National Conference 2002

2002 AIA National Investors Conference Papers - 10 to 13 June 2002

This page contains a summary of most papers presented to the National Conference 2002 on the Gold Coast in June, 2002.  Some were also presented at the Melbourne Conference.  The Author Index gives a link to the author's paper, where an author has presented more than one paper the second is linked from the first by use of [also].
     Where authors provided the AIA with copies of their papers, a link to the presentation is provided so you may download them if you wish (Note: The Powerpoint presentations have been converted to *.pdf format but the files still vary in size up to 1Mb, therefore your download time could be significant).  Links to the available presentation material are privided after the heading.

To view the presentations, please login, or if you are not a member then please consider joining the AIA.  Find out more on the Member Benefits page.


Bill Anderssen
John Bogle
Robin Bowerman
Chris caton
Rosanne Cotter
Paul Dolan
Jeremy Duffield
Paul Forbes
John Hamer
Damien Hatfield
Peter Hogan
Peter Keys
Tim Lincoln
Peter McManus

Bruce Manning
Rashmi Mehrotra
Alan Midwood
Roger Montgomery
Colin Nicholson
Therese Piper
Julian Reeves
Jonathan Rice
David Robb
Peter Rodgers
Chris Shea
Harry Stanton
Peter Taylor
Brian Thomas

Future Investing - Global Megatrends You Should Be Aware Of  

Where and how will we be investing in the future? What are the big trends investors need to know about? What global, economic, market and product issues will shape the ultimate investment portfolio for the future? Brian Thomas, Head of Retail Funds at Credit Suisse will share his views on these thought provoking issues. [Keynote Address]

What's Ahead For Stocks, Bonds & Managed Funds 

Slides    Narrative
John (Jack) C. Bogle has spent his 50 year career in the US mutual fund business. Founding the Vanguard Group Inc. in 1974, it was Bogle who created the first publicly available index fund. Mr Bogle looks at what we know about future returns, what we can realistically expect, and what we don't know. What can investors take from the history of the funds management history? Following the video presentation, Mr Bogle will be available direct from the States to answer your questions. [Plenary]

Asset Allocation & Portfolio Design Mini Course 

Jeremy Duffield, Managing Director, Vanguard Investments Australia Ltd and David Robb, David Robb Securities.

Why Asset Allocation is so important
Whether you invest small or huge amounts, this workshop is pertinent and will explain why the most important investment decision you make is how you allocate your savings into various asset classes, what they are and how they have differed in performance and risk in the past, and expectations of where they will be in the next 10 years.

Your Personal Situation
You will gain perspective on the trade-off between the risks you are prepared to take, what performance you can expect from that level of risk and, most importantly, whether your view of acceptable risk complements the needs you have from your portfolio - the likelihood that you will outlive your money or not.

Portfolio Design
Finally, how do you implement your personal views on asset allocation into the design of a portfolio that you are content with? Jeremy and David will show you why it is critically important to control costs (management, brokerage, trails etc) and ways of managing taxation sensibly and what to do with your portfolio, over time, to keep it on track and consistent with your initial objectives.

Asset Allocation & Portfolio Design In A Nutshell 

Robin Bowerman, Editor, Personal Investor, will outline why asset allocation is so important. Topics covered will include the major asset sectors, risk and return, benefits of diversification and provide some outlines to help you assess our own portfolio profile.

Australian Shares Mini Course

The Overall Australian Sharemarket 
Julian Reeves, [also] Salomon Smith Barney, will explain how the All Ordinaries Index is derived, cover the Market Sectors and the main companies in each as well as overview growth stocks, value stocks and defensive stocks. He will then tie this in with effects on the market and sectors of: Institutional Investors; Fund Managers; the Media; Brokers; Financial Planners; Traders and Private Investors.

A Model Portfolio Of Australian Shares 
Roger Montgomery, Chief Investment Oficer, Clime Asset Manated Pty Ltd and Managing Director, Investors Advantage Pty Ltd

Roger has beaten the market with portfolios he personally manages for his family and believes anyone can do the same. Last year, despite the events in New York and the corporate collapses locally, he achieved a greater than 35% return owning just six stocks.

