1. The Search For Reliable Income Providing Pension
Investments In Current Market Conditions
2. Key Reliable Income Solution Requirements
Local
Market
To complete retirement income solution non-domestic investments must also:
External
Markets
3. Who Has The Most Resilient Economy On The Planet?
4. Proof Of Australia’s World Record Resilience
*The highest amongst major advanced economies
5. On The Doorstep Of This Century’s Global Economic Powerhouse
• The impact of a worst case Chinese ‘hard landing’ (4.00% slowdown) on Aussie
economy would be 0.50% reduction of GDP (The Economist, 25 August 2012).
8. Australian Solidity
AAA Sovereign Rating
4 of the 9 top rated global banks (AA-) with no bail outs
Highest median wealth in world at USD 222,000
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 incl. superannuation
12. How Does LM Beat The “Big 4” Aussie Banks?
Superior Risk Assessment
Efficient Decision Making
Real Client Partnership
Unrivalled Niche
Expertise
No Hidden Fees
Track Record
14. Historical Performance LM Income Funds
Australian
Income Fund
Managed
Performance
Fund
Rates are net of all fund fees and expenses, and 10% non-resident withholding tax.
15. Indicative Future Return Projections
AIF
7 Day Flexi 1 Year 2 Years 3 Years 4 Years 5 Years
GBP 3.50%pa 4.00%pa 4.25%pa 4.50%pa 4.75%pa 5.00%pa
EUR 3.00%pa 4.00%pa 4.25%pa 4.50%pa 4.75%pa 5.00%pa
USD 2.00%pa 2.25%pa 2.50%pa 2.75%pa 3.00%pa 3.25%pa
ILS 5.00%pa 5.50%pa 5.75%pa 6.00%pa 6.25%pa 6.50%pa
AUD 5.50%pa 6.00%pa 6.25%pa 6.50%pa 6.75%pa 7.00%pa
MPF 2 Years 3 Years 4 Years 5 Years
GBP 6.00%pa 7.00%pa 7.50%pa 8.00%pa
EUR 6.00%pa 7.00%pa 7.50%pa 8.00%pa
USD 4.00%pa 5.00%pa 5.50%pa 6.00%pa
ILS 7.00%pa 8.00%pa 8.50%pa 9.00%pa
AUD 7.50%pa 8.50%pa 9.00%pa 9.50%pa
Rates are net of all fund fees and expenses, and 10% non-resident withholding tax.
18. Huge Mature Aussie Property Market Provides
High Quality Investment Opportunity For LM
19. Strong Fundamentals In Affordable Residential
Housing Sector – Current National Supply Gap
Of >250,000 Homes And Widening
• High population increase of 1.5% annual growth over last 20 years
• 46% come from natural increase and 54% from net overseas migration
• Housing for over 6 million additional people will be required over next 20 years
• Highest global median wealth of $222,000 USD and low unemployment
• A finite supply of developable land around existing infrastructure
• Overall tightening of credit for developers
• There was no credit fuelled lax mortgage lending phase in the Australian market – full recourse.
National Population v Housing Starts
Supply and
Supply and
Demand
Demand
20. Affordability
• Mortgage arrears are negligible and half of owner-occupiers are ahead on mortgage payments.
• Only 35% of households have a mortgage - almost a third own their home outright & remainder rent.
• 70% of owner-occupied mortgage total comfortably held by affluent top 40% of earners.
• Mortgage debt is equal to 30% of household assets - half of the proportion of the US.
• Disposable incomes have actually out-paced house prices by about 15% over last 9 years
Mortgage Repayment
Affordability as %
Disposable Income
Affordability
Affordability
21. Independent Expert View - BIS Shrapnel
Residential Property Prospects Report 2012 -
2015
Combination of rising
Combination of rising
income, prices and
income, prices and
variable interest rates
variable interest rates
easing has resulted in
easing has resulted in
affordability in many
affordability in many
capital cities improving to
capital cities improving to
Price growth isis forecast in
Price growth forecast in best level since 2008
best level since 2008
NSW and QLD for the
NSW and QLD for the
remainder of 2012 and
remainder of 2012 and
during 2013
during 2013 Supply side new dwelling
Supply side new dwelling
commencements have
commencements have
contracted to 20% below the
contracted to 20% below the
national underlying demand
national underlying demand
Strong population growth,
Strong population growth,
arising underlying deficiency
arising underlying deficiency
Purchaser demand isis
Purchaser demand of dwellings, low vacancy
of dwellings, low vacancy
trending upwards nationally
trending upwards nationally rates, solid rental growth and
rates, solid rental growth and
with NSW and QLD
with NSW and QLD strong economic conditions
strong economic conditions
accounting for the bulk of
accounting for the bulk of support current prices.
support current prices.
the growth
the growth
BIS Shrapnel is Australia's leading provider of reliable and detailed property market data, analysis of developments and drivers and
thoroughly researched forecasts. The firm is completely independent with no vested interests in any of the industry sectors covered.
22. Having Said All That…..
…….LM Does Not Invest In National Averages!
23. Trusted client partner to
access Australian story
12 year flagship fund
returns of 6%-10% p.a.
We work through
licenced advisers only
SB In Israel
Every Month
ILS Share Class
Utterly
committed to
the Israeli
market
