inner Centric Wealth Client Newsletter Summer | 2006 circle Your interests – our focus. Message from the CEOs Clock is ticking on Greetings and welcome to your inaugural client newsletter. new super rules We are delighted to tell you that the merger has progressed extremely well. There has been a lot of This did not come as a surprise to us as we knew that the cultural values, coverage in the financial people and service offerings of the two press about the Federal organisations were highly compatible. Budget announcements With the merger well behind us, to simplify and streamline Centric Wealth now advises on over $3.5 billion of assets and in excess of super. Many have dubbed $6 billion of life cover, taking our total it a $1 million window of revenues above $35 million. opportunity. But while scale brings with it many benefits, we have not lost our boutique The proposed changes to superannuation will client focus. Industry surveys show that affect many financial plans. The proposal to we have one of the lowest number of abolish Reasonable Benefit Limits (RBLs) - clients per financial adviser. which is the limit on the amount of super that can be received as a lump sum or a pension Our business model is also one of before higher taxes cut in - is a case in point. integration rather than aggregation This change, along with the plan to allow tax - each individual business is integrated But it is the transitional arrangements free lump sums and pensions for those over into a common structure with a single that apply between now and 30 June 60, levels the playing field and makes super culture and high levels of quality control. 2007 that have been receiving the lion’s simpler and more attractive. We believe an integration model is the share of attention. This is the “window of only way to build a sustainable premium But while the proposals are generous in opportunity” that you may have heard about. brand. terms of end benefits, the contribution side The Government has decided it will allow up has been tightened. to $1 million of undeducted contributions to We are the only remaining high end be made to super in this interim period. advisory group out of the top 20 One of the proposals is to limit personal financial services companies that is not after tax super contributions – known as This is an advantage to those who were owned by a major financial institution. undeducted contributions – to only $150,000 planning to make large contributions into We hope you enjoy this issue. a year commencing 1 July 2007. Those under super from the sale of investment assets such age 65 will be allowed to bring forward two as property or business. With the 30 June Glen Castensen Michael Pillemer years of contributions allowing a one-off deadline now in place, some may want to contribution of $450,000 to be made. bring forward their plans. cont. page 7 INSIdE ThIS ISSuE: General insurance now on offer 3 ‘Engaged philanthropy’ comes to the fore 6 Welcome to our new offices 2 Merger success story 4 Staff spotlight 7 Banking advice worth a mint 3 Centric group grows 5 Centric in the news 8 New office space hits the mark In finalising the merger last year, it quickly became apparent that through either plug-in or wireless access, or take a break and catch Centric Wealth’s offices would need to be reconfigured. It was more up on the day’s events on the TV. The area is well used and greatly than a matter of space; Centric Wealth’s business model integrates appreciated by staff – who took full advantage of the facilities after individual businesses into a common structure with a single culture, hours while the World Cup soccer was on! with high levels of quality control and operating standards. The relocation of our O’Connell Street and Market Street offices to The new offices have impacted well on staff morale. The office Sydney’s Macquarie Place, and the Ascot office move to the Brisbane design is part of a plan to retain and continue to attract the best CBd premises are testimony to the single location model. people. having the best staff means clients are provided with the best service. When in Sydney, drop by anytime to have a look. For Canberra, the transition involved a total refurbishment of the existing space; removing old compactors and ageing furniture and fittings to create new offices in modern organic colours. In Brisbane, extra office space was required, and the entire working environment was reconfigured. At the head office in Sydney, Centric Wealth expanded upwards, taking a second level of Sydney’s Macquarie Place building. An internal staircase (pictured) was also installed to promote staff interaction. A key to the office design was ensuring there were enough private areas for discussions, while keeping the general office environment open. The layout reinforces the company’s core values including being ‘non hierarchical’ – meaning staff of all rank, including the executive team, work side by side in an open plan. Ensuring staff were involved in the redesign, the theme for the meeting rooms was put to vote. Each of the 15 meeting rooms is named after iconic Sydney beaches. As well, each displays beach artwork and has aqua panes of floor to ceiling glass. A central feature of the new office is the ‘club’ area, adjoining the kitchen. Staff can take their laptops and continue working in the ‘club’ 2 General insurance advisory service now on offer Centric Wealth liability and professional indemnity), marine transit, corporate travel and motor fleet launched a among others. general insurance advisory service # General insurance advice is also available to all types of businesses including property in July