He will discuss the current market and will introduce a model portfolio and explain why specific sectors and companies were chosen. At the end of this session the delegate will have a good understanding of the current sharemarket and productive ideas for designing a future portfolio for the medium to long term.

Gordon Gray who is both an active investor and Councillor of the AIA will outline a range of resources readily available to investors which would aid in construction and monitoring their Australian share portfolio. This will be followed by an open forum discussion where both Julian Reeves and Roger Montgomery will be available to answer questions and discuss various model portfolios prepared by the group.

Australian Shares In A Nutshell 

slides    Narrative
Julian Reeves is a financial consultant with Salomon Smith Barney. In this presentation Julian will briefly cover the market sectors - the main companies in each sector (blue chip) and what effects the sectors. Julian will also overview value stocks, growth stocks and defensive stocks.

Managed Funds Mini Course

Managed Funds 1 
Therese Piper, Financial Advisor, Donnelly Money Management
After discussing the issue of personal risk profiles and asset allocation decisions, Therese will outline the fundamentals of portfolio design and the use of managed funds to implement asset allocation decisions. Other topics covered will include dollar cost averaging, using balanced asset class versus sector specialist funds, and taxation issues for fund investors.

Managed Funds 2 
Paul Forbes, General Manager, Business Development, AM Corporation, will provide in-depth analysis of administration platforms, their costs and benefits. This will cover Master Funds, Wrap Accounts and the next generation "Bureau".

Paul will also discuss the wholesale and retail managed funds environments and the comparison of the relative benefits offered by them. This will include: What and who are you paying for which services?; Why is an adviser paid a trail?; What is a performance fee?; and Why is there a buy sell differential? Finally, the use of Fund of Funds and the Manager of Managers will be discussed. What performance should you expect and how successful have they been?

Managed Funds 3 
Rashmi Mehrotra, Van Eyk Research, will provide an overview of all the asset classes markets available to the investor. Topics covered will include retail, Australian, International, Wholesale funds and ethical funds. Rashmi will also look at listed and unlisted managed funds and the investment styles of managed fund providers. What does the research industry look for in Fund Managers? The evaluation strategies of management, share portfolio, performance etc will be explained and the availability of such research data to retail investors will be discussed. Finally, time will be given for an open discussion with Therese Piper, Paul Forbes and Rashmi Mehrotra on the panel.

Managed Funds In A Nutshell  

slides    Narrative
Peter Rodgers is the managing director of Direct Advisers Pty Limited, a licensed securities dealer providing financial planning and managed investments over the internet. This session will be a strategic approach to the use of managed funds, examining investment structures, moving on to risk profiling and asset allocation before considering the various types of managed funds. There will be an emphasis on the correct use of research and a quick look at costs and fees.

Derivatives Mini Course

This mini-course provides information about the wide range of derivatives (warrants, options, futures) and their potential both as investments and as ways of protecting investment portfolios. This mini-course is intended for investors who have well established portfolios and significant experience in managing their investments, and who are ready to consider the value of more complex investment instruments.

Derivatives differ very widely in their complexity and their risk-level to investors. Some, like instalment warrants have a place in most investors' portfolios; others, like options and futures are for the sophisticated investor only.

Paul Dolan, [also] ASX

Paul Dolan, [also] ASX

Estate Planning 

Bill Anderssen is a specialist in commercial law and estate planning. This session will be about the basic principles of Estate Planning - what is involved, what events to plan for, what factors to take into account and how to go about it.

In the second session on Estate Planning we will look in more detail at such issues at the structures or entities you can use (i.e. what name to own the assets in) and what documents you need to have and to take care with.

Fundamental Strategies for Picking Profitable Stocks  

Tim Lincoln, Director, Lincoln Indicators
The key to fundamental analysis is 'financial health' which is determined by analysing companies balance sheets and profit and loss statements. Tim will run through his nine
fundamental rules and strategies and demonstrate that in order to prosper from the share market you must be in a state of control.

Demonstration of STOCKdocor Fundamental Analysis Software
Tim Lincoln will demonstrate STOCKdoctor, a popular Fundamental Analysis software package. Tim will share with you his family's secrets for identifying quality stocks and demystify the art of fundamental analysis in this Research Stream. With the market experiencing volatile conditions, understanding the financial health of your stocks has never been so important.

