asian opportunities adviser teleconference n.
Skip this Video
Loading SlideShow in 5 Seconds..
Asian Opportunities Adviser Teleconference PowerPoint Presentation
Download Presentation
Asian Opportunities Adviser Teleconference

play fullscreen
1 / 40
Download Presentation

Asian Opportunities Adviser Teleconference - PowerPoint PPT Presentation

chambray
177 Views
Download Presentation

Asian Opportunities Adviser Teleconference

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. Asian Opportunities Adviser Teleconference Presenters: Don Sillar, Head of Distribution, BT Chris Caton, Chief Economist, BT Stewart Brentnall, Head of Investment Solutions, BT Robert Lau, Vice President Asia-Pacific, MFS 23 August 2006

  2. BT wrap and investment update Presented by BT Head of Distribution – Don Sillar

  3. More flexibility and efficiency with BT’s Wrap • A leading Wrap provider with FUA of $25billion • Product development focused on delivering a flexible and efficient platform for advisers. • Recent developments include: • a more competitive DIY super service • QROPS status for UK pension transfers • 6 new funds on Wrap Essentials • continued enhancements to reporting • contributions splitting from 1 September.

  4. An industry first with new online calendars • Two new online calendars for Corporate Actions and IPOs • Easy online access to the latest investment opportunities • Online participation with bulk transactions for up to 100 clients • The online Calendars are available for: • All SuperWrap clients • All Wrap clients under Custodial HIN holding options • All Wrap Clients with a Sponsored HIN holding option- for takeovers and buy-backs only. • An industry first for Wrap

  5. It’s now easier to gear your clients through Wrap • EOY record for Margin Lending – loan book hit $3.5bn – a 46% increase since June 05. • Geared Wrap is a key focus for product development • The driver – delivering a faster and more efficient geared Wrap service. • Recent Geared Wrap enhancements include: • Automation of trade vetting • Choice of funding method • Choice of where funds are allocated once trade settles - cash sweeping is no longer required. • Ability to automate regular gearing and nominated drawdown to set instructions.

  6. Fund Manager of the Year 2006

  7. BT Performance – excess returns Fund 1 year 2 years 3 years 5 years Aust Core +3.3% +2.7% +3.1% -0.1% Imputation +5.3% +4.5% +5.0% +3.6% Small Caps +2.0% +8.3% +11.3% +6.9% Ethical +4.8% +4.7% +5.5% +0.8% Balanced +2.1% +1.4% +1.8% -0.4% Fund 3 months 6 months 1 year Focus +2.24% +4.19% +7.25% Source: BT Financial Group. Excess returns shown of BT Wholesale Fund’s after the deduction of management fees, as at 30 June 2006

  8. Strong support from leading researchers BT fund Van Eyk Morningstar Lonsec Navigator BT Aust Core A Recommended Recommended BT Imputation A Not rated Recommended BT Small Caps Not rated Recommended Recommended Not rated BT Ethical A Not rated Not rated

  9. Since inception Fund 3 months 6 months 1 year Focus Q1 Q1 Q1 Q1 BT Quartile Performance Fund 1 year 2 years 3 years 5 years Aust Core Q1 Q1 Q1 Q2 Imputation Q1 Q1 Q1 Q1 Small Caps Q2 Q1 Q1 Q1 Ethical Q1 Q1 Q1 n/a Balanced Q1 Q1 Q1* Q2 * ranked No. 2 in survey Source: Mercer IDPS Australian Shares Survey, IDPS Multi-Sector Balanced Growth Survey, IDPS Australian Smaller Companies Survey. All rates of return are before tax and after management fees as at 30 June 2006. Rates of return are annualised for periods exceeding one year. Returns refer to BT’s wholesale Fund’s. Past performance is no indicator of future performance.

  10. Global Economic Outlook Presented by BT Chief Economist - Chris Caton

  11. 2006 Growth Forecasts (%) Month of Forecast Source: Consensus Economics

  12. 2007 Growth Forecasts (%) Month of Forecast Source: Consensus Economics

  13. The Asian Growth Outlook (% change in GDP)

  14. Rates going up in all regions Source: ISI

  15. Total US Non-farm Employment 3mth / 3mth chg Source: Datastream

  16. US Consumer Prices year-to % change 7.0 6.0 5.0 4.0 Headline 3.0 2.0 Core 1.0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 US Inflation – Headline & Core Source: Datastream

  17. Oil Prices (West Texas) in $US/bbl $77.05 as at 8 August Source: Datastream

  18. Morgan Stanley Capital Indexes Developed Index Asian Emerging Markets Index Asian Emerging Markets Index (RHS) World Developed Index (LHS) Source: Datastream

  19. BT’s Regional Equities OfferingAn Introduction to Massachusetts Financial Services (MFS) Presented by BT Head of Investment Solutions – Stewart Brentnall

  20. Who is MFS? • Founded in 1924 as America’s first Mutual Fund company • Headquartered in Boston, with investment offices in London, Singapore, Tokyo and Mexico City • Traditionally retail focused firm, but growing institutional business – now 37% • A$238bn* under management • 96.5% owned by Sun Life of Canada • Highly rated by asset consultants here and overseas *Assets under management are at 31 March 2006 and are rounded to the nearest billion

