TRADE SECRETS

December 2019 Edition

2019 SEASONS GREETINGS

By Patrick Malcolm

2019 was another big year for GFM. As a privately owned firm with no institutional alignment, we continue to grow and differentiate ourselves from the rest of the financial services industry, which continues to be plagued by negative press.

During the year we welcomed Cameron Stuart into GFM. An introduction to Cameron is contained later in this edition of Trade Secrets. Cameron has been an excellent addition to our firm, you will no doubt bump into him at our office or at a GFM function over time.

As most would already know, on Friday the 12th of July, we celebrated Paul notching up 20 years in the industry, all of which has been at GFM. Furthermore, Paul, again, made the list of Australia’s top 50 advisers. It is the third year in a row that Paul has featured in the prestigious list.

On a sad note (for GFM!), many would be aware that Bree Hallett departed the firm earlier in the year. Bree returned to Perth to live with her fiancé as well as be closer to her family. Many of us have kept in contact with Bree, and quite a few staff got to catch up with her when she was in Melbourne in late November. She is doing well and passes her best wishes on to everyone!

We have been incredibly fortunate at GFM that all staff have remained healthy and safe over 2019. But unfortunately, throughout the year, we have also experienced the passing of some long-standing clients. Our hearts go out to these families, and our thoughts are with you.

The GFM team continues to grow. We have a new Associate Adviser starting with us in January. But most importantly, we will continue to build and maintain the relationships we have with our existing clients. Needless to say, at GFM, our core value is that our clients are our business. Our financial advice is tailored to each individual’s unique needs, risk profile and investment preferences with a focus on ensuring they receive the very best advice.

Looking into 2020, we will not rest on our laurels. Our team will continue to dig deep, innovate and work together. We are extremely motivated toward the common goal of helping our clients achieve their financial goals.

From the whole team at GFM Wealth Advisory and GFM Gruchy Accounting, we wish you and your family a happy festive season. Enjoy your break and please stay safe.

We look forward to seeing you in 2020.

OFFICE CLOSING OVER CHRISTMAS

By Bryan Meehan

With Christmas Day falling on a Wednesday this year, please note that our office will be closing at 11.30 am on Friday the 20th December so the team can attend our Christmas lunch.

Our office will re-open on Monday the 6th of January 2020 at 8.30 am.

HELENA CHRISTOS:

CLIENT OF GFM SINCE 2004

By Paul Nicol

Helena has kindly written the article below on her life, family and experiences as a client of GFM Wealth Advisory. We much appreciate Helena’s contribution to Trade Secrets.

In 2003, at the age of 47, my life changed in a way I never thought possible. My husband passed away within two months of being diagnosed with cancer. This was not supposed to happen, and it was not how I had planned my life. We were supposed to grow old together and enjoy a happy retirement. My daughter Jacinta was 16 at the time and going to the Australian Ballet School.

I was a stay at home mum and had been for six years. I didn’t have much to do with the financial side of things except making sure the bills were paid on time. I made no decisions about anything much at all, but that never worried me, I was happy to leave all of that to my husband. So when he passed away so suddenly, I needed to reassess everything.

In March 2004, a friend suggested I make an appointment to see GFM for advice on investments and financial planning. I had received some money from my husband’s life insurance policy, and I needed to make sure it was invested wisely. Thankfully our mortgage had been paid off a couple of years earlier, so at least I didn’t have to worry about that. By this time, I had already gone back to work part-time in my usual occupation as a Medical Receptionist.

A short time after investing with GFM, a young, blue-eyed Paul Nicol took over my portfolio. Paul and I would meet twice a year to review the investment portfolio. I enjoyed our meeting where Paul took a genuine interest in how we were doing and really got to know both Jacinta and myself over the years. When Jacinta joined the Australian Ballet and started earning a regular wage, he advised her on the importance of saving and investing and set up a small portfolio for her as well. We were both made to feel as though we were the most important clients at GFM.

The staff at GFM, in particular, Witi, Mai and Maree, are amazing! I have dealt with them consistently over the past 15 years or so. They are always friendly, caring and helpful, nothing is ever too much trouble, and anything that needs doing is done efficiently and with ease.

Other than the usual investment advice, there are two things, in particular, I have experienced with GFM that stand out for me. The first was about six years ago when I desperately needed a new car. It was a spur of the moment thing when I walked into the car dealership, found a car I wanted to buy. I had never done this on my own before. I remember calling GFM to speak with Paul to ask his advice. I explained to the girls what I needed, and later on, I received a call back from Paul. His help was invaluable in that I was able to go back in knowing precisely what I needed to do and most importantly, hold out for the best possible deal! I picked up my new car the very next day!

