National Conference 2006

2006 AIA National Investors Conference Papers - 23 to 26 July 2006

On this page:

Session Index

Author Index

 This page contains an index for the papers presented to the National Conference 2006 on the Gold Coast in July, 2006.

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 though most are under 500 Kb.  Those over 1Mb are indicated, therefore your download time could be significant).  Links to the available presentation material are provided after the entry.

The 2006 Conference offered presentations in a number of streams together with some Plenary Sessions.  The papers indexed here are listed by the theme to which they belong.

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 Session Index

  • Plenary Sessions
  • Stream 1: ASX Sectors
    This is a series of sessions that focus on the ASX-listed equities including a number of ASX sectors and their comparative performance, as well as major stocks within the sectors.
  • Stream 2: Investment Alternatives
    You will be able to examine a range of investments in sufficient detail to enable you to determine whether they suit your needs and how to source further information. Topics include derivatives; managed funds; fixed interest and warrants.
  • Stream 3: DIY Active Fund Management
    This stream aims to empower you to manage your own blue chip portfolio through both theory and a practical demonstration of share trading.
  • Stream 4: Selecting Shares
    This stream will provide you with three different approaches to selecting shares – one using research online; one using a fundamental analysis approach and one using a technical analysis approach.
  • Stream 5: Successful Trading
    The goal of this stream is to expose you to the demands of developing and operating a profitable trading business. The sessions are designed to reveal to you how professional traders go about their business, and will offer you ideas and strategies that will help you to improve your outcomes as an active investor and/or trader.
  • Stream 6: Property Prospects
    Three sessions cover property investment including residential property; Listed Property Trusts and property syndicates.
  • Stream 7: Technical Matters
    Perhaps considered the least exciting part of investment but estate planning; taxation issues and compliance for self managed super funds are all essential ingredients in any investment portfolio.
  • Stream 8: Portfolio Construction
    Aimed at the experienced investor this stream will show you strategies to enhance returns on your portfolio.

 Plenary Sessions

 Consumed by Asia       powerpoint 
Jonathan Pain
is the Chief Investment Strategist, HFA Asset Management. More than 3 billion Asians have embarked upon the path of rapid economic development. Their savings are vast and as their incomes rise, which they shall, they will spend more. Asia will become the consumer of last resort. In this fundamental regard, such an outcome will restore a much better balance to a very unbalanced world. The path to a more balanced world will be marked by uncertainty and volatility, but ultimately the universe of potential investment opportunity has become much larger. A year ago, Jonathan spoke of the world being at the "Mother of all Crossroads"; in 2005 we made the crossing and now know the ultimate destination.

 The Global Economy       powerpoint
Richard Gibbs
, Division Director and Chief Economist, Macquarie Bank. Global investor sentiment was at a high level at the beginning of 2006 supported by unswerving confidence in the strength of the world economy. Nevertheless, there remain several obstacles that have the potential to derail complacent investors. Richard Gibbs will examine the vulnerability of the global economy and investment markets to contingencies such as an outbreak of Asian bird flu, burgeoning US indebtedness, unrelenting rises in energy costs and continuing geopolitical tensions in the Middle East and East Asia.

 What To Watch Out For       powerpoint      document
Nick Coates
, Senior Policy Adviser, Superannuation & Financial Services, Australian Consumers’ Association. Nick will discuss some of the problems and traps in a number of investment products, including: debentures; promissory notes; property investment funds; and of course, Reverse Mortgages. He will also discuss some of the legislative changes we need to protect investors from these traps.

 Property Outlook       (No Paper)
Julie Middleton
, Property Research, Macquarie Bank. We have recently seen the peak in a number of residential markets, a shift in sentiment towards retail property as retail sales slow, but at the same time a significant improvement in office demand and increased attention towards global property investment. Julie will look at some of the factors that caused these shifts and provide an outlook for the property sectors over the next 12 months.

