The document provides an overview of Baillieu Holst, an Australian financial advisory and wealth management firm. It discusses Baillieu Holst's history, services, locations, staff size and assets under advice. It also includes brief sections on the current global economic environment, key countries and their economic outlooks, US and Chinese economies, and the Australian economic outlook.
Inside This Issue:
• Certainty in an Age of Uncertainty
• Happy 60th Birthday, RSP!
• Teaching Kids About Money
• The Value of Dividend-Paying Equities
• In Brief: Housing Market Changes
• Elder Care: Planning Ahead
On 23 June the UK public will be given what could be a once in a generation opportunity to have its say on the UK’s relationship with Europe. Whatever the result, it will have far-reaching economic and political consequences. In our latest version of LCP Vista we have explored how this could impact pension schemes.
Of course, whilst Brexit is naturally dominating the news, pension schemes need to carry on thinking about the best long-term strategies to meet their liabilities. So in this edition of LCP Vista we take a look at the latest investment ideas to help them do so.
Inside This Issue:
• Certainty in an Age of Uncertainty
• Happy 60th Birthday, RSP!
• Teaching Kids About Money
• The Value of Dividend-Paying Equities
• In Brief: Housing Market Changes
• Elder Care: Planning Ahead
On 23 June the UK public will be given what could be a once in a generation opportunity to have its say on the UK’s relationship with Europe. Whatever the result, it will have far-reaching economic and political consequences. In our latest version of LCP Vista we have explored how this could impact pension schemes.
Of course, whilst Brexit is naturally dominating the news, pension schemes need to carry on thinking about the best long-term strategies to meet their liabilities. So in this edition of LCP Vista we take a look at the latest investment ideas to help them do so.
After a long spell of staying in denial, the policymakers have shown some urgency in past 6 months. However, they have so far refrained from pressing the panic button. The investors are eagerly waiting to see the finance minister pressing the red button hard today.
In my view, the current state of Indian economy is akin to a person who is single wage earner for his family; has little savings; chronically suffered from hypertension and diabetes, and recently got a heart attack.
This person cannot afford to spend couple of months in bed for recuperating. He has to immediately go for work so that he can pay the bills and feed the family.
1. Time: A most Valuable Asset
2. Federal Budget 2016: A Recap
3. Perspective: A Story of Bulls and Bears
4. The Big Picture: Beneficiary Designations
5. How are my Dividends Taxed?
6. Understanding the Fees You Pay
This presentation was made to after school line staff and administrators at the 2015 PASE@Pace Conference. It describes the importance of financial literacy in the 21st Century and how the SIFMA Foundation's educational programs provide opportunities for youth financial literacy
Geopolitical events continued to make headlines this quarter but did little to quell investors’ enthusiasm as markets continued to advance. Russia and the Ukraine managed to agree to a temporary ceasefire just as sectarian violence in Iraq exploded driving oil prices higher. China garnered attention with its hegemonic designs on the South China Sea much to the displeasure of Japan and Vietnam as well as pushing back on any pro-democracy desires in Hong Kong. In addition, Argentina once again threatens to default on its debt after losing a Supreme Court decision to creditors in the US.
Baillieu Holst Post Election Seminar July 2016Darryl Gobbett
The Australian Election has delivered more uncertainty rather than less. Darryl Gobbett Chief Economist for Baillieu Holst looks at what that means for the economic landscape and in turn your investments and superannuation.
After a long spell of staying in denial, the policymakers have shown some urgency in past 6 months. However, they have so far refrained from pressing the panic button. The investors are eagerly waiting to see the finance minister pressing the red button hard today.
In my view, the current state of Indian economy is akin to a person who is single wage earner for his family; has little savings; chronically suffered from hypertension and diabetes, and recently got a heart attack.
This person cannot afford to spend couple of months in bed for recuperating. He has to immediately go for work so that he can pay the bills and feed the family.
1. Time: A most Valuable Asset
2. Federal Budget 2016: A Recap
3. Perspective: A Story of Bulls and Bears
4. The Big Picture: Beneficiary Designations
5. How are my Dividends Taxed?
6. Understanding the Fees You Pay
This presentation was made to after school line staff and administrators at the 2015 PASE@Pace Conference. It describes the importance of financial literacy in the 21st Century and how the SIFMA Foundation's educational programs provide opportunities for youth financial literacy
Geopolitical events continued to make headlines this quarter but did little to quell investors’ enthusiasm as markets continued to advance. Russia and the Ukraine managed to agree to a temporary ceasefire just as sectarian violence in Iraq exploded driving oil prices higher. China garnered attention with its hegemonic designs on the South China Sea much to the displeasure of Japan and Vietnam as well as pushing back on any pro-democracy desires in Hong Kong. In addition, Argentina once again threatens to default on its debt after losing a Supreme Court decision to creditors in the US.