The second thing was four years ago when I decided to sell my home where we had lived for 29 years! Now, this was HUGE! I sat down and wrote a long email to Paul outlining my thoughts, feelings and reasons for selling, what I wanted to buy and the fact that I would most likely need to have a small mortgage. Paul’s advice was invaluable, not only about the financial side of things and what I could afford but also about the whole selling and buying process and what I should expect. I was even able to speak with Paul during the auction when I needed advice at a crucial moment in the bidding process. I sold my house for an excellent price, and I have now bought what I consider to be my dream home in a great area!

My goal has always been to ensure I can live my life in relative comfort, have enough money to pay my bills, go on a holiday every now and then and be able to retire in a good position. Along the journey, the team at GFM has undoubtedly helped me to achieve that goal. Now at 62 years of age, I continue to work part-time and hope to do that for quite a few years yet, but I am comfortable knowing that when I do eventually retire, I will be in the best position possible.

INTRODUCING CAMERON STUART

By Paul Nicol

It is with great pleasure that we introduce a new member to our team. Cameron joined GFM in March 2019, having completed a Bachelor of Commerce (Finance and Economics) Degree, at the University of Otago. He is a Self Managed Superannuation Fund Administrator, working with the SMSF Team. Cameron’s passion for working with people and interest in finance has lead him to pursue a career with GFM.

Here’s a quick Q & A with Cameron:

Q. Your family?

A. Originally from Scotland, my family and I moved to New Zealand in 2008. We spent the next 10 years in New Zealand where I completed my Bachelors of Commerce Degree majoring in Finance & Economics. I then moved to Melbourne at the beginning of 2019 from which I started my career with GFM Wealth Advisory.

Q. Favorite holiday destination?

A. Anywhere new, with good food and amazing scenery or architecture.

Q. Hobbies?

A. My hobbies are mostly sports orientated. I am a member at Spring Valley Golf Club, where I try to play every weekend. I enjoy heading down to the MCG and AAMI Park to watch either the NRL, cricket, or footy.

Q. Favorite food/drink?

A. I have to say a perfectly cooked steak!

Q. Your proudest moment?

A. Graduating University.

Q. What sports do you follow?

A. I support Arsenal from the English Premier League and Inverness Caledonian Thistle from the Scottish Championship. I also follow the International Cricket, supporting the BlackCaps, as well as keeping an eye on Domestic Cricket, Rugby Union, and Rugby League.

Q. Best part of working at GFM

A. The best part of working at GFM has to be the people. GFM Wealth Advisory has a very friendly team environment, which makes coming into work even more enjoyable.

Case Study:

Work Test Exemption for Recent Retirees

By James Malliaros

From 1 July 2019, new legislation came into force which provides a one-year work test exemption for eligible retirees that enables them to make superannuation contributions. The measure has been designed to give individuals with lower superannuation balances more time to make contributions into superannuation after they have retired.

Under previous legislation, individuals aged 65 – 74 must satisfy the work test to make voluntary superannuation contributions including personal non-concessional, personal concessional, salary sacrifice and spouse contributions made by the member’s spouse. The work test is satisfied when the member has been gainfully employed for 40 hours in a consecutive 30 day period during the Financial Year before making the contribution.

Under the new legislation, individuals aged 65 – 74 who cannot make voluntary contributions under the existing rules outlined above, can make voluntary contributions using the work test exemption if:

• They meet the work test (being gainfully employed for 40 hours in a consecutive 30 day period) during the previous Financial Year; and
• Their total superannuation balance as at 30 June of the last Financial Year is below $300,000; and
• They have not made use of the work test exemption previously, i.e. it can only be used once in an individuals lifetime.

Below we have outlined some examples of the application of the work test exemption:

Non-concessional contributions

Amanda is aged 69 on 1 September 2019 and wishes to make a non-concessional contribution of $100,000 into superannuation. While she has not been gainfully employed during the 2019/20 Financial Year, she retired from full-time employment on 1 February 2019 and therefore met the work test during the 2018/19 Financial Year.

In addition, as her total superannuation balance as at 30 June 2019 was $210,000, she can, therefore, make a $100,000 non-concessional contribution into superannuation using the retirement work test exemption.

