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.
One Super Fund can save you all the hassle of consolidating your super. We offer three levels of service that range from the basic consolidation to a full financial service.
Smart Money January February 2012 SinglesOliver Taylor
Smart Money magazine is a fully personalised and branded consumer-driven personal financial planning client publication. Sent to key clients, professional intermediaries and prospects, every issue will enable your business to improve client communication, raise brand awareness, develop greater marketing efficiency, enhance client retention and increase sales - all of which are becoming increasingly important, particularly in the light of Treating Customers Fairly (TCF) and the Retail Distribution Review (RDR).
Goldmine Media has been publishing Smart Money magazine for over a decade and every issue features timely and accurate editorial combined with intelligent design. Whether you are a financial adviser, wealth manager, accountant or solicitor, every issue will provide you with the perfect marketing solution to engage more effectively with your business audiences.
The front cover of Smart Money magazine features your business logo and company name printed in your corporate colours and also includes your contact details and regulatory statement. At no additional cost you can change the title name to make every issue even more bespoke and relevant to your business.
One Super Fund can save you all the hassle of consolidating your super. We offer three levels of service that range from the basic consolidation to a full financial service.
Smart Money January February 2012 SinglesOliver Taylor
Smart Money magazine is a fully personalised and branded consumer-driven personal financial planning client publication. Sent to key clients, professional intermediaries and prospects, every issue will enable your business to improve client communication, raise brand awareness, develop greater marketing efficiency, enhance client retention and increase sales - all of which are becoming increasingly important, particularly in the light of Treating Customers Fairly (TCF) and the Retail Distribution Review (RDR).
Goldmine Media has been publishing Smart Money magazine for over a decade and every issue features timely and accurate editorial combined with intelligent design. Whether you are a financial adviser, wealth manager, accountant or solicitor, every issue will provide you with the perfect marketing solution to engage more effectively with your business audiences.
The front cover of Smart Money magazine features your business logo and company name printed in your corporate colours and also includes your contact details and regulatory statement. At no additional cost you can change the title name to make every issue even more bespoke and relevant to your business.
Download our latest magazine inside, you’ll find an
array of articles about how we can help you further
to plan, grow, protect and preserve your wealth. As
we all know, the ultimate goal money can buy is
financial freedom
Medicsfs is very experienced in Independent Financial Advice,Mortgage Finance Expert,Financial Advice for Professionals,Experienced Mortgage Advisers,Mortgage For Medical Professionals,Professional Financial Services,Independent Financial Advice for Doctors,Mortgage Advise for Doctors,Mortgage Advise for Dentists,Mortgage Advise for Opticians,Mortgage Advice for Vets
To paraphrase Dickens, there’s a lot of controversy today about whether we live in the best of times or worst of times concerning retirement. On the one hand, many Americans generally have some kind of retirement support, if you include Social Security, Medicare, private and public pension plans, and the many types of pre-tax retirement plans, such as IRAs and 401(k)s.
On the other hand, demographic and economic forces are making retirement itself a much bigger challenge, primarily because people live longer now. That means you need to work and save enough today to somehow pay for later without employment — a tall order. And recent market upheavals have demonstrated that you may not be able to rely on the stock market in the short term to pay the bill.
This presentation will introduce you to strategies that could help you to potentially build a bigger nest-egg during your working years, make it last longer in retirement, and even pass on more to your heirs.
Because, after all, retirement should be a time to finally relax, stop worrying and enjoy life. But you can’t escape the daily grind until you are financially independent, which in the end is what retirement is all about. So bottom line, let’s talk about working toward financial independence.
Not sure of how much you need for your retirement or if you can really afford the dream house. Then have quick look at these thumb rules, just to know if you are on right track.
The changing environment for retirement incomenetwealthInvest
This presentation aims to give you a better understanding of the challenges, opportunities and strategies for your (financial advice) clients presented by the following legislated and proposed change.
El taller práctico: 10 claves para la implementación de tendencias y enfoques innovadores, tiene como propósito que los docentes identifiquen el cambio paradigmático que se requiere para atender al desafío pedagógico que implica incorporar las Tecnologías de la Información y la Comunicación (TIC) al aula y al currículo escolar.
I write a variety of projects. But the best referrals for what I do are for websites, blogs, newsletters, direct response projects such as postcards, and radio scripts. This PPT outlines each of those with approximate costs.
Download our latest magazine inside, you’ll find an
array of articles about how we can help you further
to plan, grow, protect and preserve your wealth. As
we all know, the ultimate goal money can buy is
financial freedom
Medicsfs is very experienced in Independent Financial Advice,Mortgage Finance Expert,Financial Advice for Professionals,Experienced Mortgage Advisers,Mortgage For Medical Professionals,Professional Financial Services,Independent Financial Advice for Doctors,Mortgage Advise for Doctors,Mortgage Advise for Dentists,Mortgage Advise for Opticians,Mortgage Advice for Vets
To paraphrase Dickens, there’s a lot of controversy today about whether we live in the best of times or worst of times concerning retirement. On the one hand, many Americans generally have some kind of retirement support, if you include Social Security, Medicare, private and public pension plans, and the many types of pre-tax retirement plans, such as IRAs and 401(k)s.
