DelphiNews March 2015

I’m pleased to enclose the latest edition of DelphiNews.

Market Update

Global monetary policy remains extremely accommodative. Central Banks, although at various stages of the monetary easing cycle, will continue to maintain an easing bias for some considerable time.

US consumer confidence pulled back in February from an 11 year high. The pull back was a reflection of recent gains in fuel prices and bad winter weather in parts of the US.

Greece negotiated a four-month extension to its bailout in February after tense talks with creditors. Eurozone leaders want to extend help on Greece's €240b bailout until the end of June, but the plans need to be ratified by Eurozone members.

The RBA maintained the cash rate at 2.25% at its early March meeting. The wording has changed to ‘rates steady for the time being’ and ‘further easing of policy may be appropriate over the period ahead’.

Economic Update

In the latest Update, Brian Parker, Head of Portfolio Specialists Group at MLC, reviews events in Australian and Overseas markets during February. Brian notes that it was a strong month for world share markets, with decent gains almost across the board. The eurozone share markets were a highlight, with a return of better than 7% for the month. That's after posting a similar gain in January, so they've had a teriffic start to the year.

Protect Your Family's Financial Security

Most of us don’t like thinking about the reasons we need insurance — like having an accident, getting a debilitating or life threatening illness, or worst of all, passing away suddenly. So we often avoid thinking about insurance altogether. The article below provides some information for you and or some of your family.

NAB/MLC Executives at Senate Committee Hearing

I want to update you on MLC Chief Executive, Andrew Hagger's appearance before the Senate Economics Legislation Committee this afternoon, alongside acting EGM Wealth Advice Greg Miller and Chair of the MLC Advice Board Dick Morath.

As the Committee is looking into the financial advice industry more generally, Andrew felt it was important to volunteer to attend and address the issues that have been raised, because NAB/MLC firmly believe in transparency and accountability.

In Andrew's opening statement, he reiterated that the report NAB/MLC commissioned into the business found the Group doesn't have the systemic issues that others in the industry have experienced.

He emphasised that NAB/MLC have led the advice industry towards higher standards and greater transparency over the last decade, including the move to a fee for service model, the adoption of higher education standards and abolishing upfront commissions on superannuation and investments.

Andrew also acknowledged that while NAB/MLC can be proud, they are not perfect. He stated that he knows there are areas where they can do better for NAB/MLC customers and Adviser's clients and this is their top priority. He stated "our customers hold us all to a high standard, as they should".

NAB/MLC also hold their advisers to a very high set of internal compliance standards, and act proactively when these standards are not met. They stand by their actions in dismissing advisers who don’t live up to our standards.

NAB/MLC also have a proud culture of delivering quality advice through a strong governance framework. These are two constants that have shaped the Group throughout this journey and Andrew has no doubt they will be pivotal to the way NAB/MLC operate moving forward.

Together with Advisers, NAB/MLC  have been protecting and growing the wealth of Australians for more than 125 years. Financial advice plays a crucial role in helping Australians secure their financial future, and Andrew is committed to partnering with customers to help them achieve this.

If you have any concerns regarding the advice you have received, please either contact us or MLC direct on 132652.

Regards

Vince Dore CFP
Director