  21. Why MFS • Focused on research driven selection of stocks • Analyst teams in all BT mandate regions • Portfolios are constructed by analysts’ from their best ideas • Higher conviction and tracking errors (up to 8%) • For the most part, currency exposures are unhedged

  22. MFS’s competitive strengths • Strong corporate culture • Organically grown company – not built through acquisitions • Global research platform • Analyst team approach to managing money • Focused on active return generation

  23. MFS - Philosophy and Process • Bottom up research driven process • Teams on the ground in all four mandate areas • Focused local insights good for regional mandates’ narrower benchmarks • Analysts’ views clearly expressed in portfolio • Company fundamentals, not broader economic factors, drive long term returns

  24. MFS global sector teams How the Financials team works across the world

  25. Asian opportunities for Australian investors Presented by Robert Lau, Senior Analyst and Vice President Asia Pacific, MFS

  26. Outlook – Key Drivers • China/India growth story (demand for energy, metals, etc.) • Recovery and development of the Asian domestic demand • Global service / manufacturing outsourcing

  27. Risks: Building too much capacity Weak lending discipline Inflationary pressure from commodity price increase Corp governance Counter-forces: Political pressure for economic growth Financial services sector reforms Steady increase in transparency China/India’s Potential Impact * No forecasts can be guaranteed.

  28. U.S. Trade surpluses of Asian Exporters as of December 31, 2005 Source: United States Census Bureau 2005

  29. Strong economic results in Asia Pacific ex-Japan Region Comparative Real GDP Growth Real GDP Growth % No forecasts can be guaranteed.

  30. Relative out performance of Asia Pacific ex JapanAnnualized returns for periods ended June 30, 2006 MSCI All Country Asia Pacific ex Japan Free MSCI EAFE S&P 500 27.19% 30% 26.56% 23.94% 22.91% 25% 17.61% 20% 15% 11.22% 10.02% Total Return % 8.63% 10% 2.49% 5% 0% 1 Year 3 Years 5 Years -5% Source: Factset The MSCI All-Country Asia Pacific ex Japan free Index, is a free float-adjusted market capitalization index that measures equity market performance in the Asia Pacific region, excluding Japan. The free float adjustment considers only those shares of companies that are available for purchase in the public equity markets by international Investors. S&P 500 Stock Index measures the broad U.S. stock market. MSCI EAFE (Europe, Australasia, Far East) Index measures the non-US stock market. It is not possible to invest directly in an index. not possible to invest directly in an index. Past Performance is no guarantee of future results.

  31. Relative Valuation MSCI AC Asia Pacific ex Japan Historical Price/Cash Earnings 10 Years Ended 30/06/06

  32. Relative Valuation: MSCI AC Asia Pacific ex Japan vs. MSCI AC World (Relative Price/Cash Earnings) 10 Years Ended 30/06/06

  33. Asia Pacific ex-Japan Has Offered Good Relative Value (as of 30 June 2006) IBES Long Term Growth* Price/Earnings Next 12 Months* Price/Cash Earnings MSCI World12.0% 13.3x 10.6x MSCI Asia Pacific Ex Japan 15.2% 12.1x 8.7x MSCI US12.6% 14.5x 11.6x MSCI Europe ex UK9.7% 12.4x 8.6x MSCI Japan15.5% 17.1x 8.8x Source: EDP IBES LT EPS Growth is the service that assembles analysts’ estimates of future earnings for thousands of publicly traded companies, detailing how many estimates are available for each company and the high, low, and average estimates for each. EPS is earnings per share. Price/Earnings Ratio (P/E) is the price of a stock divided by its earnings per share. Price/Cash Earnings is stock price divided by trailing earnings plus depreciation.. The portfolio is actively managed, and current holdings may be different. Portfolio characteristics data is based on unadjusted total assets as of 30/06/06. *No forecasts can be guaranteed

  34. Top Ten Holdings Significant performer in past 12 months : Hana Financial, Daewoo Shipbuilding, Hon Hai Precision, and CNOOC.

  35. Sector Weights

  36. Country Weights

  37. Fund Performance On Longer history MFS Asia Pac MSCI AC Asia Pac ex Japan (incl. Aus) ex Japan (incl. Aus) Since Inception (1-July-2003) 29.8% 27.2%

  38. MFS Fund Profiles at a glance

  39. Questions & Answers

  40. Disclaimers The information in this presentation is general only and does not take into account your particular investment objectives or financial situation. Before making an investment decision you should consult a financial adviser. The information is given in good faith and has been derived from sources believed to be accurate. However, no member of the BT Financial Group gives any warranty of reliability or accuracy nor accepts any responsibility arising in any other way including for negligence. This disclaimer is subject to any contrary provisions of any applicable legislation. An investment in any fund described in this presentation is not a deposit with or any other liability of Westpac Banking Corporation ABN 33 007 457 141. None of Westpac Banking Corporation or its related entities guarantee the capital value or investment performance of any fund. Unless stated otherwise, BT Financial Group is the source of all charts, performance information and other data. Past performance is not a reliable indicator of future performance. U