On the other hand, demographic and economic forces are making retirement itself a much bigger challenge, primarily because people live longer now. That means you need to work and save enough today to somehow pay for later without employment — a tall order. And recent market upheavals have demonstrated that you may not be able to rely on the stock market in the short term to pay the bill.
This presentation will introduce you to strategies that could help you to potentially build a bigger nest-egg during your working years, make it last longer in retirement, and even pass on more to your heirs.
Because, after all, retirement should be a time to finally relax, stop worrying and enjoy life. But you can’t escape the daily grind until you are financially independent, which in the end is what retirement is all about. So bottom line, let’s talk about working toward financial independence.
Not sure of how much you need for your retirement or if you can really afford the dream house. Then have quick look at these thumb rules, just to know if you are on right track.
The changing environment for retirement incomenetwealthInvest
This presentation aims to give you a better understanding of the challenges, opportunities and strategies for your (financial advice) clients presented by the following legislated and proposed change.
El taller práctico: 10 claves para la implementación de tendencias y enfoques innovadores, tiene como propósito que los docentes identifiquen el cambio paradigmático que se requiere para atender al desafío pedagógico que implica incorporar las Tecnologías de la Información y la Comunicación (TIC) al aula y al currículo escolar.
I write a variety of projects. But the best referrals for what I do are for websites, blogs, newsletters, direct response projects such as postcards, and radio scripts. This PPT outlines each of those with approximate costs.
Australian Junior Mining Exploration Companyjoel_fishlock
Sundance Resources - an Australian junior iron ore exploration and mining company. Potential high growth investment opportunity. Presentation on the background of the company including, financial position, achievements and current and upcoming activities.
Contact me for further investment information including expected end of year share price projection or any queries you may have regarding Sundance Resources.
Contact me for further investment information including expected end of year share price projection or any queries you may have regarding Sundance Resources.
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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.
Smart money july august_issue_singles_perOliver Taylor
Financial adviser client newsletters
Client-facing personalised newsletters are an exceptional and proven vehicle for strengthening relationships with clients. There has never been a more important time, especially during this current economic climate, for professional financial advisers to consider the benefits of using a newsletter to communicate with their clients or professional connections.
Client retention and the loss of hard-earned clients
In these post-RDR times, one of the biggest concerns facing many professional financial advisers is client retention and the loss of hard-earned clients to another competitor. To ensure that this doesn't happen to your business, our advice is that you need to do everything possible to stay engaged with your clients and keep reminding them about why they chose you in the first place.
You don't have to waste your valuable time
Goldmine Media do everything for you, so you don't have to waste your valuable time and effort putting your own newsletter together. We take care of the editorial and imagery selection, right through to the print and delivery to you, and can even post each copy directly to your clients with a covering marketing letter in a high-grade polywrap.
Personal finance subjects presented in a clear and engaging way
Our carefully designed newsletters feature your business name, logo (photograph if required), contact details and regulatory statement, and we present even the most complex of personal finance subjects to your clients in a clear and engaging way.
Newsletters are printed on superior-quality paper and are a perfect time-saving marketing channel that will enable professional financial advisers to deliver increased revenues for their 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.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
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.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
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how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
3. Please read the disclaimer at the beginning of this report.
Disclaimer
Baillieu Holst Ltd has prepared this presentation for the general information for 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
4. Please read the disclaimer at the beginning of this report.
Todays Proceedings
• Introduction to Baillieu Holst – Gavin Powell
• Economic overview – Darryl Gobbett
• Market update – Ben Prisk
• Summary & questions – Helen Dundon
6. Please read the disclaimer at the beginning of this report.
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 unique wealth creation, protection and
management needs.
With over 190 staff in seven locations throughout
Australia our private client network consists of more
than 100 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
7. Please read the disclaimer at the beginning of this report.
Our People
Alex Hay
Director of Institutional Sales
Alex has worked at Baillieu Holst
since 1993. He first worked in the
research department and since 1995
has advised both retail and
institutional clients. During this time
Alex has also served as acting head of
the Retail and Institutional divisions.
Stephen Macaw
Co-Head of Corporate Finance
Stephen has more than 19 years’
experience in stockbroking and
investment banking, and has been
involved in a broad range of
transactions during his career. He is
responsible for providing a
comprehensive range of services
including equity raisings, debt
raisings, underwriting new public
listings, mergers and acquisitions,
and institutional placements.
David Trude
Chairman
David is a senior corporate banking
executive with 40 years’ experience in
a variety of financial service roles
within the banking and securities
industries. David has worked with
national and international banks
across a diverse range of sectors,
managing operations and delivering
large-scale, complex financing
programs, business development and
acquisitions in global operations.
