This document provides an overview of investment fundamentals and strategies for managing wealth. It discusses diversifying investments across different asset classes like cash, bonds, property and shares to reduce risk. Regular investing and taking a long-term approach can help maximize returns. Managed funds provide diversification and professional management, while direct shares give more control but require more resources. The document aims to help readers make informed investment decisions to achieve their financial goals and lifestyle aspirations.

1. Investment
Fundamentals
Making the most
of your wealth

2. Accountants AdvisorsAuditors
Important information
This document has been prepared by Count Financial LimitedABN 19 001 974 625,AFSL 227232, (Count) a
wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of AustraliaABN 48 123 123 124. ‘Count’
and CountWealth Accountants® are trading names of Count.Count advisers are authorised representatives
of Count.
Information in this document is based on regulatory requirements and laws, as at 1 July 2015 which may be
subject to change.While care has been taken in the preparation of this document, no liability is accepted by
Count Financial, its related entities, agents and employees for any loss arising from reliance on this
document.
This document contains general advice. It does not take account of your individual objectives, financial
situation or needs.You should consider talking to a financial adviser before making a financial decision.
Taxation considerations are general and based on present taxation laws, rulings and their interpretation and
may be subject to change.You should seek independent, professional tax advice before making any decision
based on this information.
Case studies in this presentation are for illustrative purposes only and do not represent actual returns.
Individual circumstances may vary and this will alter the outcome.
While every effort has been made to ensure the assumptions on which the projections in this presentation
are based are reasonable, the results achieved may differ substantially from these projections. Past
performance is no guarantee of future performance.

3. Accountants AdvisorsAuditors
What we will cover
Your money and
your life
Risk and diversification
Investment strategies Managed funds and shares Taking control

4. Accountants AdvisorsAuditors
Emerging trends...
Impact of global
uncertainty
Need to make
active decisions
Changing, complex
super & tax regulations
Greater know-how
& expertise required
Less time for family,
finances & lifestyle
goals

5. Accountants AdvisorsAuditors
A better lifestyle
Whatever your dreams and aspirations, money is sure to play a role
We help you manage money effectively, so you can take control and plan
your future with confidence
Now Future 5,10,
20yrs

6. Accountants AdvisorsAuditors
Where will the money come from?
Timeframe
Product type
Institution
Security
Risk assessment
Macro level
Economic outlook
Major natural events
Government policy
Loans
Investments
Savings
The factors driving returns are largely outside your control
Returns
Market sentiment

7. Accountants AdvisorsAuditors
Understanding investment risk

8. Accountants AdvisorsAuditors
Understanding risk and return
Cash
Govt. bonds
Hybrids
Property
SharesRisk
Return
Every investment carries some risk
Generally, a higher potential return means a greater risk

9. Accountants AdvisorsAuditors
How much risk is right for you?
We also assess your expectations to ensure
it matches your appetite for risk
Goals
Defensive or
ConservativeTimeframe Knowledge
Moderate
or Growth Aggressive
To see if your risk
profile is
We assess your
financial

10. Accountants AdvisorsAuditors
Defensive assets
Main asset classes
Property
Cash
Shares
Fixed
interest
Growth assets
No single asset class consistently outperforms the others

11. Accountants AdvisorsAuditors
Each asset class has had its turn at
being the best and worst performer
1

12. Accountants AdvisorsAuditors
Spread risk by diversifying
and
within
• Company
• Sector
• Country
• Bond type
• Industry
• Duration
• Residential
• Commercial
• Location
• Product
type
• Institution
Across
assets
Cash
Fixed
interest
Shares Property
The more ways you diversify, the more you can effectively reduce risk

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The benefit of compounding
Source: Colonial First State. This example assumes a rate of return of 8% pa. The effects of tax have not been taken into account.
Earn interest on your interest

14. Accountants AdvisorsAuditors
Quick pop quiz time

15. Accountants AdvisorsAuditors
Quick pop quiz time

16. Accountants AdvisorsAuditors
The advantage of regular investing
Daily price
Time
Average
price paid
Additional investment
By investing regularly you can ‘average out’ the dollar (unit) cost
of your total investment over time

