We are different to many other financial planning and wealth advisors for a number of reasons:
- We are 100% independently owned by shareholders who are not linked to any fund manager, bank, insurer or other service providers.
- We hold our own Australian Financial Services License, meaning there are no external influences from fund managers, banks, insurers or other service providers over the advice provided to our clients.
- Our core business is providing comprehensive strategic financial advice which means all of our work, including investment strategy and implementation, is integrated within each client's comprehensive financial planning strategy.
- All our advisors are well qualified and experienced. As well as financial advisory credentials, most also have degrees in accounting and/or other professional certifications.
The methods of remuneration that we receive for the services provided are dictated by the specifics of the services being provided. Typically we charge:
- An hourly fee for the preparation of a strategic financial plan.
- An implementation fee for implementing any agreed investment recommendations.
- Ongoing service fees for the provision of continuing investment advice and portfolio management services.
Fees are structured in accordance with those disclosed within the Banksia Partners Financial Services Guide. Clients can elect (at their choosing) an agreed annual (flat) fee for ongoing services debited from their nominated account paid on a monthly basis or to fees calculated as a percentage of assets under management and paid from financial services product providers.
We consider that a flexible fee structure is important because it ensures those clients who are not in a position to pay directly for the advice they receive can still receive the benefit of our advisory services. In many cases (i.e. implementing life insurance recommendations), we are paid commissions directly from the product provider (i.e. insurance company) at no direct cost to our client.
Fees payable are generally agreed prior to our engagement and are normally formalised in a standard ‘Letter of Engagement’ signed by the client and Banksia Advisor. All fees, commissions, volume bonuses, ‘soft dollar’ benefits, etc, are disclosed in the body of our initial ‘Statement of Advice’.
Importantly, each Banksia Advisor is a salaried employee whose remuneration is not directly linked to the amount of revenue generated.
We do not have 'typical' client portfolios. Instead, each portfolio reflects the risk tolerance, time horizon, return objectives, income requirements and personal financial goals of each individual client.
We incorporate nine separate investment Risk Profiles into assisting us (and you) determine your tolerance to investment risk. Investment markets can be volatile and it is important that the levels of risk you undertake are matched to those that you are either (1) prepared to actually accept and/or (2) are required in order to achieve your investment goals and objectives.
The scope of Banksia Partners Australian Financial Services License is very broad allowing us to incorporate managed funds, Australian Stock Exchange (ASX) listed company shares and securities, Australian Government Bonds, term deposits issued by banks, property securities, etc, within individual client portfolios. The degree to which investments are diversified across various asset classes is determined by your Risk Profile and your investment objectives.
Client meetings and communications vary from client to client, according to a client’s individual preferences and circumstances. After completing our initial planning strategy and implementing agreed recommendations, we maintain ongoing dialogue with our clients on all aspects of financial decision making.
We communicate with our wealth management clients throughout the year, monitoring individual strategies and reporting on the progress toward your goals. Typically, we suggest that your progress be reviewed formally at least once a year. For more complex scenarios we are in closer contact, perhaps quarterly, monthly or even weekly.
Much of our role relates to more mundane administration matters concerning cash flow management, record management, co-ordinating activities of other professionals (such as tax agents and accountants), etc.Can I incorporate company shares listed on the Australian Stock Exchange into my investment portfolios’?
The benefits of direct share ownership are many and varied. Incorporating directly owned ASX listed securities can assist in ‘designing’ an investment portfolio structured for specific purposes, such as -
- the generation of income streams that carry ‘fully franked’ dividends (i.e. tax credits attached);
- minimising income and maximising growth; or
- weighted towards specific sector categories such as resources, medical, financial services, transport, industrial, etc.
Moreover, direct ownership of investments allows for better management of capital gains tax liabilities. Unlike (most) actively managed funds where the tax circumstances of individual investors are not considered by the manager, ‘dealing’ with individually held share investments can be affected at the time of the clients and Advisors choosing – helping to mitigate capital gains tax liabilities.
We might use combinations of ‘sector specific’ managed funds, directly owned shares and property securities, fixed interest deposits, hedge funds and other ‘alternate’ investments, etc, in order to develop the most cost effective portfolio that is appropriately diversified and in accordance with your Risk Profile.
All our clients have a relationship with both a senior Banksia Advisor as well as a ‘secondary’ advisor. Therefore, each Banksia client effectively has two Banksia Advisors who are well acquainted with their situation.
Our strongly held view is that clients are Banksia clients rather than clients of individual advisors. As a consequence, clients can be confident that we are highly motivated to work closely together as a team to serve their needs.If I wanted to become a client of Banksia Partners, could I obtain a reference from an existing Banksia Partners client?
Based on an initial discussion after which we have determined that Banksia Partners can assist you with your financial service requirements, references can be provided if desired.
We respect our clients’ confidence and only provide references with the express consent of a client.