Centuria Life Policyholder’s y Investment Presentation October 2011 Melbourne Sean Webster Investment Manager
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Before we begin: Information in this presentation is general information only in relation to the investments in the Investment Bonds Managed by the Centuria Life Limited. In preparing this presentation we have not taken into consideration any persons personal circumstances, objectives or needs. Before you make any decision in relation to your investment, we you obtain financial advice from a licensed financial recommend that y adviser.
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Macro Economic Overview
Perspective on Global and Australian Economy Current Economic Situation What is the outlook and where are the risks for the Australian economy ? Your Investments What is the outlook for financial markets? How are your funds invested currently?
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Macro Economic Overview
What does the global economy look like?
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Macro Economic Overview
What does the global economy look like The United States
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Macro Economic Overview
What does the global economy look like? The United States
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Macro Economic Overview
What does the global economy look like ? Global Debt Issues
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Macro Economic Overview
What does the global economy look like ? Asia
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Macro Economic Overview
What does the global economy look like ? China
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Macro Economic Overview
What does the Australian Economy look like? Strong GDP growth forecast for the Australian Economy
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Macro Economic Overview
Australian Economy – growth drivers Coal and Iron Exports at record levels and prices increasing
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Macro Economic Overview
Australian economy on the cusp of a resource and energy investment boom
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Macro Economic Overview
How big is this resource and energy investment boom
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Macro Economic Overview
How big is this resource and energy investment boom ?
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Macro Economic Overview
What about the rest of the Australian economy?
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Macro Economic Overview
What about the rest of the Australian economy?
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Macro Economic Overview
What about the rest of the Australian economy?
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Macro Economic Overview
The equity market
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Macro Economic Overview
The equity market and company profits
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Macro Economic Overview
The Outlook for Australia Interest rates likely to decline very gradually (1 cut in Q1) unless there is a global banking crisis Economic growth likely to remain strong (2-3%pa) (2 3%pa) supported by energy and resource investment, driven by Chinese and SE Asian growth Unemployment likely to be stable with some upside bias Inflation likely to remain in RBA band for 12 to 18 months
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Macro Economic Overview
Commodity and energy prices likely to move sideways with some downward potential if global growth slows further
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Macro Economic Overview
Risk Factors
Debt default in Greece, Spain and or others US economy slows into recession ((“double-dip�) double-dip ) Government and central bank mismanagement Debt burden in the global economy China slows significantly and resources prices drop sharply
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Insurance Bond Portfolio Management
What are we doing to manage portfolios in the current environment?
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Insurance Bond Portfolio Management
Diversification is critical - no big bets on a single investment
Have moved to higher fixed interest and cash holdings
Actively A i l allocate ll assets as the h environment i changes
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Insurance Bond Portfolio Management
Fixed Interest has performed well, reasonable rates (premiums)) are available from high (p g quality q y investments Unlisted property is offering good yields Listed Propertyy - returns likelyy to be largely g y derived from the income stream Equities have delivered reasonable returns to June 30 and are likely to offer returns in line with their yield ~4.5%
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Insurance Bond Portfolio Management
FUND
June 2011 Returns
June 2010 Returns
Gross
Net (1)
Gross
Net (1)
Aust Property and Mortgage Fund
6.4
3.1
10.4
6.0
Australian Shares Fund
13 2 13.2
93 9.3
12 7 12.7
89 8.9
Balanced Fund
11.9
7.5
11.3
7.0
Growth Bond
9.1
5.4
3.6
1.2
Hi h Growth High G th F Fund d
13 7 13.7
98 9.8
10 5 10.5
70 7.0
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Insurance Bond Portfolio Management
Capital Guaranteed (Bonus Linked) Bonds 他 Income Accumulation Fund 他 Capital C it l Guaranteed G t d Fund F d
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Insurance Bond Portfolio Outlook
Overall Philosophy is conservative (or low risk) and focuses on capital preservation Sound income streams investing in high quality assets with the protection of a capital guarantee Holds defensive assets only - Cash, Quality Fixed Interest including Mortgages (IA), Direct Property (IA)
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Insurance Bond Portfolio Outlook
Returns will be positive, and are dependant on the interest rate environment In general, as interest rates increase, returns will improve p and as theyy move down,, returns decline
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Insurance Bond Portfolio Management
Income Accumulation Fund – underlying fixed interest assets are benefitting from the higher average rate over the year June 30 Bonus level was impacted due to some legacy mortgages and a drop in the value of the net tangible g assets of one of the unlisted p property p y trusts Capital C i lG Guarantee F Fund d – the h underlying d l i cash h and fixed interest investments are delivering improved income streams on higher average interest rates rates. Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Insurance Bond Portfolio Management
FUND
June 2011 Returns
June 2010 Returns
Gross
Net (1)
Gross
Net (1)
Capital Guaranteed
4.67
3.10
4.08
2.85
Income Accumulation
3 27 3.27
2 10 2.10
3 40 3.40
2 00 2.00
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Insurance Bond Portfolio Management
Volatility Value of $100 initial investment at Nov 2007 140
120 100
80
60
40 20
0 Nov-07
May-08
Nov-08
Capital Guaranteed Bond
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
May-09
Australian Equity
Nov-09
May-10
International Equity
Nov-10
Listed Property
May-11
Insurance Bond Portfolio Outlook
The Outlook for Interest Rates
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Insurance Bond Portfolio Management
The Outlook for Interest Rates
Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.
Macro Economic Overview
Conclusions Reasonable outlook for global and Australian economy – dependant on what happens in Europe and China Environment is one of heightened g risk so we have down-weighted growth assets, especially shares and in the Capital Guaranteed Bonds we have an emphasis on very quality assets Active investing investing. Information in this presentation is general information only. Before you make any decision in relation to your investment, we recommend that you obtain financial advice from a licensed financial adviser.