TRADE SECRETS

October 2018 Edition

Unfortunately, a “balanced” fund can mean many different things. For consumers, when asked what a balanced fund is, most would assume that it is comprised of 50% growth assets and 50% defensive (cash and fixed interest).

At GFM Wealth, we typically consider a balanced fund to be one that has exposure to defensive assets of between 40% and 60%, with the rest invested in growth assets.

What is a defensive asset?

The Australian Securities and Investments Commission (ASIC) defines defensive assets as “Cash or fixed interest investments that are generally low risk and less volatile than growth investments.”

Can other assets be defensive?

This very much depends on personal opinion, but we say no.

Many super funds have created their own definition of what is a defensive asset in recent times.

Our view, like ASIC’s, is that defensive assets should be limited to cash and fixed interest. Unlisted property, infrastructure and private equity, are growth assets, as their risk and return characteristics are much more like shares and listed property than cash and fixed interest.

Unlisted infrastructure and property assets

First and foremost, we are supportive of a reasonable exposure to unlisted assets as part of a portfolio.

The Future Fund (Australia’s sovereign wealth fund) had an exposure of around 14% to unlisted property and infrastructure as at 30 June 2018, which we would broadly agree is a sensible allocation to these types of assets.

Investments that are not listed on a stock exchange are unlisted assets. The value of unlisted assets is based on their underlying value, unlike listed assets, which are valued daily by the stock market. While unlisted assets can also fall in value, their inclusion can provide benefits to portfolios as they help diversify returns. Unlisted assets typically have a longer investment horizon.

However, in no way would we consider these types of assets as being “defensive”.

Often, returns of capital are reported as income distributions with unlisted assets. Just because an asset delivers a significant income stream does not make it defensive.

During the Global Financial Crisis, one industry super fund lost $1.6 billion due to their holding of unlisted assets.

This Fund has now produced a cumulative return of 41% for the last ten years to 30 June 2018. This is significantly lower than an Index that comprises a 60% to 80% exposure to Growth assets (as this Fund does), which has produced a cumulative return of 100% (Morningstar Australia Multi-Sector Growth Market Index).

The Top Performing Fund:

The top-performing fund for the 2017/18 Financial Year, an industry super fund, claimed a 24% allocation to defensive assets.

The Fund’s website explains that in addition to cash and fixed income “some asset classes… may have growth and defensive characteristics”. Their defensive assets include infrastructure, property and “alternatives”. Of the 24% portfolio allocation to defensive assets, these make up 16%. There is no cash.

This has enabled the Fund to claim the top position in the balanced fund category. This allows them to benefit from being the best performed fund in that category, which comes with media coverage. This isn’t a bad thing when trying to attract members.

We have to ask whether a fund with 92% in Growth assets should be able to say they are “balanced”.

This isn’t an exception to the rule though. Many of the top funds for the 2017/18 Financial Year have counted other assets as defensive. Only three of the top ten performing funds could be considered balanced if property, infrastructure and private equity were strictly classified as growth.

The diagram on the next page is from another significant super fund. The chart below shows asset classes defined along traditional and sensible lines. Cash and fixed interest are defensive, while property, shares and alternatives are growth. Alternatives include unlisted infrastructure and property.

Unfortunately, there is no requirement for super funds to disclose how they classify their investments. There is no requirement to share how each asset has performed or even what it is. When the Productivity Commission asked about returns for individual assets, only five of 208 funds were prepared to disclose them. Rating agencies also don’t query the allocations reported.

We believe that super funds should be free to invest in unlisted infrastructure and property assets, but we strongly disagree with their classification as defensive.

The primary focus each year is how funds performed over the previous 12 months. This is meaningless. To have any idea how it behaves in good and bad times, you need to see performance over a full market cycle.

A word on advertising

The explanation for super funds spending millions on advertising and sponsorships each year is that size drive economies of scale and better outcomes.

