Prime Financial Group Limited · ASX:PFG
Prime Financial — Investor Presentation (October 2017)
19 slides from Prime Financial's investor presentation, Oct 19, 2017
Slide 1: Prime 2017: Melbourne Client Presentation
Prime 2017: Melbourne Client Presentation 19th October 2017
Slide 2: General Advice Disclaimer
General Advice Disclaimer This presentation has been prepared by Primestock Securities Ltd. (AFSL 239180). The information in this presentation is of a general nature only and is not intended to be, and is not a complete or definitive statement of the matters described in it. It has been prepared wi
Slide 3: 2017 – A Scorecard Thus Far > EXCELLENT, but…
2017 – A Scorecard Thus Far > EXCELLENT, but… • Another positive year for financial markets > S&P 500 +14%, NASDAQ +23%, Euro-stoxx 50 +10%, Nikkei 225 +12% & Hang Seng +30% • We have had nine consecutive ‘up’ years since end 2008 (2011 & 2015 were down only very modestly) > S&P500 has risen +12.3%
Slide 4: Asset Class Returns in 2017
Asset Class Returns in 2017 Another constructive year for assets Local AUD ASX200 Accumulation Index 6.89% 6.89% Prime Australian Equity Growth SMA 7.03% ASX20 Accumulation 3.88% 3.88% ASX Small Ordinaries Accumulation 11.20% 11.20% S&P500 14.24% 4.94% Prime International Growth SMA 11.39% MSCI Worl
Slide 5: Global economic momentum at 'decade best'
Global economic momentum at ‘decade best’ Business optimism globally in a synchronous upswing – United States (red), Germany (white), China (yellow) 5
Slide 6: Asset Price Valuations at decade 'plus' highs
Asset Price Valuations at decade ‘plus’ highs > Global growth excellent, but priced. S&P 500 forward earnings multiple at highest level since 2002 6
Slide 7: Asset price stimulus unprecedented
Asset price stimulus unprecedented Federal Reserve Total Assets have risen 350% and had clear impact on all asset pricing > 2yr unwind could remove $900bn from asset markets 7
Slide 8: Forward Asset Class Returns Estimate > it gets harder
Forward Asset Class Returns Estimate > it gets harder Asset Manager GMO forecasts an annual forward asset class ‘real’ return every quarter based upon a reversion to historical trend 8
Slide 9: Aussie big-caps de-rated deservedly > valuation improving
Aussie big-caps de-rated deservedly > valuation improving, but growth uncertain Australian blue-chips have de-rated & now look much better value. However, the growth outlook is muddied. 9
Slide 10: Why Trump's tax policy matters
Why Trump’s tax policy matters Dow Industrials (white) & Small Business Optimism (red) are closely correlated 10
Slide 11: Australia's Employment Composition improving
Australia’s Employment Composition improving 2017 Australian Full-time employment growth of +3.5% annualized. 11
Slide 12: Apartment sales momentum collapsed
Apartment sales momentum collapsed Sales momentum now at a 3-year low > price weakness yet to be properly felt 12
Slide 13: Building approvals sliding > Apartments key
Building approvals sliding > Apartments key, private houses have steadied Apartment approvals are running -35% under their 2-year average 13
Slide 14: Residential Construction Activity follows Building Approvals
Residential Construction Activity follows Building Approvals Australian Residential Construction ‘Work Done’ (red) understandably follows Building Approvals (white) 14
Slide 15: Why Construction matters > rising proportion of full-time workforce
Why Construction matters > rising proportion of full-time workforce Full-time construction jobs have risen in number & as a proportion of the labour force 15
Slide 16: Underemployment & Wages > indicative of excess capacity
Underemployment & Wages > indicative of excess capacity Wages at a 20-year low, underemployment at a record level & fastest growing employment sector starting to slow 16
Slide 17: Australian households drawing down on rainy day funds
Australian households drawing down on rainy day funds Savings rate continues to fall as Australian’s choose to maintain living standards 17
Slide 18: 2018 – Key Conclusions & Issues
2018 – Key Conclusions & Issues • Global economic growth is strong • Asset markets are expensive > S&P 500 highest valuation since 2002 • Investors should begin to temper asset return expectations in 2018+ > volatility will rise • Australia remains leveraged & lagging the global economic momentum >
Slide 19: Accounting & Business Advisory, Wealth Management
Accounting & Wealth Management Capital Business Advisory 1800 064 959 1800 317 006 1800 317 005
Prime Financial Group — Investor Presentation (October 2017) on 6ix