Baillieu Holst Post Election Seminar July 2016Darryl Gobbett
The Australian Election has delivered more uncertainty rather than less. Darryl Gobbett Chief Economist for Baillieu Holst looks at what that means for the economic landscape and in turn your investments and superannuation.
Economic Outlook for South Australian Business presentation to Ceda (SA) Darryl Gobbett
Darryl Gobbett, Chief Economist at Baillieu Holst, presents to the Committee for Economic Development of Australia (SA), his economic outlook for South Australia and what that means for local business.
Civil Contractors Federation SA 18 May 2016Darryl Gobbett
Darryl Gobbett's presentation to the Civil Contractors Federation explores the issues surrounding South Australia and how infrastructure can help to drive the local economy.
Baillieu Holst 2016 Federal Budget Breakfast PresentationDarryl Gobbett
4th May 2016 Baillieu Holst presented their views on the 2016 Federal Government Budget. CEO Gavin Powell, Chief Economist Darryl Gobbett and SMSF Specialist Helen Dundon presented the changes and the impacts of the changes announced.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...PaulBryant58
This article provides a comprehensive guide on how to
effectively manage the convert Accpac to QuickBooks , with a particular focus on utilizing online accounting services to streamline the process.
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[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
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Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
2. Disclaimer
Baillieu Holst Ltd has prepared this presentation for the general information of investors. As no account has been taken of the
investment objectives, financial situation and needs of any particular person, it does not represent advice specific to any particular
person. Investors must decide whether information contained in this document or any recommendations whether express or implied
is appropriate in light of their specific investment objectives, financial situation and needs. Investors should consider seeking
professional investment advice from a licensed adviser before making an investment decision. Baillieu Holst Ltd makes no warranty
as to the accuracy, reliability or completeness of any information contained herein. Except to the extent that any liability under any
law cannot be excluded, no liability for any loss or damage which may be suffered by any person, directly or indirectly through
relying upon any information or statement in this presentation or any of its attachments is accepted by Baillieu Holst Ltd, its directors
employees or agents whether that loss or damage is caused by any fault or negligence on their part or otherwise. This document
should not be substituted for legal advice and is provide for information purposes only. Baillieu Holst does not give taxation advice or
legal advice
3. About Baillieu Holst
→ Baillieu Holst is one of Australia’s leading independent advisory and wealth
management firms.
→ Spanning generations, our firm has been built around relationships formed on trust,
experience and expertise.
→ E.L. & C. Baillieu commenced business in 1889, some five years after the
formation of the Stock Exchange of Melbourne Limited.
→ F.W. Holst & Co. Pty Ltd was established in 1893 when Frederick William Holst
opened a stockbroking business in Ballarat.
→ The merger of E.L. & C. Baillieu and F.W. Holst & Co. in 2012 combined two firms
with a long history of creating and managing client’s wealth.
→ Baillieu Holst is majority owned by its staff, with the balance owned by Credit
Suisse.
→ Baillieu Holst is in a strong financial position. The firm has a robust balance sheet,
is profitable and continues to grow.
4. → Baillieu Holst is committed to providing you
with a full range of investment advice,
financial planning and superannuation
services of superior quality and value.
→ We offer integrated wealth management
solutions tailored to meet your unique
wealth creation, protection and
management needs.
→ With over 170 staff in seven locations
throughout Australia our private client
network consists of more than 80 advisers
and assistants, servicing clients with funds
under advice in excess of $15 billion.
→ Our strategic alliance with Credit Suisse
provides you with access to global
investment markets and research.