The theory that sports sponsorship and TV advertisements lead to more members, lower costs and better benefits doesn’t stack up. One of the more prolific industry funds has been increasing their fees. According to their annual reports, administration and operating expenses rose from $103 million in 2006 (1.3 million members) to $262 million in 2016 (2.1 million members). That’s a 57% increase per member.

And a final word on fees!

From 30 September 2017, super funds had to adopt a new fees and costs disclosure regime (RG97) imposed by ASIC. In many cases, this has lead to an increase in the level of fees disclosed to members.

The regime was designed to arm the public with knowledge about the charges they are paying and enable a fee comparison between different products.

As previously stated, many super funds invest directly in unlisted assets. The costs of buying and operating these assets must now be shown. These include stamp duty, brokerage fees and borrowing and running costs.

While this will have no impact on returns, many super funds showed fee increases of 0.2% or more and in some cases much more.

One industry super fund showed an increase of 0.44%, taking the total investment cost from 1.01% to 1.45% per annum.

In Summary:

So when is a balanced fund, “balanced”? We think when it has an exposure of between 40% and 60% to growth assets, with growth assets being defined as anything other than cash and fixed interest.

Leslie has kindly written the article below on her family, working life, retirement and the relationship she has had with our company since 2013. We greatly appreciate Leslie’s contribution to Trade Secrets.

A dear friend and eminent economist recommended GFM Wealth to me, and I have been a satisfied client since May 2013.

After a misspent (or well spent) youth enjoying a series of incredible adventures in wonderful places I entered academia. My teaching, theoretical and research interests centred on socio-economic change especially colonialism, industrialisation and development. My appointments during my ‘first career’ included a Lectureship at Flinders University, a Fellowship at Universiti Sains Malaysia, a Fulbright Post-doctoral Fellowship at Stanford University and a Research Fellowship at the Australian National University. During this period I spent a considerable amount of time carrying out field research in Southeast Asia.

The demands of developing and maintaining an international academic career were taking a toll on my two young sons, so I decided to create a more stable lifestyle for my family. My ‘second career’ was headquartered in Canberra and included work on Australia’s international science and technology relations, an appointment to a special project in Commonwealth Treasury and time with the Department of Foreign Affairs and Trade. I worked in many positions in DFAT, most related to North Asia – the 21st century’s centre of the world. This experience was such a privilege. I woke every morning looking forward to going to work. I worked with amazing young men and women and some noteworthy politicians. Eventually though, I found myself staying up half the night to read and re-engage with issues of earlier intellectual interest. It was time for me to move on.

So what of my life now? I recently engaged in a ‘brisk’ conversation with my younger son after he referred to me as ‘retired’. I prefer to see my time now as my ‘third career’. I remain fully engaged in the wider world and intend to stay this way for as long as I can. I travel quite frequently and like my travel to be ‘outcomes related’. I do pro bono and some paid editorial work related to Korea. I occasionally deliver a guest lecture in Malaysia or Korea. I write and edit a newsletter for a major private school. I have been spending quite some time in France and now study French every morning (then forget most of it overnight)! I am also deeply engaged in learning more about the causes and consequences of WW1 and my own family’s engagement in that “war to end all wars”. My micro-level research has focused on my grandfather’s brother Alexander who enlisted in August 1914 and was killed in action in June 1918. Alexander’s story is much more than his chronology, so I am currently researching and writing his biography. I recently took part in commemorative activities in France associated with Alexander’s service, and I delivered a short speech – in French!

We cannot control the world around us, but we can reduce risk and maximise financial security through diversification. Diversification is fundamental to the way I approach my finances. My family’s SMSF is both a means of diversifying and also allows diverse investments across a range of markets. Since the fund’s inception, GFM Wealth has provided me with sound financial advice and administrative support. I am routinely supplied with just enough gentle reminders not to ‘set and forget’. Having financial planning and accounting services under the one roof enables seamless handling of its regulatory and reporting aspects. Staff at all levels are personable and responsive. The words that come to mind when I think of key interlocutors are ‘informed’ and ‘sincere’.