Triggering the bring forward rule

Michael retired from full-time work on 1 March 2019 and has already utilised his non-concessional contribution cap of $100,000 in the 2018/19 Financial Year. As at 30 June 2019, his total superannuation balance was $240,000, and he will turn 65 on 1 August 2019.

Michael has plans to sell his investment property for $750,000 and wants to contribute as much of the sale proceeds as he can into superannuation. Under existing rules, Michael could make a non-concessional contribution of $300,000 into superannuation utilising the bring-forward rule but would have to make the contribution before his 65th birthday on 1 August 2019.

Under the new rules, Michael will have until the end of the 2019/20 Financial Year to make the non-concessional contribution of $300,000 into superannuation as he met the work test in the previous Financial Year.

Although the legislation may appear to have limited applications, we believe there are ways in which it may provide significant value to clients, and we have outlined some examples below.

Minimising capital gains tax outcomes

Matthew retires on 1 May 2019, aged 68. Before retirement, he was receiving an annual salary of $100,000 plus employer SG contributions of 9.5%. Matthew also owns a personal share portfolio valued at $100,000 which has unrealised capital gains of $50,000.

Under previous legislation, if Matthew wanted to maximise his superannuation savings by contributing his personal share portfolio to his super fund, the share portfolio would need to be sold in the 2018/19 Financial Year. This would allow him to make a personal concessional contribution of $15,500 (the remaining concessional cap after super guarantee) and a non-concessional contribution of $78,627. The remaining $5,873 of the sale proceeds would be used to pay the increased personal tax liability due to the capital gain realised on disposal of the share portfolio.

Under the new legislation, Matthew could instead sell his personal share portfolio in the 2019/20 Financial Year to make a $100,000 non-concessional contribution into his super fund (assuming his total super balance is below $300,000 as at 30 June 2019). As his total assessable income for the 2019/20 Financial Year would consist only of the $30,000 discounted capital gain from the share portfolio, he would pay no personal income tax as a result of his eligibility for selected tax offsets

By delaying the sale of the personal share portfolio and utilising the work test exemption in the 2019/20 Financial Year, Matthew saves almost $8,200 in tax ($5,873 personally plus $2,325 on the personal concessional contribution of $15,500).

Contributing proceeds from the sale of the family home

A lifetime cap of $300,000 per person ($600,000 per couple) applies to contributions made with the sale proceeds from eligible properties under the downsizer contribution rules. One of the eligibility criteria is that the individual is 65 or over at the time the contribution is made.

In a circumstance where the sale proceeds from the home exceed $600,000 for a couple, there may be an opportunity for additional sale proceeds to be contributed into super using the work test exemption.

Let’s use the example of a married couple Katie and Drew. Both retired from work during the 2018/19 Financial Year, and both turned 65 in August 2019. Upon becoming 65, they sold their principal residence for $800,000, meeting the eligibility conditions to make the downsizer contribution.

In order to maximize the amount of funds they can contribute into the superannuation environment, assuming Katie and Drew each have a total superannuation balance below $300,000 as at 30 June 2019, they can each make a non-concessional contribution of $100,000 using the work test exemption, and each make a downsizer contribution of $300,000 each, contributing the entire home sale proceeds into superannuation.

It is essential to note the exemption does not operate on a ‘use it or lose it’ basis, where an individual must use it at the first available opportunity. Where an individual retires but returns to work in later years, provided they haven’t already made use of the exemption, they could utilise it in the Financial Year following their retirement the second time around.

The legislated work test exemption provides enhanced flexibility for those aged 65 – 74 to contribute voluntary amounts to superannuation from 1 July 2019, subject to the usual contribution caps. Although we feel that the gainful employment rule is an outdated and inflexible test in our modern retirement system given changing work patterns, the exemption is a welcome softening of the rules. We would encourage the government to remove the gainful employment test altogether to simplify the superannuation system and create greater flexibility to make voluntary contributions.

Aged Care:

Royal Commission Findings

By Nicola Beswick

You would be forgiven if you thought we were getting Royal Commission fatigue. Notwithstanding this, the Royal Commission into Aged Care Quality and Safety is vital to us all, either for ourselves or loved ones possibly entering this stage of life. This Royal Commission was established on 8 October 2018.

The Commissioners delivered an interim report on 31 October 2019. At the time of preparing this article, the total number of submissions equated to 7,084 and a further 4,848 calls to the information line.