Option Writing  

Paul Dolan, Manager, Investor Services, ASX
The presentations on writing options is divided into two 1 hour sessions in which the first session explores the theory behind options and the ways of using options, especially to gain additional cash flow.

In the second session, Paul Dolan, from the ASX, will elaborate further how options can be used as part of a long-term investment strategy aimed at achieving superior portfolio growth and diversification over a long term investment horizon.

Investing Internationally 

John Hamer, Head of Master Trusts, Challenger will discuss the outlook for international sharemarkets and strategies for investing in international share funds.

Wealth Generation - To Trade or Invest  

Chris Shea, Financial Market Coach, Wisdom First Pty Ltd
The session compares and contrasts the personal skills and requirements for success in trading with investing. Common barriers to success with both will be explored. This together with some profiling will allow participants to identify whether they have latent talent for trading (and how to get started to confirm this capacity), or whether they should delegate their investment decisions to professional managers.

Market Outlook  

slides    Narrative
Chris Caton, Chief Economist, Bankers Trust Financial Group
In this address, Chris will look at both the international and Australian economic and market changes since 2001 and what we can expect from mid 2002 onwards.[Plenary]

Self Managed Super Funds Mini Course

Legislative Update Overview 
Peter Hogan, [also] Head of Technical Services, Colonial First State
Are you up to date with all legislative requirements for establishing and maintaining a self managed super fund? In this session Peter will cover residency rules; allowable investments; splitting super on divorce and new contributions rules.

Accumulation Strategies 
slides    Narrative
Rosanne Cotter, Partner, Superannuation Packaging Australia, Davies Knox Maynards, is a SMSF specialist and will cover issues including salary sacrifice, member and spouse contributions, super surcharge, implications of life insurance within a fund, restrictions on investments and the sole purpose test.

Pre-retirement Strategies 
As you approach retirement there are many issues to include. Peter Hogan [also] will in detail explain recontributions; undeducted contributions, transfer of assets, small business concessions and death benefits.

Retirement Strategies
When designing income streams, there are may issues to consider. These include social security considerations, maximising income, preservation and conditions of release and dealing with RBL. Peter Hogan will explain these in detail.

The final 20 minutes will be spent on a checklist summary and be an opportunity to ask questions of either Rosanne Cotter or Peter Hogan.

Self Managed Super Funds In A Nutshell  

slides    Narrative
In this session Peter Hogan will cover the trustee responsibility; the new strict liability penalty regime; how to set up a fund; investment objectives & investment strategies - what they look like; prohibited investments - who trustees can deal with & what assets can & cannot be acquired; regulators attitude to compliance issues and consequences of failing to meet the required standards by trustees.

Property Mini Course

Commercial Property Markets In Australia  
Peter Keys, [also] AIA Member and Commercial Property Investor
As a successful commercial property investor, Peter Keys, will outline the types of commercial property available and how he determines which types to invest in. He will discuss the risk, opportunity, mechanisms for investing, trends and prospects.

Listed Property Trusts 
Bruce Manning, Macquarie Financial Serivces

Direct Ownership Of Residential Property 
Alan Midwood, Author, Midwood Queensland Investment Report, will discuss the demographic, geographic and economic drivers when considering direct property investment. Alan will outline the trends and prospects for rent and capital growth as well as the opportunities and risks.

Case Study 1 
Peter Keys will present a detailed case study of a commercial property he has directly invested in.

Case Study 2
Bruce McBryde, AIA Councillor and President of the Property Owners Association of Queensland, will present a case study of a residential property he has invested in.

Substantial time will be allowed for questions and answers at the end where all speakers will be present.

Property In A Nutshell

slides    Narrative
Brian Manning, Macquarie Financial Services, will discuss the various property investments available to investors today, examining issues such as listed property trusts, managed property funds, direct property investments, property syndicates etc. The aim of the presentation will be to compare and contrast the pros and cons of the different options.

Fundamental & Technical Analysis Mini Course 

Colin Nicholson BEc, FSIA, is a private share trader, author and teacher of technical analysis-based trading and investment. In this mini course, participants will gain a greater understanding of the principles of both fundamental and technical analysis and how these ight be used in combination to assist with the selection and timing of buying and selling their stocks. The course will be pitched so that investors with a minimal prior knowledge of fundamental analysis and technical analysis can understand it.

