Infocus

Media Release – Infocus staff giving program

To support the group’s staff giving program, Infocus recently surveyed all 70 staff across the group to select a Charity who will benefit from this year’s fundraising activity.  In 2017, the Infocus team chose a clear winner: the Starlight Children’s Foundation.

Managing Director and CEO Rod Bristow, said “Infocus’ workplace giving program, developed in response to our team’s feedback, really helps provide meaning.”

“Over the past year, we have been speaking more and more about our Why.  Why we are here; why we want to make a difference; and why helping people is important to us.  It is part of who we are and it is really encouraging to see that we have so many like-minded employees that are passionate about making a difference”, he said.

Just under two-thirds of Infocus group employees have opted in to donate to this worthy cause via regular payroll deductions.  Staff that contribute will also have the option to participate in a volunteer program which will be held in May, where Infocus team members will come together to raise additional donations for the Starlight Children’s Foundation.  This will also allow Infocus Group employees to connect with their peers while supporting such a great cause.

This year’s staff giving program continues Infocus’ tradition of raising funds for charity.  In 2016, Infocus Group advisers and alliance partners raised $8,504.50 for beyondblue at the annual iCON conference in Singapore.  Infocus matched that amount raised, resulting in a donation of $17,009 to beyondblue.

For more information, contact Rod Bristow, Managing Director and CEO, Infocus, 1300 463 628 or visit www.infocus.com.au

Media Release – Infocus’ referral partnership with H&R Block already delivering the goods

Following the recent announcement of the client referral partnership with H&R Block, Infocus today announced the first referrals under the program are already flowing.


In the initial stages of the program, rolling out before June 30 2017, H&R Block will be directly marketing to more than 1,000 clients every week. The aim of this will be to inform H&R Block clients of the range of value-added services that are now available to them through the relationship with Infocus. H&R Block clients seeking financial advice are referred to financial advisers licensed by the Infocus Group.


In addition to this dedicated marketing activity, in partnership with H&R Block, Infocus is helping advisers build relationships with their local H&R Block accounting offices. This represents a significant Centre of Influence (COI) opportunity that provides further client referrals.


“The first referrals under the H&R Block client referral program have already started”, Infocus Managing Director and CEO Rod Bristow said. “Based on the scale of the referral program, we are actively looking for quality financial advisers to join the Infocus Group nationally”.


Established in Australia in 1971, H&R Block’s more than 2,000 tax consultants across more than 450 offices prepare almost 800,000 tax returns annually.


Infocus is a national, privately-owned wealth management group. Infocus’ national network of financial advisers provides quality financial advice to over 65,000 clients with over $4.5Bn in funds under advice. Infocus also directly manages over $300M in its funds management business and licenses its innovative Platformplus CRM and advice management software to financial advisers nationally.


For more information, contact Infocus on 1300 463 628 or visit www.infocus.com.au

Economic Update March 2017

Within this month’s update, we share with you a snapshot of economic occurrences both nationally and from around the globe.
– Trump rally continues on Wall Street. But are equities over-valued?
– China is back in style
– Australian economy struggles
We hope you find this month’s Economic Update as informative as always. If you have any feedback or would like to discuss any aspect of this report, please contact your Financial Adviser.
The Big Picture The Dow Jones just completed its longest run of consecutive daily gains in about 30 years. But is that good news? Some fear a correction, but there are always some in that camp.

Robert Shiller was awarded the 2013 Nobel Prize for his work on irrational exuberance, or mispricing, in markets – amongst other contributions. So it comes with more force when Shiller wonders whether it is time to take some profits as he voiced in late February.