About Baillieu Holst
Melbourne
Bendigo
Geelong
Sydney
Newcastle
Perth Adelaide
5. Baillieu Holst - Adelaide Office
Mike James
Alex ButlerMatthew Loveder
Darryl Gobbett Helen Dundon Ben Prisk
Alan HutchinsonTravis Adams
7. The Good, the Bad and the Ugly: Often different sides of the same thing
→ Most Economies are growing, Profits are rising, Budget deficits are falling and Inflation is staying very low
→ Middle classes being squeezed in USA and Europe, Growing in the Emerging economies
→ Stresses caused by many different types of change
→ Debt issues in China and its shift to a market and more services and consumer focussed economy
→ US monetary firming
→ Energy glut
→ Impacts on the mix and rate of growth and confidence: Countries, Industries, Employment, Firms
→ Commodity prices down sharply overwhelmingly because of increased supply
→ Uncertainties and fear for deflation, employment, economic growth, profits, balance sheets etc
→ Falls in commodity currencies, including $A, $NZ, $C, SA Rand, Rouble
→ Cuts in credit ratings, Government revenues and deficits
→ Low energy and food costs, tourism growing
→ Interest rates are at record lows but credit spreads are rising
→ Pricing for risk got too narrow through 2014, New banking rules reducing risk taking capacity
→ Search for safety and liquidity, concerns at asset valuations and bank lending quality
→ “Risk off” for many Emerging economies
→ Productivity slow down globally since mid 2000s
→ Weaker and changing patterns of demand growth
→ Increased regulation
→ Another source of variation for company profitability and growth
Economic and Financial Update
Please read the disclaimer at the beginning of this report.
8. The Good, the Bad and the Ugly: Often different sides of the same thing
→ Investment market impacts of the change, turbulence and volatility
→ Quickly changing Confidence, Investment fashions, Valuation methods
→ Mr Market’s prices seem to be increasingly separated from real value
→ Capital protection generally means no income
→ Heightened sensitivity to Political and Strategic shocks often with little real economic or business impact
→ Uncertainty and High Volatility point to importance of:
→ Knowing why you are investing and what is important to you
→ Getting Asset Allocation and Diversification right for you now and through time
→ What the big themes mean for your portfolio: Good, Bad, Ugly and Indifferent
→ Knowing what you are invested in
→ Have your Cash and Fixed Interest under direct control
→ Invest in companies, not markets or black-boxes
→ Investing as directly as possible: Reduce the layers of management
→ If you outsource management, know what it aims to do and that it will be true to label
→ Being patient when buying, holding and selling.
→ Taking profits
Economic and Financial Update
Please read the disclaimer at the beginning of this report.
9. Global Growth, Inflation and Interest Rates
Economic and Financial Update
Please read the disclaimer at the beginning of this report.
Output Growth, Inflation Adjusted, % pa Consumer
Price
Inflation %
pa
3 Month
Interest
Rates %
pa
10 year
Govt Bond
Yields %
pa
Structural
Central Govt
Budget
% of GDP
1997 -
2006
2014
2015
E
2016
F
2017
F
2017F Feb 2016
Feb
2016
2016F
United States 3.3 +2.4 +2.5 +2.6 +2.6 +1.8 0.62 1.75 -3.0
Japan 0.9 0.0 +0.6 +1.0 +0.3 +1.6 0.02 0.075 -4.3
Euro Area 2.3 +0.9 +1.5 +1.7 +1.7 +1.3 -0.2
0.263
(Germany)
-0.8
United Kingdom 3.1 +2.9 +2.2 +2.2 +2.2 +2.0 0.59 1.42 -2.5
China 9.4 +7.3 +6.9 +6.3 +6.0 +2.2 3.06 2.89 -2.0
India 6.6 +7.2 +7.3 +7.5 +7.5 +5.4 7.35 7.72 -6.9
Indonesia 2.5 +5.0 +5.2 +5.5 +5.5 +4.7 8.42 7.95 -2.1
ASEAN 5 na +4.6 +4.6 +4.9 +5.3 +3.8 na na na
Brazil 2.7 +0.1 -3.8 -3.5 0.0 +5.2 10.0 6.95 -5.4
Russia 5.0 +0.6 -3.7 -1.0 +1.0 +7.3 11.68 -3.6
Australia 3.6 +2.7 +2.4 +2.9 +3.1 +2.4 2.0 2.43 -1.2
World +3.4 +3.1 +3.4 +3.6
The West 1.7
New & Emerging 5.9
Source: IMF World Economic Outlook, Oct 2015, Update Jan 2016; www.tradingeconomics.com
10. The Emerging Middle Classes are still the Big drivers of Growth and Change
Economic and Financial Update
Please read the disclaimer at the beginning of this report.
