Fishing Net or
Fishing Line?
1
Client name:
Mortgage Type Interest Rate Amount
Income
C1
C2
Value
INCOME
Debt
Equity
Mortgage
Debt
Mortgage Type Interest Rate Amount
Superannuation
Personal Assets
Personal
Superannuation
Mortgage Type Interest Rate Amount
Shares / Dividends
How much income do you
Want annually at Retirement
Credit Cards
Other
_______________________
Family Tax Benefits
Pension
Passive Investments
Liabilities
Tax
Rent Total
Investment
Mortgage Type Interest Rate Amount
Properties
Cash
Investment Mortgages
Fixed Interest
Shares
Life
Other
TPD
Trauma
Income
Business / Key Man
Where do you fit in the advice line
Accumulator
Family
18 - 40
Uni
Work
Car
41 - 54
Home
Rent
Marriage
Savings
Spending
Kids
Family
Assistance
Invest
property
Renovation
Sale
Portfolio const
Pre - Retiree
Retirement
55 - 65
66 - +
TTR
Income
Super Panic
Pension
Pers Conts
Panic
Estate Planning
Holiday
Debt reduction
What do clients want from you?
Death
What do clients want
from you?
4
What clients want from a service provider | What is your point of difference ?
1. Help me improve my financial situation & the burden debt plays
2. Take Control
3. Protect me and advise me
4. Give me a better experience dealing with your firm
5. Teach me
What are your clients asking for?
Client Retention Issues Case Study
(Slide 1)
Point 1: 90% of brokers never contact client once settlement is finalised!
Point 2: 93% of clients cannot remember their brokers face 3 months after the
mortgage is written.
Case – (Slide 1) – The Facts
Looking at a Typical Database Clean:
 600 Clients Called from clients database
 Wrong Numbers/Disconnected – 22.55%
 No Longer Client – 4.5%
 Remove From Database – 3.0%
Total Clients Lost – 30.05%
 Total Clients Responsive – 69.95%
 Call to Discuss new Business – 8.0%
 Details Updated – 69.95%
 Email Address Gathered – 57.0%
Outcome: Solution will allow you to reduce the drop off rate in your client
base so this never happens.
Client Likelihood of repurchasing a product/service with current provider
Fact: In the financial services sector an average of 7% of clients are very likely to change provider.
Very
Unlikely
9%
33%
5%
34%
11%
4%
11%
10%
6%
46%
48%
53%
14%
4%
4%
41%
32%
Not
44%
Sure
46%
57%
79%
Very
59%
61%
Likely
57%
57%
52%
43%
42%
41%
40%
39%
17%
PBM
Soft Drinks
Life
Long Distance
Laundry
Credit
Insurance
Telephone
Detergent
Card
** Source: PBMI and McKinsey Quarterly Vol. 2, 2002, Numbers may not total 100% because of rounding
Cellular
Telephone
Home Loans
Retail
Auto
Casual
Banking
Insurance
Apparel
Are you really doing
things different to your
competitor?
8
Ranking of
Product
Providers
% of Gross Income
Asteron
1
14.94%
AIA
2
12.61%
TAL
Colonial
One Path
Colonial 1st State
OASIS - Wealthtrac
Macquarie
Zurich
Fee For Service
ONEPATH Life Ltd
IOOF
AMERICAN Intn'l Ass Co Aust Ltd
Tower Australia Limited
Macquarie Investment Mngt Ltd
BT Life Limited
NETWEALTH Investment Funds
MACQUARIE Wrap Solutions
AXA
Asteron Wealth Solutions
ASGARD Capital Mgnt Ltd
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
7.95%
5.40%
4.24%
4.09%
4.05%
3.80%
2.68%
2.60%
2.52%
2.36%
2.25%
1.72%
1.71%
1.67%
1.58%
1.47%
1.41%
1.41%
1.40%
Product Providers
ADVISER NUMBER 1
AMERICAN Intn'l Ass Co Aust Ltd
$
$
AMP Limited
ANZ Securities Ltd
AUST Inv Exchange - Ausiex
BlackRock Investment Managers
BT Funds Mngt Ltd
Colonial First State Inv Ltd
Dealer Group Fee
Fee For Service
MACQUARIE Bank Limited
Macquarie Investment Mngt Ltd
MACQUARIE Wrap Solutions
NATIONAL Australia Bank Limited
ONEPATH Life Ltd
Adviser No 2
Asteron Portfolio Service Limited
Fee For Service
IOOF Australia Limited
MLC Limited
MLC Limited - ex Aviva
Perpetual Inv Management Ltd
Adviser No 3
AMP Limited
ASGARD Capital Mgnt Ltd
Asteron Life Limited
AUSTOCK Life Funds
Biz-E-News
Dealer Group Fee
Fee For Service
IOOF Australia Limited
MACQUARIE Bank Limited
Macquarie Investment Mngt Ltd
MACQUARIE Wrap Solutions
MASON Stevens Pty Ltd
MLC Limited - ex Aviva
ONEPATH Funds & Custodians
RBS Instreet Group Ltd
Tower Australia Limited