At Nieppe-Bois British Cemetery, Vieux-Berquin, France. About to walk over to the microphone and deliver my speech!

Taken in Merris, France and shows school children holding up a photograph of my grandfather’s brother “Alexander McCaughan, No.177, 9th Battalion AIF” and reading a little about him.

Having commenced with GFM in July 2012, Lisa holds the position of SMSF Administrator and is primarily responsible for the preparation of paperwork required to administer our clients’ superannuation, investments and insurances. Over the years, many clients will have had the pleasure of dealing with Lisa via phone calls, emails or in person.

Lisa is a very popular and well-liked staff member at GFM and is an integral part of our SMSF & Investment Administration team.

Here’s a quick Q and A with Lisa:

Q. Your family

A. My family and I have lived in Melbourne for 20 years now – husband David, twin daughters Ash & Jess who are now 26, and Jess’ partner Brandon. We are a tight-knit little unit as all our extended family live in Adelaide.

Q. Hobbies?

A. I love to cook when I have time, I love going to the movies of all genres, and I love that it draws you in and you are focused on the film and nothing else. I’m also quite partial to a good mystery novel.

Q. Favorite holiday destination?

A. I still have lots of countries to cross off my bucket list as I couldn’t say that I am a seasoned traveller. I have been on a few overseas trips, but by far Singapore was my favourite with lots of sights, lovely food and just the right travel distance.

Q. Favorite food/drink?

A. Anything sweet for me, but my ultimate dessert is any flavoured baked cheesecake with freshly whipped cream on the side.

Q. Your proudest moment?

A. As I am a parent, there are always proud moments, but in October my beautiful girls spread their wings and became homeowners in their own right. This is a significant achievement, and I couldn’t be more proud of them as they start this new chapter of their lives.

Q. What sports do you follow?

A. I enjoy AFL, and I follow the Adelaide Crows, and my family and I make sure that we go to the games when they play in Melbourne. Unfortunately, 2018 turned out to be an injury-prone year for the team.

Q. Best part of working at GFM

A. Planning for retirement was not on my radar seven years ago, that’s for sure! Lucky for me, working for GFM exposed to me how crucial planning for your future wealth is.

The best part of my job is the interaction I have with my work colleagues and especially the SMSF team.

More often than not, when people begin to consider their retirement plans, they usually have a five-year time frame in mind. While five years may seem like a lot of time when thinking about your future working arrangements, given the ever reducing contribution caps over the last few years, this is not a significant amount of time to maximise your retirement savings.

Just four years ago in the financial year beginning 1 July 2014, Australians aged 50 – 59 years could make concessional contributions up to $35,000 per year and non-concessional contributions up to $180,000 per year into superannuation – an annual contribution of up to $215,000. With these contribution caps currently $25,000 and $100,000 respectively, it is more important than ever that people start saving for retirement at an earlier age.

The chart below shows the value of investing an additional $5,000 per year as a non-concessional contribution to superannuation, under four different scenarios:

• Receiving SG (Super Guarantee) contributions only into superannuation over their working life (to age 67)
• Making an additional $5,000 contribution each year from age 55 to 67
• Making an additional $5,000 contribution each year from age 45 to 67
• Making an additional $5,000 contribution each year from age 35 to 67

In constructing the chart, we have assumed the following:

• That the savings are for an individual aged 35 earning an annual salary of $60,000 (receiving SG contributions of $5,700 p.a.)
• An opening balance of $60,000 in super at the start of the current financial year earning an investment return of 7.00% p.a. net of fees and taxes
• The table below shows the estimated balance in present dollar terms, using inflation of 2.75% p.a.

As you can see from the chart above, additional contributions into superannuation will have a significant impact on your superannuation savings at retirement, and the earlier you start, the more significant the effect.

While the exact amount of savings required at retirement is entirely dependent on the individual and their financial goals, as we have seen over the last few years with ever-changing superannuation legislation, it is not enough to wait until your twilight working years before considering your retirement savings. While retirement may seem like an eternity away for younger people with other expenses taking priority, regular superannuation contributions (no matter how small) combined with compounding investment returns have the potential to make a massive difference to your savings at retirement.