 Investor & Market Behaviour       (No Paper)  
As investment markets have become more volatile, with momentum taking over from fundamentals, the behaviour of investors will often determine their success or failure. Faithfulness to favourite shares and a reluctance to take profits (or pay tax) is often myopic and counter-productive to the foremost goal when investing - to make money. Ross Greenwood will explore the various methods investors should use to help crystallise profits at the right time - and will try to explain ways that people can remove their emotions from the investment decision making.

 Estate Planning       powerpoint      document
Matthew Burgess
, Partner, McCullough Robertson Lawyers. Matthew will focus on the core aspects of the estate planning process. The topics covered will include lineal descendant testamentary trusts, family trusts and superannuation. This presentation will also focus on recent developments and provide a framework for the estate planning workshop.

 How Strong is The Advice You’re Getting?       powerpoint (2.1Mb)      document
Denise Brailey
has been a consumer advocate for over a decade, looking after the interests of consumers who have suffered financial loss as a direct consequence of poor investment advice. One of the key elements of safeguarding invested capital anchors firmly in trusting those who deliver financial advice. Denise Brailey asks: "How strong is the advice you are receiving? How can investors protect themselves from relying upon information that later turns out to be grossly deceptive, resulting in the loss of capital and income?” Denise will discuss some of the ways investors can reduce their chances of being caught in modern day scams, by delivering an understanding of the latest models of deception.

 ASX SECTORS

 Small Cap Stocks       powerpoint
Harry Cator
, CEO, JM Financial Group Ltd, will give you his opinion as to how he views the Australian equity market with particular regards to the small cap arena and what strategy investors should adopt given this view.

 Commodities & Resource Market Outlook       powerpoint (2.2Mb)
Stephen Bartrop
, Joint Managing Director, Stock Resource. The Australian Resource Sector has experienced a stellar run over the last three years on the back of strong commodity prices driven by demand out of China as well as speculation by hedge funds. Steve will discuss ‘the stronger for longer’ theme, along with the potential emergence of India and accelerating growth in other regions. Are current resource valuations under priced based on outdated commodity price assumptions? How do investors maximise returns under the new regime in the second largest sector on the ASX? The presentation addresses these questions along with current investment opportunities in the market.

 Transport & Telecommunications Sector       powerpoint
Ian Keys
, Investment Adviser, Macquarie Equities Limited will cover the latest Macquarie research recommendations from the healthcare, telecoms and transport sectors. Ian will provide an overview from a macro strategy perspective and then look closer at individual stocks that make up part of our top rated portfolio.

 The Media, Gaming, Housing, Construction Sector       powerpoint 
Chris Claridge
, Queensland Manager, Austock Pty Ltd. Chris will focus on the current issues relevant to each sector and discuss the major players in each of the sectors. The media sector will include discussion on the changing face of the media environment, in particular the proposed changes in cross and foreign media rules (that is if the government hasn’t amended the legislation by July – if so the effect), the impact of slowing consumer spending habits on advertising and the effect from increased competition on the free-to-air broadcasters. The gaming sector will include discussion on where future growth is coming from following recent years of consolidation. The housing and construction sector will include coverage of the current state of the housing cycle and the prospects for both residential and non-residential sectors.

 The Financial Sector       powerpoint
Voted third highest speaker overall at the 2005 AIA National Investors Conference, Felicity Scanlon will once again present an update on the banking and insurance sector. Felicity will present a session on the medium to longer term investment outlook for the banking and insurance sector with a particular focus on the major banks.

 INVESTMENT ALTERNATIVES

 Options Workshop 1       powerpoint 
Andrew Baxter
, Associate Director, Tricom. Options - being part of the derivative family - are amongst the most commonly misunderstood asset classes we can invest in. Options are the most flexible of investment instruments, offering the ability to hedge and protect investment portfolios, derive additional income and also for harnessing their leverage for directional trades in the market place. In fact, for some strategies, you do not even need to have a view on whether the stock is likely to rise or fall! These two workshops will provide clarity on how options may be used to great effect, in managing portfolio and trading accounts, by all market participants.

