Communicating to SMSFs and their advisers and accountants

Media, word of mouth the new drivers of SMSF creation

Day 2 of the FSC Conference (#FSC13) and I find myself bouncing between the major issues sessions on super and insurance, while my colleagues (@BlueChip_Comm and @madd_23n) attend the advice sessions.

The super session right now is all about SMSFs. In another first for the FSC this session was the first of its kind to focus on the fastest growing segment of our national superannuation savings.

The speakers are @ASlattery_SPAA, Recep Parker of Investment Trends and Michael Chaaya from Corrs Chambers Westgarth.

It was Recep's comments that, cheerily delivered, had my full attention. The mode of delivery helped but it was the content that really had me - and should attract the attention of anyone wanting to communicate to, or market to, SMSF trustees, their accountants or their advisers.

Why they do what they do

As we all know, the primary driver for those who want an SMSF is control. SMSF trustees become trustees because they get their statement, see poor performance, look at fees & reach the (not unreasonable) conclusion that they can make better investment decisions than the professional investment managers. 

Control may be a primary driver but when Recep dug further into the Investment Trends knowledge bank he offered some other reasons commonly cited as driving the set up of an SMSF:

- The ability to choose specific shares

- An opportunity to save money on fees and 

- Disgruntlement with current super funds.

Who are they?

The much desired SMSF trustee is, according to Wealth Insights many years of research, still "rich old (er) men". While the trustees are typically pretty evenly split between the genders Recep suggested the decision makers are far more likely to be male.

Where is the money coming from?

Traditionally, SMSFs were set up as a result of retail super fund members making the big switch. Increasingly however the funds flow into the sector is coming from industry funds.  

Some 25% of last year's inflows came from industry super. Overall we're seeing a massive outflow from APRA-regulated super funds into SMSFs. While more than half of those SMSF start-ups are still instigated by financial advisers, that's on the decline. 

Media and word of mouth are playing a far greater role.

What happens next?

Although accountants are still typically the instigators of SMSF set up, there is an increasing cohort of self-directed investors setting up their own SMSF, and running solo making best use of the lower cost, technologically-enabled platforms now available.  

And the next wave of SMSF trustees are anything but "pale, male & stale". They're younger, less likely to seek advice and more likely to want to invest in property.

Investment Trends suggest:

- 18% of adults with super wants to set up an SMSF in the future

- 2% of super members plan to do so in the next 12 months

- They're still driven to have more control, and equally disgruntled with returns

- But a third also want access to property

This next generation of SMSF trustees are younger - in their 20s and 30s - and represent the next wave. 

With SPAA's Andrea Slattery reminding us that 50% of the national retirement savings sit in SMSFs, and bullish growth predictions, we're going to have to have to get pretty good at talking to them.

Understanding the demographic and their drives is a good starting point.

I'm attending the FSC Conference with Aideen McDonald (@BlueChip_Comm) and Bruce Madden (@madd_23n) on behalf of BlueChip. You can follow my commentary at @carden and www.cardencalder.com

ISN & FSC JOIN FORCES: AUSTRALIA BENEFITS

Pictured is David Whitely, CEO of ISN addressing the FSC delegates in an historic first

The main news, to my mind, from the morning sessions of Day 2 of the Financial Services Council's 2013 conference (#FSC13) happened off stage.

And that news was the joint announcement by the Industry Super Network (@IndustrySuper) and the Financial Services Council (@FinServCouncil) that they will work, collaboratively, on a better future for superannuation in Australia.

Now I could permit cynicism to kick in at this news, but the fact remains: this is a "maturity milestone" for Australia's retirement savings system.

Warring parties, fundamentally trying to achieve the same thing, albeit with different philosophical bents, have come together in the name of a greater good: a decent retirement, characterised by the greater choices and standard of living you can only get from having enough money.

I particularly liked these two quotes, from David Whitely and John Brogden respectively:

"Industry Super Network and the Financial Services Counsil should lead the elevation of superannuation out of the political discourse and ensure policy making is considered, sector neutral and even handed."

"Because we have allowed ourselves to be divided, the significance of the industry and our prominence in the minds of government and consumers has been diminished. Ultimately, it is superannuation that suffer."

The full release is available on both the FSC and ISN websites.

Perhaps it's time for both sides to read it, and bury the hatchet - for the sake of a better future.