Investing is more than mathematical analysis of risk and return. It’s a struggle to tune out irrelevant information, to have the strength to stick to an investment strategy and to resist the urge to follow the herd.

Investors are often told to avoid the emotional roller coaster and magically remove emotions and temptation.

Over the last decade, a different approach has started to emerge within behavioural science—one that accepts the fact that investors are merely human. They have a limited attention span and an unlimited capacity to mess things up.

Behavioural scientists study how the fundamental wiring of human beings drives behaviour, and how that can undermine the potential to build wealth over time. Instead of denying the limitations, researchers are learning how humans can work with (or around) human nature.

Imagine you are at a BBQ and a friend tells you about a new hot company with a fantastic hit product. Should you:

a) Check out the company and potentially invest?

b) Ignore the news and invest as before?

Investors are likely to be conflicted about this question. You know it’s a trick, and that “b” is probably the right answer. But “a” feels natural, because of words like “all over”, “hot”, and “hit”—are all positive, and they tell us that lots of other people like the company. Humans are naturally drawn to things that other people like and find valuable (behavioural scientists call this tendency “social proof”).

Investing is fascinating, and it’s often exciting and fun. But there’s always the chance of losing out. One of the significant factors that make investments risky is human behaviour. In a study, investors who actively traded stocks in the market made mistakes again and again—and had returns that were one third lower than that of average returns.

While there are many ways in which investors can run into trouble, three types of problems are prevalent:

1. Chasing returns. If you’ve ever talked with friends about the stock market at a BBQ, you’ve probably felt the urge to invest in a new hot stock or sector. The problem is this: so does everyone else (mentioned above).
2. Picking inappropriate investments. Investors are inundated with information about investments. It can be overwhelming, so they often go with what feels right. Unfortunately, for complex issues like asset allocation, diversification, and portfolio selection, the more intricate details matter, because they help drive long-term growth and determine whether investors can reach their goals.
3. Exiting the market during downturns. When the markets get jumpy, people ask themselves, “Is the market going to fall more, and should I get out of the market?”

The red line below shows the experience of the investor who exited the Australian stock market at the bottom of the GFC but then reinvested in stocks a short time (12 months) later. The investor missed a large chunk of the strong recovery that followed.

The blue line shows the experience of an investor who stayed invested in stocks.

The green line shows the experience of an investor who exited the stock market and invested in cash.

Investors face complex, multifaceted questions. So, their minds take shortcuts—which make the task of investing feasible but introduce mistakes that can end up costing us. Perhaps the most straightforward alternative is to copy what other people are doing, but there are many others.

When faced with overwhelming complexity, human minds often avoid a decision altogether or simplify it to a level they can handle. Avoiding a decision means taking no action until we’re forced to. Humans often simplify complex choices by focusing on a single piece of data.

Another way humans simplify complex choices is to use simple rules of thumb. If there are ten options, investors might put 10% of their investment in each one—even if one is already well diversified. Human minds automatically take shortcuts behind the scenes.

Perhaps the most troubling aspect of using these shortcuts—also known as behavioural biases—is that humans don’t realise it’s happening. And even when they know, they can’t just turn them off.

Why? They are part of the automatic part of the brain, outside of conscious awareness. The answers they come up with “feel” right. Investors can’t avoid using the shortcuts because human minds can’t handle the underlying math that some investment decisions require.

Logically knowing what to do isn’t enough. Humans are good at recognising the right thing to do but are inconsistent about actually doing it. They can’t overcome these problems by force of will; instead, they have to remove their frailties from the equation or put tremendous time and energy into avoiding these mistakes.

Rather than dedicating their entire life to investing (and psychology), many realise the limitations they face and turn to professional advisers for help. As advisers, we attempt to simplify investment analysis and avoid common mistakes to help investors overcome the challenges we’ve talked about.