17. Accountants AdvisorsAuditors
The benefits of $ cost averaging
Investing $1,000 each month
0
100
150
200
250
Jan Feb Mar Apr May Jun Jul Oct Oct Oct Nov Dec
$4.00
$6.00
$8.00
$10.00
$12.00
Number of units bought (LHS)
Unit price (RHS)
Source: Colonial First State. This example has been prepared to illustrate the effects of dollar cost averaging. It is not intended to be a guide as to the
future performance of any product or fund, and should not be relied upon for those purposes.
Investment amount per
month
Unit price Total number of
units purchased
End value
Dollar cost averaging over 12 months $1,000 Avg $6.32 1900 $19,000
Investing only at beginning of period $1,000 $10 1200 $12,000

18. Accountants AdvisorsAuditors
Start as soon as you can
Joe
Gina
Gina invests
$2,000 pa for
first 20 years
Total investment
value
Joe invests
$2,000 pa over
30 years
$
Total investment
value
$
Interest only –
no top up
Gina invested $20,000 less than Joe but with
10 extra years of growth has a larger total investment
Year 40Year 0
$193,453
$148,598
Source: Colonial First State. This example assumes a rate of return of 5% pa. All dividends are reinvested. The
effects of tax have not been taken into account.

19. Accountants AdvisorsAuditors
Annualised return = -10.36%
$5,000
Sep 87 Sep 88 Sep 89
Source: IRESS ASX All Ordinaries Accumulation Index. Datafrom 31 September 1987 to 31 December 1990.
Past performance is no indication of future performance.
Return$10,000invested($AUD)
Short-term investing
Post-1987 crash
$10,000
$9,500
$9,000
$8,500
$8,000
$7,500
$7,000
$6,500
$6,000
$5,500
Sep 90

20. Accountants AdvisorsAuditors
Consequences of short-term focus
Told you so
Drat! I’ll buy in again. It’s
cheaper than last time
anyhow
You what??
What the???
This is it! I knew this
was going to happen
all along!
More crazies who are
going to get taken to
the cleaners!
Ah, the price is going
up, let’s watch the
market
Damn! I missed the
consolidation, but if I
wait any longer, I
won’t profit from the
trend. LET’S BUY!
Good thing I didn’t
wait!
The trend is holding
- I’ll buy at the next
consolidation
OK, let’s wait for it to recover-
otherwise this will have to be a
really looooong-term investment
What is the ASX doing about
this?!?!?!?!?
I don’t believe it! It’s down
to 8.25 It has hit its absolute
bottom!
It’s going to tank again
anyway
Enough! I’m selling
out! And staying out
Good thing I sold
everything!
I’ll use this correction to
increase my position...
Brilliant! At this price, let’s
double it!
Ouch. As soon as it
goes back up, I’m selling
out!
16

21. Accountants AdvisorsAuditors
Source: IRESS, Colonial First State . Returns are expressed in per annum terms. Data to 28 February 2017.
Past performance is no indication of future performance.
Time in, not timing the market
10 year returns
Australian shares 10 year return to 28 February 2017
4.27%
1.73%
-0.36%
-3.97%
-6.92%
-10.00% -5.00% 0.00% 5.00%
S&P ASX All Ordinaries Acc Index
S&P ASX All Ordinaries Acc Index less 5 best days
S&P ASX All Ordinaries Acc Index less 10 best days
S&P ASX All Ordinaries Acc Index less 20 best days
S&P ASX All Ordinaries Acc Index less 30 best days

