perspectives issue 13 - spring 2013

P E R S P E C T I V E Sissue 13 | spring 2013 Patersons private client magazine

psl.com.au

2013 year in review How our market fared this year to date

Your superannuation questions answered A look at contributions, assets, and pensions

Exchange Traded Products On the rise – worth considering?

Diversifying beyond Australian equities

Exposure to international companies, sectors, and industries

The Australian stock market represents about two per cent of all global securities traded.

By trading in international equities, you can diversify your portfolio and increase the number of investment opportunities available to you.

Our International Equities team can:s Buy and sell overseas listed equities on approved

exchanges on your behalf

s Manage the safe custody of all holdings in electronic form

s Facilitate the distribution of dividends payable on your international holdings

Access these international exchanges through Patersons

COUNTRY EXCHANGE

United States New York Stock Exchange (NYSE)

NASDAq (NAS)

New York Stock Exchange ARCArca

American Stock Exchange (AME)

France Paris Stock Exchange (PAR)

Germany XETRA Exchange

Frankfurt Stock Exchange (FWB)

Singapore Singapore Exchange (SGX)

Hong Kong Hong Kong Stock Exchange (HKE)

Japan Tokyo Stock Exchange (TSE)

Switzerland Switzerland Stock Exchange (SIX)

Canada Toronto Stock Exchange (TSX)

Toronto Stock Exchange Ventures (TSXV)

United Kingdom London Stock Exchange (LSE incl. AIMS)

Netherlands Amsterdam Stock Exchange (AEX)

A world of investment opportunitiesBuy and sell listed equities on operating global markets as easily as trading in Australian equities

For more information, contact your Patersons Adviser or call us on 1300 582 256

T H E AU ST R AL I A N STO C KB RO KE R

Patersons Securities Limited ABN 69 008 896 311 AFSL No. 239 052

P E R S P E C T I V E S | 3

ContentsPAGE

Consumer Discretionary

Healthcare

Information Technology

Financial sector

Up 32%

Up 18%

Up 21%

Up 26%

10 Working Smarter, Not Harder?

How to juggle a busy life with the responsibility of an investment portfolio.

17 A broking industry legend

Russell McKimm.

23 Exchange-traded products

Investment products on the rise.

26 Patersons People Meet key Patersons

Analysts and Advisers.

12 Planning for a Strong Financial Future

Timely questions and goals for each life stage.

18 Diversifying beyond Australian equities

International sectors and securities to consider.

20 Your superannuation questions answered

An expert opinion on contributions, assets, and pensions.

6 2013 Year in Review

Patersons Head of Research shares his view on the year to date.

page 29 The Rickshaw Road TripCharity project and adventure of a lifetime.

Qualifying investors are able to access a range of exclusive opportunities available through the most active broker in Australia, Patersons Securities Limited.

Patersons is one of Australia’s leading stockbroking and financial services firms, raising in excess of $8.9 billion of new capital for a range of companies since 2000.

Patersons has ranked #1 in Australia by number of equity issues in Australia every year since 2003, by reference to the Thomson Reuters League Tables.

A new issue of securities is generally offered to the public with regulated disclosure documents such as a prospectus or product disclosure statement. However, a qualifying

investor who is capable of making investment decisions without the need to consider a prospectus or disclosure document may be eligible to participate in certain exclusive placements or capital raisings.

In order to participate, investors must provide a certificate, from a qualified accountant certifying that they have a prescribed net asset or gross income level, being:

• Agrossincomeof$250,000ormoreperannumin each of the previous two years; or

• Netassetsofatleast$2.5million.

Patersons Securities Limited ABN 69 008 896 311 AFSL 239 052

Contact your Patersons Adviser to apply, or visit www.psl.com.au for more information and office locations T H E AU ST R AL I A N STO C KB RO KE R

Are you accessing Patersons new issue flow as a

Sophisticated Investor?


The Chairman’s Voice

Welcome to the Spring edition of Perspectives magazine. With a low interest rate environment, and improving global economies, investor confidence has been rising and indeed the Australian stock market has booked healthy double digit gains over 2013 to date.

Policy initiatives by a multitude of central banks - both recent and prospective - have for some time now been key drivers of investor sentiment across all facets of our financial markets. In Europe, both the European Central Bank and Bank of England remain focused on engendering nascent economic recoveries by accommodative monetary policy settings. Japan, one of our major trading partners, continues to roll out its substantive QE program in a quest to shake the country out of its growth lethargy. And even more importantly for Australia, the focus of Chinese authorities has been to keep GDP growth above 7% without causing unsustainable surges in asset prices.

At home, our own RBA has been busy trying to rebalance the domestic economy, in a quest to replace the waning growth impetus provided by mining-centric business investment with acceleration in household spending and housing construction. While the 2+ percentage points in reductions made to the RBA’s benchmark interest rate since late 2011 are still working their way through our economy and house prices in some capital cities are again on the rise, the current monetary policy easing cycle may not yet be complete.

In the face of these accommodative monetary policy settings, the Australian stock market has enjoyed a broad-based rally, with nine of the S&P/ASX 200’s 10 industrial sectors going higher to date in 2013.

Consumer Discretionary and Health Care stocks have bounced, the former aided by the run of RBA rate cuts, the latter by a lower A$ that has imparted favourable currency effects on their bottom line profits. Demand for Financials sector stocks continued to be underwritten by investors’ insatiable appetite for income stocks in the current low interest rate environment. While the Basic Materials sector has been a laggard, its fortunes have more recently revived on rising commodity prices.

As 2013 winds down and we look to 2014, investor sentiment should continue to be heavily influenced by central bank policy initiatives that have increasingly prioritised economic growth over any concerns regarding the inflationary consequences of such actions. P

Michael Manford Executive Chairman, Patersons Securities Limited

NEWS | COMMENT

Patersons is on Twitter and Linkedin!

Follow @patersonssec for market updates, the latest news, information on our events and more and visit our company page on Linkedin.

Editors Jemma Lole Rebecca Fraurud

Graphic DesignHolly Sanders-Cowell

EDITORIAL TEAM

ARTICLE CONTRIBUTORS

Stephen Blackhall, Superannuation & Retirement PlanningRob Brierley, Head of ResearchMarcus Reade-Brown, Manager, Financial Planning ServicesAndrew Quin, Research & Strategy Coordinator



Healthcare


Financial sector

Up 32%

Up 18%

Up 21%

Up 26%

6 | P E R S P E C T I V E S

RESEARCH

Author: Rob Brierley Patersons Head of Research

To date in 2013, the ASX-200 Accumulation Index is up around 16.6%. Progressively during the year, investors have taken on slightly more risk, with the Consumer Discretionary sector being the strongest performer with a 32% increase, followed by

the Financial sector up 26%, Information Technology up 21% and Healthcare up 18%. The drag on the market continued to be the Materials sector, which is down 9% year-to-date. Our market is currently at a level last encountered in mid 2008, a five-year high.

