Full house for LDB’s finance seminar
May 19, 2017
More than 100 LDB clients and guests attended the picturesque Box Hill Golf Club on Tuesday evening and were treated to yummy food, lively conversations and two excellent presentations on superannuation and investment.
LDB’s Senior Financial Planner Chris Payne looked at how to secure your future in uncertain times.
He outlined many of the changes that will take place to superannuation this year, their impacts on current strategies, and opportunities under the new rules.
He also touched on the further changes contained in the recent federal budget, and the implications if these measures are passed.
Mr Payne followed up with a world tour of the economic outlook highlighting:
- The sluggish pace of recovery from the global financial crisis (GFC)
- Low growth and low interest rates, but high debt levels that have driven up asset prices (e.g. property values)
- The hardship faced by economies with shrinking workforces
- The implications of the Trump presidency.
Other take-home messages included:
- The global economy is improving
- Superannuation is still the most attractive tax structure for retirement funding
- Markets tend to perform well, regardless of who is president or prime minister
- Focus on what we can control (e.g. risk, asset allocation)
- Diversify, diversify, diversify.
Adam Curtis, Senior Investment Specialist at Perpetual, followed up with a presentation on building more predictability into portfolios.
He also touched on the issue of an aging population, pointing out that more than 2,600 Australians will turn 100 this year and, with interest rates so low at present, investors need to take on some risk in order to generate reasonable returns over the long term.
The main theme that ran through Mr Curtis’ talk was that of value – of paying the right price for a given asset – buying assets that are cheap, and selling those that are expensive.
However, obvious as this sounds, this isn’t how most go-it-alone investors behave.
History shows that more money flows into share markets when prices are high, and more flows out when prices are low, seriously impacting on investor returns.
As to where that value can be found, Mr Curtis looked beyond standard shares and property to alternative assets, including animal stockyards and airports.
These are assets that most investors can’t access directly, but can gain exposure to them through managed funds.
With an eye on value, these alternative investments can deliver additional diversification benefits to a portfolio.
After the presentation attendees, fortified with even more delicious food, enjoyed the opportunity to chat informally with the speakers and LDB staff.
Of course, there’s no substitute for being there, so sign up for our newsletter and keep an eye open for our next seminar.