Q&A Friday is published every Friday while there is demand. Email your questions to vern@vov.co.nz. We won’t publish your name.

Cymbis

Question: I was informed by another ex-client that they had received 10% a month ago for Cymbis Enhanced Australia. They also told me that it is in the Aegis system but that it was up to Spicers Financial Services (where Kelvin Syms puts in an appearance every now and then) to pay it out immediately. As I am an ex-client of Vestar, can you give me the contact name of who I should contact (is it Aegis or is it Spicers?) to make sure that this goes into my bank account.

James Usmar says: Vestar was sold to Gould Wealth Management which was then sold to Spicers. If you haven’t appointed yourself a new adviser outside of the Spicers group then by default you are their client, so it is Spicers you need to contact.

Here is a press release from Spicers about the transition:
www.spicers.co.nz/default.aspx?MenuId=256

You can call them on 0800 777-803 and they should be able to help. Alternatively you can contact Vern Wilson vern@vov.co.nz. He has the name and DDI of someone at Spicers who can help.

Money Managers

Question: Recently my Money Managers’ advisor sent me a bill, just before leaving his job, charging me at an hourly rate of $150 + gst. Most of the time, according to the invoice, was for making notes. I’m retired for quite some time and out of touch with salaries and hourly rates. I just wonder whether his hourly fee is considered to be reasonable. During investing with MM, over the years, my MM advisor got his commission from my investments. So there were no hourly rate bills to pay. He never mentioned to me that he would charge an hourly rate of $150. It is this hourly rate that I question.

James Usmar says: The charging of hourly fees by advisors is likely to become more and more prevalent as regulation and investor education increases. The advice industry has had a real shake up over the last few years and the answer for some firms is to develop a professional services model, charging for their time very much like an accountant or lawyer does.

The amount and method by which an advisor is paid or how their firm charges should be clear to you before you invest or they undertake work for you. Advisers have been required to provide their clients with a disclosure statement or document (in writing) since 1996. This disclosure must be given to a client before any advice is given or any investment money is received. It must give specific information about the adviser, the products they give advice on, what the client fees are, and how they get paid.

This document should have been provided to you by your advisor and therefore receiving an invoice should come as no surprise. [Check the disclosure statement and see if it's covered - Vern]  The amount that a firm charges is up to them and it is up to you as the client to decide whether this offers you value for money. You could call a couple of advisers and get comparative quotes from them or speak to your friends and find out what they get charged.

OPI Pacific (PAC)

Question: Are you able to give us some idea as to the latest position regarding OPI Pacific. There seems to be a void of information coming our way.

James Usmar says: Here is a quote from the latest receivers report for OPI published last month which basically sums it up:

“Due to the complexity of the receivership, the various claims being pursued and the investigations being carried out by the receivers, it is extremely difficult to estimate the return to secured debenture holders from the receivership of PAC. Providing an estimated return to secured debenture holders may also jeopardise any actions currently being exercised by the receivers. Accordingly, an estimate of future dividends or the timing of dividends to secured debenture holders cannot be provided at this time.”

The latest receivers report and letter to investors can be found here:
www.pwc.com/en_NZ/nz/opi-pacific-finance/OPI-Pacific-receivers-second-report-may-2010.pdf

And here:
www.pwc.com/en_NZ/nz/opi-pacific-finance/OPI-pacific-letter-to-investor-May-2010.pdf

About James Usmar

James was a qualified financial planner in the UK working for a tax consultancy firm. He specialised in investments through financial centres such as Jersey and the Isle of Man. James joined Saturn Portfolio as an investment adviser after immigrating to New Zealand in 2006.

About Saturn Portfolio

Saturn Portfolio is an investment advisory firm built on a history of trusted advice since 1988. They invest $160 million on behalf of clients. Four experienced client advisers work in the business. Saturn Portfolio is not aligned to any investment manager or product provider. This means they can freely select and recommend the most appropriate investments for you.

Their process is to discover and discuss your current situation, goals and investment knowledge. Once they assess your needs they give you a written plan, which they discuss with you and clarify any queries. They do not implement the recommendations until you give approval to proceed.

Importantly, Saturn Portfolio’s sole source of income is the fee you pay to them. They do not take any commission or brokerage from product providers. www.SaturnPortfolio.co.nz

Tags: Aegis, Cymbis, Gould Wealth Management, James Usmar, Kelvin Syms, Money Managers, OPI Pacific Finance, Saturn Portfolio, Spicers, Vestar

This entry was posted on Friday 4th June 2010 and is filed under Q&A Friday. Both comments and pings are currently closed.