But Jeremy Siegel, another Ivy League professor, disagrees with Shiller. Siegel claims that Shiller’s pricing index has been elevated for twenty years. He goes on to argue that accounting standards have tightened over the years to the extent that reported earnings are now less than they once would have been for the same underlying conditions – hence the elevated data for 20 years.
So, when we calculate P/E ratios (share price divided by earnings), the ‘E’ for earnings in the denominator is smaller than they would otherwise have been – hence the P/E ratio is bigger. Siegel claims we can’t compare these ratios over a long period of time. He is not worried about current over-pricing.
While mispricing signals may not make for a clear-cut decision, few would argue that the markets have priced in Trump ‘doing something big’. If Trump fails to deliver, markets may correct. If he delivers, markets could march on and on.
Trump is giving almost daily updates of his plans. We are not waiting for one big announcement – rather a body of statements that point to new world order. The reaction to an accumulation of smaller statements is better for market conditions than one big announcement that could make the market go either way – and sharply.
The US economy is looking a lot stronger. But is it strong enough for a rate hike by the US Federal Reserve (the Fed)? The latest growth figure is only +1.9%. This is the slowest recovery (from the Global Recession) since the Great Depression!
The Fed is certainly warming up for one but they are talking in terms of reacting to Trumps tax cuts, infrastructure spends and simplification of regulation. None of these policies have yet been enacted so March seems off the table. Maybe even June is too soon.
However, the market is starting to price in a March hike because of recent Fed chatter. Is this the Fed trying to soften us up for future hikes – or are they for real?
It seems China is set to stimulate again if, indeed it hasn’t already started. Iron ore prices charged higher in February on the back of China’s strength. And that has translated into bigger company profits just reported in Australia.
The China manufacturing number was comfortably above the benchmark for optimism at the start of February and rose during the month.
The problems with our economy are continuing to accumulate. Retail Sales fell by  0.1%; we lost a large number of full-time jobs; and we got the lowest wage growth on record! Economic growth just came in at +1.1% for the quarter – but that is partly on the back of stronger resources.
But the Reserve Bank of Australia seems bent on not cutting rates because of what it might do to Sydney house prices. The longer they wait, the more they will have to cut later.
Australia continues to operate in an economic policy vacuum. The delivery of the May budget seems so far away, and so unlikely to deliver what we need.
Asset Classes
Australian Equities The ASX 200 posted a solid gain of +1.6% in February – but lagged behind Wall Street’s +3.7%. After strong growth in resource stocks on the ASX before February, some of that growth was given back last month.
However, many sectors posted gains of 4%, 5% and 6% in February – including dividends. The swings between which sectors are performing better continue to be large and frequent making funds management that much harder.
The company reporting season for the ASX 200 was largely positive but the few companies that under-delivered were punished harshly. We expect the ASX 200 to make gains in 2017 but not as strong as we see the gains on Wall Street.
Foreign Equities Wall Street backed up a good January with a very strong February. Indeed, all major markets posted good returns for the month.

The Dow posted 12 consecutive days of gains in late February. This run is the longest since 1987! One more day and it would have taken the record back to 1970 and 1929! However many of these gains were small. Indeed, Bloomberg reports the 40-day average of daily movements is at the 1929 low. It is better to watch steady growth rather than bouts of high volatility.

Bonds and Interest Rates US bond rates have maintained their elevated status since Trump was elected. The Fed is talking up rates but we remember the last two years when the Fed only produced one rate hike per year when they had promised more.

The Fed’s current plan is for three hikes in 2017 but the market is pricing in less. If the Fed waits too long it will be hard to rein in inflation, but at this point inflation is not a problem.
The Bank of England kept rates on hold but pushed up its economic growth forecasts. We also kept rates on hold – as did New Zealand.
Other Assets Iron ore prices were up 11% for the month while oil prices were flat. China optimism seems to be the catalyst for the ore price movements while bringing new rigs back into production took the heat out of oil prices.

Gold prices were up +4% and the copper price was down 1%. The Australian dollar was up just over one US cent.
Regional Analysis

Australia

There are increasingly weak signals for the Australian economy but they are being masked by a mini boom in China.

When we strip away the China effect we see negative growth in retail sales, wages and full-time jobs. The policy response seems to be contemplating small cuts in corporate taxes spread out over 10 years and only for small companies.

Both sides of politics are actively considering tax hikes across the likes of superannuation, capital gains and Medibank levies. None of these changes will support our economy.
The GDP growth data for Q4 2016 came in strongly positive at +1.1% taking two consecutive quarters of negative growth off the table. But this jump in growth might not be sustainable. The resources sector played a big role in the last few months with strong volumes and unexpected high commodity prices.

