you fully understand the process and how we can help you along the way. We’ll always do our best to answer all of your questions and ensure you’re comfortable with the proposed strategy.
Working with a financial planner can provide valuable guidance and support to help you achieve your short and long-term financial goals. By understanding what to expect from the process, what to look for in a planner, and what questions to ask, you'll be well-positioned to find the right financial planning partner.
When you're ready to take the next step, consider working with an experienced and trusted firm like Allied Wealth. Our team of independent financial advisors specialise in wealth management, retirement planning, and business financial advice to help clients build and protect their hard-earned money. Schedule a no-obligation consultation to learn more about how they can help you achieve financial success.
Looking for an aged care financial advisor? We can help with that, too!
The equity market rally experienced over the March quarter stalled in April as investor sentiment moderated. Comparing forward pricing of interest rates in January vs. April 2024, we note there has been a material shift in expectations. Inflation which was on a downtrend has remained sticky around the 3%-4% mark.
Figure 1: Asset Class Performance as at 30 April 2024
Source: Allied Wealth, Morningstar.
Coming into 2024, portfolios retained a marginal underweight risk and an overweight in hedged international equities relative to unhedged.
The underweight in risk assets detracted from the return outcome over the March 2024 quarter as stock markets experienced a narrow market rally; this compared with the overweight to hedged international equities relative to unhedged which was broadly neutral over the assessment period.
Rally in risk assets was attributable to 2 key themes, equity earnings which have proven resilient over the last 2 quarters and have continued to pick up steam at the index level, and extremely positive risk-on sentiment contributed in part by expectations of interest rates falling. The latter theme has not played out as the market expected with stickier and higher inflation for longer leading to a market sell-off in April.
We note that this market environment is very unlike a lot of history and provide further discussion on the outlook in the sections below.
The economic and geopolitical rivalry between US, Europe and China has evolved into global trade protectionism with national security increasingly cited as a reason for trade tariffs and loose fiscal policy (government spending). Over the last quarter, we have seen US and Europe provide fiscal support (via tax breaks and funding assistance) to manufacturers of semiconductors, electric vehicles, and solar panels – with the intention of bolstering local manufacturing capabilities.
Moving forward, we expect to see more protectionist measures from both US and Europe (vs China); but how this will escalate remains too early to tell. The recently implemented tariffs on Chinese goods will incentivise the build-out of local factories over the next few years, reversing decades of trade globalisation.
As stewards of your capital, we remain primarily focused on the financial market implications for your portfolios. We expect this theme to be both supportive of economic growth and inflationary. On the equity side we expect this to translate into further earnings growth, but upside participation is skewed towards tech and defence sectors.
The build-out of local manufacturing capability represents additional capital expenditure which over the short-term basis will support economic growth; but the higher labour costs associated with the production of goods is expected to be passed through to the end consumer. Thus, we continue to expect inflation to be structurally higher over the medium to long term.
Overall while there are positive implications for corporate earnings; we remain concerned that the structurally higher inflation will also mean higher borrowing costs for businesses and consumers. In balancing the upside and downside considerations based on our investment outlook, we have decided to neutralise our underweight to risk assets.
Within international equities, we continue to maintain an overweight in hedged international equities relative to unhedged. The Australian Dollar (relative to US Dollar and Euros), at current valuations still look cheap relative to history.
| Asset Class | Portfolio Stance | Commentary |
| Domestic Equities | Neutral | We have maintained a Neutral portfolio stance in Australian equities. On a price-to-earnings basis, Australian equities look marginally overvalued relative to history, however the magnitude is not large enough to warrant a change in portfolio. |
| International Equities | Neutral | We have chosen to neutralise the underweight in International Equities; but within the asset class, we have selected to maintain the marginal overweight to hedged International Equities (relative to unhedged). Across international equities, corporate earnings have proven more resilient than expected. |
| Property and Infrastructure | Neutral | Property and infrastructure as an asset class have been volatile over the previous quarters. Deal volume remains low, and the asset class remains susceptible to interest rate expectations due to the bond-like nature of income returns. We continue to retain a Neutral position. |
| Fixed Interest | Neutral | In-line with changes discussed previously, we have decided to neutralise the overweight in this asset class. Whilst trajectory of interest rates remains uncertain, yields in this asset class today are attractive. |
| Cash | Neutral | Cash yields remain attractive. We have retained cash in our portfolios for buying opportunities should equity valuations reach attractive levels. |
In-line with the outlook, the Investment Committee decided to neutralise our marginal underweight in growth assets; but have elected to maintain our overweight to hedged international equities relative to unhedged. We continue to monitor the geopolitical situation but at this juncture believe neutralising the portfolio over/underweights remains the most prudent course of action.
Yours faithfully,
Allied Wealth Investment Committee
You are welcome to pass on this commentary or our contact details to anyone whom you think would benefit from our services.