to provide high end owners, retailers, importers and exporters, insurance advice for medium wholesalers, IT, medical and fashion to large businesses and industries, residential and commercial strata plans and manufacturers. private individuals. Appointed to head the division was Leonard This launch was in response to client Gordon, who has had an extensive career demand. Many clients said they were looking for a premium general insurance option, in insurance broking spanning two decades, where they could place the same level of both internationally and within Australia. trust that they have with Centric Wealth. art and other important assets. These are Leonard says: “We are delighted to provide some of the many services provided to The insurance cover provided is our clients with access to a range of general clients as part of the new general insurance underwritten by a range of premium insurance offerings which complement our service.” insurance companies such as Chubb, existing wealth advisory services. QBE, CGu, AIG, and Allianz. Insurance It is expected that a team of general cover provided includes prestige home “Quality property and home and contents insurance advisers will be available at and contents, commercial and industrial insurance is an important insurance product all Centric Wealth offices soon. In the special risks, public and products liability, for many of our clients. They also want to be meantime, ask your adviser for more professional risks (directors and officer’s able to insure their home offices, works of information. Case study: banking advice worth a mint Harold Neumann was able to The business’ access to debt was increased “Everything is going to specialty areas. by 30 per cent, while his interest charges It’s not a reflection on you, your company access extra operating cash were substantially reduced. or your staff, and when you realise that you for his business at financing don’t feel stupid. A lot of businesses feel that “The interest savings were a big rates that were markedly achievement in such a tight margin because they’ve got in-house accountants, lower than before, thanks environment,” harold says. they should be doing the negotiations with to the expertise of Centric the banks. “Survival means meeting the market and Wealth’s lending advisers. meeting the market means keeping costs “Good advice equals real savings” down. You need specialist people to help harold’s business, a wholesaling and you keep your costs down. “Once you’re inside the business, you can’t importing company based in Sydney, depends on being flexible and seizing opportunities see the wood for the trees - it’s the same old “The most emotional thing is the relationship as they arise. To become more responsive story. You don’t know what’s going on out between clients and their banks, especially to these opportunities, the business needed there per se, so it’s worth having somebody long standing relationships.” more cash. This meant access to additional who specialises in that area to assist you.” debt facilities. And that’s where Centric came in. harold liked that Centric was able to take So what did good advice mean to harold? harold realised that the prevailing terms of responsibility for the negotiations with the “The good advice became more than good his banking relationships were a legacy of the bank. “It cut the emotional advice, it translated into actual savings. Good historical evolution of the business and did umbilical cord,” he says. advice equals real savings.” not reflect its current requirements. After reviewing harold’s banking “Survival means meeting the market and meeting the market means arrangements, Centric Wealth’s Kieran Canavan and Kimon Taliadoros were able to keeping costs down. You need specialist people to help you keep your secure a superior deal with harold’s bank. costs down” – harold Neumann. 3 Meeting your needs A year on from the corporate benefits – providing a one-stop Your interests, our focus shop for client centric wealth advice. successful merger that Centric Wealth offers advice across both The one thing that hasn’t changed is created Centric Wealth, that our advisers still pride themselves sides of the balance sheet. Inner Circle provides an on their personalised, boutique service Whether it is advice on developing a to clients which they provide on a fully insight into the services and transparent basis. comprehensive financial plan, assistance in benefits Centric Wealth managing your contingent liabilities through The end result for individual clients is a risk and general insurance, access to special now offers clients. scope of services that resembles a European opportunities through private capital private bank. As the country’s leading While the merger extended and enhanced privately owned wealth advisory company, investment or even specialist lending advice, the service on offer to all clients, there Centric Wealth’s advice and services extend Centric Wealth has experts who can help. were many hard decisions to make along way beyond just financial planning. The breadth and depth of the Centric the way. But at the heart of every decision For business clients, the value proposition Wealth service offering takes in: was the one key question: Is this in the is unrivalled in the industry. It takes in clients’ best interests? a comprehensive range of services and • Financial planning specialist advisory expertise which • Superannuation and retirement advice Centric Wealth now has 45 advisers includes corporate benefits, general and • Corporate benefits specialising in financial planning, risk and risk insurance, succession planning and • Investments