China

China’s Purchasing Managers’ Index (PMI) came in at 51.3 against an expectation of 51.2 at the start of February. A month later and the PMI has risen to 51.6 against an expectation of 51.1 A number above 50 demonstrates optimism.

China’s inflation was up sharply: +6.9% for producers and +2.5% for consumers. Low and negative inflation has been a problem for China so these strong numbers are a welcome relief. Of course we do not want inflation to rise too strongly.

It is widely considered case that China is on a course to further stimulate its economy – and that will benefit Australia’s resources sector.

U.S.A.

The jobs data were the strongest for four months and unemployment, at 4.8%, is around the Fed’s estimate of full-employment.

US Retail Sales were quite impressive at +0.4% for the month and CPI inflation was good. But the Q4 GDP growth figure stayed at +1.9% after the first revision.

We are yet to get a clear view of what Trump is planning but it seems deconstructing Obamacare is to be first followed by tax cuts. We still think it will be close to 2018 before we see policy translating into much stronger US growth.

Europe

The latest news from France is that the Presidential election is less likely to cause the upset that would impinge on the European Union’s strength. But we should not forget Brexit and Trump!

Britain has passed the necessary legislation in the House of Commons to start the Brexit process. So far, there have been none of the negative economic implications so many predicted.

Rest of the World

North Korea remains an issue with its nuclear programme. While many potential problems lurk around the world this is, perhaps, the threat that is the most dangerous.

Julie Bishop is recalling the entire set of ambassadors from over 100 locations to Canberra for a two-day conference. Given the rapidly evolving foreign diplomacy issues – including Trump, South China Seas, and Europe – she wants to refocus our energies and ensure policy is aligned with our needs.

*By Ron Bewley (PhD,FASSA) – Director, Woodhall Investment Research

Media Release – Infocus announces national referral relationship with one of Australias largest accounting firms, H&R Block

Infocus Wealth Management today announced it has entered into an exclusive referral relationship with one of Australia’s largest accounting firms, H&R Block.  Listed on the New York Stock Exchange (NYSE: HRB), H&R Block established operations in Australia in 1971.  Today, H&R Block’s Australian business sees more than 2,000 tax consultants across more than 450 offices prepare almost 800,000 tax returns annually.

The referral relationship will see H&R Block refer their clients seeking wealth management services to financial advisers licensed by the Infocus Group.  This will be achieved via H&R Block engaging their clients through a dedicated call centre and direct accountant referrals; with the program managed by the Infocus Group.

Rod Bristow, Managing Director and CEO of Infocus, said “This is an exciting opportunity aligned to our vision of providing quality advice for Australians from all walks of life.  It’s an honour to be working with an organisation such as H&R Block, helping their clients achieve peace of mind through identifying and putting in place quality financial advice to achieve their goals”, he said.

From an Infocus Group financial advisers’ perspective, the H&R Block referral relationship offers unprecedented opportunity.  In the initial stages of the relationship, rolling out before June 30 2017, H&R Block will be directly marketing to more than 1,000 clients every week.  The aim of this will be to inform H&R Block clients of the range of value-added services that are now available to them through the relationship with Infocus.  Post June 30, the program will reach full scale with the aim of informing all H&R Block clients of the opportunity to engage with a quality financial adviser licensed through the Infocus Group.

Bristow said “The H&R Block referral relationship meets our adviser value proposition of helping Infocus Group financial advisers grow revenue, increase efficiency and effectively manage risk in their businesses.  Helping the extensive national network of H&R Block clients achieve their goals through quality financial advice offers Infocus Group advisers unique growth opportunities unavailable elsewhere across our industry”, he said.

“H&R Block have chosen Infocus based on our national presence of quality financial advisers offering a full range of financial advice services encompassing investment, insurance and superannuation.  Our in-house financial advice management software, lack of alignment to product providers, trusted brand and robust governance were also highlighted by H&R Block as key decision factors for choosing Infocus”, Bristow said.