A year in review 2013


Healthcare


Financial sector

Up 32%

Up 18%

Up 21%

Up 26%


In the year thus far, the stock market has been punctuated by a strong start to the year followed by a month-long

sell off in March/April, a brief rally in late April to mid-late May, another substantial sell-off leading up to the end of the financial year and now we are in a strong sustained rally.

From an individual stock perspective, stand out performers from the larger market capitalisation part of the market were dominated by consumer discretionary retail and financial services stocks including Magellan Financial

RESEARCH

Group (MFG) up 119%, REA Group (REA) up 119%, G8 Education (GEM) up 104%, and JB HiFi (JBH) up 101%.

Conversely, companies from the Resources or Mining Services sectors dominated the list of underperformers, which included Discovery Metals (DML) down 93%, Silver Lake Resources (SLR) down 74%, Boart Longyear (BLY) down 73% and Perseus Mining (PRU) down 69%.

Patersons Research team remains committed to its core specialist areas of Resources including Energy/Oil

& Gas; Mining Services; Information Technology/Telecommunications and general industrial stocks. We have added expertise in Internet Retail and added a number of Healthcare and Biotechnology stocks to our coverage universe. These additions have assisted in broadening our product offering to the ever-changing macro-economic landscape. We continue to specialise in identifying companies within our stock coverage universe that are entering growth phases that have the potential to propel them from small to large market capitalisations.


RESEARCH

This publication is intended to provide general advice only, and has been prepared without taking account of your objectives, financial situation or needs and therefore before acting any information contained in this publication you should consider its appropriateness having regard to your objectives, financial situation and needs.

40%

60%

80%

100%

120%

140%

160%

2008 2009 2010 2011 2012 2013

Retu

rn

Materials

Financials


Consumer Staples

Telecoms

Industrials

40%

60%

80%

100%

120%

140%

160%

2008 2009 2010 2011 2012 2013

Retu

rn

Materials

Financials


Consumer Staples

Telecoms

Industrials


Examples of recent ideas that have generated superior returns include the following:

Carsales.com Limited (CRZ):

On 27 June 2013, we commenced coverage of CRZ when its share price was $9.21, as part of a sector piece on Internet retail/services stocks. We identified that CRZ had substantial upside to volumes and operating yields and rated the stock a Buy. The stock is currently trading at around $10.50.

Infomedia Limited (IFM):

We have covered IFM for around 15 months and have had a Buy recommendation from around $0.20. The stock is up 72% this year thus far and its specialty service of being an international developer and supplier of automotive software including parts catalogues and quoting systems continues to derive solid earnings growth and a >5% partially franked dividend yield.

Seek Limited (SEK):

We initiated coverage on SEK with a Hold recommendation in late June 2013 when the stock was $9.00, citing a price target of $9.60/share and uncertainty around the domestic employment cycle. On 22 August, we upgraded to a Buy after we saw stabilisation in employment volumes. SEK is now trading close to our $13.15 price target.

Sino Gas & Energy Holdings (SEH):

SEH continues to deliver on its strategy of exploring and developing natural gas production in Shanxi Province, China. Gas reserves have grown substantially, flow rates from wells drilled have been strong and it is on the cusp of commencing pilot scale production. The stock is up 50% year-to-date and we retain our Buy recommendation.

Equally important for us, is not only generating positive returns, but making our clients aware of companies that are, in our opinion, risky. We have advised clients to avoid stocks such as:

Mirabella Nickel (MBN):

We have for some time seen MBN as highly leveraged to the nickel price and overly geared. We had identified the risk that lower nickel prices and continued operational underperformance may put pressure on cashflow and MBN’s ability to payoff its debts. The stock is down 85% thus far in 2013 and we do not recommend holding this stock until nickel prices improve substantially.

Paladin Energy (PDN):

PDN is another company about which we have concerns given its high debt levels and subdued earnings and cashflows, due to very low uranium prices. The stock is down 49% thus far in 2013.

Patersons runs a model portfolio that regularly outperforms the general market. The star performers in our model portfolio include TPG Telecom (TPM), which is up 75% in the 2013 calendar year-to-date, Resmed (RMD) up 45%, iiNet (IIN) up 41% and Dulux Group (DLX) up 37%. Our income portfolio has benefited from exposure to the Big 4 Banks, which are up between 25% and 44%, and Envestra (ENV) up 23%. For further details regarding our model portfolio, contact your Adviser or local Patersons office.

2013 has been a good year thus far in the stock market, and most of our stock recommendations continue to perform strongly. We are forecasting an easing in the A$, which will hopefully give the manufacturing and mining sectors some respite. We are also hopeful that, now that the Federal Election has been run and won, that greater policy certainty and a moderating labour market will lead to increased productivity and higher earnings for companies and investors. P

RESEARCH

COMMENT


Though many investors enjoy being actively involved with their portfolio, the question that is often asked is, how to ensure their portfolio is managed without the constant involvement?

Ongoing paperwork can create unnecessary headaches and add stress to family holidays, business, and travel, particularly when the investor does not have the time, knowledge or access to ensure they are making the right financial decisions.

How do busy professionals trying to juggle work and quality down-time with their family still find the time to analyse and filter through all the market information in order to make crucial investment decisions?

How can trustees of Self-Managed Super Funds ensure they are taking advantage

of their investment structure to achieve superior performance, while still keeping up with the compliance and administrative responsibilities of running a fund?

Even retirees may find difficulty in ensuring their investments are in order, if they want to focus their time on other pursuits.

How to take a step back - and accomplish more

A balanced, healthy portfolio benefits from regular review and adjustment, where appropriate, in consultation with a professional Investment Adviser.

Jacqui Mengler, Patersons QLD State Manager (Private Clients) explains, “Many of my clients are transitioning to retirement, or have retired. They’re fit and healthy, live active lifestyles, and want to travel. They’re enjoying travelling most months of the year,

and want to sort out their investment affairs to make sure the main interaction they have with me is about making important investment decisions, when required, rather than worrying about the administration of their portfolio.”

“In cases like this, portfolio management is the key to ensuring the investor can focus on their other interests or business pursuits, knowing their investment administration is being taken care of and they can obtain expert investment advice from a professional.”

“The only time we need to interrupt their travel, aside from agreed meetings, is to call them with specific recommendations, which are in line with their agreed investment goals and based on a thorough understanding of the investor’s requirements and circumstances” says Jacqui.

Working Smarter, Not Harder?