In the media release dated 31 October 2019, the interim report described Australia’s aged care system as “a shocking tale of neglect”. Commissioners Richard Tracey AM, RFD, QC and Lynelle Briggs’s AO noted “The neglect that we have found in this Royal Commission, to date, is far from the best that can be done. Rather, it is a sad and shocking system that diminishes Australia as a nation.”

The interim report is titled “Neglect” and outlined that a complete overhaul of the current system was required as the report sets out a range of failures within this area of service. Three key areas were identified as requiring immediate action. These are (taken directly from the press release):

• To provide more Home Care Packages to reduce the waiting list for higher-level care at home
• To respond to the significant over-reliance on chemical restraint in aged care, including through the seventh Community Pharmacy Agreement
• To stop the flow of younger people with a disability going into aged care and speed up the process of getting out those young people who are already in aged care.

It also identifies systemic problems in aged care with a system that:

• Is designed around transactions, not relationships or care
• Minimises the voices of people receiving care and their loved ones
• Is hard to navigate and does not provide information people need to make informed choices about their care
• Relies on a regulatory model that does not offer transparency or an incentive to improve, and
• Has a workforce that is under pressure and under- appreciated, and that lacks key skills.

In response to these interim findings, on the 25th of November, the Morrison Government announced a $537 million funding package to respond to the three key areas the interim report identified as requiring immediate action. The funding package, among a range of areas, aims to:

• Increase the number of home care packages by an additional 10,000 (by investing $496.3 million into this area), with a weight towards those requiring a level three or four package (the highest type of home care package available). These additional packages are to be available from 1 December 2019.
• Improve the use of medical management by making $25.5 million available for the additional education of carers with the aim of reducing the use of both medical and physical restraints, as well as implementing new restrictions on these forms of restraints.
• Provide specific training and support for workers and providers in understanding dementia.
• Reduce the number of younger people and those with disabilities from residential aged care, with targets of:
  • No one under the age of 45 living in residential aged care by 2022.
  • No one under the age of 65 entering residential aged care by 2022.

The Final Report will be presented on the 12 November 2020. While the Interim Report outlines the current failings of the system, the Final Report will provide a framework that is set to change the aged care system and provide individuals (those entering into the system, their family members and the workers) more comfort in this critical area for all.

Benefits of a corporate trustee

By Rebecca Lowe

Every Self-Managed Super Fund (SMSF) is required to have a trustee which can be either individual trustees (for example, mum and dad) or a corporate trustee (for example, mum and dad as directors of the company acting as the corporate trustee). Historically members have opted for an individual trustee structure due to the lower costs associated with this structure. However, there are many benefits achieved by having a corporate trustee for your SMSF, which we have outlined below.

Administrative Simplicity

When members are admitted to, or cease to be members of the SMSF, they must also be added or removed as the trustee. Under a corporate trustee structure all that is required is that the member becomes, or ceases to be, a director of the corporate trustee. As the title to all the assets of the SMSF remains in the name of the corporate trustee, minimal paperwork is required to effect this change.

Conversely, under an individual trustee structure, the title to all the assets of the SMSF must be transferred to the new trustee/s where a member is admitted to, or exits the fund.

Continuous Succession

The SIS Act requires an SMSF to have a minimum of two individual trustees or a corporate trustee to be a complying fund.

In the event of death or mental or physical incapacity of one of the trustees under an individual trustee structure, the SMSF will be required to appoint another individual trustee or move to a corporate trustee structure, generally within six months. The appointment of another trustee can be challenging, particularly in a time of grief, as you need to find someone you can trust who would be privy to your financial affairs, as well as someone willing and capable of taking on the responsibility of being trustee of an SMSF.

Conversely, a company has an indefinite lifespan, therefore utilising a corporate trustee for your SMSF can ensure control of the Fund is more certain in the circumstances of the death or mental or physical incapacity of a member.

Greater Asset Protection

As companies are subject to limited liability, a corporate trustee will provide improved protection for the directors where a party sues the trustee for damages. Using an example of an SMSF that owns a direct property asset, if an electrician comes on to the property and is injured because of the owner’s negligence then the SMSF may be sued, but your own personal liability will be limited to your member balance within the SMSF rather than your entire wealth position.

Conversely, if the SMSF has an individual trustee structure, the electrician may sue you in your capacity as trustee of the fund, as well as suing the SMSF. Without limited liability protection, all your assets may be at risk.

Penalties for Regulatory Breaches

In the event of a breach of SMSF regulations, any penalty that may be levied is imposed on the corporate trustee, with each director of the corporate trustee jointly and severally liable. For example, a fine of $12,600 (the maximum fine, where 60 penalty units are applied) may be the total amount required to be paid by the directors of the corporate trustee.