Gavin Powell
Managing Director
Gavin has worked for Baillieu Holst
since 1994, first as a financial
controller/company secretary before
becoming the managing
director/chief executive officer in
2000. Prior to joining Baillieu, Gavin
worked in the audit division at Ernst
& Young for 10 years.
Walter De
Gregorio
Director / CFO / Co. Secretary
Walter has over 20 years of
experience in the stockbroking and
the financial services industry. He has
held a senior management role at
Baillieu Holst for over 10 years
covering financial reporting,
operational, compliance and risk
management responsibilities. Walter
started his career at Bell Potter where
he worked for six and half years. He
subsequently worked at two other
firms before joining Baillieu Holst.
Nicolas Burgess
Head of Research
Nicolas joined Baillieu Holst in
September 2012 having been an
equity analyst since 2003. He has
previously worked at ABN AMRO as
an insurance sector analyst
before joining the Small and Mid Cap
team to cover a wide variety of
industrial stocks. Nicolas also spent a
couple of years in London as the
European Diversified Financials
Analyst for RBS Equities.
8. Please read the disclaimer at the beginning of this report.
Baillieu Holst - Adelaide Office
Mike James
Alex ButlerMatthew Loveder
Darryl Gobbett Helen Dundon Ben Prisk
Alan HutchinsonTravis Adams
9. Please read the disclaimer at the beginning of this report.
Baillieu Holst - Adelaide Office
11. Please read the disclaimer at the beginning of this report.
What do the changes to Superannuation mean for you?
• $1.6 million superannuation transfer balance cap for Pensions. Likely to proceed.
– Each of you would have this limit individually. Remaining Pension Balance can then grow past this.
– No indication how this will work for multiple or reversionary Pensions, Defined Benefit Pensions, Disability funds etc
– Roll back “excess” benefit to Accumulation mode with income taxed at 15% or 10%, Drawings to be tax free if over 60.
– Flexibility of Self Managed super funds compared to Retail or Wrap pension accounts
– Retain individual assets and Asset Allocation while shifting the benefits
• $500k lifetime Non-Concessional Contribution cap from 3 May 2016. Likely to Proceed.
– Small business concession caps appear not to be affected
– Backdating to 2007 of Cap already appears unworkable
12. Please read the disclaimer at the beginning of this report.
What do the changes to Superannuation mean for you?
• Lowering of Concessional Cap to $25k from 1 July 2017; Bring Forward Rule for Unused Concessional
Contributions; Removal of Work Test and 10% Employee income test for contributions up to 75th birthday;
Spouse Contributions now to 75th birthday. Likely to proceed.
– Limits the amount contributable to super but expands the possibilities
– Claim deductions for non-work income and realised capital gains to 75 whether an employee or self employed or neither
– Income threshold increased to $37,000 for recipients of Spouse Contributions ($540 tax rebate), now to age 75
• TRIS to lose exempt current pension income status deduction inside Fund from 1/7/2017. Likely to proceed
– Pension income received when over 60 still tax free to you. Keep TRIS and pay 15%/10% on fund earnings?
– If 60 to 64, retire and start a full pension. If 65 start the full pension.
• Industry consultation, preparation of legislation and Parliamentary argy bargy suggest changes and delays
13. Please read the disclaimer at the beginning of this report.
The Federal Election, Brexit and What Else is Going On: What it means for Investors
• Political uncertainty likely to be with us for foreseeable future
– Voting patterns becoming more volatile, coming and going of minor parties
• Outcomes of Western societies’ evident distrust of political, financial and business elites
– Seen in rise of Mr Trump, European right wing parties, UK exit vote and Australian election results
• Many feel left out of economic liberalisation and Post GFC policies
• Feel elites have done very well out of policies that have damaged them and their families
• Fear of change and “new” economy
• Many people now seeking simple answers from populist leaders to complex problems
• Facing possible reversal of reforms that have driven economic growth globally since WW2
– Opening up of markets, lower regulation, freedom of people movement, public deficit reductions, tax reform etc