With financial markets constantly on the move, and new opportunities regularly presenting themselves, investors often feel as if they must be attached to their portfolio; unable to take a step back or enjoy a holiday without fear of consequences.

Active portfolio management enables both the investor and the Adviser giving advice on the portfolio, to have a clear, transparent view of the portfolio, due to consolidated investment portfolio reporting. Decisions are able to be made quickly, based on real-time information and on a full view of the portfolio.

It’s an ideal vehicle for clients who want more influence and input than is possible in a large, pooled managed fund. An Adviser will provide proactive advice regarding the portfolio, yet the investor still retains complete control over the decision-making process.

Financially, many investors can benefit from optimising Capital Gains Tax via Accolade portfolio management. While Patersons Advisers do not give taxation advice, being able to understand your current capital gains

COMMENT


“The only time we

need to interrupt

their travel, aside

from agreed

meetings, is to call

them with specific

recommendations,

which are in line

with their agreed

investment goals…”

For more information on Accolade Portfolio Management, visit www.psl.com.au or speak to a Patersons Adviser.

tax position allows your Adviser to give informed advice, which can affect after-tax returns on investments.

Patersons Accolade portfolio management service pulls together Patersons full suite of services to provide your Adviser with the tools to provide comprehensive advice on your total investment portfolio.

Patersons manages over $1.7 billion across our Accolade suite of services, with approximately 2,500 accounts on the service. Our clients include retail investors, sophisticated investors, superannuation funds, foundations and charities. P


FINANCIAL PLANNING


There is no doubt that life is complex. We all have to deal

with a number of possible personal changes over time,

such as getting married, having a family and retiring,

which will ultimately have an effect on our personal goals

and objectives. Whilst we are changing and developing

personally, the Government will also review and change

their rules and regulations, which may further impact our

decisions on how we live, work and invest.

The one constant throughout life is change, whether this is

personal or regulatory (e.g. taxation or superannuation) and

your planning needs to be flexible to adapt to these changes.

The goals and objectives that one sets in early adulthood

will be different to those which the same person sets as

they enter retirement. To demonstrate this, we have outlined

each of the key life stages. Within each life stage we have

posed some important questions which you should consider

asking yourself. As can be seen, these questions change as

your priorities, needs and objectives change over time.

Author: Marcus Reade-Brown, Manager, Financial Planning Services

FINANCIAL PLANNING

Planning for a

Strong Financial

FutureWithin each life stage, your priorities, needs, and objectives change over time.

These are some questions which you should consider to ensure your financial

affairs are in order and create a strategic plan for a strong, realistic financial

future.


FINANCIAL PLANNING

Prime Years (Typically 30 to 50 years old)

As you come into this stage in your life, you are really starting to hit your stride. There will be big transformations in your

priorities as you start to secure your financial future and consider a family. Your financial responsibilities start to change with

your home and any accompanying mortgage being your biggest asset and liability.

Important questions to ask yourself in this stage of your life are:

Starting Out (Typically 20 to 30 years old)

This is generally a great time in your life. You’re probably enjoying time with your friends, completing study, starting your

career, and if you’re lucky enough, you may fit in some overseas travel. However, you may also have to consider your first big

financial decision, such as purchasing a car or saving for a deposit on your first home.


n When are you planning to buy your first home? Can you

afford it?

n Do you have a number of superannuation accounts? If

so, have you considered consolidating these to save

on fees?

n What sort of short / medium / long term goals would you

like to achieve? Are they realistic and achievable? How

will you meet these goals?

n How well do you feel you or your family would be able to

meet your financial obligations should you become sick,

disabled or even die? Do you have appropriate personal

insurances in place?

n What schooling would you like to provide your children?

Can you afford it?

n How well do you feel you or your family would be able to

meet your financial obligations should you become sick,

disabled or even die? Do you have appropriate personal

insurances in place?

n What sort of short / medium / long term goals you would

like to achieve? Are they realistic and achievable? How

will you meet these goals?

n Are you living within your means and trying to reduce

any debt in a timely manner?

n At what age would you like to retire? Now is the time to

start planning.

FINANCIAL PLANNING

Pre-Retirement (Typically 50 to 60 years old)

Your priorities will generally shift towards planning for your retirement. This includes working out when you would like to retire

and how you will fund your income needs in retirement.


No matter which stage in life you’re at, it pays to get into good habits as soon as possible, as the longer you have to plan for events

the better the impact will be on your future. Receiving appropriate financial advice, both now and in the future, from a qualified and

experienced Financial Planner can help you meet your goals and objectives.

At Patersons Securities Limited we have a number of highly-qualified and experienced Strategic Financial Advisers, including

Financial Planners and Superannuation Specialists, who work in conjunction with Private Client Advisers to help you plan for your

financial future. To arrange an obligation-free consultation with a Financial Planner or Superannuation Specialist, please contact

your Adviser at your local Patersons office. P

n How prepared are you for retirement? How do you intend

to fund your expenses once you are no longer working?

n How do you plan to eliminate your debt before you

retire?

n Are you boosting your superannuation savings in the

most effective way possible prior to retirement? Is a Self

Managed Superannuation Fund right for you?

n If you are involved in a business, have you considered

an exit strategy or succession plan?

Post-Retirement (Typically over 60 years old)

This stage is all about enjoying the fruits of your labour. You have most likely retired from the workforce and are spending time

on hobbies, travel and your family. You may also be focused on a successful intergenerational wealth transfer.


n Are you maximizing the Government entitlements for

which you are eligible?

n How will you fund your expenditure needs, for example a

new car, or holidays?


n Are you maximizing your income in retirement in the

most appropriate way which ensures you can lead the

lifestyle you want both now and in the future?

n Do you feel that your estate is structured in a way for the

most appropriate transfer of your wealth?

If you would like further information on Patersons Accolade Super and how it can work for you, contact us on 1300 582 256 or email [email protected]

www.psl.com.au

Professionally tailored portfolio management.

Take controlof your super

Patersons Accolade Super combines premium portfolio management with comprehensive SMSF administration.

Accolade is ideal for premium clients who want greater influence over their investments and retirement needs.


n Your own investment strategy and individually designed portfolio

n Full accounting including preparation of annual tax return and audit

n Quarterly reports, available electronically or in hard copy, and a comprehensive annual report

n The opportunity to take advantage of changes in tax and superannuation legislation when they become available

n Administration of all your transactions and comprehensive record-keeping including a mailing house service

A highly respected veteran with more than 35 years’ experience in the broking industry, Patersons Private Client Adviser, Russell McKimm was inducted into the Australian Stockbrokers Foundation’s Hall of Fame, in June this year.

A broking industry legend

In acknowledgment of his longstanding mentoring role and service to the stockbroking industry, his award was warmly received on the night.

