3. 10 Private Word Private Word 11
Thailand
Has the Thai economy bounced
back from the issues it’s faced
over the past couple of years?
The floods Thailand experienced last
year, and, to a lesser extent, the political
uncertainty saw the economy grind to a
halt in 2011.
The agricultural, construction,
transport and retailing sectors were
all badly affected by the floods
across central and northern Thailand.
Meanwhile, the national election and
change in government meant construction
was impacted by delays to public projects.
However, reconstruction of flood
affected areas, and more stimulatory policy
implementations undertaken by the new
leadership, should help bolster Thailand’s
economic growth, at least in the near term.
Is the new government taking
action to breathe life back into
the economy?
Yes. The new government has introduced
a slew of new stimulus measures to boost
the economy. They’ve increased public
sector salaries, raised the minimum wage,
and provided tax breaks. There have also
been a number of flood relief measures
and significant spending on reconstruction,
as well as ambitious infrastructure
investment plans for the next 5 to 10 years.
How’s the political situation now?
Unfortunately, political instability remains a
concern. This could impact the effectiveness of
these new fiscal initiatives. In the past, delays
in planned infrastructure spending have been
common, so it remains to be seen whether
there’ll be any improvement on this front.
There’s also a significant degree of unrest
between the political parties, military
leaders and religious groups that needs to
be closely watched.
Thailand has a similar net export
profile to China. Can Thailand
ride on China’s coat tails and
benefit from China’s boom?
This will be another challenge for Thailand –
how it plans to respond to China’s seemingly
relentless rise to economic dominance in
the region.
Thailand’s export profile should position the
economy well to benefit from China’s good
fortune. Over the longer term, countries like
Thailand may benefit from the rising middle
class in China for two reasons.
Firstly, manufacturers will seek cheaper
labour as wages grow in China (according to
the IMF, China’s GDP per capita in USD terms
overtook Thailand in 2011).
Secondly, Chinese consumers will start to
demand a greater variety of goods, which
could boost China’s imports from Thailand.
Is there anything standing in
Thailand’s way of achieving this?
The rise of regional integration of
production chains following the
Asian Financial Crisis has allowed some
Southeast Asian countries to profit from
China’s success.
However, the downside to this
development has been the incentive for
countries like Thailand to specialise in
low-end labour intensive manufactures,
which can create a ‘middle-income’ trap
that’s difficult to break out of.
The key to breaking out will be greater
investment, particularly in human capital.
This will allow for improved competitiveness
in higher yielding high-end manufactures
and services.
Unfortunately, the new government’s
spending initiatives seem to be rather
lacking in this area to date.
Thailand and Vietnam, two of the
Southeast Asian ‘tigers’, have seen their
fair share of economic and political ups
and downs over the past couple of years.
These emerging markets are both ripe with
opportunity but fraught with challenges.
James Glenn, NAB International Economist,
gives his view on where these two
economies are placed and how they
look set for the future.
Economics
26 Private Word Private Word 27
Philanthropic focus
a winner
NAB Private Wealth was recognised for its
philanthropic services at the fourth annual
Australian Private Banking Awards.
Receiving the award for Outstanding
Institution: Philanthropic Services,
David Knowles, JBWere Executive Director
of Philanthropic Services, said it was an
honour for NAB Private Wealth to be
recognised for its work in this space.
“Philanthropic services are an essential
part of any private bank’s offering. To be
able to facilitate a client’s philanthropic
wishes is a privilege and it’s great to see
more clients taking a philanthropic view,”
he said.
Philanthropy wasn’t the only winner of
the night. NAB Private Wealth Advisor
Catherine Wong Doo was also honoured
in the Outstanding Wealth/Investment
Adviser category.
Keeping you informed
of Private Wealth views,
insights and activities.The last word.
Buzz words
Deer market
A deer market is characterised by low activity,
with investors unable or unwilling to move
due to uncertainty, like deer who freeze
when ‘caught in the headlights’.
Elephants
Large institutions that have the funds to
make high volume trades. Due to the large
volumes of stock that ‘elephants’ deal in,
any investment decisions they make will
have a large influence on the price of the
underlying financial asset.
Black swan
An event or occurrence that deviates beyond
what’s normally expected of a situation and
that would be extremely difficult to predict.
Source: Investopedia
The fourth annual
Australian Private
Banking Awards
Ceremony held
on 14 June 2012.
What’s new?
Gear into the sharemarket through your SMSF
NAB Super Lever is a limited recourse borrowing arrangement specifically designed
for self managed super funds (SMSFs). If you’re a SMSF trustee, Super Lever allows you
to borrow for investments in an approved list of shares, managed funds and exchange
traded funds (ETFs).
There’s also flexibility to select your preferred gearing level, capitalise loan interest,
and repay the loan whenever you like.
A security trust structure is provided within the product, and there’s no need for
personal guarantees from fund members.
To find out more, speak with your NAB Private Wealth Manager or Advisor today.
We recommend you seek professional tax advice and read the Product Disclosure Statement
before applying for a NAB Super Lever facility.