Conversely, if the SMSF has an individual trustee structure, the fine of $12,600 will be imposed on each trustee who will be required to pay the liability personally and cannot be reimbursed by the SMSF. Where an SMSF has the maximum number of trustees of 4, this could see the total fine increase to $50,400.

Sole Member SMSF

You can run an SMSF where one individual is both the sole member and sole director of the corporate trustee when utilising a corporate trustee structure. If the member/trustee becomes incapacitated, your Enduring Power of Attorney can administer the fund without interference by others.

A sole member SMSF must have two individual trustees. This means that if the member/trustee becomes incapacitated, the remaining trustee must bring in another person to act as the second trustee of the fund, which could potentially cause problems from an estate planning perspective or when blended families are involved.

Both ASIC and the ATO prefer a corporate trustee structure for SMSFs. We also have a strong preference for a corporate trustee structure. If you currently have an individual trustee structure for your SMSF and would like to consider implementing a corporate trustee structure, please get in touch.

First Home Loan Deposit Scheme:

The Nuts and Bolts

By Denise Slattery

Housing affordability continues to remain one of the government’s hard-to-solve political issues in Australia. In an attempt to ease the struggle of many first home buyers, the government has looked to introduce the First Home Loan Deposit Scheme (FHLDS). Treasury has now released an exposure draft of the investment mandate that would govern the FHLDS.

In this article, we will outline who is eligible for the scheme and how it will be applied to First Homebuyers.

How will the scheme work?

Under the scheme, the National Housing Finance and Investment Corporation (NHFIC) will provide a guarantee to help eligible first home buyers increase their security amount on the purchase of their first home to 20 per cent.

To be eligible for the scheme, first home buyers must comply with the following;

• They are required to meet an income test;
• The purchased home needs to be valued below the set thresholds; and
• The first home buyer(s) need to have at least 5 per cent of the home’s value as a deposit.

The scheme will commence on January 1, 2020, and a limit of 10,000 guarantees per financial year applies. Guarantees would be applied on a first-come, first-served basis.

The NHFIC provides a guarantee that increases the borrower’s security to 20 per cent of the value of the property at purchase. So, if the borrower has a 5 per cent deposit, the guarantee is for a further 15 per cent. If the borrower has 10 per cent, the guarantee is for 10 per cent and so on. By lifting the borrower’s security amount to 20 per cent, the lender should no longer require the borrower to take out mortgage protection insurance.

The cost of such insurance can vary from hundreds to thousands of dollars a year, depending on the age of the life insured, the size of the loan and associated repayments, and the events covered.

For a loan to be eligible for the scheme, it needs to meet the following criteria:

• It is provided by an eligible lender;
• There are no more than two borrowers;
• If there are two borrowers, they are spouses or de facto partners;
• Each owner is a first home buyer and will occupy the home;
• The loan is to purchase a residential property which does not exceed the price cap;
• Loan repayments are on a principal and interest basis, and the term does not exceed 30 years (although an interest-only period is permissible where the loan relates to the building of a new residence);
• If the loan is to buy land it must also be to build a home on the land; and
• The loan to value ratio is between 80 and 95 per cent.

If a loan is already approved for the scheme, it can be refinanced, and the scheme will continue to apply to it.

First home buyer

To qualify for the scheme, each owner of the home purchased with the loan must:

• Have never held a freehold interest, long-term lease (as described in section 104-115 of the Income Tax Assessment Act 1997) or company title over a property in Australia,
• Be at least 18 years of age and an Australian citizen, and
• Meet the income test.

The income test

The income test is applied to the financial year preceding the year the loan agreement is entered into and assesses taxable income. To qualify for the scheme, such income cannot exceed:

• $200,000 combined for couples, or
• $125,000 for singles.

Price cap

FHLDS guarantees can only be applied to loans on properties that do not exceed the price cap for that region. The price cap for the calendar year is determined by the NHFIC each January 1. The investment mandate which applies to properties within Melbourne and Geelong is currently $600,000.

The value of a property is taken at the time the loan contract is entered into and is the value of the property assessed by the lender. This may be different from the market value at which the property was purchased.

This is only a draft of the scheme’s investment mandate and may change before the FHLDS is launched in January 2020.