 Options Workshop 2       powerpoint
Andrew Baxter
will continue on from his previous session.

 Are Contracts For Difference For You?       powerpoint
Catherine Davey
, Technical Analyst and Author. Contracts for Difference (CFDs) are a hot new trading tool that allow traders and investors to leverage big returns and make additional investment income from very little investment. Encompassing the real life psychology of a trader, including the decision-making process, Catherine will outline what it takes to trade CFDs.

 The Role of Listed Managed Investments       powerpoint 
Ian Irvine
, Head of Listed Managed Investments, ASX. Over the 2005 financial year the capitalised value of LMIs listed on ASX grew by more than 45% and trading volumes increased by 61%. At the end of the financial year there were 150 LMIs listed on ASX, a number that increased by 14.5%. LMIs provide investors with an interest in a professionally managed portfolio of assets. Investment professionals manage these assets on behalf of their investors, with size allowing them to invest in assets or securities that would otherwise be unavailable to the public. Ian will discuss the benefits of investing in LMIs for your portfolio.

 How Instalments Add Value       powerpoint
Francis Desouza
, ASX Structured Products. Instalments are a unique financial product only available in the Australian market, which allow you to gain exposure to shares (and other securities) by making a part payment upfront and delaying an optional final payment until a later date. This allows you to buy shares for a fraction of the current share price while receiving the benefits of capital growth, dividends and franking credits. Francis will discuss the benefits of investing in instalments for your portfolio.

 Opportunities In Fixed Interest       powerpoint
Steven Wright
, Director, Fixed Interest, ABN AMRO Morgans. This presentation will help you to better understand the sources of risk, credit ratings, types of securities and the benefits of building a diversified portfolio including fixed interest.

 Stock Doctor Check The Health of Companies       powerpoint       document
Stock Doctor, Australia’s fundamental analysis software, provides all the data and a unique method of analysis to make fully informed investments decisions. Elio D’Amato, Director of Stock Doctor Research will show you how Stock Doctor’s sound intellectual framework can be used to select quality companies for inclusion in your share portfolio. This session will also have a significant component dedicated to the review of companies that attendees wish to have covered. Attendees will also see the latest addition to the Stock Doctor suite of features (Stock Doctor’s new tool for technical analysis).

 What’s New With Managed Funds       powerpoint
Ron Hodge
, CEO, InvestSMART. Virtual wraps, BRIC economies, and an industry under constant regulatory pressure will continue to shape the Australian Funds Management Industry into 2006 and beyond. Ron will outline the latest trends with the overall funds management industry.

 How To Choose A Managed Fund       powerpoint
Is past performance an indication of future performance? Is diversification the key to a successful managed fund portfolio? Is it time in the market not timing the market? These and other relevant questions will be discussed by Ron Hodge at this presentation.

 DIY ACTIVE FUND MANAGEMENT STREAM

 DIY Active Fund Management 1       powerpoint 
Alan Hull
is a second generation share trader and author. The first session will be a theoretical presentation covering the general concepts behind investing with a particular focus on having a 'Business like' approach to managing any form of investment(s).

 DIY Active Fund Management 2       powerpoint (included in above)
Alan Hull
will continue the theory covering the construction of an 'Active Fund Management' like approach to establishing and monitoring a Blue Chip Portfolio of shares.

 DIY Active Fund Management Workshop       powerpoint (included in above)  
In this workshop Alan Hull puts the approach of the previous two sessions into practice using at least one year of historical market information from July 2004 onwards.

 SELECTING SHARES

 Online Investing & Selecting Stocks       powerpoint
Matt Comyn
, General Manager, CommSec, will outline how to use the vast range of research available on the CommSec website to select shares using fundamental analysis.

 Golden era or Gilded Age? Selecting Stocks Using Fundamental Analysis
      powerpoint      document
Chris Leithner
, dissents from the cheery and confident investment consensus of the past several years. His talk presents the results of an analysis of stock and bond market data for the period 1965-2006. The results provide few grounds to expect that the stellar returns of the past 2-3 years will continue during 2006-2011. In light of this possibility, Dr Leithner will show you how to conduct cautious fundamental research that leads to prudent investment decisions.