I'm attending the FSC Conference with Aideen McDonald (@BlueChip_Comm) and Bruce Madden (@madd_23n) on behalf of BlueChip. You can follow my commentary at @carden and www.cardencalder.com.

FSC 2013 Day 1: Settling into a new normal

There was a sense of homecoming on Day 1 of the 2013 Financial Services Council conference (#FSC13 @finservcouncil).

@bowenchris was warmly welcomed back by a generally supportive crowd, in his new role as Federal Treasurer.

Aboriginal dancers welcomed delegates in a moving display of traditional dancing and fire-starting.

The regulators (@ASIC_Connect and APRA) shared their thoughts from the couch in the annual fireside chat, ably facilitated by the FSC's Martin Codina.

And delegates obediently queued, school excursion-like, for the bus trip to an offsite venue for pre-dinner drinks prior to the traditional Day 1 private dinners.

Brisbane may be a one-time home of mine - but the homecoming vibe wasn't about the many former Queenslanders flying in. Or even about the many industry veterans reconnecting for the annual conference. It was about an industry settling in itself after several years of intense regulatory reform, post-GFC turmoil and the resultant upheaval.

Change really now is a constant. But the sense now is that with both sides of Government committing to stability in super we may in fact get what we are promised - predictability.

You can find a link to the official media coverage here, courtesy of the good folk at Financial Standard.

Personal brand: shameless self-promotion or service?

Delicious irony isn't it? Here I am posting about personal brand after a four month blogging hiatus. 

This post is for capable senior women like those I met and spoke with last night about the importance of their own personal brand. In my experience many women, and some men, in financial services are really good at putting themselves, and their profile last. Bad move. Here's why.

You're busy right? And besides self-promotion is so...well...selfish

Working on, or even just maintaining, personal profile comes in almost bottom of the list after a bunch of other things. "Other things" in my case (and for many other working parents) include client work, supporting my team, managing the business, and, out of hours spending time with the people who matter most. Oh...and sometimes doing stuff for me.

And there lies the problem. If we put it last on the list we're putting ourselves last. Smart? Generous to others? Not really.  

I recall all those wise women who told me (on the birth of my twin daughters) that I needed to take care of myself. First. Without an emotionally & physically well mother the babies, and the family, wouldn't fare so well. And they didn't. So after a few crashes and the third baby I got better at it. Diet, exercise, down time. 

Taking care of yourself, as a new mother, is actually a service to the people you love.

Self-promotion as a service?

If you're in a leadership role in financial services, or want one, taking care of your personal brand is also a service. To your team, your colleagues, your company - and your future.

As a professional communicator in finance and wealth management I was always pretty clear that my brand wasn't important- the company was, the executives I worked with was and the products were. To promote myself would have been unthinkable. 

That was then, and this is now.

Now, social media and contemporaneous changes in business norms have made it all very different. 

I've watched capable financial services executives go unnoticed in big organisations waiting to be 'seen'. I've seen less capable people build their brand and go far further than others. And I've seen social media make managing your own brand in wealth management essential - not discretionary.

Now I know it's something my business needs me to do - it's part of leadership for me, just as much as it is for the CEO of a top 20 ASX company. Not doing it is to fail to step up to the plate.

Who wins?

Watching colleagues, clients in wealth management, and friends business get this right - and advising some of them - here's my observation of who wins and why when you get personal brand or profile right. 

Your team - As your profile grows, so to does your ability to attract, keep and lead A-players. With a clear internal and external message about who you are and what you stand for, your team know what's expected - but you're also more likely to attract people who want to be part of your vision and led the way you lead. And you grow your own "permission to lead" as your external stature grows. It's endlessly fascinating to me to see how external recognition (for capable executives with integrity & self-awareness ) drives internal respect in finance.

Your company - Companies are made up of people. To some extent their reputation is that of the individuals who work there. Key external people (clients, financial planners, investors, partners, industry stakeholders) you deal with think of your company brand and you in the same thought. A clear personal brand that supports the company's goals, and a profile program that takes that brand to market, enhances your employer's reputation.  ]

You - ”Reputation” is technically defined as the extent to which stakeholders (let's say counter-parties, deal partners, investors or financial planners for example) support you. As you consciously build your reputation, you're better able to achieve both personal and corporate goals - thanks to the support of others. Building personal profile obviously also helps secure that next role or experience. Visibility sometimes matters more than ability in corporate - like it or not. Dialing up your visibility gives you access to greater career choice and opportunity.

