Count planners are less likely to be troubled by remuneration changes the firm has revealed in its quarterly report.
Accounting-based planners with Count Financial (Count) are less likely to be negatively impacted than other planners by remuneration changes in the Government's proposed review of the costs of super, the company has said.
"Any reduction in the remuneration of financial planners will result in fewer financial planners (at a time of industry shortage) and less competition to Count as poorly resourced and inefficient operations fail," a Count statement to the Australian Securities Exchange said.
"Count will continue to diversify its business and reduce the reliance on any one service. Proposals of this nature will create uncertainty, but also opportunity for soundly based and well resourced groups like Count. However not all opportunities will be EPS [earnings per share] positive, so Count will tread carefully."
The group's comments come as Count releases its quarterly market update as at 30 June, 2008.
The firm remains confident that full year EBIT (earnings before interest and tax) will be about $34 million, representing an increase of 17 per cent.
Despite its confidence, Count's funds under advice (FUA) have been negatively impacted by market conditions. The firm's FUA, excluding direct property but including direct shares, fell by 9 per cent over the last 12 months and now totals $12.8 billion.
Count has also resigned platform arrangements with BT Financial Group and Perpetual Investments, resulting in a small increase in margins on these platforms, the firm said.
The group's platform² now stands at $0.8 billion: growth which represents a growth of 14 per cent over the last 12 months.
Total funds in BT/Westpac administration platforms now total $4.6 billion, a drop of 6 per cent and Skandia $1.4 billion, a drop of 11 per cent for the 12 month period.
Count expects to release its annual results to the market on Monday August 18.
In Part 2 of our exclusive series, we ask leading names to nominate their best investments, the most effective industry group and the importance of platforms.
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