Advisers at risk over asset-based feesBY BEN COLLINS | THURSDAY, 10 JAN 2013 2:55PMAdvisers might need to change the way that they charge asset-based fees, which can create conflicts of interest, said finance consulting group The Fold. |
Editor's Choice
The top investment funds over the past year
The top-performing investment funds for the year ending March 31 have been announced, with all being ETFs focused on international equities.
AFCA finds more Dixon Advisory victims
The Australian Financial Complaints Authority added 544 more Dixon Advisory-specific victims to total 2492 complaints at the end of April, which will further exacerbate the levy financial advisers must pay.
Senior Cbus investment manager exits
Cbus' head of total portfolio management has left the fund, while a former JANA executive has joined its infrastructure team.
Quality of retirement does not depend on super balance: Bragg
The Senate Economics Committee has released its interim report into using super for housing.
Products
Featured Profile
Robert De Dominicis
CHIEF EXECUTIVE OFFICER
GBST HOLDINGS LIMITED
GBST HOLDINGS LIMITED
It was during a family sojourn to the seaside town of Pescara, Italy, Rob DeDominicis first laid eyes on what would become the harbinger of his future. Andrew McKean writes.
The only good news I got about my investements in the GFC was that my adviser's fees had come down along with the asset values - thank goodness. Now that's what I call in my best interests.
It never ceases to amaze me that some people cannot work out that a set dollar fee will always equate to a percentage of a portfolio, regardless of how you dress it up. Its simple mathematics. Sorry folks, some people need to go back to primary school.
If advisers should not charge as a % of assets then the rest of the funds management industry should not do so either. Our firm divides an ongoing fee between strategy advice (dollar based) and investment / AA advice (% based fee). Our implementation fees are project / time based. For investments, you have to have skin in the game to build a clients portfolio. On the business side, would you rather have your fees increasing over time at CPI, or linked to the markets? I know what is more profitable in the long term.