Zurich Australia Limited
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
17,108.00
4,506.66
1,760.00
60.04
8.91
594.52
2,200.00
910.80
1,387.56
4,040.75
1,320.00
318.76
13,992.88
44.80
2,750.00
7,879.35
193.27
2,667.79
457.67
286,140.37
878.98
144.25
165.00
241,230.50
1,844.97
551.51
8,975.50
335.41
24.91
1,329.10
7.19
800.00
29,317.78
535.27
Presentation to Beacon Financial
Conference, FIJI
May 2013
Disclaimer
This presentation is owned by Mason Stevens Limited (ACN 141 447 207), (AFSL 351578). Any content provided in
this presentation is for the purpose of providing general information only. Investment in securities including
derivatives involves risk. Securities by nature have rises and falls, given that past performance is not a reliable
indicator of future performance. Mason Stevens is only providing general advice in this presentation. You should
consider this information, along with all of your other investments and strategies when assessing the
appropriateness of the information to your individual circumstances. Mason Stevens and its associates and their
respective directors and other staff each declare that they may hold interests in securities and/or earn brokerage,
fees or other benefits from transactions arising as a result of information contained in this presentation. Mason
Stevens ensures that the information provided in this presentation is as accurate and complete as possible but does
not warrant its accuracy or reliability. Opinions and or information may change without notice and Mason Stevens is
not obliged to update you if the information changes. Mason Stevens and its associated companies, authorised
representatives, agents and employees exclude to the full extent by law, liability of whatever kind, including
negligence, contract, fiduciary duties or otherwise, to investors or anyone else in respect of any loss or damage,
including indirect or consequential loss or damage, foreseeable or not, arising from or in connection with this
presentation. The relevancy of this presentation is designed to illustrate the range of products and services that
Mason Stevens offer, it may also provide potential investment outcomes for a particular investment strategy. The
presentation uses a broad number of simplifying assumptions to do this. As such the output of the presentation
should not be taken as an indication of any actual performance of any particular investment. Any investment
return(s) and yield assumptions used in the presentation do not represent a prediction or forecast of actual
performance of any product or service offered by Mason Stevens Limited.
Mason Stevens ABN
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Mason Stevens
Boutique investment house
• Established in 2010; today circa $750m of FUM, has 26 staff
Multi-asset, multi-currency offering
• Global Equities, Global Fixed Income, Global Derivatives & Cash
Investment Choice
• Portfolio Accounts, Managed Accounts, Direct Equities, Direct Fixed
Interest, and Managed Funds
Institutional-style solutions
• Transparent, efficient and cost effective with comprehensive online reporting
Mason Stevens ABN
13
Access Global Assets
Global Equities
Global Derivatives &
Commodities
Margin Lending
Foreign Exchange
Your Wealth
TD Hub
Fixed Income
Corporate Bonds, Kangaroo Bonds, RMBS,
Sovereign
Mason Stevens ABN
14
The Executive Team
PAT HANDLEY, EXECUTIVE CHAIRMAN
• More than 38 years’ banking and finance experience both in Australia and the United States
• Number of directorships including Suncorp-Metway, AMP and HHG
• Former Executive Director and Chief Financial Officer at Westpac Banking Corporation from 1993 to 2001
• Former Chairman of Nomura Securities Australia and Pacific Brands
• Chief Financial Officer of Banc One Corporation (now part of JP Morgan) in the US
• Currently the Director of Vantage Private Equity, Chairman of Bridgeport Energy Ltd and is one of the founders of 2020
THOMAS BIGNILL – CHIEF EXECUTIVE OFFICER