Commencing his career in the early 1970’s, Russell worked in the pharmaceutical industry before his career took a turn and he found himself in the world of finance. He began working at Perpetual Trustees in 1975 in the investment department and first joined stockbroking in 1977 at Randall & Co in Melbourne where he became a partner and then a member of the Melbourne Stock Exchange. This later led him to become a member of the ASX.

Russell moved Sydney with Randalls in 1984, which was followed by private client advising and managerial stints at Meares & Phillips, Ord Minnett Limited, as Managing Director, Dicksons, Tolhurst, SHAW Stockbroking and later Patersons, where he still remains as an Adviser in the Melbourne office.

Russell McKimm

Renowned for taking young advisers and new employees under his wing, and mentoring them in their early years, it is Russell’s generosity of spirit that has endeared him to many.

He always makes time to assist the small investor and has built a strong and loyal client base, with many investors recognising him from his humble beginnings and years spent on Sydney’s 2GB talk back radio show, The Russell of Money.

Importantly, Russell continues to be actively involved with industry bodies, having been President of the Financial Planning Association and a board member of the Stockbrokers Association of Australia. He is currently a Director of the Financial Ombudsman Service.

Russell’s greatest advice to investors is “don’t panic”. He believes it’s important to remember that the price of shares will invariably fluctuate, so with good quality companies the key to success is to not panic by selling or buying on an impulse.

Congratulations Russell on this outstanding achievement. P


PATERSONS PEOPLE


Diversifying beyond

INTERNATIONAL EQUITIES

Australian e q u i t i e s

The Australian stock market represents only 2% of all global securities traded. There are approximately 20 times as many listed securities on international stock markets as there are on the Australian stock market, and global stock markets are approximately 60 times larger by market cap value.


Being able to trade internationally gives clients opportunities to invest

across industries, sectors and companies which are otherwise not available in Australia through ASX listed securities.

Exciting opportunities exist in international markets, adding diversification to domestically focused portfolios. Commonly, Australian internationally focused investors will concentrate on Australian mining and financial exposures, while boosting the depth of their portfolios via international exposures to technology growth sectors such as composite materials, consumer sectors benefiting from larger offshore populations assisting retail rollout, and investment products such as Exchange Traded Funds allowing additional investment and risk management options. The ability to take a country outlook view is of course also available, given Patersons ability to buy and sell in many varied international markets.

Patersons clients now have access via their Advisers to Morningstar International Research Analysts centre, which provides reports with objective analysis, expert insight and trusted ratings on 1800 stocks, 1800 mutual funds, and more than 500 ETFs. Clients are able to access actionable investing ideas, including Morningstar’s recommended Tortoise and Hare portfolios which have consistently outperformed the market.

The Morningstar Rating for stocks identifies stocks trading at discounts or premiums to their intrinsic worth, or fair values. Five-star stocks are trading at the most attractive prices relative to their fair values, whereas 1-star stocks are trading at significant premiums to fair value. There are three key components to the Morningstar Rating for stocks: analysts’ estimate of the stock’s fair value, using forward-looking, discounted cash flow analysis; assessment of the firm’s business risk and sustainable competitive advantages (i.e. “economic moat”); and the stock’s current market price. Morningstar analysts follow the companies daily, and when inputs change, assessments will be updated of the stocks’ fair values.

Through Patersons International trading desk, investors have direct market access into the financial capitals of the world including New York, Toronto, London and Hong Kong. The International desk also has access to trading algorithms and strategies which enable a cutting edge execution service.

In addition to our trading platform, Patersons also has a custodial arrangement with RBC Dexia who provide the electronically-held safekeeping of Patersons clients’ international investments. With over 2.7 Trillion in client assets under administration, RBC ranks among the top global custodians, and is a wholly owned subsidiary of Royal Bank of Canada, one of the largest banks in the world.

Exchanges that Patersons can currently trade on include:

• New York Stock Exchange

• NASDAQ

• NYSE Arca

• American Exchange

• Paris Stock Exchange

• XETRA Exchange

• Frankfurt Stock Exchange

• Singapore Stock Exchange

• Hong Kong Stock Exchange

• Japan Stock Exchange

• Switzerland Stock Exchange

• Toronto (Main board and Venture Exchange)

• London Stock Exchange (Main Board and Alternative Investment Market)

• Amsterdam Stock Exchange

Our International team will continue to provide access to online portfolio reporting, manage the safe custody of all holdings in electronic form, facilitate the distribution of income payable on those holdings and manage all correspondence in relation to each holding.

In addition, Patersons provides an Employee Share Sale execution service. Should an investor have employee

shares in a company listed on a foreign exchange, we may be able to facilitate the sale on behalf of the investor, including taking delivery of the holding from the provider.

If an existing share trading account is held at Patersons, there is no need to open a new account to trade international stocks. All equities can be traded, held and viewed on the one platform, and online access to view all details of the holdings is readily available in the same way as ASX-listed securities. We contract all trades made for clients in Australian dollars, with contract notes including the home exchange executed price and the FX rate disclosed. Any income received on the shares whilst being held by Patersons on behalf of a client are converted to Australian Dollars, and a record of details, including payable date, FX and withholding tax is provided. P

Commonly, Australian internationally-focused investors will boost the depth of their portfolios via international exposures to technology growth sectors, such as composite materials; consumer sectors benefiting from larger offshore populations assisting retail rollout; and investment products such as Exchange Traded Funds allowing additional investment and risk management options.

For further information on

Patersons International Trading

service and Morningstar

research access, speak to your

Adviser, or contact Patersons

by calling 1300 582 256 or

emailing [email protected]

INTERNATIONAL EQUITIES

SUPERANNUATION


Author: Stephen Blackhall SSA - SMSF Specialist Advisor TM

Financial Adviser - Superannuation & Retirement Planning

Your superannuation questions answered

SUPERANNUATION


Question #1: How much can I contribute to my superannuation?

Answer: Your contributions to superannuation each year will depend partly on your age; what contributions have already been made for you (in some cases, even contributions made over the last 3 years could affect what you can contribute today); and if you are over 65, whether you work or not can have a bearing on whether you can make contributions.

Different rules apply to different age groups and there are two different types of contributions that we can make to our superannuation funds:

i. Concessional contributions – these are contributions that are made before tax and generally relate to your employer’s Superannuation Guarantee contributions made on your behalf, your salary sacrifice contributions, and if you are self-employed or ‘substantially self-employed’ (less than 10% of your assessable income comes from salary and wages) these could even be personal concessional contributions you make to superannuation and claim against tax – your superannuation fund pays 15% tax on these types of contributions; and

ii. Non-concessional contributions – which are contributions you make into superannuation from after-tax funds (or in some cases certain assets can be contributed – see below) for which no tax deduction is claimed, and your superannuation fund does not pay the 15% tax.