general insurance, lending advisory and lending advice. • Special opportunities • Lending • Risk insurance The value proposition is simple: Centric Wealth can provide you with • General insurance the expertise you require in a complex financial world, either directly • Family office services or working in conjunction with your other professional advisers. • Charitable giving 4 Business services summary Personal services summary Recognising that running a business is no mean feat, Centric Wealth Centric Wealth’s personalised service to clients sets it apart from most provides a comprehensive range of services to assist you in this task. institutional firms. The wealth advisory service spans: Corporate benefits Financial planning Many successful people neglect to focus on their own financial needs. The Centric Wealth view of corporate superannuation is simple. That Centric Wealth can work with you to develop and implement a is, there is no one best provider for each client. Rather, the aim is to comprehensive financial strategy. assess your corporate super fund against a range of set criteria to ensure it is in line with best market practice and meets your needs. Superannuation and retirement advice Advice on group salary continuance and group insurance cover is also Centric Wealth provides specialist advice on the technicalities of provided. superannuation – including self managed super funds and dealing with corporate funds. Lending Centric’s lending advisory assists corporations in making the optimal Investments lending choice, whether it is for a new loan or refinancing existing Centric Wealth has a technical research team of nine specialists providing insight into shares, property, managed funds, fixed interest arrangements. Financing advice is available for a range of purposes and private equity investments, amongst others. including developments, commercial cash flow and business loans and property. Special opportunities The private capital division, Centric Capital*, devises, structures and Risk insurance delivers investments that are unique or hard to access. Centric Wealth will work with you to establish and maintain a comprehensive insurance protection strategy. The process is to Lending undertake a detailed analysis of business insurance needs to ensure Specialist lending and refinancing advice is available for a range of that you, your family and your business partners are protected in the purposes including residential property and investments such as shares, case of unforeseen events such as the death or disability (permanent managed funds and other assets. or temporary) of a director, partner or key person. Risk and general insurance advisory Centric Wealth can provide you with advice and guidance on the range General insurance of insurance products available to families and individuals. Recognising that businesses have different insurance needs, Centric Wealth specialises in a number of classes of general insurance. These Family office services include commercial and industrial, public and products liability, This service is specially designed to meet the particular needs that marine transit, corporate travel, motor fleet, electronic equipment, come with owning substantial family assets. engineering, tax audit, professional indemnity and directors and officers liability. Charitable giving There are a broad range of options to make charitable giving more tax effective. Centric Wealth can assist you with this. Centric group grows In September InvestAhead joined Centric Wealth in what is an Mike Galgut has outstanding outcome for both groups, and a major milestone in 20 years experience in the Centric Wealth’s external growth program. investment, superannuation and employee benefits markets and has built up InvestAhead specialises in financial planning, personal risk insurance and a substantial corporate superannuation business. corporate benefits and a natural fit of clients, culture and philosophy he plays a pivotal role in all aspects of superannuation, exists between both parties. group risk, claims administration and fund member education. he is also the co-author of the book How InvestAhead’s advisers and clients will gain access to the full suite Much is Enough – Your Financial Roadmap to a Happy of Centric’s client services, including lending advice, in-house share Retirement. advisory services, syndicated products, private equity offerings and general insurance advisory. don Shar has over 30 years experience in InvestAhead’s three directors – Chandra Wirasinha, Mike Galgut and the financial services industry, specialising in don Shar – collectively have over 60 years experience in the financial superannuation, all aspects of life insurance and services industry. business insurance. he runs training and education seminars for his corporate clients and has spoken at industry conferences both in Australia and Chandra Wirasinha is a Chartered Accountant and abroad. he has addressed the New Zealand has worked in the financial services industry for over Financial Planning and Insurance Association on the 15 years. Prior to setting up InvestAhead, Chandra introduction of financial services reform (FSRA) in established and developed the RetireInvest franchise Australia and how his company had adapted to it. for the Eastern Suburbs of Sydney. his previous experience includes being the Managing director of a Currently based in Bondi Junction, all three directors and staff listed uK computer company and a partner in a firm will relocate to Centric’s Macquarie Place premises in Sydney of Chartered Accountants. early next year. 5 ‘Engaged philanthropy’ Veterans see advisory linked