– LNP and ALP have no appetite for reform, Minor parties are anti-reform
– Bias will be to increased spending and higher taxes
• 2016/17 Budget revenue forecasts are fanciful
• Age of Entitlement back with a vengeance with all parties before election
• Made worse by fragmented election result, jockeying for next election
• Fundamental tax reform is at least 3 - 4 elections away
– Major parties do not see current tax regime as an issue
• Likely cut in Federal Government global credit rating
14. Please read the disclaimer at the beginning of this report.
• Output and profit growth to be slower due to increased business uncertainty
– UK exit from EU to cut UK and European growth
• Likely little direct negative impact on Australian trade overall
• Could see trade benefits for Australia longer term
– Australia, USA and Asia will continue to be the centres of growth
– Most economies growing well below potential
• Inflation and Interest rates to be lower for longer
– Economic, political and security uncertainties
– Energy and most commodities still well supplied
– Increasing overcapacity in China manufacturing and India now reducing regulation
– RBA to cut the cash rate again in 2017
• Hunt for income even stronger as uncertainties pushed interest rates to new record lows
– Property, Fixed Interest and Equities
– For Equities, resulting in
• Rising Price to Earnings multiples and High Dividend Payout ratios
• Earnings per Share driven mainly by increased efficiency, cost cutting – rather than revenue gains
• Sector returns likely to be more divergent
• Portfolios and Strategies need to be worked harder
The Federal Election, Brexit and What Else is Going On: What it means for Investors
15. Please read the disclaimer at the beginning of this report.
Why Productivity growth is important:
Living Standards and Profits to 2000 driven by recovery in labour productivity growth
Rising Commodity prices drove gains 2000 to 2013, but unlikely to repeat
Since 2011 real per capita income has been falling. Consider impacts on:
• Living standards while working, tax revenue, public spending
• Business profitability, Dividend and Share price growth
• Investment returns
Source: Reserve Bank of Australia May 2016 Statement on Monetary Policy
16. Please read the disclaimer at the beginning of this report.
Economic and Financial Background:
Low Growth, Slower Productivity gains, Private Sector deflation
Output Growth, Inflation Adjusted, %
pa
(Red = downward revision
Green = upward revision)
Cons Price
Inflation %
pa
Interest Rates % pa
19 July 2016
Structural
Central Govt
Budget
% of GDP
1997 -
2006
2014 2015E
2016
F
2017
F
2017F
3 mo
Interbank
10 year
Govt
Bonds
2017F
United States 3.3 +2.4 +2.4 +2.2 +2.5 +1.5 0.5 1.55 -3.4
Japan 0.9 0.0 +0.5 +0.3 +0.1 +1.2 -0.10 -0.23 -3.5
Euro Area 2.3 +0.9 +1.6 +1.6 +1.4 +1.1 -0.22
-0.03
(Germany)
-0.9
United
Kingdom
3.1 +2.9 +2.2 +1.7 +1.3 +1.9 0.5 0.80 -2.2
China 9.4 +7.3 +6.9 +6.6 +6.2 +2.0 4.35 2.84 -2.6
India 6.6 +7.2 +7.3 +7.4 +7.4 +5.3 6.75 7.28 -6.6
Indonesia 2.5 +5.0 +4.8 +4.9 +5.3 +4.5 6.50 7.12 -2.8
ASEAN 5 na +4.6 +4.7 +4.8 +5.1 +3.8 na na na
Brazil 2.7 +0.1 -3.8 -3.3 +0.5 +6.5 14.25 11.89 -7.0
Russia 5.0 +0.6 -3.7 -1.2 +1.0 +6.5 10.50 8.50 -3.0
Australia 3.6 +2.6 +2.5 +2.5 +2.5 +2.4 1.75 1.92 -0.9
World +3.4 +3.1 +3.1 +3.4
Group of 7, 1.7
New &
Emerging, 5.9
Source: IMF World Economic Outlook, April 2016 and WEO Update, July 2016 ;
www.tradingeconomics.com
17. * Birinyi and Associates, Wall Street Journal Market Data Centre, 19/7/2016
US Corporate Profits starting to lift again but Share Prices up on lower interest rates
• US Company Profits down through 2015
• Energy sector and Non-bank financials main losers
• Analysts f’cast Earnings per Share lifting in 2016
– Continued Low Interest rates, Cheap Energy
• Productivity growing, Wages growth still slow
• US consumer outlook improving
• Share Prices up again on very low interest rates
• For S&P500 companies, Forward Price to Earnings Ratio
now 18.4* vs 16.4 trailing ave (since 1954)
• Div yield 2.13% versus 10 year Fed Bond Yield of 1.55%pa)
18. Please read the disclaimer at the beginning of this report.
2016/17 Federal Budget: Major Financial Projections
• Expect difficult Parliament to result in higher payments and deficit outcomes
• Tax estimates were too high and likely to fall short
13/14 14/15 15/16e 16/17f 17/18p 18/19p 19/20p
Payments
-% Growth
-% of GDP
+11.8
25.7
+2.1
25.9
+3.1
25.5
+4.7
25.8
+3.3
25.5
+4.7
25.4
+4.4
25.2
Receipts
-% Growth
-% of GDP
+3.5
23.0
+4.7
23.5
+2.3
23.5
+6.0
23.9
+6.3
24.2
+7.4
24.8
+6.6
25.1
Cash Balance
(Underlying)
- $ billion
-% of GDP
-48.5
-3.1
-39.9
-2.5
-39.4
-2.4
-37.1
-2.2
-26.1
-1.4
-15.4
-0.8
-6.0
-0.3
Source: Australian Government 2016/17 Budget Strategy and Outlook Budget Paper No. 1