Type of contribution Age Contribution cap (limit)

Concessional contribution1

to age 60 $25,000 pa.

age 60 and over2 $35,000 pa.Non-concessional contribution

to age 65 $150,000 pa. or up to $450,000 over 3 years

age 65 and over3 $150,000 pa.

1Concessional contributions include your employer’s Superannuation Guarantee contributions and these will reduce the amount you can contribute personally and claim against taxable income eg. via salary sacrifice.

Our clients ask us various questions about superannuation, so we have provided answers to some of the more common questions here in our Perspectives magazine.

2If you turn 60 during the financial year you can contribute up to the higher $35,000 cap, and from 1 July 2014 anyone age 50 and over will be able to contribute up to $35,000 of concessional contributions.3Generally, after age 65, you can only make contributions to superannuation if you work on at least a ‘part-time’ basis. Part-time employment is defined as ‘gainful employment’ of at least 40 hours, over a period of 30 consecutive days in the financial year.

Note: Once you turn age 75 you generally cannot make further contributions to superannuation even if you are still working.

Question #2: What types of assets can I contribute to my superannuation fund?

Answer: All superannuation funds accept cash (cheques, BPAY, EFT, direct credits etc) and some now even accept contributions by way of transfers of listed securities. However, if you have a self-managed superannuation fund (SMSF), then the assets you can contribute to your SMSF can be quite broad.

As well as being able to contribute cash, if you have an SMSF you can even make a wide range of ‘in-specie’ contributions to your fund.

Under Superannuation Law, you are permitted to contribute the following assets to your SMSF, provided they are acquired by the fund at ‘market value’: • Listed securities (shares, property, Government Bonds, funds

and fixed interest securities; listed on any ‘recognised exchange’ throughout the world);

• Business Real Property – property that is wholly and exclusively used in the operation of one or more businesses (potentially your own business, and special rules apply for rural property); and,

• Units in Widely-Held trusts – most retail and wholesale managed funds.

Important notes: 1. Transferring assets to your superannuation fund (including

your SMSF) will be a deemed sale and will almost certainly be assessable for capital gains tax (CGT), and in some cases stamp duty and other costs may also be payable; and

2. The calculation of ‘market value’ for certain assets requires a formal valuation from an ‘approved valuer’ which may incur additional costs.


Question #3: When should I start my pension?

Answer: This will depend on your personal circumstances, but anyone currently over age 55 should at least be speaking to their financial and taxation advisers and having the merits of commencing a pension assessed (including a transition to retirement pension).

Some of the factors that need to be considered are:1. Your age – If you are under age 60, then generally, the pension

you draw out each year (less any ‘tax-free component’) will be assessed for tax (less a 15% tax rebate), whereas if you are over age 60 the pension(s) you draw each year are generally exempt from tax (non-assessable income).

2. The amount of ‘taxable’ and ‘tax-free’ components of your pension fund. When you commence a pension, the ‘taxable’ and ‘tax-free’ components are determined and generally set, in their original proportions, for the life of the pension. This can be important especially if you are under age 60 as it is only the ‘taxable’ portion of the pension you draw each year which is assessed for tax – therefore having a higher ‘tax-free’ component will benefit you.

3. The amount of taxable income your superannuation fund will earn – once you commence a pension, the earnings you make on the assets in your fund that support your pension become tax-exempt, regardless of your age. As discussed above if you are under age 60 then the pension you draw each year (or part thereof) is assessed for tax, less a 15% rebate. So if your superannuation fund is expected to earn a large amount of taxable income (eg. realise a capital gain) in a year then you may start your pension from the beginning of that financial year to avoid full tax being applied to your superannuation fund’s investment income.

Whether you or your partner are receiving Centrelink benefits – whilst you are under Age Pension age (generally age 65) and not drawing a pension from your superannuation fund, then Centrelink do not count the balance in your superannuation fund as an asset and nor will they count (deem) any income on the balance. This could be important if you have an older partner who is say receiving the Age Pension, because if you commence your private pension from your superannuation fund before age 65, this could have an unnecessary adverse affect on your partner’s pension entitlements. Having said that, it is usually beneficial for most people to commence their superannuation pension(s), at least from age 60, as the commencement of a pension generally makes what you earn on the investments of your superannuation fund exempt from tax, and if you are also over the age of 60 the pension payments you draw are tax-exempt (non-assessable) income as well.

Note: People who receive pensions from certain Government superannuation schemes still pay tax on the pensions they receive, at their marginal rates of tax – less a 10% tax rebate if they are over age 60. P

SUPERANNUATION

Stephen Blackhall is Patersons in-house superannuation specialist.

He is an expert in superannuation, having specialised in the field for more than 20 years,

predominantly in the area of Self-Managed Superannuation Funds (SMSFs).

Stephen is a member of SPAA (SMSF Professionals’ Association of Australia) and an accredited SMSF Specialist AdvisorTM. Stephen has also been a member of the Association of Superannuation Funds (ASFA), on the ASFA Small Funds Study Group and a tutor and examination committee member for the education division of ASFA.

Stephen brings a wealth of superannuation knowledge to Patersons, and is available to assist you in:

• Advice on superannuation and related taxation issues;

• Answering questions on superannuation and related matters;

• Meeting with clients in one on one sessions;

• Providing written advice on superannuation, retirement planning and related strategies;

• Establishing new SMSFs for clients;

• Assisting with the transfer of existing SMSFs to Patersons; and

• Providing ongoing reviews and advice for all SMSF clients.

If you would like to speak with Stephen about your superannuation and retirement planning needs, or if you would like to arrange a complimentary meeting, then please speak to your Patersons Adviser.

Alternatively, you can contact Stephen directly on (03) 8803 0127 or email [email protected]


COMMENT

ETPs have proven very popular because they offer traders and investors access to sectors, commodities, and other strategic positions difficult to achieve via the purchases of company shares, or ordinarily require access to the futures or physical markets.

ETPs are composed of Exchange-traded funds (ETFs), Managed funds (MF) and Structured products (SPs), with nearly 90 ETPs accessible through the Australian Securities Exchange (ASX).

The products are simple to access, trade just like shares, are eligible for Self-managed Superannuation funds, transparent, and often offer additional liquidity via Market Makers.

According to the ASX, “Exchange-traded products are financial products traded on an exchange that invest in or give exposure to

Exchange-traded products

A world of opportunity

Author: Andrew Quin Patersons Research and Strategy Coordinator

securities (shares) or other assets such as commodities. Most ETPs generally seek to track the performance of a specified index or benchmark (such as the S&P/ASX 200 index) or a currency such as the USD, or a commodity such as gold.”

