Publication: Addwealth Summer Newsletter 2010

Addwealth Market Update by Paul Foster, Chief Executive Officer, Addwealth

15 December 2010

2010 wasn't much of a year for share or property markets but at Addwealth we had another excellent year.

Our Australian shares did very well, we didn't hold any international shares so the rise of the Australian dollar didn't hurt us, and our investment in concert promotion has worked exactly to plan. The recent announcement by the State Government that it will lift height restrictions at Cottesloe Beach is very positive with regards to our purchase of the Cottesloe Beach Hotel in June this year.

Our flagship fund, the Addwealth Achiever Fund, was once again the best performing growth fund in Australia, far outstripping its rivals and the share market with a 12.33% return for the 12 months ending 31st October 2010. See Table below. 

Inside the Addwealth business there has been a lot of activity also. 

We have grown from 8 staff to 17 in just the last 6 months, which is very exciting because it means greater sustainability of our services going forward.

Addwealth now has an office in Brisbane after buying an existing financial planning business in July 2010.  An unexpected acquisition it nevertheless adds 100 new clients and approximately $75 million of new investments to manage.

While small is beautiful it is also riskier because the loss of one or two key people could end the business, our growth has been intentional and planned to reduce the risks and increase benefits to you.  It will need to be managed carefully but I believe clients will see tangible improvements in the coming years.

Six years ago we identified that there wasn't a Superannuation Fund in Australia that could give you choice of Insurance Policy.  In November 2010 we launched the Addwealth Advantage Superannuation Fund as one of the first superannuation funds of its kind.  For clients who still have children at home and a mortgage, life insurance and income protection is critically important and now they will be able to access the best insurance policy for their circumstances without the cost and responsibility of having a Self-Managed Superannuation Fund.

All of the above have been remarkable changes at Addwealth in 2010 but the most pleasing by far has been the amount of referrals that our clients have given this year.  The true measure of whether we are doing a good job is that you think well enough of us that you refer family and friends.  This year you have referred at a rate that is virtually unheard of in the Financial Planning industry and it is very rewarding for all of us at Addwealth and makes the hard work very worthwhile.

Recently an e-mail was sent out to clients inviting you to give some anonymous feedback over the internet.  Given the recent strength in referral from clients we shouldn't have been surprised at the results of the survey but we were humbled by them.

59% of our clients rated us 9 or 10 out of 10.  The survey was conducted by an independent research house and they told us they had rarely seen a survey result this good and in the current environment it was a huge stand out in a Profession that many believe has let clients down when they need advice most.

As good as the survey result was, 1 in 9 clients was unhappy with our service.  So clearly there is room for improvement and I believe with the growth in our Staff numbers we will get closer and closer to being able to meet all clients' expectations going forward.

Here are the three key results from the survey...