Transcript Project Overview

LM Investment Management Ltd
ABN 68 077 208 461
Australia’s Specialist Mortgage
Trust Manager
GOLD COAST
SYDNEY
HONG KONG
LM Investment Management Ltd – Responsible Entity & Australian Financial Services Licensee No. 220281
LM Investment Management Ltd
LM Mortgage Income Fund
LM Currency Protected Australian Income Fund
Australia’s Specialist Mortgage Trust Manager
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
The LM Mortgage Income Fund
Returns Since Inception of LM Mortgage Income Fund 12 Mth Term compared
against the Morningstar Australian Mortgage Trust Index
9.00%
7.00%
5.00%
3.00%
1.00%
Oct- Apr99
00
Oct- Apr- Oct00
01
01
Australia’s Specialist Mortgage Trust Manager
Apr- Oct- Apr02
02
03
Oct- Apr- Oct03
04
04
Apr- Oct05
05
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
The LM Mortgage Income Fund
What is the LM Mortgage Income Fund?
A diversified “Pool” of commercial loans and cash, with
security being held by way of First Registered
Mortgages / Charge…
Australia’s Specialist Mortgage Trust Manager
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
How does the fund work?
I
N
V
E
S
T
O
R
S
income
LM
Mortgage
Income
Fund
income
Australia’s Specialist Mortgage Trust Manager
interest
interest
C
O
M
M
E
R
C
I
A
L
Security
100%
Property
L
O
A
N
S
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
B
O
R
R
O
W
E
R
S
Wholesale Mortgage Income Fund
For Nominee Accounts/Trustee
Investment Platforms
Global Portfolio Bond Wraps
High net worth Individual Account
Australia’s Specialist Mortgage Trust Manager
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
Wholesale
Investment
Option
Effective Rate
Current
Net of Withholding
Effective Rate
Tax
*2,3,4 Year
7.75%p.a.
6.99%p.a
12 Month
7.50%p.a.
6.75%p.a
AT CALL
6.75%p.a.
6.07%p.a.
CPAIF
-
-
Australia’s Specialist Mortgage Trust Manager
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
The LM Mortgage Income Fund
Conservative Investment Strategy
 Cash/At Call and registered first mortgage securities
 Diversity – Geographic, Loan Type, Size
 The average LVR of the mortgage securities is 62.16% (as Nov 2005)
 Exposure over total assets of the Fund
58.6%
91%
Australia’s Specialist Mortgage Trust Manager
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
Sector Diversification
Sector Guidelines
Actual (%)
Min (%)
Max (%)
Commercial
23
20
50
Residential
39
35
65
Industrial
4
0
25
Retail
0
0
15
Pre-Development Land
34
0
40
As at 30 Nov 05
Australia’s Specialist Mortgage Trust Manager
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
Geographic Diversification
Sector Guidelines
Actual (%)
NSW
42
35
55
VIC
19
15
35
QLD
27
10
30
SA
3
0
7.5
ACT
6
0
17.5
WA & NT
3
0
7.5
TAS
0
0
7.5
Australia’s Specialist Mortgage Trust Manager
Min (%) Max (%)
As at 30Nov 05
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
The LM Mortgage Income Fund
Income Reliability
Forecast returns
*UF
Maintained via term nature of underlying assets
Interest assurance by The LM Special Participation Fund
Australia’s Specialist Mortgage Trust Manager
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
LM Funds
 Regulatory Environment
 Regulated under the Managed Investments Act (1998) and the
Financial Services Reform Act (2001)
 Compliance Plan / Constitution registered with ASIC
 Strict Guidelines for Fund Operation and license requirements
 Subject to bi-annual independent audit
Australia’s Specialist Mortgage Trust Manager
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
The LM Mortgage Income Fund
Returns Since Inception of LM Mortgage Income Fund 12 Mth Term compared
against the Morningstar Australian Mortgage Trust Index
9.00%
7.00%
5.00%
3.00%
1.00%
Oct- Apr99
00
Oct- Apr- Oct00
01
01
Australia’s Specialist Mortgage Trust Manager
Apr- Oct- Apr02
02
03
Oct- Apr- Oct03
04
04
Apr- Oct05
05
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
The LM Mortgage Income Fund
Can be selected on 9 Global Portfolio Bonds
Hansard International
Limited
Clerical Medical
Scottish Life
International
Zurich International Life
Limited
Scottish Provident
International Ltd
Friends Provident
International
Generali Life International
Royal Skandia
AXA International
Australia’s Specialist Mortgage Trust Manager
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
The LM Mortgage Income Fund - Can be selected on 46 Master Trusts / Wrap Services
ANZ Private Portfolio
(at call only)
Assetlink Investment Wrap
Assetchoice Investment Wrap
AUSMAQ Wrap (at call only)
AustChoice Master Trust (super)
Avenue Super Wrap Service
Avanteos
ASGARD Investment Funds Account
Avenue Wrap Services
ASGARD Trustee Funds Account
ASGARD Allocated Pension Account
ASGARD Superannuation Account
ASGARD Employee Superannuation
Account
ASGARD eWRAP Investment Account
ASGARD eWRAP Super Account
ASGARD eWRAP Pension Account
BT Super Wrap
BT Wrap
Count Wrap
Dominion Master Trust
Easy Street Wrap
E*TRADE (at call only)
FSP Prestige Plus
