Many of you would be aware of the media attention regarding financial markets over the last couple of months. Approximately two weeks ago, on the 6^th of August, news headlines reported financial markets had ‘buckled’ after China escalated the trade war with the U.S. sending American shares to have the biggest drop this year. The Dow Jones plunged 767.27 points, or 2.9%. The following day, Australian markets followed with a drop of 1.9%, the media announcing it was the biggest loss since December last year. Outside the media selecting emotive words to sensationalise things, the details have been correct however I thought putting some context around the recent volatility may help provide some clarity especially as markets continue to be turbulent. To date the markets are down by 5-6% from their highs reached a month ago.

Important notice around insurance changes within superannuation

We're writing to you with some important information about changes that may impact you if you hold insurances within superannuation. If you are certain you don’t hold insurances in ANY superannuation accounts you can effectively ignore this update.

Season's Greetings one and all.

This year’s Christmas message has been delivered a little later than previous years due to the recent share market volatility - it has definitely kept us very busy in the office at Active Financial Services.

Back in February this year we had a share market decline of 10% in the US and 6% in Australia. Over the following month things improved and the market continued to rise again. I wrote at the time that the decline in the market was mainly due to concerns about rising rates in the US and the rapid growth in their market. We expected things to improve and by September the US hit new records and the Australian market hit a ten year high!

Recently there has been much negative media attention on AMP including a Four Corners program on Monday night. The program looked back at the history of AMP and their advice business during and after the recent Royal Commission hearings.

The program covered the topic of ‘fees for no service’ and improper conduct by AMP management and advice network. AMP have admitted they have “let down its customers and are working hard to make significant improvements across the business to ensure our focus is firmly on helping and supporting its customers”.

Active Financial Services has used some AMP products to meet client’s needs (only where appropriate and suitable) and therefore the recent media coverage on Monday will understandably continue to cause concern for some clients.

The Royal Commission and the impact on you and your portfolio
Two weeks of royal commission hearings into the financial advice sector concluded on Friday with a lengthy closing statement that implicated nearly every institution that gave evidence.
The evidence covered the topics of fees for no service, investment platform fees, inappropriate financial advice, improper conduct by financial advisers, and the disciplinary regime of the financial advice profession.

As you may be aware, it has been a volatile time for markets both home and abroad which has rightfully raised concern for many investors. The US and Japanese shares have fallen approximately 10% from their highs to their recent lows , Eurozone shares have fallen 8%, Chinese shares have fallen 9% and Australian shares have lost 6%.

Concessional contributions cap changes
For many clients, super remains a highly tax-effective structure through which to hold investments. However, current contributions caps and the changes taking place in a few weeks mean that planning ahead over the longer term is the best way to maximise the benefits of super.

Seasons Greetings one and all.

Like most years, 2016 has been another eventful year. From the concerning, with 30 million (plus) people in the United Kingdom voting in a referendum to leave the EU – a vote in which a whopping 52% people voting in favour of leaving EU ('Brexit') and only 48% people negating the exit strategy.

As you will know, on 1 January 2017 there will be changes to the assets test for calculating Centrelink pensions. These changes to the assets test may affect your age pension payment. Many clients are now receiving the Centrelink letter informing them of the impact to their age pension.