19. Please read the disclaimer at the beginning of this report.
Election result increases Risks of Higher Spending and Deficits
• Increased Commonwealth Govt Bond issues leading to higher interest rates in coming years
• Bonds likely to become more attractive relative to Term deposits
Source: Australian Government 2016/17 Budget Strategy and Outlook Budget Paper No. 1
20. Please read the disclaimer at the beginning of this report.
Main Revenue Items
Cash Basis, $b and % change
13/14 14/15 15/16e 16/17p 17/18p 18/19p 19/20p
Individuals
Employment/Earnings Growth %
Individual Tax as % of Total
163.6
+4.7%
0.7/2.5
48.3%
177.9
+8.7%
1.6/2.3
50.3%
188.4
+5.9%
2/2.25
51.7%
197.0
+4.5%
1.75/2.5
51.4%
210.4
+6.8%
1.75/2.75
51.3%
223.9
+6.4%
1.25/3.25
51.0%
239.7
7.1%
1.5/3.5
51.2%
Companies, FBT, RRTs 72.9
+0.3%
72.4
-1%
70.0
-3.3%
74.5
+6.4%
82.1
+10.1%
90.2
+9.8%
96.5
+7.0%
Superannuation 6.1
+19.8%
5.9
-3.7%
6.6
+12.9%
7.4
+11.3%
9.0
+21.4%
10.0
+11.1
10.9
9.0%
Excises and Customs 35.3
+3.5%
34.6
-2.1%
34.8
+0.6%
35.8
+2.8%
37.1
+3.7%
39.7
+7.1%
42.7
+7.4%
Goods and Services Taxes 51.4
+3.2%
54.5
+6.0%
57.8
+6.0%
60.9
5.4%
64.2
5.4%
67.6
5.3%
70.7
4.5%
All Taxes 338.4 353.5 364.5 382.8 410.2 438.8 468.3
Personal Income Tax Bracket Creep and Increased
Profits(?) main sources of Revenue Growth
Source: Australian Government 2016/17 Budget Strategy and Outlook Budget Paper No. 1
21. Please read the disclaimer at the beginning of this report.
Main Expense Items by Program:
Increasing concentration with reducing flexibility
Accrual Basis , $b and % of Total Spending
14/15e 15/16e 16/17f 17/18p 18/19 19/20p
Assistance to the Aged 57.6 60.0 63.3 65.7 69.4 72.9
13.7% 13.9% 14.0% 14.1% 14.2% 14.2
Assistance to Families with Children 38.8 38.9 37.6 37.3 39.9 41.6
9.2% 8.9% 8.3% 8.0% 8.2% 8.1%
Medical Services and Pharmaceutical Ben. 28.2 31.5 32.8 33.7 35.0 36.8
6.7% 7.3% 7.3% 7.2% 7.2% 7.2%
Assistance to those with Disabilities 27.7 29.1 33.4 40.5 51.1 52.9
6.6% 6.7% 7.4% 8.7% 10.5% 10.3
Assistance to the States for Public Hospitals 15.5 17.2 17.9 18.9 20.0 21.1
3.7% 4.0% 4.0% 4.1% 4.1% 4.1%
Total of Above as % of Total Spending 39.9% 41.0% 41.1% 42.2% 44.0% 44.0%
Source: Australian Government 2016/17 Budget Strategy and Outlook Budget Paper No. 1
22. Please read the disclaimer at the beginning of this report.
Budget Forecasts
• Economic growth slow as Private Investment side of economy shrinks
• Falling Mining Investment just being offset by increased housing investment, exports
• Govt growth forecasts revised down from December 2015 MYEFO
• Mining investment falling faster than expected, Non Mining Investment not growing as fast as expected
• Neither will be helped by increased political uncertainty, outlook for lack of reform
• Private dwelling investment growth slowing sharply
• Public Final Demand growth is lifting with Infrastructure spending
% change, inflation adjusted
(Italicised are BH forecasts)
13/14 14/15 15/16e 16/17f 17/18f
Private Investment - Dwellings 5.1 7.9 8 2 1
No. of Private Dwellings Started (‘000)* 178 200 215 220 222
Business Investment – Mining
Business Investment – Non Mining
-7.0
-3.7
-17.3
1.2
-27.5
-2
-25.5
3.5
-14
4.5
Private Final Demand 0.9 1 0.5 1.5 2.5
Public Final Demand 1.6 0 2.25 2.25 2.0
Source: Australian Government 2016/17 Budget Strategy and Outlook Budget Paper No. 1