11. Economic and Financial Update
Please read the disclaimer at the beginning of this report.
The USA
→ Economic growth lifting
→ Contraction in energy investment and public sectors
→ Federal Budget deficit has fallen sharply:
→ Growth coming from Business and Housing investment, Consumers
→ Very low interest rates and energy costs and record profits
→ Unemployment (4.9%) lowest since pre GFC, gross job creation at record high levels
→ Wages growth starting to lift: Help middle classes and consumption growth
→ Markets concerns ebb and flow:
→ Pace of Monetary policy firming: Federal Reserve Board will err on side of caution
→ Impacts on bank credit quality of energy market downturns: Company failures and country credit risk issues
→ China growth and debt issues
→ Company profitability and cash flows very strong
→ Sharemarket valuations and expectations perhaps got ahead of the real world
→ Now building in too many worries
12. Economic and Financial Update
Please read the disclaimer at the beginning of this report.
Dividend Yield Price Earnings Ratio
12/2/16 Feb ‘15 12/2/16
Trailing
12 Months
Forward
Estimate
S&P500 2.39 1.96 20.58
Historical
Averaqe =
15
15.25
Russell 2000 1.89 1.36 100.14 14.4
Source: Wall Street Journal Market Data Centre, 14/2/2016
13. Economic and Financial Update
Please read the disclaimer at the beginning of this report.
China
→ Issues
→ Economic growth slowing, changing, harder to measure. More deregulation and focus on market outcomes
→ Working population shrinking and population ageing quickly
→ Debt issues of provincial governments and property developers
→ Should not be significant credit issue for the West: Little debt held outside of China
→ Not an issue for wealth of general population
→ Central Government will oversee sorting out the problems
→ Oversupply of housing in some cities, Expensive in others
→ Focus changing:
→ From transport infrastructure, business investment and low cost exports
→ To spreading benefits of growth, imports, services, consumption, innovation, environmental remediation
→ Central planners still planning for 6-7% pa for next few decades
→ Two Child policy
→ Wanting to be bigger influence in world and regional affairs
→ Implications for Australian investors
→ Energy and Mineral demand slowing and changing but China will still be world’s biggest markets for each
→ Higher quality, branded, safe and more western goods and services in demand
→ Beef, Dairy, Healthcare, Wine, Tourism, Financial services, Social welfare, Aged care
→ We need to recognise China’s desire for high self sufficiency
→ Defence
14. Economic and Financial Update
Please read the disclaimer at the beginning of this report.
% change, inflation adjusted
(Italicised are DG forecasts)
11/12 12/13 13/14 14/15 15/16f 16/17f
Household Consumption 3.2 2.0 2.5 2.2 (2.5) 2.5 (2.75) 2.75 (3.25)
New Motor Vehicle Sales, m* 1.03 1.14 1.12 1.2 1.35 1.45
Private Investment - Dwellings -3.6 -0.1 5.1 7.7 (6.5) 8.5 (6.5) 2 (4.5)
No. of Private Dwellings Started (‘000)* 141 159 178 200 225 230
Business Investment – Mining
Business Investment – Non Mining
74.7
1.7
13.6
-9.7
-7.0
-3.7
-17.3 (-15.5)
1 (2.0)
-26 (-25.5)
-0.5 (4.0)
-25.5 (-30.5)
4.5 (7.5)
Private Final Demand 6.2 2.8 0.9 0.75 (1.25) 0.75 (1.25) 1.75 (2.25)
Public Final Demand 2.3 -1.3 1.6 -0.1 2 (1.5) 1.5 (1.5)
Australia
→ Issues
→ Economic growth slow with falling Mining Investment just being offset by increased housing investment, exports
→ Govt growth forecasts revised down in December 2015 from May 2015 Budget
→ Non Mining Investment not growing as fast as Budgeted
→ Employment growing as growth areas are more labour intensive than Business Investment
→ Working population growth slowing
→ Inflation staying very low and wages growth very slow
Source: Australian Government 2015/16 Budget Paper No. 1, Mid Year Economic and Fiscal Outlook December 2015
* DG Forecasts
15. Economic and Financial Update
Please read the disclaimer at the beginning of this report.
