2016 – Year in Review

2016 has been an extremely busy year with some outstanding successes. We have experienced growth as a business, our people are achieving milestones and, most importantly, our clients are prospering as a result.

Here are some perspectives on the year that was, along with a glimpse of the future from around the business.

Damien Cooper (Chief Executive Officer)

Reflecting back on the year, throughout all the highs and lows I believe it is our principles that lie at the heart of what we have been able to achieve.

Client Focus

With our clients’ needs at the core of everything we do, we implemented a number of changes and expanded our business specifically based on providing a 360° approach to managing your financial strategy.

Holistic Service

Since adding our Tax and Accounting services to our suite of offerings, the rapid uptake and growth of that side of the business showcases the importance of working closely with our clients and the deep understanding of their needs that we develop in the process.

Our People

For me, one of the great highlights of 2016 has been the strength of our team’s culture and cohesiveness. It has been a year of great satisfaction and achievement for our people and I’m pleased to report the main points.

After two years cultivating his market knowledge at Macquarie Private Banking, Tim Collins has returned home, re-joining us as an adviser.

Christeena Smyth has rapidly developed and expanded her repertoire, and is now para planning, including Statement of Advice and Review document preparation.

Yet another graduate programme alumnus, Rebecca Hughes has recently joined the team to work in the Tax and Accounting side of the business.

Five of our people reached 10 years in the business in 2016. The loyalty and dedication of our people in servicing clients – especially in such a volatile climate – represents what Financial Decisions is all about. Congratulations and thank you to:

• Albert Lee
• Linda Hansen
• Tim Brosnan
• Margaret Channell
• Damien Cooper

Lifelong Family Memories

On a personal note, this year brought with it the exciting opportunity to explore Australia with my family. Jumping at the chance, we packed up the family and drove around the country for three months, sharing some incredible experiences that have made 2016 a year we will never forget.

Our client services/marketing extraordinaire, Linda Hansen, also embarked on a wonderful journey this year – three weeks in Peru and a week in Chile.  Highlights included Lake Titicaca and Machu Picchu (of course) in Peru and Santiago and Valparaiso in Chile.

An Exciting Year Ahead

The start of 2017 heralds the launch of the Generation Fund, an investment framework that will offer a low cost, transparent and actively managed fund. Designed to future-proof the business and adapt to a rapidly changing market landscape, the Generation Fund will be a key focus for us in the New Year.

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Matthew Collins (Principal/Adviser)

While challenging, the task of distilling all the action of 2016 into a small number of highlights really brings into focus what we have been able to achieve as a business and for our clients.

Advocacy

Following close media scrutiny, the regulators and Federal Ministers told our industry to self-regulate or they would legislate. The Financial Services Council (FSC) was given the responsibility of coming back to the Government with policy and legislative changes.  The FSC is heavily influenced by the big four banks and in many instances, legislation and policy decisions have been made that obviously provide greatest benefit to large institutions. This creates inequality in the market and provides no benefit at all to you, the consumer.

As a result, I have been lobbying local Member of Parliament Jason Falinski and a network of insurance agencies to ensure a more level playing field and to protect and further the interests of our clients.

Inroads have definitely been made in terms of bringing the issue to the attention of the media and politicians. It will be interesting to see what happens in 2017 and we will continue to be advocates for a fair and equitable insurance industry in this country.

Client Successes

There are two claims that stand out for me this year, which really reinforced why we fight so hard for our clients.

• After being told that there would be absolutely no chance of a successful Total and Permanent Disability claim for one of our clients, we managed to obtain a full and complete payout from the insurer. This enabled our client to have the treatment and a standard of living to which they are entitled.
• Another client was overwhelmed by the prospect of approaching the insurance minefield while battling prostate cancer. We acted on their behalf, cut through the red tape and secured them a full Trauma payout. Our client is now receiving treatment and is able to focus on their health without the burden of financial stress.

While the media attention afforded to the insurance industry is not always encouraging, our experience with the insurance agencies is positive and we have seen a solid rate of policy payout over the year.

Beating the Kiwis

A personal highlight – in February I was part of the Surf Life Saving Team selected to represent Australia at the Surf Life Saving Nationals. We raced against New Zealand in a tough and exciting surfboat encounter and managed a hard-fought victory.

The Global Scene and the Future

Despite the instability and immense shift accompanying Brexit and the US elections, financial markets have been incredibly resilient, making the outlook for 2017 more positive than many expected with such dramatic events taking place on the world stage.

The insurance side of the business performed extremely well in the face of tough conditions and I look forward to continued success for our clients in 2017.

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Albert Lee (Chief Investment Officer)

2016 certainly has been an interesting year from a number of perspectives. Here are some of my key areas of interest and takeaways from 2016:

Sustainable Growth

We have reviewed policies and procedures to facilitate efficiencies and streamline the way we operate – without compromising on quality. The result has been organic growth and improving margins, with the promise of more to come.