The information provided in and made available through this document does not constitute financial product advice. The information is of general nature only and does not consider your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice.
We recommend that you obtain your own professional advice before making any decision in relation to your particular requirements or circumstances.
Allied Wealth Pty Ltd is a Corporate Authorised Representative of Allied Advice Pty Ltd for financial planning services. AFS Licence No. 528160
It’s no secret that the current financial landscape means that navigating investments, retirement planning, estate management and all the other nitty gritty aspects of your finances can be a bit daunting – and this is exactly where a wealth advisor comes in!
At Allied Wealth, our team is able to provide you with personalised, independent and unbiased financial advice so that you can meet your unique financial goals.
Understanding the role of a wealth advisor is crucial! Essentially they are a financial professional who can provide you with comprehensive guidance on how to create wealth or manage your wealth in the most effective way.
This may include financial planning strategies, retirement planning, tax optimisation, estate planning, investment strategy or anything in between! A wealth advisor basically serves as your partner in your finances.
There are a few key responsibilities of wealth advisors that you may or may not be familiar with, these are some of the key responsibilities of a wealth advisor if you choose to work with one.
Financial planning
A wealth advisor starts by understanding your financial situation, your goals and your risk tolerance. They then work to create customised financial plans that include strategies for those goals – whatever they may be.
Another key responsibility of wealth advisors is to manage investments on behalf of their clients. This could involve creating a diversified portfolio aligned with your goals. The advisor adjusts and monitors your portfolio to respond to market conditions and changes in your financial situation.
Retirement is something that we all look forward to, and helping you plan for a financially stable retirement is a primary goal of a wealth advisor. This could mean estimating your retirement income needs, structuring your withdrawal plans or anything in between.
At Allied Wealth, we pride ourselves on offering some of the best independent financial advice Australia wide. If you’re looking for a wealth advisor and you’re considering a member of our team, here’s just a few of the many reasons you should consider working with us!
When it comes to finding the perfect fit, the right wealth advisor can really be a make or break decision when it comes to your finances. At Allied Wealth, we are committed to guiding you through every step of the way so that you can receive comprehensive advice that is tailored to you.
We have some really exciting news that we are thrilled to announce! Recently, we have been honoured with nominations for two prestigious industry awards that really highlight our commitment to the financial services industry.
First up, we were finalists for the Best Independent Dealer Group at the Australian Wealth Management Awards. This nomination, and us as finalists, recognises our commitment to provide every single one of our clients with independent, client-focused financial advice that is tailored to meet your unique needs.
This recognition is a real testament to the hard work and expertise of the entire Allied Wealth team and their commitment to delivering exceptional financial advice and outcomes to every single one of our Allied Wealth clients, every single time.
As well as that nomination, Allied Wealth’s very own Greg was nominated for the Dealer Group Executive of the Year at the IFA Excellence Awards. Greg’s leadership has been instrumental for steering Allied Wealth in the right direction and he is committed to his clients every single step of the way and the wider Allied Wealth team is so proud to see his efforts and achievements recognised at such a high level.
These nominations reflect our main mission at Allied Wealth – to help our clients achieve their financial goals through independent, unbiased advice and planning. Our nominations and our finalist placing serves as motivation for us to keep raising the bar in the financial services industry, keep getting those nominations and continue to be an award-winning financial advice provider in Australia.
We want to thank all our clients, whose trust and support is a key factor in our success and our journey, we are dedicated to continuing to provide you with some of the best (award nominated!) service in the industry.
Stay tuned as we update our website to proudly display these nomination badges!
If you have any questions or would like to learn more about how Allied Wealth can help you secure your financial freedom, you can contact us today.
Whether you need help with retirement planning, investment advice, wealth management planning or anything in between, our team can help you every single step of the way.
The May 2024 bank reporting season was the mildest and most boring in the past decade, with the major banks all reporting solid results, large share buybacks and very low bad debts. The major banks continue to show their resilience in the face of challenges such as the 2018 Royal Commission into Financial Services, COVID-19 lockdowns, system issues in 2021 from expected zero or negative interest rates, and the "fixed-interest rate cliff" from late 2022 that was forecasted to put the country into a recession as discretionary spending collapsed, defaults spiked, and house prices plummeted.
In this Allied Wealth quarterly, we will look at the themes in approximately 900 pages of financial results released over the past ten days by the financial intermediaries that grease the wheels of Australian capitalism.
Net interest margins are always a major topic during any of the banks' reporting season, with most investors going straight to the slide on margin movements in the immense Investor Discussion Packs. Banks earn a net interest margin [(Interest Received - Interest Paid) divided by Average Invested Assets] by lending out funds at a higher rate than borrowing these funds either from depositors or on the wholesale money markets. Generally, bank net interest margins have recovered from the lows seen in 2022, as when the prevailing cash rate is 5%, it is much easier for a bank to maintain a profit margin of 2% than when the cash rate is 0.1%.