*BH forecasts
23. Please read the disclaimer at the beginning of this report.
Budget Forecasts
• Employment and Wage Growth very slow, Population and Working age population growth slower than earlier estimated
• Inflation staying lower for longer, Private Sector deflation as part of global phenomenon
• Income tax Bracket Creep negatively impacting real income growth
• Household Consumption growth being supported by expected further fall in Household Savings Ratio
• Impacted by Consumer confidence, banks’ credit policies, Tax and Govt charges
• Slow Household spending means Businesses will need to work harder and smarter to grow profits
• Need to capture more market share while reducing costs
13/14 14/15 15/16e 16/17f 17/18f
Household Consumption 2.5 2.7 3.0 3.0 3.0
New Motor Vehicle Sales, m* 1.12 1.2 1.35 1.40 1.43
Employment, % change to June qtr 0.7 1.6 2 1.75 1.75
Wage Price Index, % change to June qtr 2.6 2.3 2.25 2.5 2.75
Unemployment Rate, % June qtr 5.9 6.1 5.75 5.5 5.5
Labour Force Participation Rate, % June qtr 64.6 64.8 65 65 65
Household Savings Ratio, % June qtr, trend 10 9 8 7 7
Consumer Prices, % change to June qtr 3.0 1.5 1.25 2 2.25
Source: Australian Government 2016/17 Budget Strategy and Outlook Budget Paper No. 1
24. Please read the disclaimer at the beginning of this report.
Consumer and Business Confidence has Dipped on Election Outcome
25. Please read the disclaimer at the beginning of this report.
Net Worth continues to improve
Households starting to save less but real Disposable Income and Consumption growth at twenty year lows
Source: Reserve Bank of Australia Chart Pack July 2016
26. Please read the disclaimer at the beginning of this report.
Supply side issues and Slowing Wages Growth
Source: Reserve Bank of Australia Chart Pack July 2016
• Issues for:
• Household real income growth, particularly with ongoing tax bracket creep
• Company revenue growth and profitability
• Interest rate outlook
27. Please read the disclaimer at the beginning of this report.
(De)flation outlook frightening policy makers
Source: Reserve Bank of Australia May 2016 Statement on Monetary
Policy and Chart Pack July 2016
28. Please read the disclaimer at the beginning of this report.
Reserve Bank Forecasts
• Inflation now forecast to be below 2-3% pa policy range
• Economic growth below earlier reduced potential growth rates
• Slower population growth
• Low productivity gains
• We expect Cash rate to 1.25% by end 2016
Source: RBA Statement on Monetary Policy May 2016
29. Please read the disclaimer at the beginning of this report.
Markets Expecting Cash Rate Cuts to under 1.5%
• RBA wording of Press releases 3 May and 20 July indicate further cash rate cuts are likely from current 1.75%
• Surprise at lower than expected inflation outcomes
• Stronger $A than desired for transition of the economy
• Economy not growing as strongly as expected
• Housing demand outlook in Eastern cities starting to moderate
• BREXIT result saw interest rates globally shift lower
• Australian election closeness likely to create bias for lower rates for longer
From the Minutes of the Monetary Policy
Meeting of the RBA Board regarding additional
information coming available from the RBA
staff ahead of the August 2016 meeting:
“This information would allow
the Board to refine its
assessment of the outlook for
growth and inflation and to
make any adjustment to the
stance of policy that may be
appropriate.”
30. Please read the disclaimer at the beginning of this report.
Term Deposit Rates likely lower for less than 12 month, higher for longer terms
• Term Deposit rates spreads over wholesale are contracting as banks now have less need to increase overall retail funding.
• Lending rate margins increasing
• But should be an increasingly positive yield curve:
• New banking rules mean most banks may have to increase longer term TDs.
• Under 12 months rates likely to be at or under the cash rate in late 2016.
Source: RBA Chart Pack July 2016
31. Please read the disclaimer at the beginning of this report.
Non Mining Investment Expectations not Offsetting Lower Mining Investment:
Most Output Growth is in Services, historically showing less capital spending
Gross Investment by Major Industry Sector, $b, Current $
10/11 11/12 12/13 13/14 14/15 15/16
4th Est
16/17
1st Est
Mining 46.9 82.0 94.7 90.4 76.1 56.8 32.8
Manufacturing 12.3 13.2 9.5 9.2 8.6 8.3 7.4
Electricity, Gas & Water 6.2 5.4 5.5 5.8 5.1 5.4 6.6
Construction 5.4 4.7 5.0 4.7 6.3 3.4 2.3
Wholesale & Retail Trade 7.4 7.5 7.4 8.1 9.1 8.9 9.2
Transport, Post &
Warehousing
11.6 13.7 11.1 11.2 12.5 9.9 10.6
Rental, Hiring & Real Estate 11.9 10.5 9.8 9.6 12.2 11.4 10.0
Other 17.6 17.9 17.7 19.0 20.8 19.9 19.2
Total 119.3 154.8 160.5 158.0 150.7 124.0 98.1
Source: ABS 5625.0 Private New Capital Expenditure and Expected
Expenditure December Quarter, Australia, February 2016
32. Please read the disclaimer at the beginning of this report.
Listed Company Profits Outcomes very Mixed but Outlook stabilising
Source: Reserve Bank of Australia May 2016 Statement on Monetary
Policy and Chart Pack July 2016
33. Please read the disclaimer at the beginning of this report.
Share Price Gains very Dispersed, Forward Price/Earnings Ratios Up since May 2014
Driven by very low interest rates, Search for Cash Incomes and rising payout Ratios
Australia Late 80s Now
Dividend Yields 4 - 5% 4.3%
Inflation 7% – 8% 1.5% – 2.5%
10 Year Govt Bonds 12% – 13% 1.8% - 2.5%
Source: Reserve Bank of Australia May 2016 Statement on Monetary
Policy and Chart Pack July 2016
34. Please read the disclaimer at the beginning of this report.
$A at $US0.75 about right on current commodity prices
Short term dip on changed interest rate expectations
Risk to upside as global commodity supply pulls back
35. Please read the disclaimer at the beginning of this report.
• Slow economic and profit growth to continue
• Increased uncertainty with Brexit and Australian election results to keep interest rates very low
– UK economy to slow in any case in 2017.
• UK has large current account and budget deficits already
– Main immediate issue is how UK and European financial markets work through impacts of UK credit rating
downgrade and bank liquidity
• Plenty of support ready from Bank of England, European Central Bank etc
• Likely to keep Western interest rates lower for longer
– Longer term issues
• UK breakup: Scotland and Northern Ireland want to stay in Europe
• Bilateral and Multilateral Trade issues
• European security
– Direct impact on Australia should be minimal
Summary
36. Please read the disclaimer at the beginning of this report.
• Australian election outcome adds to uncertainty
– We need to get used to more volatile politics, close elections, minority party influences
– Loss of faith in political, financial and economic elites not likely to pass soon
• Many feel left out of economic liberalisation and Post GFC policies, Fear of change and “new” economy
– Political Volatility and lack of faith likely to limit required action on regulatory and tax reform
– Danger of cut in Federal Government global credit rating with flow on to Australian companies
• Productivity, Workforce Participation and Industry flexibility issues not a policy focus
– This has been the case for last decade at Federal, State and Local Govt levels
– Longer term impacts on:
• Private real Income growth, Spending, Profits and Superannuation returns
• Tax revenues and public sector spending
• Population and workforce growth
• Portfolio and Strategies will therefore need to be worked harder
Summary
38. Please read the disclaimer at the beginning of this report.
Stock Market Performance Over The Last 12 Months
• MSCI World (ex-Australia)
Index Performance fell 1%
– Geo-political crisis’.
– Emerging market concerns.
– Brexit vote caused European
stock prices to collapse.
• Domestic S&P/ASX 200
Index fell 1%
– Resource sector has fallen
sharply on the back of declining
demand for base level
commodities from Emerging
markets.
4200
4400
4600
4800
5000
5200
5400
5600
5800
1350
1400
1450
1500
1550
1600
1650
1700
1750
1800
1850
17 Jul 15 17 Jan 16 17 Jul 16
MSCI World (ex-Australia) v S&P/ASX 300
MSCI World (ex-Aus) S&P/ASX 300
39. Please read the disclaimer at the beginning of this report.
A Divergence of Returns in the Australian Market
• Amidst flat performance of the broader Australian share market on the back of declining resource demand
and bond yields continuing to fall in an environment of low inflation and low growth, the following sectors
have found support given their defensive characteristics:
– Healthcare
• Exposure to Biopharmaceuticals, Medical Diagnostics, Medical Products & Devices and Hospitals.
• These companies are operating in a favorable demographic - Australia’s population is ageing.
– Infrastructure
• Exposure to Toll Roads, Airports and Gas Pipelines.
• Monopoly like assets that enjoy reliable cash flows.
– Real-Estate Investment Trusts (REITs)
• Exposure to Retail, Office, Commercial and Industrial Property.
• Typically receive higher dividend yields from rent receipts.
40. Please read the disclaimer at the beginning of this report.
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
22 Jul 11 22 Jul 12 22 Jul 13 22 Jul 14 22 Jul 15 22 Jul 16
0
20000
40000
60000
80000
100000
120000
140000
Property v Healthcare v Utilities v Financials v Resources v 300 Accumulation Index