For more information, contact Rod Bristow, Managing Director and CEO, Infocus Wealth Management, 1300 463 628 or visit www.infocus.com.au

Economic Update February 2017

Within this month’s update, we share with you a snapshot of economic occurrences both nationally and from around the globe.
– Trump has hit the ground running
– Australian economy is struggling
– China may again save us!

We hope you find this month’s Economic Update as informative as always. If you have any feedback or would like to discuss any aspect of this report, please contact your Financial Adviser.

The Big Picture
A fascinating economic experiment is taking place. The only major economy that can reasonably be described as performing strongly is China. The US, UK and a few others are growing modestly. We are certainly in the ‘could do better’ basket for our report card.
After nine years of being stuck in a groove, it didn’t look likely that western economies were going to spring into action anytime soon. But then along came Trump – a non-politician. His promise in simplistic terms was to do something different. He has certainly started off the way he said he would – signing executive order after executive order.
The markets have certainly been inspired in the last three months by Trump’s confidence. Wall Street has repeatedly hit new all-time highs. Even the ASX 200 has witnessed strong growth since the presidential election.
Plenty of people have jobs here and in the US. It’s just that they’re not as well-paying jobs as they used to have – and many more are now part-time. As a result, there is little demand pressure to raise wages or consumer prices.
What are we missing? The business confidence to invest! There are two major factors that determine investment decisions: the potential demand for the output; and the cost of the investments.
There have been no flags waving for potential demand for nine years. So Trump aims to cut corporate taxes to make investing cheaper, and kick start potential demand by flagging big infrastructure projects jointly funded by the public and private sectors. The plan seems to have legs but nothing is certain in this world.
The US economy is starting from a low GDP economic growth number of +1.9%. Not bad but it is the slowest growth since 2011. That’s actually good because it is easier for the next few numbers to show an improvement which, rightly or wrongly, might be attributed to Trump. And if that scenario eventuates, the snowball could gain momentum on business confidence.
The downside is that the snowball could get out of control in a year or two and lead to uncomfortable levels of inflation. The US Federal Reserve must become fleet of foot to raise rates at the right time. Too soon and the impetus might fizzle; too late and they create a big problem in trying to control an overheated economy.
So why is the media and public backlash to Trump so great? Could it be that there are many vocal sore losers than normal? In every election, the opposition person or party also get a lot of votes – just not quite as many as the winner. In Trump’s case, he appealed to the less well-off groups. The educated and/or left leaning media and other disenchanted groups have better access to platforms for debate.
The blue collar workers in the US never had much of a voice – until they put up with an extended period of being worse off – and Trump is their knight in shining armour.
There is a very reasonable chance that the US economy will start to grow strongly again and take the world with it. The UK just posted the best current growth figure of 2.0% in western economies.
Australia should benefit from a strong China and US. Commodity prices might be supported, or even grow, but we can’t live off resources forever. At some point we have to restructure our economy. We need tax cuts and infrastructure programmes like Trump. All we seem to have on offer from either side of politics are promises of tax hikes. Of course, in the short run, the deficit would increase but from good (infrastructure) debt – not bad (recurrent) debt.
Asset Classes
Australian Equities
The ASX 200 looked set to post a modest gain for January but it faltered in the last couple of days of January. But after the previous three months, a breather is perhaps welcome.
The resources sectors, Energy and Materials saved the day for us. Iron ore and copper prices made good gains on optimism about China. Australian resources companies are widely tipped to perform well in the upcoming February reporting season.
In the month before reporting – known as the ‘confession season’ – a number of companies experienced sharp prices movements – up or down – on the slightest of unexpected news.
Companies like Bellamy and Brambles lost more than 10% in one day on their share prices. Perhaps less well publicised were the big gains – like CSL, and Resmed.
The forward guidance given by companies in reporting season will not really have had time to have benefited from assessing any Trump-led impact. We’ll have to wait for that.
Australian banks did really well in Q4 of 2016 but stumbled in January as investors realised that prices had run too hard. Unlike in the US, there is not a lot of change in the wings to help this sector. But dividends look largely safe and growth may come later.
Foreign Equities
Wall Street enjoyed a good January. The Dow Jones index broke through 20,000 and stuck for a couple of days. All four major indexes hit all-time highs on the same day!
The London FTSE staged a massive rally of consecutive daily gains. Brexit does not seem to be worrying UK investors.
We continue to think overseas markets will have a better 2017 than the ASX 200. Nevertheless, diversification across domestic and international markets is still wise
Bonds and Interest Rates
There should be little doubt that global rates are on the way up. The question is – how quickly? We think less so than many commentators because we think it will take time to put expansionary plans into action. And, of course at home, we still need cuts.
Macquarie Group reaffirmed its call for two rate cuts at home on 2017 but the consensus is for rates on hold until 2018.
Other Assets
Certain commodity prices (like iron ore and copper) continued to strengthen in January and our dollar (against the US) appreciated. Oil prices were down slightly but are well up on this time a year ago.
Regional Analysis
Australia
Our employment data released in January did nothing to dispel the feeling that our economy continues to struggle. Full-time employment was down -34,000 jobs on the year when maybe +100,000 jobs were needed to allow for population increases.
The Bureau of Statistics pointed out that the annual change in total employment (including part-timers) was less than half of the average over the last twenty years.
Our inflation read missed expectations on the downside. Perhaps the only bright spot was data on resources trade which might save our bacon for the next GDP read.
China
China continues to post solid economic data. China even raised interest rates on 6 and 12 month loans to slow down its economy!
The latest Retail Sales figure was +1.9%, which was ahead of expectations, and economic growth was on target at +6.7%. The IMF upgraded its China GDP forecasts to +6.5% from the +6.2% forecast published last October.
U.S.A.
No one can be sure what Trump is really planning but the ‘old political system’ certainly was ‘broke’. Some of his executive actions seem over the top but, perhaps, he needs everyone to sit and take notice. The world needs a new dawn and nobody before has solved the problem.
All of the early short-term indicators point to an energised US economy. True – there are many unhappy folk – but Trump has surrounded himself with people who were mega-successful in their own rights – and not just a bunch of people getting the nod for services rendered.
Europe
The doomsayers again got caught out. The UK is not a disaster in a Brexit world. Indeed its economic growth in Q4 2016 was better than any other country in the Western World.
There were thoughts by some that a Brexit mentality would sweep Europe and cause chaos. That didn’t happen either.
Rest of the World
Trump’s temporary ban on travel from certain Middle Eastern and African countries to the USA causes angst among many – but the main ban is only scheduled to last for 90 days.
North Korea is still huffing and puffing over its nuclear programme. That’s too difficult a problem to assess in an economic update.