Australia
→ Issues
→ Employment and Wage Growth to support moderate retail spending growth but increasing competition
→ Lower $A helping shift spending locally, eg Tourism and Education, Margin squeeze for importers
→ Labour force participation lower for 19 – 65 year old males, rising for baby boomers
→ Population and Working age population growth slower than earlier estimated has issues longer term
→ Employment growth, housing demand, retail spending, tax etc
→ Very slow Wages growth and Inflation means interest rates staying lower for longer
Source: Australian Government 2015/16 Budget Paper No. 1, Mid Year Economic and Fiscal Outlook December 2015
* DG Forecasts
11/12 12/13 13/14 14/15 15/16f 16/17f
Employment, % change to June qtr 0.5 1.2 0.7 1.5 2 (1.5) 1.75 (2.0)
Wage Price Index, % change to June qtr 3.7 2.9 2.6 2.3 2.5 (2.5) 2.75 (2.75)
Unemployment Rate, % June qtr 5.25 5.6 5.9 6.25 6 (6.5) 6 (6.25)
Labour Force Participation Rate, % June qtr 65 65.1 64.6 64.7 65 (64.75) 65 (64.75)
Household Savings Ratio, % June qtr, trend
*DG forecast
11.5 10.5 10 9* 9* 9*
Consumer Price Inflation, % change to June qtr 1.2 2.4 3.0 1.5 2 (2.5) 2.25 (2.5)
16. Economic and Financial Update
Please read the disclaimer at the beginning of this report.
Australia
→ RBA forecasts
→ Inflation expected to be in policy target range, likely at lower end
→ Economic growth below potential but that is now lower with slower population growth
Source: RBA Statement on Monetary Policy Feb 2016
17. Economic and Financial Update
Please read the disclaimer at the beginning of this report.
Australia
→ Interest Rates
→ RBA looking to keep cash rate on hold to retain “flexibility” if conditions turn out worse than expected.
→ Term Deposit rates reflecting banks have sharply increased retail funding since 2008, now have less need.
→ New banking rules mean longer term TDs more attractive to banks.
→ Under 12 months rates likely to be at or under the cash rate.
Source: RBA Statement on Monetary Policy Feb 2016
18. Economic and Financial Update
Please read the disclaimer at the beginning of this report.
Australia
→ Real Incomes, including profit, boosted since 2005 by commodity price surge, high $A and increased investment
→ Trading Partner Growth back to long run average levels of 4%
→ Terms of Trade not expected to lift sharply in next few years
→ $A likely to be in $US0.65 to $US0.75 range for some time
→ Income and Profit growth then has to now come from increased productivity, including at company level
Source: RBA Statement on Monetary Policy Feb 2016
19. Economic and Financial Update
Please read the disclaimer at the beginning of this report.
Australia
→ Share market outlook
→ Recent falls concentrated in Resources and Banks
→ Company profits holding up well overall. Growth harder to come by through 2016 and 2017
→ Miners and Mining Services profits to fall further, Bank profits flat with slower loan growth and cost of new rules
→ Other major sector earnings to continue to grow
→ High yield and Earnings Growth stocks likely to remain in favour
→ Stock pickers’ market
Source: RBA Chart Pack Feb 2016
21. → Baillieu Holst provides high quality research generated by our in-house research team, as
well as comprehensive, global research provided by our partner, Credit Suisse.
→ We provide comprehensive coverage of the ASX 100 stocks, with our internal research team
specialising in identifying unique opportunities in quality small to mid-cap sized companies.
→ Baillieu Holst adopts a bottom-up fundamental approach in identifying companies that are
well managed, operate in a strong industry structure and have excellent future prospects.
→ This research capability, together with the experience and expertise of your adviser, enables
us to carefully monitor and manage your investment portfolio.
Mining Services /
Engineering /
Basic Industrials
Energy
Small Cap /
General
Industrials
Emerging
Technology
Mining
ASX 100-300
Small / Mid Cap coverage through Baillieu Holst Research
ASX 100
Coverage through support from Credit Suisse, including global economic and strategy
ASX 300 +
Small Cap / Emerging Growth Company coverage through Baillieu Holst Research
Research Offering
Please read the disclaimer at the beginning of this report.
26. Asset
allocation is a
critical
component of
our investment
philosophy
Diversification & Asset Allocation
→ Asset allocation is the decision about which
asset class funds should be invested in, to
achieve desired risk/return objectives.
→ More importantly, it is vital that investors are
aware of what industries, sectors and themes
they are exposed to.
→ Asset allocation needs to be tailored to the
individual and needs to re-assessed on a
ongoing basis.