There will be a brief discussion of the nature of investment. Investment philosophy will be presented as polarising into the two predominant approaches - value and growth.

Fundamental Analysis
The principal role of fundamental analysis is stock selection. A no-nonsense approach to the key things investors need to know will be explained. The focus will be on the few essential factors that determine whether a stock is a safe investment and whether it represents either a value or a growth opportunity.

Technical Analysis
The principal role of technical analysis is the timing of buying and selling decisions. A simple approach will be presented for knowing when to buy and when to sell.

Colin will demonstrate how he searches the data base of ASX stocks to find a short list of potential investments, which warrant further investigation and putting on his watch list. He will also show how he identifies stocks that should be sold.

Fixed Interest & Bonds Mini Course 

The Developing Interest In Interest Rate Securities
Jonathan Rice, [also] Grange Securities

Strategies For Private Investors
Despite being a primary asset class, fixed interest often comes in a very poor third in asset allocation compared to shares and property. Whilst private investors tend to underestimate the importance of this asset class, professional investors allocate at least 30% of the portfolios into interest note securities.

Many see the world of bonds and 'hybrid' securities the provence of the institutional investor. However, given the huge growth and popularity in hybrid securities, in particular over recent years and the persistently low interest rate environment investors are now warming to this to this once forgotten asset class.

This session will suit those who are interested in capital preservation and achieving high income on their investments. We question the cliché - high risk/high return and look at the performance of the interest rate security market in Australia and develop investment strategies to maximize return while aiming to minimize risk.

The material covered in this mini course includes: primary drivers of interest rates; fixed interest as a primary asset class; cash versus fixed interest and characteristics of traditional fixed interest securities.

In this final session, Jonathan will cover listed interest rate securities and the characteristics of the 4 types of 'hybrids' - capital notes, floating rate notes, convertible notes and reset preference shares.

Fixed Interest & Bonds In A Nutshell  

More hybrid securities were issued on the ASX last year than ordinary shares, and unlike ordinary shares - most of the hybrids are trading at a healthy premium to their issue price. This session will look at the various types of listed and unlisted interest rate securities and why investors need to re-weight their portfolios out of cash into higher yielding investments. We look at the various types of listed debt securities, what the jargon means and the capital stable nature of these securities. Jonathan Rice from Grange Securities will present this.

Investing To Make & Keep Money

Five years ago, recognising that we were in a very unusual period for investing, Bruce Baker began a program of extensive historical investment research to help guide his clients through the challenging investment period. Bruce could see that strategies which had worked over the last 20 years, might not work over the period ahead. During this presentation Bruce will provide you with some of his research findings.

Hedge Funds Made Easy  

Damien Hatfield, Head of Hedge Funds, Colonial First State Investments
What are hedge funds? Damien will outline the evolution of the hedge funds industry, its common misconceptions and why hedge funds are included in portfolio construction.

What's Available On-Line For Investors

Sam Bedi, Senior Investment Analyst, InvestorWeb, will focus on the availability of information investors can access on-line to assist them in their investment decisions. Specifically, Sam will outline who the major information providers are in each of the different areas including: stock trading/execution, research information, education, training programs etc.

The Stockmarket - Where To From Here  

Peter McManus, Head of Research, Challenger First Pacific Stockbrokers
Companies globally became too pessimistic at the end of last year - resulting in inventories being slashed more sharply than at any time in the previous 20 years.

After that bout of extreme pessimism, over the remainder of this year we may well see a very sharp rebound in global industrial production. This recovery will see a recovery in company profits but also a lift in interest rates.

Nevertheless, continued economic growth with low inflation will see equities perform well over the next few years. [Plenary]

Buyer Beware

Peter Kell is the Executive Director Consumer Protection and NSW Regional Commissioner within the Australian Securities & Investments Commission (ASIC). In this session Peter will outline the types of scams investors should be wary and outline ways to better protect the individual investor. [Plenary]

Problem Solving and The Five Deadly Sins 

Harry Stanton, psychology consultant and author, will present a problem-solving model for handling investment problems and show how these could be used to counter the five deadly sins of investing. [Plenary]