Media Release – Infocus expands advice footprint

Infocus Wealth Management Limited (Infocus), one of Australia’s leading wealth managers, this week announced it has acquired another financial advice business under the Infocus Group Succession Plan.

The Succession Plan was put in place in 2014 in response to adviser demand for a viable exit strategy within the two AFSL holders operated under Infocus Wealth Management.  Since that time, five advice businesses have been acquired, with Infocus also owning 50% of a sixth advice business.

Rod Bristow, Managing Director and CEO, said: “With so much change continuing to happen across our industry, we felt it important to ensure advisers had an option ‘on the table’ from Infocus as their business partner if they wanted to exit the industry or bring on a partner to help fund further growth.  Our value proposition for advisers is to help their businesses grow revenue, increase efficiency and effectively manage risk – making us a logical buyer of quality advice businesses”, he said.

Asked about the rationale for acquiring financial planning businesses, Bristow said “This is a natural complement to our extensive national dealer group operations.  It helps advisers who are seeking to exit the industry or bring on a partner to help fund further growth; and allows us to diversify our group revenue model.  Advisers seeking a quality AFSL partner need to have succession options available and we have once again demonstrated we are a fantastic partner for helping advisers enhance and ultimately realise the value of the asset they’ve created”, he said.

“We focus on advice businesses in major population and growth areas nationally.  In the last 18 months, we have acquired two advice businesses in Melbourne, two in south-east Queensland (with our 50% advice business shareholding also in this region) and one in Townsville.  Our proprietary end-end CRM and financial planning management software, Platformplus, allows these businesses to be managed in a compliant, consistent way, delivering business efficiency and great client outcomes regardless of geography”, he said.

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