1) Australia has experienced the longest period of continuous economic growth of any developed country, averaging 3.3% annual GDP growth for 21 years without a recession. 2) Australia is well positioned to benefit from Asia's economic rise given its proximity and exports of commodities and other goods/services to the region. 3) Despite its dependence on mining and commodities, Australia has a highly developed services sector accounting for over 80% of its GDP, and has a very business friendly climate according to various indices.

1. The Importance Of Global Diversification:
Australian Case Study

2. Which Is The Most Resilient Economy On The Planet?

3. Proof Of Australia’s World Record Resilience
No Recession
GDP Growth A Through: From 2013 – 2017
World Record 21 1998 Asian Crisis IMF forecast
Years Averaging average 3.2% p.a.
3.3% p.a. 2002 Tech Crisis GDP growth*
2008+ Global Crisis
*The highest amongst major advanced economies

4. My Aims For This Presentation
To provide an example
To present a compelling of the type of
case study on the geographical
economic credentials of an diversification ALL
investment destination investors should have
you probably don’t know in their portfolios
much about
As you will have
gathered the
Our clients use LM as country in focus is
their trusted partner Australia.
to access this
Australian story

6. Plotting The Shifting GDP Centre Of The World

7. On The Doorstep Of This Century’s Global Economic Powerhouse
• But it will be a bumpy economic ride in the developing nations!

8. Australia Is A Critical Partner for Growth in Asia – Export Values
Of Australia’s top 12 export of goods and services markets in 2011, ten were from Asia.

9. Australia’s Merchandise Exports by Country
“The tyranny of
distance, so long
Australia’s enduring
curse, has been
turned on its head. It
is now the Antipodean
advantage of
adjacency”
Source: The Economist & Australian
Survey 26 May 2011

10. Providing Commodities To Asia Is Just One Part Of The Story
> Asia is rapidly becoming home to the majority of the world’s middle class:
> Middle class demand a diverse range of goods and services from:
• Health and aged care • Banking and financial services
• Education • Agriculture and high-quality food products
• Household goods • Manufacturing/services: high-value & innovative
• Tourism • Green Technology
> Australia as the most sophisticated economy in the region fulfils these needs

11. Australia’s GDP >US$1.5 trillion – 4th Largest Economy In Asia
• Australia’s population is less than half a per cent of the global total

12. Real Average GDP Growth by Economic Grouping

13. GDP Per Capita (USD)
> Highest median wealth USD 222k (USA 53k)
> 2nd highest average wealth USD 397k after Switzerland
Source: Credit Suisse Global Wealth Report, October
2011
GDP Per Capita (USD)

14. Global Government Net Debt 2012

15. Active Monetary Policy Room With Room To Manoeuvre

16. Australian Economy Myth 1
China slow down a grave risk to Australian economy
The impact of a worst case Chinese ‘hard
landing’ (a 4.00% slowdown) on the Australia
economy would be to shave off 0.50% of
GDP which would only reduce the current
IMF annual forecast to 3.00% growth. This is
still the trend rate.
The Economist, 25 August 2012.

17. Australian Economy Myth 2
World‘s 12th largest 1.5 Trillion USD economy dependant on mining?
• Australia’s services sectors account for over 80 per cent of real Gross Value Added (GVA).

18. Australian Economy Myth 2
World 12th largest 1.5 Trillion USD economy dependant on mining?

19. Index of Economic Freedom World Ranking – 2012

20. Key Indicators of Doing Business – 2012

21. Australia’s Labour Force by Birthplace
Population Growth 1.5% p.a.
> Natural increase 50%
> Migration Policy 50%

22. The Economist’s Liveability Index Ranking – 2012

23. Australian Solidity
AAA Sovereign Rating
4 of the 9 top rated global banks (AA-) with no bail outs
Compulsory Superannuation – 9% from employer
3rd largest banking sector by market cap behind US & China (bigger than combined Eurozone)
4th largest fund management AUM globally at >1.5 trillion AUD

24. Largest Stock Market in Ex-Japan Asia By Market Cap

25. Best Stock Market Performance Over The Last 112 Years
Averaging 7.20%pa after inflation
Asset Class Return Since 1 January 1990
Australian Shares 8.80%pa
International Shares 4.00%pa
US Shares 7.10%pa

26. Best Stock Market Performance Over The Last 112 Years
Averaging 7.20%pa after inflation
Asset Class Return Since 1 January 2000
Australian Shares 7.00%pa
International Shares -3.20%pa
US Shares -2.80%pa

27. Best Stock Market Performance Over The Last 112 Years
Averaging 7.20%pa after inflation
Asset Class Return Since 1 January 2006
Australian Shares 3.10%pa
International Shares -3.80%pa
US Shares -2.70%pa

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29. In Summary
Australia is in the right place at the right time. Skilful economic
management has maximised the nation’s opportunities and in doing so
has created the world’s most resilient economy which has been the most
consistent performer on the planet for over 20 years. Australia’s growth is
forecast to be number 1 for developed economies over the foreseeable
future. As an investment destination there are arguably none better.

30. Documents In Hebrew On LM/Australia and Breakfast