300 FINANCIALS 300 HEALTHCARE 300 RESOURCES 300 UTILITIES 300 ACCUM 300 AREIT
A Divergence of Returns in the Australian Market
41. Please read the disclaimer at the beginning of this report.
A Divergence of Returns in the Australian Market
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
0
10000
20000
30000
40000
50000
60000
22 Jul 11 22 Jul 12 22 Jul 13 22 Jul 14 22 Jul 15 22 Jul 16
BHP v 300 Accumulation Index
300 ACCUM BHP
42. Please read the disclaimer at the beginning of this report.
A Divergence of Returns in the Australian Market
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
22 Jul 11 22 Jul 12 22 Jul 13 22 Jul 14 22 Jul 15 22 Jul 16
SYD vs 300 Accumulation Index
SYD 300 ACCUM
43. Please read the disclaimer at the beginning of this report.
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
10000
20000
30000
40000
50000
60000
70000
80000
22 Jul 11 22 Jul 12 22 Jul 13 22 Jul 14 22 Jul 15 22 Jul 16
TCL v 300 Accumulation Index
300 ACCUM TCL
A Divergence of Returns in the Australian Market
44. Please read the disclaimer at the beginning of this report.
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
0
10000
20000
30000
40000
50000
60000
70000
80000
22 Jul 11 22 Jul 12 22 Jul 13 22 Jul 14 22 Jul 15 22 Jul 16
300 Accumulation Index v GPT
300 ACCUM GPT
A Divergence of Returns in the Australian Market
45. Please read the disclaimer at the beginning of this report.
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
110000
22 Jul 11 22 Jul 12 22 Jul 13 22 Jul 14 22 Jul 15 22 Jul 16
300 Accumulation Index v CSL
300 ACCUM CSL
A Divergence of Returns in the Australian Market
46. Please read the disclaimer at the beginning of this report.
• It may transpire that the Infrastructure, Healthcare and REIT sectors
continue to rally given they are high quality, defensive plays.
• However, we can’t avoid the fact that they are trading at historically high
multiples with share prices outpacing earnings in many cases.
• In our view, we believe it is prudent to be at least taking partial profit from
these “Expensive Defensives” and re-weighting portfolios accordingly.
A Divergence of Returns in the Australian Market
47. Please read the disclaimer at the beginning of this report.
Brexit
• UK’s divorce from the European Union will be a long and drawn out process.
• Both growth and inflation expectations for the region have already been reduced by the IMF casting
a further shadow over the Eurozone.
• Australian companies remain relatively sheltered.
• Our share market witnessed overblown negativity directly after the vote and has since recovered.
• Continued ramifications on global cash rates ensures that the search for yield will continue for the
indefinite future.
48. Please read the disclaimer at the beginning of this report.
• The Brexit Vote provides a valuable reminder of the underlying strength and resilience of the
Australian Financial System.
• Confirmation of this by APRA, Treasury, the RBA and ASIC provides a vote of confidence in the big
four banks.
• Tough global conditions for the domestic sector,
– Capital raising requirements.
– Declining demand / supply of credit.
– RBA rate cuts impact earnings.
– Payout ratios.
• Valuations do not appear stretched.
Australian Banks and the Search for Yield
ANZ CBA NAB WBC
Cash yield 6.6% 5.6% 7.6% 6.3%
Grossed up yield 9.40% 7.94% 10.92% 9.01%
Price since high -33% -24% -31% -25%
49. Please read the disclaimer at the beginning of this report.
Chinese Tourism and the Consumer
• The rise of the Chinese tourist and consumer is
not breaking news.
• The market will often focus on short term
valuations, however we have identified this to be
a strong long term thematic.
• Chinese visitors spent $7.7b in Australia last
year.
• This should be a positive for these Australian
companies:
• Sealink Travel Group
• Mantra Group
• Blackmores
Source: Wind, CEIC, Fidelity Investments International
50. Please read the disclaimer at the beginning of this report.
-$0.30
$0.20
$0.70
$1.20
$1.70
$2.20
$2.70
$3.20
$3.70
$4.20
$4.70
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
110000
18 Oct 13 18 Apr 14 18 Oct 14 18 Apr 15 18 Oct 15 18 Apr 16
SLK v 300 Accumulation Index
300 ACCUM SLK
Chinese Tourism and the Consumer
51. Please read the disclaimer at the beginning of this report.
$(0.50)
$0.50
$1.50
$2.50
$3.50
$4.50
$5.50
0
20000
40000
60000
80000
100000
120000
140000
20 Jun 14 20 Dec 14 20 Jun 15 20 Dec 15 20 Jun 16
MTR v 300 Accumulation Index
300 ACCUM MTR
Chinese Tourism and the Consumer
52. Please read the disclaimer at the beginning of this report.
$(20.00)
$30.00
$80.00
$130.00
$180.00
$230.00
10000
30000
50000
70000
90000
110000
130000
22 Jul 11 22 Jul 12 22 Jul 13 22 Jul 14 22 Jul 15 22 Jul 16
BKL v 300 Accumulation Index
300 ACCUM BKL
Chinese Tourism and the Consumer
53. Please read the disclaimer at the beginning of this report.
• Global Risks remain elevated, no asset class is offering compelling value.
– Adjust expectations.
– Consider the total return on investment.
• Be selective, know where your capital is invested.
– Establish concentrated positions.
– Dollar cost average.
• Continually review your established strategy.
– Take profits and if necessary crystalise losses.
• Identify companies that can grow regardless of the economic environment, but don’t pay too
much.
– Be patient.
Summary