• Thomas has 18 years experience in financial markets and has worked in major investment banks including Merrill
Lynch, Bankers Trust and Bell Potter building substantial private client portfolios specialising in domestic and
International equities.
• Head of Equity Market Services at Next Financial in 2006 where he built a comprehensive domestic and international
equities solution for both private clients and financial advisers.
• Founding member of Mason Stevens.
VINCENT HUA, CHIEF INVESTMENT OFFICER
• Highly experienced trading and portfolio manager with over 19 years’ experience in the Australian and Asian markets
• Former Managing Director and Head of Liquid Market Trading for Lehman Brothers (Australia), Global Head of Product
and Trading for the CBA, General Manager of Markets for Shinsei Bank in Tokyo and Head of Asset & Liability
Management at Westpac
• During the past 3 years, Vincent has been involved in the private equity sector
• Responsible for all the investment activities of the firm including discretionary money, advised accounts and counterparty
relationships
15
Online anytime
Mason Stevens ABN
16
Our offering
•
•
•
•
•
•
•
Individualised portfolios
General portfolio advice
Opportunistic themes and ideas
Access to research
Access to IPOs
Financing solutions
Capital protection solutions
•
•
•
•
•
Self-directed Portfolio Accounts
Professionally-managed
Managed Accounts
Global and domestic equities
Derivatives
Fixed income / Interest
Listed property
Cash
•
•
•
•
•
24/7 online reporting
Full tax / year-end reporting
Custody of assets
Fair tax outcomes
Complete transparency
•
•
Client
Administer
We are not:
• Financial Planners
• Tax Advisors
• Accountants
• Risk Assurers
Mason Stevens ABN
17
Choice of Investment Vehicles
Portfolio Accounts
Managed Accounts
Managed Funds
Comprehensive Administration Platform
Consolidated
Reporting
Mason Stevens ABN
18
Portfolio Accounts - directed by the client or the adviser
Individualised approach where a portfolio is constructed to
meet your clients specific risk and return objectives
Portfolio Accounts
put you and your
clients in the driving
seat of their
investment portfolio
Choose from our range of equity, derivative, fixed
income, managed fund and cash products
Assets are held on your clients behalf in custody and
there is no minimum investment requirement
View your clients investment information at anytime on
our online portal
Mason Stevens ABN
19
Unique solution
Personalised, transparent
outcomes
Access to global markets
Exclusive opportunities
•
Portfolio Accounts
•
IPOs
•
Managed Accounts
•
Placements
•
24/7 online access for Advisers
and clients
•
Idea generation
•
Institutional access
•
Audited tax reporting
•
Direct Fixed Income
•
Corporate Action management
ASIC supervised and regulated.
AFSL holder with strict controls and processes to protect underlying client assets.
Mason Stevens ABN
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Managed Accounts – SMA Solution
An investment portfolio where deicisions are made by the
Portfolio Manager under a mandate
Managed Accounts
provide direct
equity exposure but
with the benefit of
professional
management
Choose from our range of portfolios managed by
Mason Stevens and other specialist managers
As beneficial owner of the securities within your
portfolio you achieve fairer tax outcomes and rights
to all dividends and distributions
View your investment information at anytime on our
online portal
Mason Stevens ABN
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What are Managed Accounts?
Defining features of managed accounts:
• Non-unitised investment account
• Held beneficially for the client
• Investments managed on a discretionary or
non-discretionary basis
• Mason Stevens Terminology:
• Portfolio Account – Client/Advisor Directed
• Managed Account – Mandate based
discretionary management
Mason Stevens ABN
22
The History of Managed Accounts
•
Managed Accounts evolved over the last 20 years, primarily in the US, as an
offering for family offices to get transparency on their investments
•