So bump "personal profile' up your to do list. Sure it helps you, but it's also a service to your team and your company brand.

BlueChip has recently developed a model for developing a personal brand and profile program. Email us for a free copy.

50 shades of super for women

The not so sexy story of Australian women's retirement savings

Some estimates (ASFA) are that 40% of women have no superannuation at all.

A survey of more than 3,000 women running and owning their own small to medium sized business shows 53% of those women are not contributing to their own super.

Women are twice as likely to want advice but only 40% rate their investment knowledge as good.

Take those facts together and you can see one of two pictures:

a) women's super is a lost cause for advisers because there's no commercial opportunity

OR

b) there is a huge opportunity to target women as investors because they're an underserved community - and need to grow assets quickly.

At today's Self-managed Superannuation Professionals Association (SPAA) session on targeting women Patricia Curtin and Olivia Maragna gave one of the best researched presentations I've seen in the last year.

Some other sobering insights from their presentation:

• Women are more likely to divorce than die. Men are more likely to die than divorce.
• Three out of four are not on track to achieve your retirement plan
• Taking time off for family sees mothers left with a "super baby debt" of around 50k versus those who don't take time off
• The gender pay gap sees Australian women earning 83 cents to every male dollar

So while these facts could be depressing, the speakers argue for a huge commercial opportunity here for SMSF advisers - to educate women about self managed super, and to help them on their financial way with better knowledge. And in doing so grow their revenue, gain far more referrals (women are typically more likely to refer) and experience higher client retention rates.

The speakers' research shows women are more likely, in a high trust relationship, to trust their adviser with a greater proportion of their assets, and to be less pice sensitive on advice fees.

And of course we live longer, and are less likely to die young!

So there's the commercial reason for SMSF advisers to think about the market "segment" that women represent.

But really I'm voting "b" in my opening question to you - not just because it's good business sense but because we in the financial services industry have a duty of care to all investors. Especially those who need us most.

I am speaking at the Self-managed Superannuation Professionals Association (SPAA) conference today with Aaron Dunn from the SMSF Academy about social media for SMSFs.

Top 3 financial services communication trends for 2013

The final chapter of 2012 provoked more questions than answers for many in financial services.   

Boards, CEOs, Chief Marketing Officers and Chief Risk Officers we speak to have similar concerns. Here’s a quick (admittedly unscientific) survey of the common themes:   

1. How will our business prosper in a tough market?
2. Is our social media strategy right? 
3. Do we have reputation risk covered?   

And at a more granular level...

• How will we use content (or thought leadership) marketing to deliver results next year? 
• Is our brand story (or stories) crystal clear – and compelling? 
• Do we have the right resources to explore these issues and answer the key questions?    

The answers? These depend entirely on your brand and internal capability, the white space in the market, and your commercial goals for 2013.   

That said, if you’re after a few clues about where our reference group of Board members and CXOs are heading, expect to see:

Trend 1 = content-led marketing 

Financial services brands (strategically) self-publishing more than ever

Fragmented consumer media habits, the ability to measure results and to deliver compelling messages direct to audiences are all driving the rise of content marketing, aka thought leadership marketing. 

Trend 2 = repuation risk management

A focus on reputation risk management as a discipline

After years of sustained battering some reputations are a little frayed in financial services. And yet the reputation management playing field keeps expanding - in parallel to the growth in use of social media by our customers, intermediaries and other audiences.  On and offline reputation risk management as a formal discipline is starting to be taken more seriously by Boards and Risk Committees - not before time.

Trend 3 = social media as mainstream

We may have been slow to catch on but financial services will be fast to catch up in the social sphere. 

Next year we know clients and their competitors are planning selective social media engagement across internal and external audiences. The era of (often pointless) debate about "whether or not" has finally ended, and the internal conversations at Board and in the C-suite is now more often about "how" to make best use of social media.

Best wishes for the holiday season and a very prosperous 2013. Many thanks for your support in 2012 and we look forward to continuing the conversation. This post is adapted from, and first published in pr:ognosis, the quarterly BlueChip communique