Investing in Unlisted Property

By Patrick Malcolm

Unlisted assets are investments that are not listed on a stock exchange. An unlisted property fund is a form of direct property investment that provides investors with the opportunity to gain access to commercial property assets (such as large office buildings and major shopping centres). By investing in an unlisted property fund, investors will receive units in the fund or trust that holds the property assets that are then managed by a professional investment manager.

Unlisted property funds enable investors to gain exposure to the commercial property market at a relatively low entry point. As investors’ funds are pooled, this provides access to assets they could not otherwise purchase individually.

Unlisted property funds can be categorised into two different structures:

Closed-ended: In a closed-ended structure, investors will receive units at commencement and generally cannot redeem until the underlying properties are sold, proceeds are distributed, and the fund is wound up. These typically run for a fixed-term of 5-7 years.

Open-ended: In an open-ended structure, the fund has a diversified portfolio of properties and can continue to issue units and acquire new properties on an ongoing basis. There is no fixed-term of investment; the fund remains open with no definite end date. Investors are offered a liquidity facility where they can redeem part or all of their units at specific times. Examples include the Charter Hall Direct Office Fund and the Australian Unity Healthcare Property Trust.

Why invest in unlisted property?

Listed assets tend to perform very differently from their unlisted counterparts, as they are affected by market sentiment.

While unlisted property can fall in value, their inclusion helps diversify returns and provides significant benefits to an investment portfolio.

Diversification

Assets linked to equity markets tend to be highly correlated and are strongly influenced by trends in those markets.

Investing in unlisted property can provide protection against falls in equity markets as they have historically not been highly correlated. This gives them a valuable role in diversifying the overall investment portfolio.

Relative return stability

Even within listed markets, property assets tend to display less volatility than the overall market, but more than their unlisted counterparts.

Unlisted property can generate steady, secure income streams (for example through rents locked in over a fixed-term contract period), in contrast to the more unpredictable income returns from listed assets.

Better risk-adjusted returns

Unlisted property tends to have superior risk-adjusted returns compared to many other asset classes.

Unlisted property sits between fixed interest investments and shares on the risk/return curve. Over the long-term, unlisted property assets provide a level of risk closer to bonds than shares because of their steady income streams.

Long term focus

Unlisted property assets are generally held for the long term. This enables the investment manager to make decisions to enhance the long term value of the asset. In contrast, boards of listed companies can sometimes be pressured into making shorter-term decisions.

More stability in returns from unlisted property

The chart below (of rolling 12 month returns) shows there is a higher level of variability in the returns from listed property, while unlisted property tends to be much less volatile and far more stable in the investment returns they provide.

Unlisted property funds are often overlooked as an investment option and are sometimes viewed as secondary to more high-profile forms of investment that attract the lion’s share of media attention, such as investing in the share market or residential property.

But often the best investments are not the most high-profile ones, but instead, are the ones that apply a reliable and tested formula to wealth accumulation.

END OF YEAR SEMINAR:

JAMES HOLT

By Mai Davies

We held our Market Update & Outlook for 2020 Seminar on Wednesday 13th November at Riversdale Golf Club. The seminar covered investment market activity during 2019 and the outlook for 2020.

Our special guest presenter on the night was 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 eighteen 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 discussed the key themes for 2020 and provided a detailed overview of the global economic backdrop and how this is likely to affect investment markets over the next few years. James’s presentation covered the following:

• Political shocks turning into economic shocks
• Start of a Tech bust?
• US growth stretch now longest ever
• Where Perpetual are investing as we head into 2020

This was the fourth year that James had presented to our clients, and the feedback was excellent. There was an abundance of questions from very interested clients, and they appreciated the opportunity to chat with James afterwards.

As this was our last seminar for the year, we concluded the evening with some celebratory drinks and canapés. Our team enjoyed the opportunity to have a drink and a chat with our clients.

James Holt

Paul Nicol, Daniel Moore, James Holt

CHRISTMAS CARDS AND CHARITABLE DONATIONS

By Mai Davies

For 21 years now, it has been our standard policy not to send Christmas cards, but instead send an e-card and contribute an equivalent amount of money to a well-recognised group of charities.

If you would like to recommend a charitable cause, then please send an email to mai@gfmwealth.com.au with a note about the charity and why you believe that we should support it. We are happy to take any suggestions.

GFM IS NOW ON LINKEDIN

GFM have recently established a company LinkedIn page, and we are posting interesting and informative content regularly. Many of our team are also on LinkedIn, and we invite you to follow GFM and connect with the team. Below is the link to our company page below. Follow us for regular updates.

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.