The Power of China

By introducing a stronger focus on creating a more open and free marketplace and balancing that with its traditional domestic consumption economy, the wealth of China has boomed in 2016 with a reported 568 individual billionaires.

This trend is expected to continue, with the biggest impact on the Australian economy in 2017 set to be in the Mining and Resources sector.

Year of the Underdog

2016 has seen anti-mainstream voting emerge as a major influence over the global economy.

This rather dramatic shift towards the unexpected reflects the ever-growing discontent of the public with political approaches to economies and markets. The instability of the political climate was punctuated by Brexit and the US elections, the fallout of which potentially has numerous implications for the financial environment in Australia throughout the upcoming 12 months.

Politics, Valuations and the Future

On the whole, markets have been surprisingly conservative and consistent throughout 2016, despite a political landscape that can best be described as unstable. However, returns have been flat and valuations are inflated which, when combined with uncertainty around the Trump administration’s economic policies along with ongoing consequences as a result of Brexit, make the market prospects for 2017 an interesting proposition.

When it comes to valuations, 2017 is shaping up as a potentially difficult year. Valuations are still expensive and this high base may, over the upcoming year, create segments of the market that are even more overpriced.

There is, however, a silver lining for us in Australia, with the number of high quality businesses increasingly presenting investment opportunities.

Bucket List Tick

From a personal perspective, I was able to visit and tick off one of the places in my top three bucket list destinations. Having recharged the batteries, I am looking forward to the year ahead and helping our clients take steps towards achieving their financial goals.

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Chetan Sharma (Principal/Accountant)

On reflecting back on 2016, I am delighted by the success that our Taxation and Accounting division has achieved in just over one year of operation.

Client Response

In that time, many personal Financial Decisions’ clients have employed our services. This is an outstanding result and is made even better by the rate of client referrals.

To me, referrals indicate a healthy business model, with client service and satisfaction the driving force behind all that we do.

We also obtained a number of business clients and have helped enhance their businesses and restructure their financial affairs to capitalise on the opportunities available to them in order to maximise their after-tax returns.

Rapid Growth

In addition to a rapidly growing client base, we also acquired two other tax and accounting firms – Agility Accounting and Barry Pitt Accounting.

These strategic moves have enabled us to increase the scope of our business resulting in strategic alliances and partnerships that now equip us with the knowledge, experience, expertise and resources we need to make a difference in the lives of our clients.

Science and Innovation Agenda

In response to the Science and Innovation Agenda we will be focusing on assisting start-ups and existing businesses to leverage the new and exciting opportunities that are available.

The technological advancements have added another dimension to our lives. It has changed the way we communicate, the way we work and the way we interact with society. “Innovation and Science are critical for Australia to deliver new sources of growth, maintain high-wage jobs and seize the next wave of economic prosperity” (Commonwealth of Australia, Department of the Prime Minister and Cabinet, National Innovation and Science Agenda).

We aim to assist our client base operating in this space realise their potential by focusing on some of the new government initiatives such as the reforms around the employee share schemes that will allow these businesses to attract great talented staff and bringing to light some of the initiatives launched as part of the Entrepreneurs’ Programme.

The tax landscape is changing! The reclassification and evolving definition of a small business in Australia is just one example of this change. Generally, a small business was one that turned over up to $2 million annually. This has been expanded to encompass businesses that turnover up to $10 million a year. This is huge for our business clients as they will now be able to access various concessions normally enjoyed by small businesses.

My Big Decision for 2017

With the successes of 2016 so fresh, I decided to study law throughout 2017. My focus will be on Australian tax law – a topic that is genuinely fascinating to me and one which will extend our capacity as a business going forward.

I would like to extend many thanks to our clients for a fantastic year and best wishes for an even better 2017.

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It’s a Wrap

Our office is closed from Monday 26 December 2016 and reopens on Monday 9 January 2017.

From all of us here at Financial Decisions, we wish you all the best for this holiday season and we look forward to continuing to help grow and manage your wealth in 2017.

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Disclaimer: This publication has been compiled by Financial Decisions (AFSL/ACL Number 341678). Past performance is not a reliable indicator of future performance. While every effort has been taken to ensure that the assumptions on which the outlooks given in this publication are based on reasonable data, the outlooks may be based on incorrect assumptions or may not take into account known or unknown risk and uncertainties. Material contained in this publication is an overview or summary only and it should not be considered a comprehensive statement on any matter nor relied upon as such. The information and any advice in this publication do not take into account your personal objectives, financial situation or needs. Therefore you should consider its appropriateness having regard to these factors before acting on it. While the information contained in this publication is based on information obtained from sources believed to be reliable, it has not been independently verified. To the maximum extent permitted by law: (a) no guarantee, representation or warranty is given that any information or advice in this publication is complete, accurate, up-to-date or fit for any purpose; and (b) Financial Decisions nor its employees are in any way liable to you (including for negligence) in respect of any reliance upon such information or advice. December 2016

Contact: Financial Decisions PO Box 484 Mona Vale NSW 1660, T 02 9997 4647, F 02 9997 7407