BetaShares FTSE 100 ETF · ASX:F100
BetaShares FTSE 100 ETF — BetaShares — Investor Presentation (May 2017)
44 slides from BetaShares FTSE 100 ETF's investor presentation, May 2017
Slide 1: Maximise investment opportunities arising from the super reforms
qy Maximise investment opportunities arising from the super reforms a¥ BetaShares
Slide 2: Financial adviser use only
Financial adviser use only: The information contained in this document is general information only and does not constitute personal financial advice. It does not take into account any person’s financial objectives, situation or needs. It has been prepared by BetaShares Capital Limited (ABN 78 139 56
Slide 3: Michael Lorimer, Director, Technical and Administration Services
Michael Lorimer Director, Technical and Administration Services Triple A Super Michael is a highly experienced self managed superannuation fund (SMSF) specialist and has been involved in the superannuation industry for more than 25 years. He is Director and Head of Administration and Technical Servi
Slide 4: Peter Harper, Director Distribution
Peter Harper Director Distribution Head of Capital Markets, BetaShares Formerly with: • Macquarie Bank • ABN Amro • UBS • B. Econ, University of Sydney
Slide 5: Impact of reforms on SMSFs and investment strategies
What impact will the reforms have on SMSFs, what action is required and the general advice given by the ATO Some investment strategies that can be used with clients in this new environment which may help minimise negative impacts on SMSF portfolios Confidential – may not be distributed without the c
Slide 6: Super Reform 2016/17 and impact on investment strategies for SMSFs
Super Reform 2016/17 and impact on investment strategies for SMSFs Presented by: Michael Lorimer Director, Administration and Technical Services FEBRUARY 2017 MAY 2017 6
Slide 7: Super Reform 2016/17 Background and Chronology
Super Reform 2016/17 Background and Chronology Urgent consultation on “objective of superannuation” early 2016 Package announced in the 2016-17 Budget on 3 May 2016 Key measures included: ◦ Objective of superannuation system ◦ Lifetime cap on non-concessional contributions - $500k from 1 July 2007 ◦
Slide 8: Super Reform 2016/17 Background and Chronology
Super Reform 2016/17 Background and Chronology Federal election July 2016 – damage done! Exposure draft legislation released for consultation in tranches Key amendments to original package announced in September 2016: ◦ “Retrospective” $500k lifetime non-concessional contributions cap scrapped and r
Slide 9: Transfer Balance Cap
Super Reform 2016/17 Transfer Balance Cap Applies from 1 July 2017 $1.6 million cap (the transfer balance cap) on the amount of capital that can be transferred into the tax-free retirement (pension) phase Cap to be subject to proportional indexation annually by CPI in $100k increments Only applies t
Slide 10: Transfer Balance Cap
Super Reform 2016/17 Transfer Balance Cap Your personal transfer balance cap arises when you first have a transfer balance Equal to the general transfer balance cap for the particular financial year Proportional indexation of your personal transfer balance cap only occurs if the full amount of that
Slide 11: Transfer Balance Account
Super Reform 2016/17 Transfer Balance Account Operates in a similar way to a general account ledger Transfers to retirement phase give rise to credits (increases) Certain transfers out of retirement phase give rise to debits (decreases) Balance is equal to sum of credits less sum of debits (may be n
Slide 12: Transfer Balance Cap – Transitional
Super Reform 2016/17 Transfer Balance Cap – Transitional Transfer balance cap breaches of less than $100k on 30 June 2017 ignored provided rectified within 6 months CGT relief: ◦ Available for TRISs and where commutation required in order to comply with the transfer balance cap ◦ Only applies to ass
Slide 13: Transfer Balance Cap – Key Planning Points
Super Reform 2016/17 Transfer Balance Cap – Key Planning Points Action required before 1 July 2017 where value of total interests in retirement phase superannuation income streams in excess of $1.6 million (or likely to be so) Commutations Consider contributions splitting Equalisation of benefits (w