“ETPs are open-ended, which means that the number of units on issue is not fixed, but can increase or decrease in response to demand and supply from investors. This assists in ensuring that the ETPs trade at or near their net asset value (NAV). ETPs trade, clear and settle in the same way as shares on the ASX.”

Investors interested in ETPs should understand the details, risks and management costs of the product they are considering purchasing and consult with their Patersons Private Client Adviser about the suitability of the product to their individual circumstances.

Exchange-traded products (ETPs) are one of the fastest growing investment products in the stock market. Globally there are over US$2 trillion of assets managed through these types of structures.


EXPOSURE TYPE BENCHMARKASX

CODE

Australian Broad Based

BetaShares FTSE RAFI Australia 200 ETF ETF FTSE RAFI Australia 200 QOZ

iShares MSCI Australia 200 ETF MSCI Australia 200 IOZ

iShares S&P/ASX 20 ETF S&P/ASX 20 ILC

iShares S&P/ASX Small Ordinaries ETF S&P/ASX Small Ordinaries ISO

SPDR 200 Fund ETF S&P/ASX 200 STW

SPDR 50 Fund ETF S&P/ASX 50 SFY

SPDR S&P/ASX Small Ordinaries Fund ETF S&P/ASX Small Ordinaries SSO

Vanguard Australian Shares Index ETF S&P/ASX 300 VAS

Vanguard MSCI Australian Large Companies Index ETF MSCI Large Cap Index VLC

Vanguard MSCI Australian Small Companies Index ETF MSCI Small Cap Index VSO

Beta Shares S&P/ASX 200 Financials Sector ETF ETF S&P/ASX 200 Financials QFN

Beta Shares S&P/ASX 200 Resources Sector ETF ETF S&P/ASX 200 Resources QRE

DIGGA Australian Mining Fund ETF Chimaera Australian Mining Index DGA

SPDR S&P/ASX 200 Listed Property Fund ETF S&P/ASX 200 A-REITs SLF

SPDR S&P/ASX 200 Financials ex A-REITS Fund ETF S&P/ASX 200 X-A-REITs OZF

SPDR S&P/ASX 200 Resources Fund ETF S&P/ASX 200 Resources OZR

Vanguard Australian Property Securities Index ETF ETF S&P/ASX 300 A-REITs VAP

iShares Asia 50 ETF ETF S&P Asia 50 IAA

iShares MSCI BRIC ETF ETF MSCI BRIC IBK

iShares MSCI Taiwan ETF ETF MSCI Taiwan ITW

iShares MSCI South Korea Capped ETF ETF MSCI South Korea Capped Index Fund IKO

iShares MSCI Hong Kong ETF ETF MSCI Hong Kong IHK

iShares MSCI Singapore ETF ETF MSCI Singapore ISG

iShares Russell 2000 ETF ETF Russell 2000 IRU

iShares China Large-Cap ETF ETF FTSE China 25 IZZ

iShares MSCI Japan ETF ETF MSCI Japan IJP

iShares MSCI Emerging Markets ETF ETF MSCI Emerging Markets IEM

iShares Global 100 ETF ETF S&P 500 IVV

iShares Core S&P 500 ETF S&P 500 IVV

iShares Core S&P MidCap 400 ETF S&P Midcap 400 IJH

iShares Core S&P SmallCap 600 ETF S&P SmallCap 600 IJR

iShares MSCI EAFE ETF ETF MSCI EAFE IVE

iShares Europe ETF ETF S&P Europe 350 IEU

Vanguard All-World EX US Shares Index ETF FTSE All World Ex-US VEU

Vanguard US Total Market Shares Index ETF CRSP US Broad Market Index VTS

SPDR S&P World Ex Australia Fund ETF S&P Developed ex Australia LargeMidCap AUD Index. WXOZ

SPDR S&P World Ex Australia (Hedged) Fund ETF S&P Developed ex Australia LargeMidCap Hedged AUD Index

WXHG

iShares Global Consumer Staples ETF ETF S&P Global Consumer Staples IXI

iShares Global Healthcare ETF ETF S&P Global Healthcare IXJ

iShares Global Telecom ETF ETF S&P Global Telecommunications IXP

Aurora Dividend Income Trust (Managed Fund) MF S&P/ASX 200 Accumulation Index AOD

BetaShares Australian Equities Bear Hedge Fund MF S&P/ASX 200 BEAR

UBS IQ Research Preferred Australian Share Fund ETF UBS Research Preferred Index ETF

iShares S&P/ASX High Dividend ETF S&P/ASX Dividend Opportunities Index IHD

Russell High Dividend Australian Shares ETF ETF Russell High Dividend Index RDV

Russell Australia Value ETF ETF Russell Australian Value Index RVL

COMMENT

Exchange Traded Products


COMMENT

EXPOSURE TYPE BENCHMARKASX

CODE

SPDR MSCI Australia Select High Dividend Yield Fund ETF MSCI Australian Select High Dividend Yield Index SYI

Vanguard Australian Shares High Yield ETF ETF FTSE ASFA Australian High Dividend Yield Index VHY

BetaShares Australian Top 20 Equity Yield Maximiser Fund MF S&P/ASX 20 YMAX

BetaShares Euro ETF ETF Euro EEU

BetaShares British Pound ETF ETF British Pound POU

BetaShares U.S. Dollar ETF ETF US Dollar USD

Australian High Interest Cash ETF ETF Australian Cash AAA

iShares UBS Composite Bond Index Fund ETF UBS Composite Bond Index IAF

iShares UBS Government Inflation Index Fund ETF UBS Government Inflation Index ILB

iShares UBS Treasury Index Fund ETF UBS Treasury Index IGB

Russell Australian Government Bond ETF ETF Australian Government Bonds RGB

Russell Australian Semi-Government Bond ETF ETF Australian Semi-Government Bonds RSM

Russell Australian Select Corporate Bond ETF ETF Australian Corporate Bonds RCB

SPDR S&P/ASX Australian Bond Fund ETF S&P/ASX Australian Fixed Income Index BOND

SPDR S&P/ASX Australian Government Bond Fund ETF S&P /ASX Bond Index GOVT

Vanguard Australian Fixed Interest Index ETF UBS Composite Bond Index VAF

Vanguard Australian Government Bond Index ETF ETF Australian Government Bonds VGB

BetaShares Agricultural ETF - Currency Hedged (Synthetic) ETF S&P/GSCI Agriculture Index QAG

BetaShares Gold Bullion ETF - Currency Hedged ETF Gold QAU

BetaShares Commodities Basket ETF - Currency Hedged (Synthetic)

ETF S&P/GSCI Light Energy Index QCB

BetaShares Crude Oil Index ETF- Currency Hedged (Synthetic) ETF S&P/GSCI Crude Oil Index OOO