22. Accountants AdvisorsAuditors
1987crash
-10.36%pa
Source: Data to 28 February 2017. IRESS Chart shows the value of $10,000 invested on 31/12/79, S&P/ASX All Ordinaries
Accumulation Index
Past performance is no indication of future performance.
Long-term investing
US interest
rate rise:
US bull run
Keating's
banana
republic
statement
Sharemarket
crash
Iraq
invades
Kuwait
Gulf crisis:
Anticipation
of economic
recovery
US interest
rate rise:
world bond
markets
collapse
September
'11 terrorist
attacks
Cyclone Larry
Tiananmen
Square
US sub prime
crisis leads to
credit crunch
QLD floods
Greek
referendum
Global
Financial
Crisis
Conflict in
IraqGlobal
interest rate
cuts
Asian crisis
Kobe
earthquake
Mabo
resolution/
A$ bottoms
Soviet
coup
land war
ends
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
31/12/1979
31/08/1981
30/04/1983
31/12/1984
31/08/1986
30/04/1988
31/12/1989
31/08/1991
30/04/1993
31/12/1994
31/08/1996
30/04/1998
31/12/1999
31/08/2001
30/04/2003
31/12/2004
31/08/2006
30/04/2008
31/12/2009
31/08/2011
30/04/2013
31/12/2014
31/08/2016

23. Accountants AdvisorsAuditors
Source: JBWere Quantitative Research, IRESS
Over 100 years of positive and
negative movement
All Ordinaries Index
Positive years: 71.00%
29.00%Negative years:
Percentage total movement
2008 1974 1990 2011 2015 2016 2013 2004 2009 1986 1983
All Ords Index: Commercial & Industrial Index Monthly Averages (1900 - 1936); All Ordinaries Index (1936 - 2016)
Past performance is no indication of future performance.
1930 1973 2002 2010 2014 2012 1991 1993 1980
1970 1994 1992 2001 2007 1963 1985 1975
1987 1984 2000 2006 1950 1979
1982 1976 1998 2005 1933 1968
1981 1971 1997 2003
1965 1962 1996 1999
1960 1951 1969 1995
1952 1948 1966 1989
1941 1940 1964 1988
1929 1938 1961 1978
1937 1956 1977
1955 1972
1967
1959
1953 1958
1949 1957
1946 1954
1945 1947
1944 1942
1943 1936
1939 1934
1935 1932
1927 1931
1926 1928
1924 1925
1920 1923
1918 1922
1917 1921
1919
-100to-90%
-90to-80%
-80to-70%
-70to-60%
-60to-50%
-50to-40%
-40to-30%
-30to-20%
-20to-10%
-10to0%
0to10%
10to20%
20to30%
30to40%
40to50%
50to60%
60to70%
70to80%
80to90%
90to100%
M0

24. Accountants AdvisorsAuditors
Term deposits versus shares
24
Source: RBA, IRESS. Dataas at 28 February 2017.
Past performance is no indication of future performance.
Capitalvalue(AUD$)
Income(AUD$)
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
0
50,000
100,000
150,000
200,000
250,000
300,000
1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
Term Deposit - Interest income (RHS)
All Ordinaries Index - Dividend Income (RHS) Term
Deposit - Capital Value (LHS)
All Ordinaries Index - Capital Value (LHS)

25. Accountants AdvisorsAuditors
Investing inside or outside super
Source: Colonial First State. Note: this chart is for illustration purposes only and does not represent actual returns for any fund. A change to any of the following tax rate before
retirement of 34% (including Medicare levy); salary $50,000; surcharge rate of 0%; annual investment before tax of $5,000; no additional investment at age 65; after retirement,
super pension income is tax free; non-super income subject to marginal rates of tax; present value (PV) of Post-Tax Income required in retirement is $30,000.
Lower tax on earnings means a bigger lump sum at retirement
$355,472
Inside super
$199,360
Outside super
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90
Money invested in Super
Money invest outside super

26. Accountants AdvisorsAuditors
Where will the money come from?
Gearing
Borrowing to invest
Investment loan
Additional investment
Income
Capital growth
Increased liability
and debt
Gearing can be positive, negative or neutral

27. Accountants AdvisorsAuditors
Why consider gearing?
A sophisticated strategy that isn’t suitable for everyone
We can help you decide if it may be effective for you
Benefits
• Can achieve a larger investment portfolio
• Higher potential returns depending on performance
• More chances to diversify – ‘wider investment footprint’
• Potential tax benefits
Risks
• Larger potential losses if your investment falls in value
• Must repay loans regardless of investment performance i.e.
you need access to additional funds
• May incur a ‘margin call’ depending on funding strategy.