Slide 14: Non-concessional contributions
Super Reform 2016/17 Non-concessional contributions Originally proposed $500k lifetime cap (backdated to 1 July 2007) abandoned Annual non-concessional contributions cap now $100k from 1 July 2017 (reduced from $180k) Calculated as 4 times the $25k concessional contributions cap Only available in a
Slide 15: Non-concessional contributions
Super Reform 2016/17 Non-concessional contributions Three-year bring forward available for under 65’s: Total super balance on NCC cap for first year Bring forward period 30/06/17 Less than $1.4 million $300,000 3 years $1.4 million to less than $200,000 2 years $1.5 million $1.5 million to less than
Slide 16: Non-concessional contributions
Super Reform 2016/17 Non-concessional contributions Note that the mechanism for determining the caps will result in their ultimate indexation Indexation will apply to both the general NCC cap and the bring forward provisions Transitional rules apply if bring forward period triggered in 2015-16 or 20
Slide 17: Non-concessional contributions
Super Reform 2016/17 Non-concessional contributions Modified bring forward cap: Year bring forward Modified bring forward cap 2017-18 triggered 2015-16 $460,000 2016-17 $380,000 Still need to take account of NCCs made in bring forward period up to 30 June 2017 General transfer balance cap condition
Slide 18: Concessional contributions
Super Reform 2016/17 Concessional contributions Annual concessional contributions cap reset to $25k from 1 July 2017 Applicable to all taxpayers (i.e. no longer a higher cap for the over-50s) Subject to indexation by AWOTE in increments of $2,500 (note this links to the NCC cap) Division 293 tax thr
Slide 19: Concessional contributions
Super Reform 2016/17 Concessional contributions All personal contributions from 1 July 2017 can be deducted ◦ “10% rule” no longer applicable ◦ Existing conditions and notice requirements still apply Five year carry forward of unused concessional contributions cap ◦ Total superannuation balance less
Slide 20: Income streams (pensions)
Super Reform 2016/17 Income streams (pensions) TRISs ◦ Earnings tax exemption removed ◦ Do not count towards transfer balance cap ◦ Consider conversion to account-based pension if condition of release satisfied Funds with fewer than 5 members ◦ Segregated method to determine earnings tax exemption n
Slide 21: Thank you!
Thank you! Disclaimer: The material shown in this presentation is for general information purposes only. It is not intended to be, nor should it be read as specific personal advice. Whilst all care is taken in the preparation of this material no warranty is given with respect to the information prov
Slide 22: Impact of reforms on SMSFs and investment strategies
What impact will the reforms have on SMSFs, what action is required and the general advice given by the ATO Some investment strategies that can be used with clients in this new environment which may help minimise negative impacts on SMSF portfolios Confidential – may not be distributed without the c
Slide 23: A case study - $1.6m transfer balance limit
A case study - $1.6m transfer balance limit Confidential – may not be distributed without the consent of BetaShares capital
Slide 24: A case study - $1.6m transfer balance limit
A case study - $1.6m transfer balance limit For Anna, investing in a strategy that has the potential for a high level of franking credits can help to reduce her earnings tax liabilities for the portion of her funds that are in accumulation phase, which may assist her in maintaining higher levels of
Slide 25: A case study - $1.6m transfer balance limit
A case study - $1.6m transfer balance limit Confidential – may not be distributed without the consent of BetaShares capital
Slide 26: Fund summary – HVST & AUST
Fund summary – HVST & AUST Confidential – may not be distributed without the consent of BetaShares capital
Slide 27: Fund summary – QOZ
Fund summary – QOZ Confidential – may not be distributed without the consent of BetaShares capital
Slide 28: A case study - Reduction in concessional contribution cap
