Disclaimer
Macquarie Investment Management Ltd ABN 66 002 867 003 (MIML) is not an authorised deposit-taking institution for the purposes of the Banking Act (Cth) 1959 and MIML’s obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542. Macquarie Bank Limited does not guarantee or otherwise provide assurance in respect of the obligations of MIML.
The Macquarie Cash Management Trust is offered by MIML. In deciding whether to acquire or continue to hold an investment, you should consider the current Product Disclosure Statement (PDS) which is available from us.
This information is provided for the use of licensed financial advisers only. Financial advisers are prohibited from passing on this information to any retail client. In no circumstances is it to be used by a potential client for the purposes of making a decision about a financial product or class of products.
Agenda
Background
1. Integrating with partners
2. Increasing your business efficiency
3. Keeping your clients through service
Summary
Fund Choice
Fund choice will mean that many employees will now be able to select their own super funds
In many cases, superannuation has been an ‘untouchable’ part of an advisory business increase share of wallet
Impetus for more people to seek advice now that one of their largest assets is in their control increased market
What’s the opportunity?
High net worth clients considered the most likely to exercise choice
Corporate Super Funds look to lose about $20billion
Many of their members earn $100k +
SMSFs could be an appropriate option
The key is to set up the fund properly!Source: ASFA, Implications of choice of superannuation fund legislation for members, employers and funds. February 2005.
Cashed up
Asset Class %
Cash 24
Managed Funds 7
Aus Equities 31
Direct Property 10
Public Trusts 11
Other 17
Source: Praxis Partners Macquarie Self Managed Superfunds Market Research, Nov 2003
A large proportion of SMSF assets are invested in cash - much of SMSF money is not under advice or advisers can’t see it.
Even if cash is the appropriate investment, the SMSF still needs an appropriate cashflow engine.
Market trend to closed end offers – available and identifiable cash
Clients beware…D.D.I.Y!
DON’T do it yourself!
As with most D.I.Y projects… D.I.Y is not a simple solution, it still requires experts
Without experts assisting in the setting up and maintenance of the fund, the advantages of SMSFs can soon become disadvantages
A fragmented industry
Little
integration
SMSFs
Administrators
Solicitors Auditors
Fin AdvisersAccountants
Client
$
$?$
$?
$
$?
Where does
the money
go?
Information partnership
Share trading, Managed Funds, ATO payments, insurance premiums, pension
payments, Alternative Assets, Tax Management, etc
Client
Financial
PlannersStockbrokers Administrators AccountantsSolicitors Auditors
Cashflow
Settlement, reporting, reconciliation, control
Benefits of partnership
Your clients Time Timely investments and funds flowing Improved service and demonstrated value for money
You Accuracy of information (nothing can slip through the cracks) Time (more on this soon) Improved client relationships
Your business partners Access the information they need when they need it Time Improved client relationships
Sound familiar?
Poor quality information
Missing information
Back log of files
Outstanding fees
Too much admin
Too costly!
The real benefit of a 2hr savingAssume 100 clients/year at
$150/hr
Time Mone
y100 clients
2 hours/client
200 hours/year
200 hours/year
$150/hour
$30,000/year
Reduced cost of delivery = increased margin
Reduced time spent per client = more time for more clients, or more
time for Figures are for illustrative purposes only
Bank account
• Automatic
payments to other
accounts
•Account fees
dependent on
account type and
usage
•No interest
•Third party access
•Informative
statements
•Downloads
•Superior service
•Fee deduction
service
•Competitive
interest rate
Cash
management
account
•Access to
managed funds at
lower price
•Consolidated
reporting
•Asset Allocation
Wrap account
Cash
management
account
The options
Your reputation is important to us
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that,
you’ll do things differently”
Warren Buffett
Our service differentials
The human factor Our call centre phones are answered by real people.
Servicing advisers and clients. If your client has a cheque that is about to bounce we
call you… Approximately 7,000 calls made every year and 94%
of those calls result in a cheque not being bounced. That’s a saving to your clients of approximately $230,000!!*
*Based on bank charge of $35 per bounced cheque
Our service differentials (cont)
Assirt awards ‘Best Fund Manager’ 2003,
2004, 2005
99% of adviser surveyed rated the CMT as a comprehensive solution for SMSFs
Training Relationship Managers Come to your office to train your staff
The Macquarie CMT…
Integrating with partners Makes it easy for your business partners to access the
essential information they need on their SMSF clients
Efficiency Increases the efficiency of your SMSF business, allowing
you to provide better client service and increase your margin/your time/your client base/your profit
Service Offers you and your clients a leading-edge service
experience
How we can help
In-house presentations to your staff/colleagues
Client presentations
Client marketing strategies
Educational client material
Essential cashflow management information
Client newsletter articles