Small changes in the net interest margin significantly impact bank profitability due to the size of a bank's loan book (which ranges from $700 billion to $1.1 trillion) and guide future profitability. Going into this reporting season, many in the market expected a significant fall in the banks' net interest margins due to stronger competition within the mortgage market and increased deposit funding costs. May 2024 saw some downward pressure on interest margins, but less than expected, with management teams reporting a moderation of mortgage competition. Commonwealth Bank again wins the gold star in 2024 with the highest net interest margin.
Gold Star
During the COVID-19 pandemic, Australian interest rates fell to record lows as the RBA established the Term Funding Facility (TFF) to offer low-cost three-year funding to banks. Between March 2020 and when the TFF closed in June 2021, Australian banks borrowed $188 billion at rates between 0.1% and 0.25%, which was then lent as fixed-rate mortgages in 2020 and 2021 at mortgage rates between 1.75% and 2.25% to around 800,000 borrowers. These low-rate mortgages began expiring in mid-2023, converting to variable loans around 5.5%.
With every cash rate hike, the questions became louder about the negative impact of this fixed rate cliff on retail sales, bank bad debts and house prices, with market experts predicting 2023 and 2024 to be very poor years for the banks and retail sales, as borrowers were unable to afford the higher mortgage payments. However, in mid-2024, the economy has proven more resilient than expected, and unemployment remains close to all-time lows. Borrowers and the banks have managed this transition to higher rates, far better than was expected, building up savings buffers. Indeed, despite increased financial pressures, RBA data shows that less than 1% of home loans are in 90-day arrears, a figure that is lower than before the pandemic - RBA Financial Stability Review.
Bad debts have remained low in 2024, with all the banks reporting extremely low loan losses. Macquarie Bank reported the lowest bad debts of 0.00%, with ANZ not far behind with 0.01% loan losses. The level of loan losses is important for investors as high loan losses reduce profits, and this dividend erodes a bank's capital base. This reporting season has translated low bad debts into increased share buybacks and dividends.
Atlas see that the low level of bad debts is a combination of the bank's managing loan book, stronger than expected economic conditions and more conservative lending than we saw from the banks 2000-07. We believe that the loans to developers, property syndicates and troubled industrial companies that went bad in 2008-2010 now sit with non-bank lenders and private debt funds rather than the big four banks.
Gold Star
A feature of the May 2024 banks reporting season was solid dividend growth, with ANZ, CBA, and Westpac increasing their dividends and NAB holding their dividend flat. In the first half of 2024, the big four banks generated $15.6 billion and will return $11 billion to shareholders through dividends or a 71% payout of profits generated throughout the half. Higher dividends reflect the combination of low write-offs from bad debts, minimal new investments (outside ANZ) and high capital levels.
The winner of the star was Westpac, with a dividend increase of 7% or 29% if a special dividend is included. In 2024, all major banks (including Macquarie) will be paying a dividend per share higher than in 2019.
Gold Star
Capital ratio is the minimum capital requirement that financial institutions in Australia must maintain to weather the potential for loan losses. The bank regulator, the Australian Prudential Regulation Authority (APRA), has mandated that banks hold a minimum of 10.5% of capital against their loans, significantly higher than the 5% requirement pre-GFC. Requiring banks to hold high levels of capital is not done to protect bank investors but rather to avoid the spectre of taxpayers having to bail out banks, as has been done in the USA and UK.
In 2024, the Australian banks are all extremely well capitalised, so much so that ANZ, NAB, and Westpac announced on-market share buyback extensions to return capital to shareholders. During the bank reporting season, NAB announced a $1.5 billion share buyback extension on top of their 200 million remaining from their previous buyback, Westpac announced a $1 billion extension on top of their $600 million remaining from their previous buyback, ANZ announced a new $2 billion share buyback and Macquarie announcing they still have $1.35 billion to buy back from their $2 billion buyback announced in November. For investors, this not only supports the share price in the coming months but reduces the amount of outstanding shares to divide next year's profits.
In addition to buying back shares to reduce capital, all the big banks, including Macquarie, have neutralised their dividend reinvestment plan (DRP), which allows shareholders to take their dividends in additional shares rather than cash. Neutralising the DRP sees the bank buyback shares on-market equivalent to the new shares issued to shareholders. In May 2024, Atlas estimates that this will see additional net purchases of around $900 million in shares from ANZ, NAB, Westpac and Macquarie.
While buying back shares on the market and then cancelling them is positive for shareholders as it reduces the divisor on future bank profits, bank management teams are awarded bonuses based on their return on equity (ROE). Obviously, buying back shares reduces the equity, thus boosting ROE.