A case study - Reduction in concessional contribution cap Confidential – may not be distributed without the consent of BetaShares capital
Slide 29: A case study - Reduction in concessional contribution cap
A case study - Reduction in concessional contribution cap Confidential – may not be distributed without the consent of BetaShares capital
Slide 30: A case study - Concessional contribution cap
A case study - Concessional contribution cap Confidential – may not be distributed without the consent of BetaShares capital
Slide 31: Benefits and Considerations
Benefits and Considerations Confidential – may not be distributed without the consent of BetaShares capital
Slide 32: A case study - CGT cost base reset
A case study - CGT cost base reset Highlights of reform Some investment ideas that may be considered under these reforms: BetaShares Nasdaq 100 ETF (ASX: NDQ) BetaShares FTSE RAFI Australia 200 ETF (ASX: QOZ) BetaShares FTSE RAFI US 1000 ETF (ASX:QUS) Confidential – may not be distributed without th
Slide 33: BetaShares Nasdaq 100 ETF (ASX: NDQ)
BetaShares Nasdaq 100 ETF (ASX: NDQ) Confidential – may not be distributed without the consent of BetaShares capital
Slide 34: Blending various global exposures with S&P/ASX 200
Blending various global exposures with S&P/ASX 200: 31 March 2017 Source: Bloomberg Confidential – may not be distributed without the consent of BetaShares Capital 34
Slide 35: Nasdaq-100 Index Price and Earnings
Nasdaq-100 Index® Price and Earnings : Index=100 Jan 2001 – 31 March 2017 450 Nasdaq 100 Index Earnings 400 Nasdaq 100 Price 350 300 250 200 150 100 50 0 Jan 2001 Jan 2002 Jan 2003 Jan 2004 Jan 2005 Jan 2006 Jan 2007 Jan 2008 Jan 2009 Jan 2010 Jan 2011 Jan 2012 Jan 2013 Jan 2014 Jan 2015 Jan 2016 Ja
Slide 36: Confidential – may not be distributed without the consent of BetaShares Capital
Source: Bloomberg. Past performance is not an indicator of future performance Confidential – may not be distributed without the consent of BetaShares Capital 36
Slide 37: Nasdaq-100 Index has outperformed selected other global exposures
Nasdaq-100 Index® has outperformed selected other global exposures Confidential – may not be distributed without the consent of BetaShares capital
Slide 38: BetaShares FTSE RAFI Australia 200 ETF (ASX: QOZ)
BetaShares FTSE RAFI Australia 200 ETF (ASX: QOZ) Confidential – may not be distributed without the consent of BetaShares capital
Slide 39: QOZ has outperformed the S&P/ASX 200 Index by 2% p.a. over 10 years
QOZ has outperformed the S&P/ASX 200 Index by 2%p.a. over a 10 yr period Source: Morningstar Direct. Past performance is not an indicator of future performance QOZ refers to the performance of the FTSE RAFI Australia 200 Index after subtracting the fees applicable to QOZ ETF. Confidential – may not
Slide 40: BetaShares FTSE RAFI US 1000 ETF (ASX: QUS)
BetaShares FTSE RAFI US 1000 ETF (ASX: QUS) Confidential – may not be distributed without the consent of BetaShares capital
Slide 41: QUS has outperformed the S&P 500 Index by 2% p.a. since inception
QUS has outperformed the S&P 500 Index by 2%p.a. since inception Source: Morningstar Direct. Past performance is not an indicator of future performance QUS refers to the performance of the FTSE RAFI US 1000 Index after subtracting the fees applicable to QUS ETF. Inception refers to the inception dat
Slide 42: In conclusion
In conclusion There are 3 key investment opportunities to consider for your clients arising from the SMSF reforms: 1. $1.6m balance transfer limit - Consider tax effective equity income oriented investments like HVST to potentially increase income yield in portfolios and exposure to higher levels of
Slide 43: Things to keep in mind
Things to keep in mind Case studies discussed are illustrative only The strategies may not be suitable for all risk profiles Investors should obtain professional tax advice before making any investment decisions Confidential – may not be distributed without the consent of BetaShares capital
Slide 44: Visit our new website
Visit our new website Sign up for regular Follow us on insight LinkedIn and Twitter Confidential – may not be distributed without the consent of BetaShares capital