 Selecting Stocks Using Technical Analysis       powerpoint
Catherine Davey
will show how you can apply some effective technical analysis techniques to help you refine your share selection process.

 SUCCESSFUL TRADING

 Roles & Demands of Trading       powerpoint (1.7Mb)
Chris Shea
will present the first three sessions in the Successful Trading Stream. The goal of the three sessions is to expose to you the demands of developing and operating a profitable trading business. These demands are threefold: Intellectual; Activity and Psychological. The sessions are designed to reveal to you how professional traders go about their business, and will offer you ideas and strategies that will help you to improve your outcomes as an active investor and/or trader. This first session will cover:
• Risk: Passive Investing, Active Investing and Trading;
• The Trading Experiment, simulation of the business;
• Benchmarks for success, case study; and
• Imperatives for making trading a reliable business.

 The Mechanics of Trading       powerpoint (included in above)
In this second session Chris Shea will cover: Playing the probabilities, time period; Analysis issues; When to buy and sell; and The complete skills repertoire for successful trading.

 Overcoming Barriers       powerpoint (included in above)
In this third session Chris Shea will cover: Changing emotions, including fear and anxiety; Replacing misbeliefs; Needs satisfaction and the unconscious; Action plan, the trading gymnasium, steps to growth; and Trading in the zone. TRADING

 Trading Currencies & Metals on Margin – A Practical Approach       powerpoint
Nigel O’Shea
, Managing Director, Global Electronic Trading Pty Ltd, will explain how the currency and gold and silver cash markets operate from the interbank and professional trading perspective. He will then demonstrate how to apply these characteristic to trading the products on margin for the private individual using state of the art electronic trading platforms, taking account of time zone issues for liquidity, interest rate differentials, and other key factors to assist in traders in making trading decisions.

 PROPERTY PROSPECTS

 Hotspotting For Property Investors       powerpoint (1.1Mb)      document
Terry Ryder
is the author of four books on residential real estate. Information property investors want, more than anything else, is advance warning of "the next big thing" - the next boom area, before it happens, before everyone else knows. Typically investors find out when they read about it in a newspaper, by which time it's too late. By understanding what creates "hotspots", investors can identify - with reasonable certainty - areas that will out-perform in price growth. Terry has researched "hotspots" for 18 months and identified a series of "creator categories" - events or features which create hotspots.

 Negotiating Real Estate Deals & Real Estate Investor Pitfalls       powerpoint (3.7Mb)
Robert John Balanda
, Senior Partner, McDonald Balanda & Associates. The most important skill of all as a property investor is the skill of negotiation. You will be eaten alive in the real estate jungle unless you are a confident negotiator. Rob will educate you on how to play the negotiation “game” and the strategy used by winners. He will also share with you real life examples of real estate investor mistakes from a solicitor’s case book. He will educate you on how to avoid many of the mistakes that have been made by others and avoid them yourself.

 Do Yourself A Favour – Throw More Property Into The Mix       powerpoint
John Welch
, Head of Research at Property Investment Research. John will outline the benefits of property in your investment portfolio, using LPT’s and syndicate units. He will show you how a higher return could be achieved by re-weighting to property at the same time as reducing portfolio volatility and smoothing out returns. By the end of the session you will have a greater understanding of the reasons behind the volatility in listed property and the artificially low volatility for direct property the driver to the returns from property.

 TECHNICAL MATTERS

 Tax Strategies for the Investor       powerpoint
Sally Portley
is a Chartered Accountant (CA) and Certified Financial Planner (CFP). Sally will cover the tax implications on residential, commercial property investments, shares and other types of investments including managed investments including a consideration of gearing and record keeping. Strategies to help reduce tax liability including capital gains tax will also be outlined.