Gold Star
Overall, we are happy with the financial results from the banks owned by the Allied Wealth Australian Equity Portfolio in May. The three main overweight positions, ANZ and Westpac, increased their dividends, and Macquarie Bank showed a 49% increase in net profits in the second half, which also guided to increased profits in FY25. All three announced significant on-market share buybacks, which will support share prices.
All banks showed solid net interest margins, low bad debts, and good cost control. Profit growth is likely to be tough to find on the ASX over the next few years, with earnings for resources and consumer discretionary likely to retreat; however, Australia's major banks continue to positively surprise the market with how they have been able to navigate turbulent market conditions. In 2024, the banks will all have cleaner loan books, minimal offshore distractions, and a greater margin of safety than they have had in the past.
Financial advisors play a critical role when it comes to helping individuals to navigate their finances. Whether it’s personal finances, investments, retirement planning or anything in between seeking out the help of an experienced professional can be very beneficial.
Whilst you’ve probably heard the term financial advisor before, there is often confusion about what a financial advisor actually is and what they actually do.
This is our comprehensive guide to what a financial advisor is, what it is they actually do and how they can help you get a better understanding your finances.
In short, a financial advisor is a person who provides guidance and expertise on a range of different aspects of your finances. A financial advisor's main goal is to help their clients to make informed decisions about managing their money, investing for the future and planning for significant life events like retirement.
Financial advisors work closely with their clients to understand their financial goals, risk tolerance and their current financial situation to help develop personalised strategies to help their clients hit their financial objectives.
There are a number of different financial services available when you work with a financial advisor, these are some of the most common services you can expect to see financial advisors offering to their clients.
One of the main things a financial advisor can help you with is to help you build and manage your investment portfolios tailored to your financial goals. This means helping with advice in regards to types of investments, asset allocation and ongoing monitoring to help optimise your returns and manage your risk.
Financial advisors can help clients in creating financial plans that address their financial situation as well as their goals for the future. This can include budgeting, saving, retirement planning, risk management and more. These financial plans can help be the roadmap to help clients achieve their short-term and long-term goals.
Planning for retirement is an exciting and daunting time in everyone's life and it’s a significant part of financial advisory services. Advisors can help clients assess their needs for retirement and help them build wealth and manage their super funds to maximise their income for retirement.
Our team of financial advisors can help you manage your self managed super fund. They provide expert guidance on the creation, administration, and investment strategies for self-managed super funds. If you need some guidance on your SMSF, a financial advisor is a great place to start!
At Allied Wealth, we know how important it is to have personalised financial guidance that is tailored to your needs and goals. Our team of expert financial advisors can help you navigate the financial landscape and reach all your short and long-term financial goals.
If you want to find out exactly how our financial advisors can help you, you can contact a member of our team today to learn more about our comprehensive services and our transparent subscription plans.
If you’ve been looking into seeking professional financial advice but the possible price is holding you back, we hear you! One of the very first questions that people ask themselves when they seek financial advice is, “How much does this cost?” and whilst the cost can vary depending on a number of factors we pride ourselves on transparent pricing!
At Allied Wealth, we know that being transparent, especially when it comes to finances,is crucial, and we aim to offer transparent and comprehensive pricing subscription plans so that you can get expert advice every step of the way.
Here is a comprehensive guide to what factors influence the cost of financial advice and how much you can expect to pay with our subscription plan.
One of the main factors that may influence the overall cost of your financial advice services is how complex your situation is. The cost of independent financial advice can depend on your current financial situation, your goals, your assets and your risk tolerance.
When it comes to providing you with the best financial advice, advisors have to assess your financial situation to provide you with tailored recommendations. If your financial situation is more straightforward, you might require just basic advice. But if you have a more complex financial situation you might be charged at a slightly higher rate due to the increase in work for your advisor.
The range of services you need will also impact the overall cost of financial advice. If you’re only seeking advice on retirement planning, you may pay less than if someone was needing guidance with retirement planning, investment advice and SMSF advice.
At Allied Wealth, our subscription plans are tailored to individuals that require a comprehensive range of services. Our 12-month plans which start at $550 a month include scenario analysis, initial and ongoing advice, quarterly investment updates, bi-annual review meetings and ongoing access to your advice that you can get personalised guidance tailored to your needs without hidden fees.
The pricing structure used by financial advisors also plays a role in determining the overall cost of their services. Some advisors will charge a flat fee for their specific services whilst others might use a percentage-based fee structure.
At Allied Wealth, we think that transparent pricing is key to a great advisor/client relationship. Our subscription plan means you get a fixed monthly fee so you know exactly what you’re paying each month. Avoid hidden charges or expensive surprises and remain focused on achieving your financial goals when you work with our team of expert independent advisors.
To find out more about our pricing structure and the types of financial advice services we offer, you can contact a member of our team today.
If you’re looking for transparent pricing from a team of expert independent financial advisors you have definitely come to the right place!