Tax efficiency

Transparency

Portfolio customisation and flexibility

Liquidity
US $ 3 trillion is presently invested in Managed Accounts in the US, growing at
15% per annum
•
Nearly five million US households use Managed Accounts
Mason Stevens ABN
Source: HFMWeek Annual Managed Account Survey March
2011
23
Managed Account Features
Transparent
• Beneficial ownership of individual holdings
• Full visibility of underlying investments,
transaction and fees
• Transaction history readily available
• 24/7 online reporting for advisers and clients
• Allow the advisor and client to be more informed
Mason Stevens ABN
24
Managed Accounts Features
Scalable
• Technology solution enabling you to offer a direct
share offering across your broader client base.
• Outsourced administration solution utilising
the benefits of the custodian
• Avoid the inherent issues of traditional HIN
based solutions
Mason Stevens ABN
25
Managed Accounts features
Investment options
• Domestic and International Equities
• Plus:
• Fixed interest & hybrids
• Derivative overlays
• Listed property trusts
• Managed Funds
• Margin lending
• Managed models of unit trusts
Mason Stevens ABN
26
Managed Accounts Features
Portable
• Direct in-specie transfer in or out
• No change of beneficial owner
• Easily switch between investments
• Only realise those stocks that are not
common
Mason Stevens ABN
27
Managed Accounts features
Tax & investment efficiencies
• No inheritance of other investor’s capital gains
• In-specie transfers without CGT events enable customisation &
flexibility
• Realised losses available to investors
• Enables accumulation & capital drawdown strategies in direct shares
Mason Stevens ABN
28
Managed Accounts features
Model Portfolios
• Range of investment strategies, managers
• Internal & external model managers
• As security weightings from model manager change, the SMA provider
automatically rebalances each investors portfolio to reflect the
changes
• Multiple asset classes covered:
• Equities
• International Equities
• Bonds
• Managed Funds
• ETF
• Cash
Mason Stevens ABN
29
Managed Account Features
Administration
• Single HIN – all securities held by a custodian
• Trades, corporate actions & income/distributions by
aggregated electronic processes
• Highly efficient hence cheaper than unit trusts
• Highly scalable
Mason Stevens ABN
30
The best of both worlds
Benefits
Broker
Managed
Accounts
Managed Funds
Beneficial Ownership



Professionally Managed



Transparent investment



Tax Efficient



In specie flexibility



Single licensing



Consolidated reporting



Cost effective



No embedded CGT



Transactions confirmed daily



Mason Stevens ABN
31
Global, multi asset managed accounts
Large cap Australian
Equities
Small/mid cap
Australian Equities
International Equities
Fixed Income
Blue Chip Income Equities
Model Portfolio
Bennelong Ex-20
Magellan Global Equity
Model Portfolio
Mason Stevens Credit
Fund
Blue Chip Growth Equities
Model Portfolio
Blue Chip Small Caps
Model Portfolio
Mason Stevens ABN
32
Asset Allocation, Growth Conservative and
Balanced
Beacon Financial Asset Allocation Committee
Australian Equities
International Equities
Fixed Interest
Cash
G
50%
40%
10%
0%
C
30%
25%
45%
5%
B
35%
30%
35%
5%
Mason Stevens ABN
33
Sample Australian Equities Portfolio
offering
Australian Equities
Blue Chip Asset
Management
Large Cap equities
Growth return
Bennelong
Ex 20 Portfolio
Exposure outside the ASX 20
Blue Chip Asset
Management
Yield focus large caps
Income style returns
Mason Stevens ABN
34
SMSF
Offering
Equities
Fixed Interest/Cash
Property
Yield
Mason Stevens ABN
Yield
35
Questions
Mason Stevens ABN
36