TEDxSydney 2012
NAB Private Wealth was proud to support the recent TEDxSydney, an event that challenged
and inspired those who attended.
TED, which stands for Technology, Entertainment and Design, began in Silicon Valley in 1984
as a one-off for technology business leaders to exchange ideas. It’s since developed into a
global think tank, with the theme of ‘ideas worth spreading’.
The day provided guests with a chance to hear from a diverse range of speakers,
from an architect to an astrophysicist, from an installation artist to an ecologist.
Thanks to all who attended and supported this innovative event.
– where Australia ranks in the
World Giving Index, after slipping
from the top spot held in 2010.
Volunteering time proved the least popular of the
three giving behaviours in Australia (36%).
Australians are most likely to be charitable by giving
money, the index found, with 71% helping that way,
while helping a stranger recorded a 68% rate.
Source: Charities Aid Foundation World Giving Index 2011
3
rd
The last word
I’m seeing a large focus from clients
at the moment in reviewing their
asset protection strategies and
estate planning.
Because of this, we‘re having more
conversations about the use of
discretionary trust structures and self
managed super funds (SMSFs), which can
be effective vehicles for accumulating a
significant amount of wealth.
From an estate planning perspective,
clients need to consider the transfer of
control of these entities to ensure they’re
passed to the appropriate people.
Here are some things to keep in mind:
• understand your role and
responsibilities as trustee of your
discretionary trust and SMSF
• remember that trustees of
discretionary trusts need to have
minuted the distribution of income
to beneficiaries prior to 30 June
• ensure your SMSF trust deed is current
and includes the changes in super
legislation; for example, allowing
for strategies such as contribution
splitting, reserve accounts, paying
transition to retirement pensions etc
• consider the pros and cons of
individual vs corporate trustees
of your SMSF.
Many of the reviews I undertake with
clients are to ensure the strategies
recommended are current and the above
issues are managed and under control.
I encourage all clients to review their
personal and financial objectives for
the next 12 months; know your current
positions and know your top three
financial strategies to move you forward.
Catherine Wong Doo
Senior Wealth Advisor
NAB Private Wealth
minutes
with an
advisor…
Private Word
Printed magazine
5. MLC
Branded collateral and illustration
Retaining members
has its rewards
Member Retention Guide
MLC MasterKey Business Super
MLC MasterKey Personal Super
Internal Use Only
Preparation date:
23 March 2012
Right now our Connect for Advice program has 100 different
referral partner relationships resulting in productive referrals
from accountants, mortgage brokers, general insurers and
other experts in their field.
Explore programs proven to help you
buy the right client bases at the right
price, with MLC.
Through MLC’s Connect for Growth program, we can help
you grow your business through the cost-effective purchase of
client lists. We analyse client bases so you can make an informed
decision about whether it will fit with your business. We also buy
client bases and sell them on at favourable terms.
Through MLC you’ll save time and reduce the risks normally
associated with growing through the purchase process. Most
importantly, you’ll own the client servicing rights.
Explore programs
proven to grow your
business, with MLC.
With the effects of FOFA soon to be felt, the financial advice
world is changing quickly. If you’re with MLC you’ll have the back
up and support of valuable programs that are tested and proven
to make sure your advice business will continue to grow in a
changing environment.
Explore programs proven to grow your
revenue from existing clients, with MLC.
Our specialist Lead Generation team will work with you to help
you identify new opportunities and new revenue through your
existing client base. This 12-month program analyses your client
base and helps you with targeted marketing campaigns and
active follow-up tracking.
Based on our most recent analytics this has helped advisers
achieve a 30% success rate in converting opportunities to
appointments, leading to increased advice revenue and sales.
Explore programs to help your clients
opt in, with MLC.
Our Client Engagement Process is specifically designed to help
you thrive under the FOFA reforms. This program provides you
with workshops, templates and conversation scripts that will allow
you to build stronger client relationships that lead to increased
retention, revenue and referrals.
Customers have recognised our advisers’ performance in this
area, rating MLC Australia’s best advice network for how they work
with clients, three years running.1
Explore programs proven to grow your
referral business, with MLC.
New revenue growth can come from successful referral programs.
And with MLC you’ll have a dedicated and experienced manager
to make sure that the relationships between you and your referral
partners are constantly nurtured.
Find out how MLC’s programs can grow
your business at a free 90-minute seminar.
Register today at
mlc.com.au/register/grow_your_business/
For more details call us on 1800 552 049, or
email business.growth.events@mlc.com.au
1 MLC/Garvan Financial Planning, winner CoreData Major Financial Advice Group award 2007, 2008.
Apogee Financial Planning, winner CoreData Major Financial Advice Group award 2009.
MLC Limited ABN 90 000 000 402 AFSL 230694, 105–153 Miller Street, North Sydney NSW 2060.
National Australia Group of companies.
7. FASHION • ACCESSORIES • TRENDS
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SEPTEMBER 2007
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contrast insert henley in super luxe modal,
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shirt with front-yoke detail in cotton poplin,
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Advertorial feature (reverse cover)
Country Style magazine
