Planner Profile: Peter Hensley
Ann Cunninghame talks to one of the finalists in the 1999 Financial Planner of the Year Awards, Peter Hensley, about how he runs his New Plymouth based business The Money People.
Tuesday, April 11th 2000, 12:00AM
Peter Hensley, 45, first arrived in New Plymouth as logistics manager for Tegel after similar positions with Australian computer firms. When his job was restructured, he taught for a while at the local Polytech as well as running his own business importing toys, then moved into financial planning in the early 1990s.
Hensley's CV positively bristles with qualifications. He holds a Bachelor of Arts in Education, Diplomas in Business Studies in both accounting and personal financial planning and is a licensed sharebroker, justice of the peace and marriage celebrant. He's also one of the handful of people in New Zealand to qualify as a Certified Financial Planner or CFP.
Married with two teenage daughters, Peter also makes time to sit in court as a justice of the peace, run seminars on retirement planning, teach high school students as part of their life skills programme as well as writing books and articles. He writes a regular "Serious Money" article for Investigate magazine.
What first attracted you to financial planning?
I've probably always had an interest in trying to understand how wealthy people become wealthy. Financial planning, I believe, has the ability to greatly assist clients and the process of financial planning is one of the best tools that we have as an industry.
I first worked for Moira Irving and Associates (for three months), and then decided to go out on my own. At the moment it's just me, with secretarial support, but another person is currently looking to come on board (because of the increasing workload).
Can you explain your association with Advisor Group?
Advisor Group is more of a club of like-minded independents. It started in 1995 and is now made up of nine firms (including The Money People). It helped create Private Portfolio Service, an administration system/master fund, and Armstrong Jones are the administration managers.
With my clients, if I manage their portfolios they would have some funds in PPS but not all. PPS is currently approaching $380-$400 million under management.
How would you describe your clients?
They're younger than most other practices: generally 45 to 60-year olds, with a few either side of that. There's a broad cross-section too. The guy in this morning has around $500,000: he's 79 years old and my oldest client. He's just sold property and wants to live off the income and build up a legacy for his family.
I've never lost a client. One died, but I didn't have anything to do with that! I manage just under $16 million now. If people have under $50,000 to $60,000, I don't offer to manage it. However, I will assist them to build a balanced portfolio.
What services do you offer and what products?
I offer comprehensive financial planning, specialising in investment. I do very little risk. If a client has an obvious need, I'll send them to someone that specialises in insurance and the same with family trusts and legal work.
I don't promise to make people wealthy. They should be wealthy before they come here! If they have any debt, I tell them to go away and pay it off.
Products? The whole gamut: direct shares but not a lot, direct bonds, managed funds, syndicated property... Not listed investment trusts: I need to know more about those.
Clients get six monthly reports: I use Virgil (an inhouse reporting system).
What marketing do you do?
My business comes from referrals. I initially started off with seminars and I still teach retirement seminars for different companies two to three times a year. Those are two-day retirement courses and include a doctor and a communications expert. My books are also a very good profile-raiser.
Does that mean you get enquiries from out of town?
Yes, I do. My rule is that I won't take on new clients out of Taranaki, but I will service ones that move out of the area. For me to establish a relationship, they have to be local.
How do you charge, and what would be your income split between fees and commission?
People perceive that there's an issue between fees and brokerage. I don't think it's a problem how you're paid and what it's called.
A full financial plan is $400 to $500. Clients pay an entry fee of between 1.5 per cent and three per cent into managed funds. That compares with the carded unit trust fee of five per cent. Then I charge an annual flat fee.
How much?
That fee starts at $360 per annum but varies depending on the level of service provided.
You've gone to the trouble of qualifying as a CFP. Do you think that the industry association is doing enough to promote that?
I can't really answer that. Hopefully through the new TV show (The Money Doctor) the industry should pick up some profile.
Do you think that there are enough new people - and enough younger people - choosing a career in financial planning?
No, it's my perception that there aren't enough young people coming through. But then there are stories that the (financial planning) courses are full.
What value do you believe that you add for clients?
I believe I'm very good at what I do. I follow the financial planning process: it's just trying to find out what the client really needs. I spend a lot of time on education.
But if I came in the door with a lump sum, how would you convince me that I should deal with you rather than the guy down the road?
I wouldn't. I'd advise you to go away and get a second opinion.
Peter Hensley was a finalist in the 1999 Financial Planner of the Year Awards. The Awards were sponsored by Armstrong Jones, AXA New Zealand, Tower Managed Funds, Royal & SunAlliance and FAB Software.
| « Insurance companies toughing it out | King builds an empire » |
Special Offers
Commenting is closed
|
|
Printable version |
|
Email to a friend |