The research on these biases is extensive and spans many decades of work. In the next edition of Trade Secrets, we will do a summary of the key lessons from this research.

Over the last few months, I have been busy preparing myself for my motor racing debut – at the age of 52. This process involved a lot of planning, budgeting and hands-on preparation work.

This exercise got me thinking about the amount of effort, planning and financial commitment people often devote to their hobbies and how similar this type of activity is to running a business.

Often a hobby presents an opportunity to recoup some of the costs associated with it, be it the sale of a piece of artwork or craft, selling offspring from a livestock breeding hobby or something similar.

Quite often within the practice, we see instances where clients believe their hobby should be classified as a business as they wish to take advantage of possible taxation benefits around claiming costs. Often this results in a loss situation and clients aim to offset this loss against other income from their normal activities. We also see activities which are more than likely a business, classed as a hobby – it is a double-edged sword.

So what distinguishes a business from a hobby?

No single factor determines if you are in business, but some of the elements you need to consider include:

• Have you registered a business name and obtained an ABN?
• Do you have a profit-making motivation or are your activities just a leisure pursuit? Do you advertise?
• Is the size or scale of your activities consistent with other businesses in the same industry or activity?
• Do you keep business records and books of account, have a separate bank account, operate from business premises, have a licence or qualifications and have a business plan?

If you engage in a hobby and think there is an opportunity or a risk of your endeavours being treated as a business, please do not hesitate to contact us for a discussion.

For many people who are members of an industry, retail or public sector super fund and joined the fund through their employer, their account was established with a default level of insurance cover, generally Life, Total and Permanent Disability (TPD) and Salary Continuance (also known as Income Protection) cover.

These covers are generally provided to you without having to provide any additional health or financial information, and as a result of the super fund being able to provide coverage under a ‘group’ policy, the cost of protection is generally very inexpensive as the risk is spread over a higher number of people. The default level of cover you receive can sometimes be a flat dollar amount or an allocation of units that have a value determined by your age and sometimes your occupation.

But how do you know if the level of cover you have is enough to protect you and your family? Often when working with people to determine their insurance needs, they are surprised by the gap between the default level of cover they hold within their superannuation account and what they would like to be covered for.

While the process of determining your insurance needs is dependent on some factors, we believe the basic formula is as follows:

• Identify and quantify your financial goals now and into the future
• Review your existing asset position and determine which of these assets you are willing to liquidate in an insurance event
• The difference between the two amounts is generally the level of cover you need

Whilst the formula above may seem basic, consideration needs to be given to a variety of factors such as your current financial position including income, expenses, assets and liabilities, personal circumstances such as your age, relationship status and family circumstances, your health status and any foreseen changes to your financial position or personal circumstances (marriage, new baby, new job etc.).

Once your insurance need has been identified, how much cover you should apply for becomes a balancing act, trying to determine a level of cover that suits your identified needs at a cost you can afford. Just because your identified Life insurance need is $2 million does not necessarily mean you will be able to afford the premiums of a policy this size. Often during this process, you need to revisit the formula above to determine if any of your goals can be altered or there are assets that you may be willing to sell to reduce your insurance need.

For many people, the default levels of cover within their existing industry, retail or public sector funds are a good starting point as some insurance is better than none. However, as your asset base, income level and family grows, it is essential to review your insurance covers to ensure your long term financial plan is not put in jeopardy in an insurance event.

If you would like a review of your insurance needs or existing levels of cover, please contact the office.

Many think of Asia as a mysterious land, where public perception is everything, and when visited by Westerners, their secrets are closely guarded. While China and the United States are in the middle of trade wars, imposing tariffs on each other’s exports into their respective countries, there are still many compelling reasons to invest in Asia.

There are several reasons Asian shares represent worthy consideration. With an increasingly younger population, along with an increasing shift towards the consumption of services, Asia is becoming more likely as the region to find growth, compared to other areas of the world.