 Improving Your Cashflow With A SMSF       powerpoint
Grant Abbott
, CEO, SMSF Strategies. In this session Grant will review recent changes to the superannuation laws that allow small business owners, professionals and executives to access their superannuation as a tax effective income stream. With this in mind the SMSF becomes the cash flow generator for personal lifestyle with profits, salary, wages and investment income transferred into the low tax environment of the SMSF. This is a must for all investors - whether working or retired.

 Estate Planning With A SMSF       powerpoint
SMSF owners have a large part of their assets tied up within the fund - and for good reason. However many do not know that their superannuation cannot be given away in a will. On death it is the remaining trustee that generally controls what happens to the deceased member's benefits. Grant Abbott will explore the exciting opportunities in a SMSF using some of the most recent estate planning strategies. How to provide tax effective income to one child, a lump sum to another and really make your SMSF an intergenerational wealth creation vehicle.

 Estate Planning Workshop       powerpoint      document
The estate planning workshop will be an interactive session led by Matthew Burgess with case study examples. Delegates will have the opportunity to raise scenarios and pose questions both during morning tea and the one hour workshop.

 PORTFOLIO CONSTRUCTION

 Portfolio Construction 1       powerpoint (6.1Mb)
Dale Gillham
, Founder, Wealth Within. In this session Dale will discuss why investing directly into the share market is a better option for individual investors, and also what factors affect portfolio returns. He will then discuss risk profiles and how to construct a portfolio for each profile including how to select the right shares, and how to manage diversification and risk.

 Portfolio Construction 2       powerpoint (included in above)
In this session Dale Gillham will discuss the common mistakes people make when constructing portfolios before taking the participants through an actual portfolio highlighting how it could have been better managed to increase returns and reduce risk. Finally Dale will outline the rules for buying and selling stocks that will enable participants to consistently achieve above average returns at low risk.


 Author Index

Abbott, Grant Estate Planning With A SMSF
Abbott, Grant Improving Your Cashflow With A SMSF
Balanda, Robert John Negotiating Real Estate Deals & Real Estate Investor Pitfalls
Bartrop, Stephen Commodities & Resource Market Outlook
Baxter, Andrew Options Workshop 1
Baxter, Andrew Options Workshop 2
Brailey, Denise How Strong is The Advice You’re Getting?
Burgess, Matthew Estate Planning
Burgess, Matthew Estate Planning Workshop
Cator, Harry Small Cap Stocks
Claridge, Chris The Media, Gaming, Housing, Construction Sector
Coates, Nick What To Watch Out For
Comyn, Matt Online Investing & Selecting Stocks
D’Amato, Elio Stock Doctor Check The Health of Companies
Davey, Catherine Are Contracts For Difference For You?
Davey, Catherine Selecting Stocks Using Technical Analysis
Desouza, Francis How Instalments Add Value
Gibbs, Richard The Global Economy
Gillham, Dale Portfolio Construction 1
Gillham, Dale Portfolio Construction 2
Greenwood, Ross Investor & Market Behaviour
Hodge, Ron How To Choose A Managed Fund
Hodge, Ron What’s New With Managed Funds
Hull, Alan DIY Active Fund Management 1
Hull, Alan DIY Active Fund Management 2
Hull, Alan Active Fund Management Workshop
Irvine, Ian The Role of Listed Managed Investments
Keys, Ian Transport & Telecommunications Sector
Leithner, Chris Golden era or Gilded Age? Selecting Stocks Using Fundamental Analysis
Middleton, Julie Property Outlook
O’Shea, Nigel Trading Currencies & Metals on Margin – A Practical Approach
Pain, Jonathan Consumed by Asia
Portley, Sally Tax Strategies for the Investor
Ryder, Terry Hotspotting For Property Investors
Scanlon, Felicity The Financial Sector
Shea, Chris Roles & Demands of Trading
Shea, Chris Overcoming Barriers
Shea, Chris The Mechanics of Trading
Welch, John Do Yourself A Favour – Throw More Property Into The Mix
Wright, Steven Opportunities In Fixed Interest