28. Accountants AdvisorsAuditors
Managed funds and shares

29. Accountants AdvisorsAuditors
About managed funds
property
shares
bonds
$
units
growth
multi-manager
diversifiedindex
active
single sector
Managed Fund
Different fund types
income

30. Accountants AdvisorsAuditors
Why managed funds?
• Access sophisticated investments
• Good potential diversification
• Professional investment management
• Regular investment plans
• Choice of investment styles
• Can reinvest distributions (income)
• No control over direct investments
• No control over buy/sell timing
• Some fees are independent of performance
Advantages
Drawbacks

31. Accountants AdvisorsAuditors
Managed funds vs direct share investing
Managed funds Direct share investing
Control/choice Limited control – asset class Direct control over investments
Diversification
potential
Good – wide range of asset/
investment options
Difficult without significant funds
Knowledge and
resources
Full-time investment managers and
researchers
DIY
Buy/sell control None
Managers make decisions
Direct control
You decide what/when to buy
Costs Entry and exit fees, annual
management charges
Brokerage fees, but no
management fees

32. Accountants AdvisorsAuditors
Top 100 companies by market capitalisation % returns for the year ended 29 February 2016.
Source: IRESS. Past performance is no indication of future performance.
Best & worst performing
Best stocks % Worst stocks %
Fortescue Metals Grp 229.85 Sirtex Medical -50.16
BlueScope Steel Ltd 126.30 Vocus Group Ltd -39.71
Downer EDI Limited 114.33 TPG Telecom Limited -39.18
South32 Limited 105.79 Blackmores Limited -34.79
Aristocrat Leisure 68.53 Flight Centre Travel -30.76
ALS Ltd 67.31 Brambles Limited -24.19
BHP Billiton Limited 60.36 Caltex Australia -22.24
Rio Tinto Limited 54.98 Henderson Group -20.62
Origin Energy 52.20 Westfield Corp -11.74
Computershare Ltd 49.45 AMP Limited -9.12
Average 92.91 Average -28.25

33. Accountants AdvisorsAuditors
46.92% of S&P ASX 300AUD$717.5bn 16.62% of MSCI Americas IndexAUD$4914.6bn
Source: IRESS, MSCI. Dataas at 31 December 2016.
Why global managed funds?
Australia Market
cap
$AUD bn
USA Market
cap
$AUD bn
Commonwealth Bank Of Australia 142.0 Apple Inc 861.9
Westpac BankingCorporation 109.1 Microsoft Corporation 668.7
ANZ BankingGroup Ltd 89.2 Exxon MobilCorporation 516.9
National Australia Bank Ltd 81.8 Amazon.Com 490.9
BHP Billiton Limited 80.4 Johnson & Johnson 435.3
Telstra Corp Ltd 60.9 JP Morgan Chase and Co 430.4
Wesfarmers Ltd 47.7 General Electric Co 391.1
CSL Ltd 45.8 Wells Fargo & Co 384.0
Woolworths Ltd 31.0 Facebook Inc-A 369.1
Macquarie Group Ltd 29.6 Alphabet Inc - ClassC 366.2

34. Accountants AdvisorsAuditors
Taking control

35. Accountants AdvisorsAuditors
Why use a financial adviser?
Managing your own finances can be time
consuming
Advisers keep up with changes to laws &
regulations
Financial plan becomes long-term
strategy
Access valuable advice
from qualified professionals

36. Accountants AdvisorsAuditors
Why use a financial adviser?
Understands your particulars, uncover new
opportunities & help overcome obstacles
Objective point of view:
avoid irrational or hasty decisions
Regular reviews & ongoing advice

37. Accountants AdvisorsAuditors
Questions