to giving comes to the fore Bruce Christie has been voted by Asset magazine as one of Australia’s top 12 advisers. he is the author of the Centric Wealth white paper: Charitable Giving In September, Bruce believes access to quality advice – a guide to choosing the right program about charitable giving is vital as the to achieve your philanthropic objectives. financial adviser increasing amount of wealth in Australia he believes that encouraging advisers Bruce Christie is creating greater opportunity for to assist clients to achieve their wealth set the scene for philanthropy. And he says advisers are best goals, while simultaneously contributing placed to assist clients to understand how to charitable causes is vital to the overall a new approach to wealth accumulation of wealth in Australia. they can achieve their philanthropic goals. accumulation. According to a recent Queensland Chris Cuffe recently took over the The Financial Planning Association’s university survey, investors are pursuing helm of not-for-profit organisation luncheon in Sydney was organised by advice on charitable giving but there’s a real Social Ventures Australia. Chris is a Centric Wealth’s financial adviser and need for more training on the part of the strong advocate for Prescribed Private charitable giving specialist Bruce Christie. financial advisers to better equip them in Funds, which allow substantial sums The event featured a panel of fellow providing such advice. to be invested for future distribution veterans of the wealth management to charities. industry – Chris Cuffe, Graham Bradley Following the overwhelming feedback and Peter Thornhill – who encouraged from the event, Bruce plans to set up a Graham Bradley, former chairman discussion within the industry about focus group of financial planners to discuss of Perpetual, created the Perpetual charitable giving. vehicles to help them hone their skills Foundation and is actively involved in the when discussing charitable giving options Sydney Community Foundation, a public Advocating a need for quality advice with clients. philanthropic foundation. Graham seeks on charitable giving, the panel spoke of to challenge the mindset of financial engaged philanthropy, where investors take Talk to your Centric Wealth adviser if planners in thinking their jobs are not an active interest in creating wealth via you are interested in learning more about giving. initiatives ranging from private charitable about linking charitable giving to your foundations to public charitable trusts. wealth needs. Peter Thornhill is now the principal of his own business, Motivated Money Pty Ltd, and consults to a number of Australia’s “Encouraging advisers to assist clients to achieve their wealth goals, leading financial institutions. he takes a while simultaneously contributing to charitable causes is vital to the keen interest in philanthropy. overall accumulation of wealth in Australia.” - Bruce Christie. 6 Clock is ticking on new super rules cont. from page 1 As the sale of some assets may take longer Conclusions are best made than expected it raises the issue of whether it after in-depth analysis with a is worth borrowing money to invest in professional adviser rather than super now and repay the loan once the cursory readings of media articles. investment is sold. Another change is the abolition of the The fact is that the numbers will need to compulsory cashing rules. This means you be crunched on a case-by-case basis and can leave your money invested in a super the opportunities and risks associated fund indefinitely. This may be beneficial to with such a strategy need to be clearly those who are not reliant on super income to understood and accepted. live. People will, however, need to assess the This question really stands under the relative tax rate on each investment option. broader umbrella of super versus non-super investment. Should you invest your money Another important change relates to the in super (for example by salary sacrifice or way death benefits are paid to dependants. with borrowed money), pay your mortgage All lump sum death benefits from a super how super death or invest in shares (maybe with a gearing fund will now be tax free when paid to a benefits will actually work strategy), invest in property or reinvest into dependant. dependants also have the option is being keenly watched. your business? of receiving a death benefit as a pension. It’s There are many questions yet to be worth noting that death benefit pensions will answered. draft legislation should be These are traditional questions as to available between december 2006 and where you should direct excess funds, be taxed differently depending on the ages March 2007. We have an Aspect available and they remain as pertinent and of the deceased and their beneficiaries. Your which provides a summary of the proposals problematic now as they did before the adviser can explain this difference, as well as (at www.centricwealth.com.au), or contact super changes were announced. the strategy implications. your adviser for a copy. Staff spotlight – Anne-Marie Esler Whether it is helping encompassed a wider scope of financial advisers with their technical advice and services to clients. queries, writing client communications, training What is your professional background? staff or contributing to Before Centric I was responsible for training industry think tanks, with the Association of Superannuation Technical Research Manager Anne-Marie Funds of Australia (ASFA), and was Esler is an integral member of the Centric previously Learning and development Anne-Marie Esler… in her Wealth team. Manager at Zurich Financial