ETFS Agriculture (collateralised structured product) SP DJ -UBS Agriculture Sub-Index ETPAGR

ETFS All Commodities (collateralised structured product) SP DJ -UBS Commodity Index ETPCMD

ETFS Copper (collateralised structured product) SP DJ -UBS Copper Sub-Index ETPCOP

ETFS Corn (collateralised structured product) SP DJ -UBS Corn Sub-Index ETPCRN

ETFS Natural Gas (collateralised structured product) SP DJ -UBS Natural Gas Sub-Index ETPGAS

ETFS Grains (collateralised structured product) SP DJ -UBS Grains Sub-Index ETPGRN

ETFS Industrialised Metals (collateralised structured product) SP DJ -UBS Industrial Metals Sub-Index ETPIND

ETFS Energy (collateralised structured product) SP DJ -UBS Energy Sub-Index ETPNRG

ETFS Physical Precious Metal Basket SP Basket of precious metals ETPMPM

ETFS Physical Platinum SP Platinum ETPMPT

ETFS Physical Silver SP Silver ETPMAG

ETFS Physical Palladium SP Palladium ETPMPD

ETFS Brent Crude (collateralised structured product) SP DJ -UBS Brent Crude Sub-Index ETPOIL

ETFS Wheat (collateralised structured product) SP DJ -UBS Wheat Sub-Index ETPWHT

ETFS Physical Gold Share* Gold GOLD

Perth Mint Gold SP Gold PMGOLD

RBS RICI Enhanced AG Index (Synthetic Structured Product) SP RICI® EnhancedSM Agriculture Index (USD) TR RBSRIA

RBS RICI Enhanced Energy Index (Synthetic Structured Product) SP RICI® EnhancedSM Energy Index (USD) TR RBSRIE

RBS RICI Enhanced Global Index (Synthetic Structured Product) SP RICI® EnhancedSM Global Index (USD) TR RBSRIG

RBS RICI Enhanced AG x-livestock Index (Synthetic Structured Product)

SP RICI® EnhancedSM Agriculture ex-Livestock Index (USD) TR

RBSRIL

RBS RICI Enhanced Metals Index (Synthetic Structured Product) SP RICI® EnhancedSM Metals Index(USD) TR RBSRIM

Source: ASX


PEOPLE | NEWS

Patersons

PeopleTake a minute to meet some key Patersons Analysts and Advisers


Simon Goyder WA State Manager (Private

Clients)Simon was recently appointed WA State Manager

(Private Clients), based in Patersons head office in Perth. Having commenced with Patersons in 1999, Simon is a well-respected and highly knowledgeable investment Adviser and member of the Patersons management team.

How did you become a broker?Initially I wanted to get into broking or commodities trading, as I came from an agricultural background, and had been trading on the markets personally. I completed a Bachelor of Business at university, and started as a Dealers Assistant at Patersons 14 years ago in the Busselton office. Since then, I’ve worked as an Adviser, Branch Manager, and now WA State Manager (Private Clients) for Patersons.

What is the best piece of advice you’ve been given throughout your career?Work on an 80/20 balanced portfolio model, which gives a long-term investment profile with the ability to take advantage of opportunities as they arise while still managing risk appropriately.

What is the highlight of your career to date?I’ve always felt strongly that combining the advisory and management function is important, including mentoring the younger Advisers. Personally, I think that the ability to assist both clients and Advisers in what is often a challenging industry is a strength in my career.

How do you relax and unwind?Living in WA, I enjoy getting down the coast, it’s very peaceful. Aside from catching up with family and friends, I also do a lot of road cycling and mountain biking.

What is the best thing about working at Patersons?The personal relationships and team environment are very important. Within Patersons, we have a great network of relationships, which means I work closely with employees at every level, from juniors to senior management. I also have built very strong relationships with clients over a long term period, which means a lot to me.

Who is your favourite AFL team? West Coast, and anyone playing Collingwood.

How do you get involved in the local community?I’m involved with quite a few local groups, mostly recreational and sporting. Living in a great wine region, I’m involved with a few wine clubs as well. I try to get out in to the community to educate people on investment, often giving presentations to retiree and business associations.

Kien TrinhSenior Quantitative Analyst

Kien Trinh has worked as a quantitative analyst at Patersons Securities for 6 years and has developed several quantitative models to assist investors/ traders achieve their desired returns and manage risk. These models include the Momentum Monitor, the Quality Investing and High Yield models, and the Multifactor model.

Before joining Patersons, Kien worked at Russell Investment Group as head of their quantitative sector team, and graduated with a Bachelor of Commerce (Honours) from the University of Melbourne with an Actuarial qualification.

How did you become an Analyst?As a child, I would break things to see how they work. This was the beginning of my analytical career. In a world of deception, I found credibility in numbers. So I embarked on an Actuarial career, but moved to the more exciting world of investing.

What is the best piece of advice you’ve been given throughout your career?First and foremost, you need to enjoy what you do. Enjoyment and satisfaction drives motivation which in turn leads to new ideas. Do not accept the status quo, but always ask yourself if there is a more efficient way of doing things. Passion is what makes hard work and dedication come easily.

What is the highlight of your career to date?Having the knowledge and skills to build models is one thing, but making them work in practice is much more difficult. So the highlight would have to be when my models first began to make money…

How do you relax and unwind?Nothing makes me happier than to spend time with my little daughter.

What is the best thing about working at Patersons?Patersons promotes a flexible and independent work environment.

Who is your favourite AFL team? The Cats.

What do you like about living in Melbourne?The bike tracks around town makes it easier to survive when riding into work.

PEOPLE | NEWS


Jacqui MenglerQLD State Manager (Private Clients)As an Adviser at Patersons, as well as

QLD State Manager (Private Clients), Jacqui assists investors in all areas of

‘Blue-Chip’ portfolio construction, listed equities, margin lending and superannuation

funds. Jacqui joined Patersons in 2009, following the merger with Tolhurst Limited.

How did you become a stockbroker?I love the dynamic nature of stockbroking. With all the highs and lows, every day is different. My father, Max, is the longest serving stockbroker on the Gold Coast. So I think broking was in my blood. My first financial foray was banking a $50 sheep-shearing cheque from my pet merino sheep, Polly at age 4.

What is the best piece of advice you’ve been given throughout your career?The only thing you can control in this world is your attitude. Stock markets go up and down but focusing on responding rather than reacting will ensure the right decision is ultimately made.

What is the highlight of your career to date?I view my career as a portfolio, with many high points to date and hopefully many more to come. Recently, being appointed QLD State Manager (Private Clients) has been a real highlight.

