The Search For Reliable Income Providing Pension Investments In Current Market Conditions
Key Reliable Income Solution Requirements
LocalMarket
ExternalMarkets
To complete retirement income solution non-domestic investments must also:
Who Has The Most Resilient Economy On The Planet?
Proof Of Australia’s World Record Resilience
*The highest amongst major advanced economies
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).
World’s 11th Largest Economy: Highly Diversified
Low Australian Sovereign Net Debt - Enviably Sound Fiscal Finances
4th largest fund management AUM globally at >1.5 trillion AUD incl. superannuation
3rd largest banking sector by market cap behind US & China (bigger than combined
Eurozone)
Highest median wealth in world at USD 222,000
4 of the 9 top rated global banks (AA-) with no bail
outs
AAA Sovereign
Rating
Australian Solidity
LM Investment – Brief Intro To Company And Funds
LM Investment Management
LM Debt Security Funds’ Structure/Strategy
How Does LM Beat The “Big 4” Aussie Banks?
Track Record
No Hidden Fees
Real Client Partnership
Unrivalled Niche
Expertise
Efficient Decision Making
Superior Risk Assessment
Meticulous Due Diligence Process
4 to 6 weeks DD4 to 6 weeks DD OngoingOngoingScreenScreen
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.
Indicative Future Return Projections
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
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
AIF
MPF
Rates are net of all fund fees and expenses, and 10% non-resident withholding tax.
A Doing Business With LM Slide
Australian Property – The Facts
Huge Mature Aussie Property Market Provides High Quality Investment Opportunity For LM
Strong Fundamentals In Affordable Residential Housing Sector – Current National Supply Gap Of >250,000 Homes And Widening
National Population v Housing Starts
Supply and Demand
Supply and Demand
• 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.
Affordability
Mortgage Repayment Affordability as %
Disposable Income
AffordabilityAffordability
• 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
Independent Expert View - BIS Shrapnel Residential Property Prospects Report 2012 - 2015
Supply side new dwelling commencements have
contracted to 20% below the national underlying demand
Supply side new dwelling commencements have
contracted to 20% below the national underlying demand
Purchaser demand is trending upwards nationally
with NSW and QLD accounting for the bulk of
the growth
Purchaser demand is trending upwards nationally
with NSW and QLD accounting for the bulk of
the growth
Price growth is forecast in NSW and QLD for the
remainder of 2012 and during 2013
Price growth is forecast in NSW and QLD for the
remainder of 2012 and during 2013
Combination of rising income, prices and
variable interest rates easing has resulted in affordability in many
capital cities improving to best level since 2008
Combination of rising income, prices and
variable interest rates easing has resulted in affordability in many
capital cities improving to best level since 2008
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.
Strong population growth, arising underlying deficiency
of dwellings, low vacancy rates, solid rental growth and
strong economic conditions support current prices.
Strong population growth, arising underlying deficiency
of dwellings, low vacancy rates, solid rental growth and
strong economic conditions support current prices.
Having Said All That…..
…….LM Does Not Invest In National Averages!
Utterly committed
to the Israeli market
ILS Share Class
We work throughlicenced advisers only
SB In IsraelEvery Month
12 year flagship fund returns of 6%-10% p.a.
Trusted client partner to access Australian
story
Understanding Residential Property
Housing AffordabilityHousing affordability continues to improve, paving the way for future price increases.
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