Please read the disclaimer at the beginning of this report.
29. The old adage
of not having
all your eggs in
one basket still
rings true to
this day
Diversification & Asset Allocation
→ Diversification means spreading your capital
across different investments to reduce your
overall investment risk.
→ Diversifying your investments will help you
achieve smoother, more consistent returns
over the longer-term.
→ Diversifying within asset classes is important to
reduce non-market risk.
Please read the disclaimer at the beginning of this report.
30. Fund Manager Utilisation
→ “If you accept your limitations you go beyond them”
Brendan Behan
→ It is imperative to have both absolute control and
clarity of who is managing your wealth.
→ Know the people involved, understand the process
& have conviction in what the long term outcome
will provide.
Please read the disclaimer at the beginning of this report.
People, process and performance
31. Direct Term Deposits
→ The ability to cherry pick the best rates for the term
most appropriate for clients.
→ Clients invest directly into the term deposit in their
own name and access the Federal Government
Guarantee.
→ Simplicity is often the best solution.
Please read the disclaimer at the beginning of this report.
Access to the major financial institutions
32. Direct Equities
→ Quality is defined as sustainable increasing shareholder
value over time
→ A company must always have good prospects
→ Aim to buy a quality company with good prospects and
pay a price that is below the estimated long term value
Please read the disclaimer at the beginning of this report.
Look for Quality, Prospects and Price
33. Direct Equities
→ Likely to be a bumpy ride in the short to medium
term but on a long term horizon, we feel the current
valuation is favourable.
→ With our analysis it is highly unlikely for BHP to
sustain the dividend at US$1.24/yr.
→ Likely a $2bn provision for Samarco, reflecting
BHP’s 50% interest.
→ We think management will use the upcoming
interim result to put a line in the sand and reset the
investment thesis by revisiting the dividend policy.
Please read the disclaimer at the beginning of this report.
Resources - always go for the top shelf
34. Source: Wind, CEIC, Fidelity Investments InternationalSource: Wind, CEIC, Fidelity Investments International
Source: Wind, CEIC, Fidelity Investments International
37. Strategic Financial Planning
→ To achieve your financial goals
you need structure and planning.
→ The financial planning team at
Baillieu Holst is highly skilled and
experienced in providing advice
that is specific to your broader
financial needs and objectives.
→ Whether you need to pay school
fees, prepare for retirement or
plan for the transfer of wealth to
future generations, our expert
financial planning team can help
you identify strategic opportunities
and implement the best structures
to realise your goals.
Objectivity and professionalism guide the delivery
of strategies and advice in the following areas:
Wealth creation and asset allocation strategies
Superannuation strategies
Remuneration packaging
Retirement planning
Assistance with estate and succession planning
Redundancy and benefit schemes
Insurance, risk management and asset protection
strategies
Please read the disclaimer at the beginning of this report.
38. Strategic Financial Planning
Strategies for 2016 and beyond
• Centrelink
• Budget Issues
• Tax changes
• Superannuation changes
Please read the disclaimer at the beginning of this report.
39. Economic and Financial Update
Please read the disclaimer at the beginning of this report.
Age Pension changes
→ Impact of new rules means investment assets over $450,000 will likely cut pension benefits faster than investment
income will rise.
→ Pension Supplement and Energy Supplement fully available from $1 of Age Pension.
→ $3,078 pa is a substantial return if you can get just under the top threshold of $823,000
→ Issues:
→ Need some home repairs etc?
→ Gifting?
→ Should focus of the portfolio be capital growth or spendable income?
→ Decision pre-Age Pension age of getting well over $1.3m?
→ Government Loan Scheme?
Income, Age Pension and Supplements from 1/1/2017
Assessable Assets Investment Income
at 5% pa
Age Pension pa Supplements pa Total
$825,000 $41,250 $0 $0 $43,750
$820,000 $43,500 $207 $3,078 $46,785
$700,000 $35,000 $8,484 $3,078 $46,563
$500,000 $25,000 $22,280 $3,078 $50,356
$375,000 $18,750 $30,903 $3,078 $52,731
40. Baillieu Holst
As a client of Baillieu Holst Adelaide, you have access to:
Please read the disclaimer at the beginning of this report.
A dedicated Adviser and Adviser Assistant – it’s about service and advice!
A local team of experts in their field
Research capabilities of one of Australia’s leading wealth management firms