Asian countries make up 30% of Earth’s land mass and constitute roughly 60% of the world’s population. While many countries have ageing populations to contend with, it is estimated that Asia’s middle-class population (predominantly in India and China) will grow from 1,380 million in 2015 to 3,492 million by 2030. The comparative growth rates, within the middle class of other Western countries, are not expected to be that large. Europe is expected to increase from 724 million in 2015 to 733 million in 2030, and the United States is increasing from 335 million to 354 million in 2030.

Since the early 2000s, the Chinese and Indian economies have been growing at an average annual rate higher than 6%, which is significantly higher than the 2.0% growth rate for Australia and 2.3% for the United States. The higher Gross Domestic Product (GDP) growth rate in these regions is attributed to both the increase in the working population and productivity, along with financial government support.

This increase in the Asian community will also change the lifestyle in many of these regions. While we hear of ghost cities, with towers of vacant high-rise apartments, it is more than likely further urbanisation will occur, along with a shift away from agriculture to manufacturing and service jobs. This transfer of employment is already happening, with China’s service sector currently accounting for 50% of their national GDP, and India’s service sector accounted for approximately 60% of their economy.

Millennials make up a large percentage of the Chinese population. This demographic is driven by spending their disposable income on leisure activities and experiences, compared to things, at a rate three times higher than the average Chinese consumer. Travel and wellness are also areas of increased demand by this cohort.

Many mega-cap companies, more significant than those on the Australian share market, exist to meet the growing demand in the service, experience and leisure sectors. China already have their Facebook, eBay and Apple equivalents, respectively in Tencent, Alibaba and Samsung. However, the Chinese companies already dwarf their US counterparts. Tencent, Alibaba and JD.com have created a $9 trillion mobile payment system (in 2017), compared to the US mobile market of $112 billion at the same time. Growth in this sector has also been seen in other Asian markets. Many more global companies exist in Asia. Comparatively, the Asian share market is one of the largest equity markets in the world. For the first time, the MSCI have included Chinese A-shares (mainland shares) within its indices. This inclusion will force many international fund managers to consider Chinese stocks within their portfolios.

There are still risks within the region. While increasing tariffs are placed on China by the US, these are somewhat less effective compared to 30 years ago. Asia currently exports 29% of their goods to the Western World, with 57% trading amongst other Asian countries. This is a lot different from 30 years ago, where 44% of all Asian exports were to the US and Europe.

Political risk is a concern. However, China’s leader, Xi Jinping, is likely to remain as President since the Chinese parliament amended its constitution, broadening Xi’s power and scrapping term limits. In addition, India, Indonesia and Thailand all have elections this Financial Year. It is likely the current leaders of India (Modi) and Indonesia (Jokowi) will remain in power and Thailand is currently transitioning from military to civilian rule.

Finally, a stronger US Dollar, higher interest rates and oil prices have recently impacted Emerging Markets, with concerns around a large amount of debt held in this region. China has increased their level of debt. Debt in the area has spiked, and as a percentage of GDP, it represents 260% compared to 140% in the GFC. This may curb the expected growth rate, although the Chinese government are looking at changing the way debt is structured, making the higher debt levels more manageable.

Although several headwinds are facing this region, Asia is changing with many of their large-cap stocks rewarding investors who can withstand the likely volatility.

On Monday 3rd September 2018, we held an Estate Planning seminar at Leonda by the Yarra on this crucial topic. Our guest presenters were Jennifer Dixon, Practice Leader and Greg Oliver, Senior Lawyer from Moores Legal.

The seminar focused on a range of Estate planning topics including, Wills, Significance of Asset Ownership, Powers of Attorney and the Family Court. The session was informative and was well attended by 150 clients. The feedback was excellent, and some of the attendees have since taken action in getting their estate planning affairs in order.

James Malliaros, Greg Oliver, Jennifer Dixon

Estate planning is a complex area, so reviewing your estate plan on a regular basis is essential.

Why do you need an estate plan?

