Some encouraging words...

A message from Peter Spann

Hello,

I realised today that I haven't contacted you for some time with anything apart from formal updates so I thought I might write with some encouraging words.

It goes without saying these are challenging times for our industry. The global financial crisis has hit hard and we and our clients have not been immune from its devastating effects. 

I kick myself everyday for not getting how fast and hard this would come on.  It's ancient history now that I "predicted" a crash and the reason for it (US Credit Crisis) but of course I got the timing wrong.  The fact that I was in good company (almost everybody in financial services and some of the world's smartest people missed it too) doesn't give me a lot of solace because I understand the distress that this tumultuous market has caused.  I am sorry this was the case. 

I have been reticent for some time to come out and speak in an encouraging manner because I was, quite frankly, afraid it might been seen as trite, that people might think I was making light of things, or trying to make excuses, but last weekend a group of great people attended a seminar with me - it was a small group but it was fun to reconnect with people again personally.  It reminded me how terrific our clients are and how much I enjoy working with you.  And it reminded me how a few encouraging words can help all of us, so while I understand a lot of people out there are hurting I didn't think I should be reticent in coming forward with a positive message.

I think this has been an 'annus horribilis' - a truly horrible year (and not just in the financial markets).  Personally I have been deeply affected.   Sure I've lost money and I've had to make some tough decisions and lifestyle cutbacks like everybody else, but they are trivial compared to the mental stress and strain and the feeling of distress I have picked up from so many people.  That's why I think it might be important for me to speak out and say something positive - to help set us all on the right mental path for a recovery of our hearts, minds and finally our bank balances.  Let us hope that the coming 12 months turn out to be an 'annus mirabilis' - year of wonders and miracles.

More importantly I think it is time that some acknowledgement should be given to the vast majority of our clients who have had the courage to stare down the beast, take the steps necessary to ameliorate their financial positions and forge a path towards the inevitable economic upturn. I must say I have been very proud of you for sticking with your goals, dreams and aspirations and not allowing this (hopefully very) temporary setback to get you down.  I know how easy it is to be despairing and I am glad we have been able to help a little bit in this time of need.  

We've all read articles kicking financial advisers and we've copped some criticism from some people that's for sure, but we have worked hard with our clients, especially in the last six months to get you stable and ready for whatever comes up.  We've made over 5,000 calls in the last six months to keep in contact with you.  We've contacted all clients with known gearing to manage the risks there.  We have dealt with many issues that have arisen with clients and while we haven't been able to resolve all of them to the clients' satisfaction we have worked through hundreds more. We have worked hard with Macquarie who is the issuer of a large number of our structured products to create a solution to them being cash locked and this has required many hundreds of hours of negotiation and effort.  The structuring of these investments did its job and protected clients from more significant losses, now we've got to work even harder to get them reinvested and help with cash flow.  We have managed our GEMs funds carefully so they have out-performed their benchmarks and while our approach has been conservative with significant proportions of the funds in cash this has proven prudent.  We have called all our invested clients to update them on their positions and help where necessary (please call us straight away on 1800 000 369 if you have investments with us and think we have missed you and you'd like to speak with us).  We have restructured our business to ensure we are stable and are here for you for a long time to come, and although we've had to say goodbye to a number of good team members and friends I have been impressed by how our team has pulled together and dug deep to get the job done. 

I think our clients are starting to see the "light at the end of the tunnel" and even better are starting to get confident it isn't a train!  I'm not saying the crisis is over, I don't think it is by a long shot, but we all know that there's very little that we can do about what happens to us, only how we respond, how we react.  And more and more I am starting to talk with clients whose mindset is turning around to be pragmatically positive.  And this is terrific. 

We are realising that while we may have lost money there are indeed greater things to lose and more importantly life does indeed go on.  There is much joy that can be had in the simple blessings we all have in our lives.  More and more I have been noticing the little miracles that happen each day in my life and in the world, and it seems to me that most people have become a little more genuine, a little more grateful for our blessings, a little kinder and more caring lately and that can only be good. 

The good news is, in trying times like these, I think that many people show their best characteristics. 

I am amazed how much I have learnt in the last 12 months, in every aspect of my life, probably more than in the last 12 years and that truly has to be a blessing.

The financial markets are harsh teachers.  Corporate survival is a zero sum game.  There are winners and losers.  I think this has been the first time just about everybody has been a loser.   But I genuinely believe that status is temporary.  The victors in this economy will be the ones who can keep a clear head and develop a plan to thrive, not just survive and I can assure you we will be with you every step of the way, recognizing that victory doesn't go only to the strongest or the swiftest, but to those with the best laid plan.  Eventually we will all emerge stronger. 

Because I have enjoyed the personal contact I have scheduled a series of investor updates in May.  Look out for those dates. 

Let's keep the channels of communication open between us.  If you have any concerns about your financial position let us know.  We are here to help.

Sincerely
Peter Spann