How do you relax and unwind?Feeding the pelicans and swans with my husband and our young daughter, Ava. Or as Ava says, “feeding Percy the Pelican and Sally the Swan!”

What is the best thing about working at Patersons?The people! I’m pleased to work with a strong and committed management team. Patersons has a very stable leadership history throughout the firm’s operations since 1903.

Who is your favourite AFL team? Definitely Hawthorn. Go the Hawks!

How do you assist with educating investors?I’m passionate about educating investors and, since 2007, have hosted more than 40 Ladies ‘Investing with Confidence’ seminars to help ladies take charge of their financial future. Through life changes, I found many ladies didn’t know as much about investing as they wanted to. So I began hosting boardroom seminars to discuss the stockmarket, companies and investing to help a number of ladies through life changes such as the death of a spouse or a divorce. The seminars have grown to include ladies from age 25 – 89! P

Can’t decide which stocks to buy?Why not leave it to the professionalsFor further information and to view the Product Disclosure Statement please visit the Patersons Asset Management Limited website or call 1800 555 132

Patersons Australian Equity Fundwww.patersonsam.com.au

ARSN 128 445 036 AESN 133 443 679

Issuer: Patersons Asset Management LimitedABN 68 009 226 386 AFSL No. 267 899

PEOPLE | NEWS


PEOPLE | NEWS

With no set route, an unpredictable vehicle, two weeks of driving and 3,500km to cover from Cochin to Shillong, the team known as Half-a-Tribe raised money for their chosen charity and have survived to tell the tale.

Half-a-Tribe raised a grand total of $4,500 for Frank Water Projects, the charity behind setting up sustainable and community-owned clean water projects in some of the poorest communities in India.

In April 2013, Patersons New Accounts & CHESS Officer, Carol Patterson, set out with her husband and daughter to drive the length of India in a rickshaw and embark on the adventure of a life time, the Rickshaw Run.

Road Trip

Half-a-Tribe raised a grand total of $4,500 for Frank Water Projects...

Seeking new experiences and a different perspective on life, Half-a-Tribe left the other half at home and along with 79 other teams from all over the world, explored India in a rickshaw, most commonly known as a “tuk tuk” or a 7 horsepower glorified lawnmower.

Friends and family tracked their whereabouts and progress on a live tracking map, and from the other side of the world the team entertained everyone with their insightful blog, sharing their daring and exciting experiences.

The Rickshaw

PEOPLE | NEWS


Reflecting on all the challenges, Carol has learnt a few things or two about the most chaotic streets in the world and the unspoken pecking order on India’s roads.

“Obtaining my motor bike licence to be legally able to drive the tuk tuk (bizarre?!) has been my greatest challenge. India is a place where the roads are full of madness and chaos, where seat belts, helmets and pillion passengers are not questioned, yet the road rules are strictly applied to the status of your vehicle – and unfortunately a tuk tuk is at the bottom of the vehicle hierarchy.”

With a new outlook on life, Carol believes you are never too old to try something new. As she turns 50 this month, it just goes to show that age is no barrier.

‘The Adventurists’ (www.theadventurists.com) run a ‘Rickshaw Run’ tri-annually, and over the last few years the infamous Run has raised over $2 million for charities all over the world. P


Patersons Securities Limited ABN 69 008 896 311 AFSL No. 239 052Participant of ASX Group; Stockbrokers Association of Australia Principal Member; Participant of Chi-X Australia; Participant of NSX.Important Notice: © Patersons Securities Limited 2013. The contents contained in this publication are owned by Patersons Securities Limited (‘Patersons’) and are protected by the Copyright Act 1968 and the copyright laws of other countries. The material contained in this publication may not be copied, reproduced, republished, posted, transmitted or distributed in any way without prior written permission from Patersons. Modification of the materials or use of the materials for any other purpose is a violation of the copyrights and other proprietary rights of Patersons.Disclaimer: Patersons believes that the information or advice (including any financial product advice) contained in this publication has been obtained from sources that are accurate at the time of issue, but it has not independently checked or verified that information and as such does not warrant its accuracy or reliability. Except to the extent that liability cannot be excluded, Patersons accepts no liability or responsibility for any direct or indirect loss or damage caused by any error in or omission from this publication. You should make and rely on your own independent inquiries. If not specifically disclosed otherwise, investors should assume that Patersons is seeking or will seek corporate finance business from the companies disclosed in this publication.Warning: This publication is intended to provide general securities advice, and does not purport to make any recommendation that any securities transaction is appropriate to your particular investment objectives, financial situation or particular needs. Prior to making any investment decision, you should assess, or seek advice from your Adviser, whether any relevant part of this publication is appropriate to your individual financial circumstances and investment objectives. Disclosure: Patersons, its directors and/or employees may earn brokerage, fees, commissions and other benefits as a result of a transaction arising from any advice mentioned in this publication. Patersons as principal, its directors and/or employees and their associates may hold securities in the companies the subject of this document, as at the date of publication. These interests did not influence Patersons in giving the advice contained in this publication. Details of any interests, which is relevant to any personal advice to you, may be obtained from your Adviser. Patersons as principal, its directors and/or employees and their associates may trade in these securities in a manner which may be contrary to recommendations given by an authorised representative of Patersons to clients. They may sell shares the subject of a general ‘Buy’ recommendation, or buy shares the subject of a general ‘Sell’ recommendation. Stock recommendations: Investment ratings are a function of Patersons expectation of total return (forecast price appreciation plus dividend yield) within the next 12 months. The investment ratings are Buy (expected total return of 10 per cent or more), Hold (-5 per cent to +5 per cent total return) and Sell (> 5 per cent negative total return). In addition, we have a Speculative Buy rating covering higher risk stocks that may not be of investment grade due to low market capitalisation, high debt levels, or significant risks in the business model. Investment ratings are determined at the time of initiation of coverage, or a change in target price. At other times the expected total return may fall outside of these ranges because of price movements and/or market volatility.

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Enjoy professionally tailored portfolio management with Accolade.

Speak to your Patersons Adviser, or contact Patersons Accolade at [email protected]

www.psl.com.au


Professionally tailored portfolio management.

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n MINIMISE YOUR ADMIN: Receive full administration and record keeping, including mail house service.

n SAVE TIME: Accolade gives you a clear view of your entire portfolio, with the ability to consolidate multiple reports, statements and systems into one.

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n CONVENIENCE: Enjoy the convenience of 24/7 online access to your account.

n TAX DEDUCTIBILITY: Fees should be tax deductible in most cases. Please check with your accountant that it applies to your circumstances.

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perspectives issue 13 - spring 2013

Documents

australian stock market

patersons people

patersons adviser

international equities

p e r s p e c t i v

international exchanges

international companies

listed equities