No Images? Click here April 2018 We have nothing whatsoever to do with AMP LtdWay back in the 1960’s the only investments that most Australians knew about were buying a residential rental unit, having whole of life insurance policies and having money on deposit in the bank. The sharemarket was largely seen as being a market for the rich. But long ago I learned that the business practices of AMP Ltd, as it was before demutualisation, and a number of other life insurance organisations were on the nose. Personally I am fortunate to never have dealt with AMP. Traditionally they had a large number of agents selling whole of life insurance policies which took many years to break even because of the cost structures built into the front end. At the point of AMP’s demutualisation its shares were distributed to its policyholders (who were technically the owners of the society) but since that date the share price has slid almost continuously as it continually failed to convince the sharemarket that it had a viable business plan. Recent revelations at the Banking Royal Commission stripped away its last fig leaf of respectability. Your entitlement to advice Those of our clients who have superannuation funds and investment portfolios administered by Synstrat Superannuation and advised by Synstrat Management Pty Ltd under agreements with us are entitled to receive advice on a regular and timely manner. To ensure that every fund and portfolio receives advice, we routinely review them twice a year, but if you as a client need advice at other times then you ring Roger, Cameron or myself as appropriate, and if the person is unavailable, speak to Jenny, who will make a time for us to talk to you. Long experience has told us that it's a mistake for an advisory organisation to be also the manager of investments that it manages in house. At its foundation Synstrat advised that it would not create in house property trusts or similar vehicles because they can lead to serious conflicts of interest. The present Royal Commission into banks has shown how the pressure on advisers aligned with AMP and the major banks led to a significant percentage of client funds directed to in-house investments and has caused serious problems. We also note heavy press criticism of Dixon Advisory which operates a US based retail property trust in which it has many of its clients superannuation funds invested of which the performance recently has been of significant concern. The problems associated with unwinding such an investment are huge. The Synstrat Group is owned by its directors, all of whom work in our businesses, which consist of Synstrat Accounting Pty Ltd and Synstrat Management Pty Ltd, the latter being licenced to provide investment advice (AFSL 227169). The investments we recommend to clients are at arm’s length to ourselves and can be bought and sold on the stockmarket or redeemed from arm’s length fund managers. The vital question to ask in respect of any investment is “is there a market or a mechanism on which this asset can be sold at current market value if it is necessary to liquidate the investment.” Best wishes to all clients, Graham Middleton The Synstrat Group provides Accounting, Financial Services, Business Advice, and Financial Advice. Prepared by Synstrat Management Pty Ltd for clients of Synstrat Group. Synstrat Management Pty Ltd P. 03 9843 7777 ABN 57 006 295 325 If you are not the intended recipient of this communication please delete and destroy all copies of this message and telephone Synstrat on +61 3 9843 7777 immediately. If you are the intended recipient of this communication you should not copy, disclose or distribute this communication without the authority of Synstrat. Any views expressed in this communication are those of the individual sender, except wh ere the sender specifically states them to be the views of Synstrat. If you do not wish to receive this email in future, please reply to the sender requesting termination of service. |