NEWS

Philanthropy Australian share valuations overstretched'

AUSTRALIAN share level of risk they are tak-
hub opens to valuations are "starting
to look overstretched",
ing in their portfolios."
The equity risk premi-
"You'd (currently)
find yourself with an 80
per cent exposure to
and investors should um is used in Perennial's shares due to the share
advisers consider rebalancing
their portfolios, accord-
Investors Index as a
measure to capture the
market growth over the
last five years."
ing to Perennial Invest- extra return over a risk Thomas" comments
By Sara Rich ment Partners head of free rate that investors were made against the
retail Brian Thomas. need to take on the risks backdrop of an Investors
A KEW online resource providing plan- A fall in the equity of investing in the Aus- Index finding that the
ners with client-tailored solutions In phi- risk premium measure, tralian share market. "feel-good times" for
lanthropy through education, tools and as reflected in Perenni- Thomas also cau- retail investors contin-
accredited training has been launched al's monthly Investors tioned that investors ued unabated in May.
with the support of some industry heavy- Index to the end of May, could be taking on It found the average
weights. suggests the market Is "unintended risk" in growth investor earned
Specialist philanthropy services provider "not pricing in enough their portfolios because 2.23 per cent for the
Enrich Australia created Gateway for Giv- risk at current (Aus- of the recent growth of month of May and 18.86
ing as a resource tor advisers managing tralian equities) valua- the Australian share per cent for the year, after
the giving strategies of clients. tions", he said. market. allowing for fees.
AMP Capital Investors, Perpetual, "While this scenario is "Say you were com- On a 12-month basis,
Social Ventures Australia and Makinson not enough for Perenni- fortable with a portfolio it has been the year of
d'Apice Lawyers have backed the venture >il to de-weight Aussie of 70 per cent domestic property, with the index
as founding sponsors. equities in our diversi- equities and 30 per cent finding both local and
Gatewayforgiving.com.au teaches fied funds, it's a timely Australian fixed interest international property
advisers how to implement effective giv- reminder for investors to five years ago, but have both (c o i n c i d e n 11 y)
ing strategies as well as provides the gen- ask themselves whether not rebalanced since returning around 41
eral public with Information on not-for- Brian Ttiomas they are happy with the then. per cent.
profit organisations operating across
almost all causes.
According to Enrich Australia director
Tim Hardy, philanthropy has a legitimate
place in financial planning considering
Better financial literacy for indigenous Australians
high-net-worth individuals give 2 per cent By Liam Egan chance to learn about money
of their taxable income to charity. management in a way where they
"Philanthropy is a dimension of finan- THE Financial Literacy Founda- share ownership of the process
cial planning that should be an integral tion has launched its first book- and come up with approaches
part of any client's wealth plan," he said. let aimed at improving indige- that work best for them."
"Advisers can't ignore the implications nous financial literacy programs. The booklet outlines good
of client giving as it strengthens relation- Chairman Paul Clitheroe practice principles for financial
ships with clients and their families, intro- launched the booklet Under- literacy initiatives and for the
duces some innovative alternatives for standing Money: Good practice first time compiles details of
handling their tax habilities, and provides in developing financial literacy financial literacy programs,
opportunities for securing funds under initiatives with Indigenous Aus- resources and consumer assis-
management." tralians in Cairns yesterday. tance contacts currently avail-
Enrich Australia provides consulting He described the booklet as able to assist indigenous Aus-
services to advisers aiming to advance the first tailor-made guide for tralians.
best practice standards within philan- people who develop and deliver A copy of the booklet is avail-
thropy and also helps the not-for-prof- financial literacy initiatives with able by phoning the foundation
it sector develop strategic relationships indigenous Australians. on (02) 6263 2111 or at
with advisers. "It's really important that www.understandingmoney.gov.
indigenous Australians get the au/content/education/indlgenous. Paul ClJtheroe

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10 — MONEY MANAGEMENT June 14, 2007 www.moneymanagement com.au