Services. own words Everyone is familiar with their adviser, but I am a member of various committees Age: Just over 30!! few are as familiar with the technical and where I am able to have input into changes support staff that work for Centric Wealth. affecting the financial services industry and Favourite food: Most people at work It is these members of staff who provide also to write and review financial services would describe me as a healthy eater, the infrastructure and support that make it course material. I’m an Associate of but I wouldn’t say no to anything sweet! possible for advisers to provide the highest ASFA, a member of ASFA’s Self-Managed My favourite cuisines are Japanese and level of service for clients. Superannuation Funds Education Committee, Indian. and a member of the Financial Planning Each edition of Inner Circle will take an Association’s (FPA) Superannuation in-depth look at a Centric Wealth staff What is your passion: I love being Committee. member, outlining their role and explaining active and playing team sports. I go to how the work each person does ultimately describe your role at Centric the gym and play netball and oztag. I contributes to the service clients receive. My role is extremely diverse. It involves have recently purchased a road bike and helping advisers with technical queries, am slowly coming to terms with Sydney In our launch edition the spotlight is writing client communications, keeping roads as a rider. falling on Anne-Marie Esler, Technical Research Manager. up-to-date with relevant legislation, presenting technical information to clients If money was no option, what Name: Anne-Marie Esler or other interested parties, training staff and extravagance would you buy Position: Technical Research Manager liaising with a wide variety of participants in yourself or your family? I’d probably Office: Sydney the financial services industry. buy my parents a boat, my sister a big When did you join Centric and why? Apart from the variety, the thing I really enjoy house for her big family and I’d take an I joined Centric (as Centrestone) in June about my role is building relationships with extended overseas holiday. 2004. I was looking for a technical role that the advisers and staff. 7 Centric Wealth in the news Centric Wealth has been mentioned or Some other highlights of the year included an and was also quoted in The Bulletin magazine; quoted in over 80 newspaper and magazine article written by Anne-Marie Esler on saving while Centric Wealth’s head of equity articles since the beginning of the year. for education which was included in Alan research Paul Zwi has been quoted discussing Kohler’s influential Eureka Report, while her the T3 float in the Australian Financial Review Examples of some of the headlines are technical expertise also saw her being quoted as well as IFA magazine. included in the accompanying montage. on the front page of the Australian Financial Review on the changes to superannuation; These are just a few examples of the media This result is an indication of the high esteem joint CEO Glen Castensen was quoted coverage received this year. To keep in touch with which the financial and trade press hold discussing issues facing advisers and dealer with the latest news from Centric Wealth, visit Centric Wealth. groups in SuperFunds and Asset magazines our website at www.centricwealth.com.au. Contact us Sydney Level 2, 7 Macquarie Place Sydney NSW 2000 PO Box R1851 Royal Exchange NSW 1225 Services List Ph: (02) 9250 6500 Fax: (02) 9252 2702 Financial planning Superannuation and retirement advice Canberra Corporate benefits Any Comments? Level 1, 8 Phipps Close, deakin Investments If you have any comments about Inner Circle, ACT 2600 Special opportunities please provide your feedback via email to PO Box 3637 Manuka ACT 2603 Lending email@example.com, or talk to Ph: (02) 6281 1477 Risk insurance your adviser. Fax: (02) 6281 1476 General insurance Family office services Brisbane Charitable giving Level 16, The Riverside Centre, 123 Eagle Street Brisbane QLd 4000 GPO Box 915 Brisbane QLd 4001 Ph: (07) 3230 6555 Fax: (02) 3221 2145 Important Information: This document has been issued on the basis that it is only for the information and exclusive use of the particular person to whom it is provided by Centric Wealth Advisers Ltd ABN 88 090 684 521 (“Centric”). Centric is an Australian Financial Services Licensee no 243253. Although the information is derived from sources considered and believed to be reliable and accurate, Centric, its employees, consultants, advisers and officers to the maximum extent permitted by the law disclaim all liability and responsibility for any opinion expressed or for any error or omission that may have occurred in this document. Any forecasts included are reasonably believed to be reliable based on current information but due to our inability to predict future events they cannot be guaranteed. This document is of a general nature only and is not to be construed as providing advice. It has been prepared without taking into account any person's particular investment objectives, financial circumstances or particular needs. Before making any investment decision you should assess for yourself or obtain professional advice on whether the information in this document is appropriate to your investment objectives, financial circumstances and needs. # The advice is provided by arrangement with Westcourt General Insurance Brokers Pty. Ltd. AFSL no. 238447. * Specialised Private Capital Ltd trading as Centric Capital is an Australian Financial Services Licensee no. 246744.
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