Investar Portfolio Management Ltd
Investment Exchange
IOOF Portfolio Services
ING Portfolio One (at call only)
Investor Service Wrap
Iselect
Madison Wrap
Macquarie Non Super Wrap
(at call only)
Macquarie Super Wrap
Mentor
Navigator
Personal Investment Plan
Navigator
Personal Retirement Plan
Netwealth Superannuation Master Fund
Netwealth Wrap Account
Private Client Service Investment Wrap
(PCS)
Portfolio Focus
Sanford Securities
(at call only)
Smartsave
Strategy Retirement Fund Master Trust
Strategy Portfolio Service
Symetry (at call only)
Australia’s Specialist Mortgage Trust Manager
WrapIT (at call only)
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
Wealthtrac
Funds Under Management
Growth
$1,400
$1,200
Target
$800
$600
$400
Target
$1,000
$200
$1997
1998
1999
2000
2001
2002
2003
2004
2005
Financial Year ended
Australia’s Specialist Mortgage Trust Manager
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
2006
Top 10 Quarterly Retail Net Fund Inflows
Three Months to March 31, 2005
$m
553
AXA Group
387
Manager
Platinum Asset Management
National / MLC Group
345
St George Group
341
249
AMP
160
ING / ANZ Group
Macquarie Bank Group
148
Skandia
141
State Super Financial Services
139
74
LM Investment Management
0
100
200
300
400
500
600
$m
Top 10 total: $2517m
Industry total: $1800
Australia’s Specialist Mortgage Trust Manager
The Australian Financial Review
Thursday, 30th June 2005
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
Fund History
No capital loss
No variation of forecast rates
Outperformance of the
Morningstar Australian Mortgage Trust Index
Australia’s Specialist Mortgage Trust Manager
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
Standard & Poors 2005 Australian Fund Awards
LM Investment Management Ltd
Boutique Fund Manager of the Year
Finalist
LM Mortgage Income Fund
Mortgage Fund of the Year
Finalist
“according to S & P, each sector and group finalist
included top quality fund managers”
Independent Financial Adviser Magazine 281 Aug 29-Sept 04, 2005 p8
Australia’s Specialist Mortgage Trust Manager
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
LM Investment Management Ltd
The LM Currency Protected
Australian Income Fund
Australia’s Specialist Mortgage Trust Manager
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
Forecast Effective Returns
JPY ¥
LM – CPAIF
12 Month Term
2.50%p.a (2.25%p.a)
USD $
5.75%p.a (5.17%p.a)
Euro €
4.50%p.a (4.05%p.a)
GBP £
6.75%p.a (6.07%p.a)
SGD $
4.00%p.a (3.60%p.a)
NZD $
8.75%p.a (7.87%p.a)
AUD$
7.50%p.a (6.75%p.a)
Australia’s Specialist Mortgage Trust Manager
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
Real Deposit Alternative
New 3 & 6 month competitive rates
Alternative to bank deposit
Opportunity for you to manage clients deposit money
Today’s deposit money is often tomorrows investment
capital
Australia’s Specialist Mortgage Trust Manager
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
Forecast Effective Returns
JPY ¥
LM – CPAIF
6 Month Term
2.40%p.a (2.16%p.a)
USD $
5.60%p.a (5.04%p.a)
Euro €
4.35%p.a (3.91%p.a)
GBP £
6.60%p.a (5.94%p.a)
SGD $
3.90%p.a (3.51%p.a)
NZD $
8.65%p.a (7.78%p.a)
AUD$
6.00%p.a (5.40%p.a)
Australia’s Specialist Mortgage Trust Manager
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
Forecast Effective Returns
JPY ¥
LM – CPAIF
3 Month Term
2.25%p.a (2.02%p.a)
USD $
5.40%p.a (4.86%p.a)
Euro €
4.20%p.a (3.78%p.a)
GBP £
6.55%p.a (5.89%p.a)
SGD $
3.80%p.a (3.42%p.a)
NZD $
8.55%p.a (7.69%p.a)
AUD$
5.00%p.a (4.50%p.a)
Australia’s Specialist Mortgage Trust Manager
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
LM Investment Management Ltd
The Fund’s objective is achieved through:
Investment in the LM Mortgage Income Fund
Hedging the currency exposure
Australia’s Specialist Mortgage Trust Manager
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
Currency Protection
The fund will eliminate the currency risk for
investors
through the use of “Forward Foreign
Exchange Contracts” (FFEC)
Executed by
Australia’s Specialist Mortgage Trust Manager
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
Investor
1
7
Distribution Account
Subscription Account
SPOT
2a
UBS
2a
FFEC
2b
2b
6
CPAIF
MIF Units
3
Cash
5
4
Australia’s Specialist Mortgage Trust Manager
MIF
LM Investment Management
Ltd
MORTGAGES
Responsible Entity and Australian Financial Services Licensee No. 220281
FUND SPECIFICS
Minimum investment of A$ 50 000
Wholesale component to facilitate investment via
bond platforms
Commission is calculated and paid on the A$
investment value
Investment details are reported in the relevant
currency of the investor
Australia’s Specialist Mortgage Trust Manager
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281
LM Investment Management Ltd
6 Years of
Investment
Performance….
Now Currency
Protected….
Australia’s Specialist Mortgage Trust Manager
LM Investment Management Ltd
Responsible Entity and Australian Financial Services Licensee No. 220281