Even if you have a Will, it is still essential to consider your overall estate plan. A Will is a useful document, but an estate plan has the scope to cover so much more than a Will encompasses. If you are in a situation where you cannot advocate for yourself while you are still alive, a properly constructed estate plan can protect your interests. You can also structure an estate plan to protect and support vulnerable family members after your death.

Maintain an up-to-date Will

You die intestate if you die without a valid will. This can create complications that are best avoided. While the laws around dying intestate are intended to be as fair as possible, they are unlikely to reflect your exact wishes. Also lost is the opportunity to decide who oversees and makes the final decisions about your estate. With a Will in place, this means that you can be confident that your wishes will be recognised and acted upon. If your circumstances change, your Will should be updated.

Appoint an executor that will respect your wishes

The executor of an estate can have a challenging role. If there is conflict about the division of an estate between beneficiaries, there can also be a great deal of emotional pressure.

You need to have the trust that your executor will honour your wishes as set out in your Will.

Remember all your assets

When preparing your Will, include everything of value – property, investments, jewellery, collectibles, and items of sentimental value. Instructions should be specific. The aim should be to make the distribution of your assets as simple as possible. If you forget to include something of value, this could lead to arguments over who has the rights to that particular asset.

Power of Attorney

Arranging an enduring power of attorney is an essential way of planning for the future while you are alive. Although everyone has the right to make their own decisions, anyone can experience an injury or illness that renders them unable to make decisions, either temporarily or permanently. By creating an enduring power of attorney, you can choose who will make significant financial and personal decisions for you, such as where you will live or what happens to your house, if you are unable to do so in the future.

Keep all documentation together and accessible

For the convenience of your executor and peace of mind of your beneficiaries, ensure the following documents are kept together in an accessible, safe place:

• Your last Will
• Your power of attorney
• Investment records
• Life insurance documents
• Details of the location of assets
• Details of all your advisers

GFM Estate Planning Workbook

We recently updated and prepared our comprehensive Estate Planning Workbook which is designed to assist with gathering and documenting essential personal information. The workbook makes the provision for recording information relating to all aspects of your estate plan, including all legal and financial matters making it an excellent reference tool for your executor or estate beneficiaries. While our Estate Planning Workbook does contain critical information, it is not a legal document and should not substitute for a Will or estate plan. We strongly advise this workbook be used in tandem with a well written Will, prepared by a legal professional.

If you would like a copy of this workbook or were unable to attend the seminar and would like a copy of the presentation, please email mai@gfmwealth.com.au

The last seminar for the year will be held on Monday 19th November at 7.15 pm at Riversdale Golf Club.

Our special guest presenter will be James Holt, who is the Senior Investment Specialist for Equities at Perpetual Investments.

James is responsible for providing technical investment support to financial advisers and investors of Perpetual Investments’ equity funds. James has worked in the financial services industry for over 19 years. Before joining Perpetual Investments in 2014, James was a director and Investment Specialist with the Portfolio Management Group of Black Rock Australia and Senior Investment Specialist at Zurich Investments.

James will discuss the key themes for 2019. As the year comes to a close, a lot has happened. His presentation will cover the following:

• The US economy has kicked high into high gear, and interest rates are on the rise there
• Trade and Twitter wars rage in the background
• The Australian economy continues to chug along, but the housing market has begun to weaken
• What does it all mean for investment markets? Looking at key investment themes as 2019 starts to come into view.

Invitations will be sent at to clients by the middle of October. We hope you can join us.

Disclaimer: This document is not an offer or invitation to any person to buy or sell any interest in or deposit funds with any institution. The information here is of a generic nature, and does not take into account your investment objectives or financial needs. No person should act upon this information without firstly seeking competent professional advice specifically relating to their own particular situations.

Copyright: © This publication is copyright. Subject to the conditions prescribed under the Copyright Act, no part of it may, in any form, or by any means (electronic, mechanical, microcopying, photocopying, recording or otherwise) be reproduced or transmitted without permission. Enquiries should be addressed to GFM Wealth Advisory.