SMSF ASSOCIATION INVESTMENT STRUCTURES UNPACKED

Transcription

1 SMSF Chairperson: Rory Cunningham, Senior Manager, Investment Products, ASX Panellists from: Stuart Magrath, Head of Channel Management, Australia and New Zealand, S&P DJI Emma Kirk, Key Account Manager Listed Funds, Magellan Asset Management Limited Steven Bennett, Head of Direct, Charter Hall

2 SMSF Rory Cunningham Senior Manager, Investment Products ASX

3 Product structures available through the ASX Listed Investment Companies, Trusts & REITs Australian Shares Unlisted Funds (mfunds) Exchange Traded Products (ETPs) 3

4 Comparison of fund structures in today s panel Real Estate Investment Trust (REIT*) Listed Investment Trust Unlisted Fund ETMF / Active ETF Traditional ETF Trust Full pass through taxed at Investor s Marginal Tax Rate Closed end Open end Secondary Market Primary Market Secondary Market Periodic NTA Monthly NTA Periodic NAV Intra day inav Active Passive Holds property Can hold a variety of assets including cash Holds the index 4 ASX Investment Products 2018 *Not stapled

5 Building a diversified investment portfolio using different products Infrastructure Fund mfund 10% 7% mfund/etf 7% 10% 7% Infra structure Fixed Interest 7% Cash 7% Direct Shares 34% Australian Equity 7% LIC/LIT 10% ETF Unlisted Property Fund / REIT 12% ETMF 12% Property 10% 30% International Equity 10% 10% 10% ETF mfund mfund 5

6 Panellists - introduction Emma Kirk Key Account Manager, Listed Funds Magellan Steve Bennett Head of Direct Charter Hall Stuart Magrath Head of Channel Management, Australia and New Zealand S&P DJI 6

7 Australian vs Global investing in context Investment Return Australia 2.4% MSCI world Rest of the world S&P/ASX 200 MSCI World 5 years 7.7% 16.6% Europe ex-uk 10 years 5.4% 7.8% 15 years 9.4% 7.4% UK US 20 years 8.2% 4.5% Japan Source: Morningstar direct. Annualised total returns as at 31 March

8 The Australian market is very skewed S&P / ASX 200 MSCI World REITS Utilities Telecom 53% Telecom Utilities REITS Materials 23% Industrials Materials Industrials Financials Health Care Health Care Energy Financials IT YOUR LOGO Consumer Energy 14% IT Consumer 39% Source: msci.com, spindices.com/indices/equity/sp-asx-200 8

9 Navigating disruption Technology winners Consumer tech platforms 20% Payments 9% Enterprise software 8% Quick service restaurants 11% Insulated retailers 7% Low risk of disruption Hospitals 4% Staples Consolidation 4% Communications Infrastructure 3% Source: Magellan Asset Management Limited. Data as at 31 March Calculated on a look through basis based on underlying revenue exposure of individual companies held within the portfolio Magellan defined sectors. Any trademarks, logos, and service marks contained herein may be the registered and unregistered trademarks of their respective owners. Nothing contained herein should be construed as granting by implication, or otherwise, any license or right to use any trademark displayed without the written permission of the owner. 9

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11 Skew in the S&P 500: 5/1996 5/

12 Skew in the S&P/ASX 300: 6/2000 6/

13 What s changed? 13

14 Why consider unlisted property investments? Low correlation to listed stocks and bonds Decrease the risk of negative portfolio returns by including unlisted property in a portfolio Benefits from depreciation and tax deferred component of income. NOT impacted by proposed changes to franking credit rules 14

15 Why consider unlisted property investments? High levels of Income Income paid monthly or quarterly to investors 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% Income return Capital growth Total return 15

16 Panellists Open Q&A Emma Kirk Key Account Manager, Listed Funds Magellan Stuart Magrath Head of Channel Management, Australia and New Zealand S&P DJI Steve Bennett Head of Direct Charter Hall 16

17 ASX Investment Product Supermarket

18 ASX Investment Product Supermarket Roadshows Webinars ASX.com.au Investor Education ASX Investment Products Monthly Fund Updates