How Important is Collaboration with Your Financial Advisor?

Much has been written about the role of a Financial Advisor. ASIC have suggested that:

Consumers who seek financial advice expect their advisor will act in their best interests and that the advice provided will leave them in a better position. (RG 175.244)

When assessing whether an advice provider has complied with the best interest duty [consideration will be given to] whether a reasonable advice provider would believe that the client is likely to be in a better position if the client follows the advice. RG 175.245)

But what does this mean in practice?

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What is Tailored Financial Advice?

Tailored financial advice is to the financial services industry what Haute Couture is to women’s fashion and a bespoke suit is to men’s fashion.

To illustrate, let’s consider a suit. A suit can be bought for a man or a woman. It can be bought off the rack from a department store or it can be made to your own exacting specifications and body shape.

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The Business of Currency Risk Management – Focusing on Risk and Return

While there is nothing wrong with only focusing on protecting against currency losses. In the current highly competitive environment, there are those who are only focusing on maximizing profits. These are the companies that typically hedge everything with a set and forget strategy when the market is moving against them, or don’t hedge at all when the market is moving in their favour.

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The Business of Currency Risk Management

Unlike most financial markets, currency markets move in relative terms.  They are impacted by the economic and political conditions and policies of one country compared to another as well as the observations of traders and commentators as to the successful (or not) implementation of these economic and political policies when one country is compared with another.

How then, do we take this information and use it to achieve the best possible result as it applies to the management of currency exposures?

In this paper we will discuss:

  1. How to define currency risk management;
  2. The application of Benjamin Graham’s investment approach to currency risk management; and
  3. Why it pays to take a disciplined approach to currency risk management
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Herd Mentality

As experts examine the factors that led to the world’s financial crisis, research offers intriguing insight into the role human behaviour and hormones may have played.

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The Folly of Forecasting

The beginning of the year heralds the time for predictions.  It seems everyone has a view as to the direction of financial markets – equity, debt and FX – and each forecaster can give you a plausible explanation as to why you should believe them.  But financial markets predictions have about as much chance of success as a 4 year old playing pin the tail on the donkey: if you get it right, you have been very lucky.

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Currency Hedging as a form of Business Investment

With the combination of unprecedented volatility in foreign exchange markets, and an economic slowdown set to impact importers and exporters alike, foreign exchange management is now becoming an important element of business practice.

For many, currency hedging has been regarded as a speculative exercise, often an afterthought that has little positive impact on their business.  At its best, however, currency hedging can be an important investment in a business’ global growth, and for the astute business owner, the current volatile environment will cement their ongoing success.

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Risk-taker, an Article from Vive Magazine

On the surface ikebana, the centuries-old Japanese art of flower arrangement, doesn’t appear to have much in common with foreign exchange hedging. But Adrienne Sartori will tell you otherwise.

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An Exporter’s Nightmare

With the world focused on the threat of a US recession, the jury still out regarding growth in Europe and the first rumblings of declining growth in China, exporters must be starting to evaluate the impact of a slowing global economy on their bottom line. Couple this with a highly volatile exchange rate and exporters have a recipe for potential disaster. But is it?

Most entrepreneurs are highly attuned to the impact of a downturn in their profit, managing the cash flow around which they have built their business very successfully. But there are other ancillary areas of an export business that can also contribute to the bottom line. One of the most commonly overlooked of these is currency hedging.

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Business is War

Business is war and for those who operate in the global marketplace, the battlefield topography keeps changing rapidly.  To succeed in this environment requires strategic vision, new and creative thinking and the ability to nimbly negotiate new challenges.

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