eq-2014-12

EQUITY 

the trusted voice of shareholders December 2014 Vol 28 #10 

REVIEW 

YOUR ASSET 

ALLOCATION 

Give an ASA gift membership this 

Christmas to your family or friends and 

set them on the path to financial freedom. 

Special Christmas subscriptions which include a personalised gift card start at just 

$90 for a Green e-membership and $125 for Classic Membership for 12 months. 

Offer available until 15 December. Go to page 21 for more information.

EQUITY 

the trusted voice of shareholders 

DECEMBER VOL 28 #10 

CONTENTS 

FEATURES THIS MONTH 

04 

REVIEW YOUR ASSET ALLOCATION 

As we approach the end of the year, Craig Keary from AMP 

Capital advises that now is the time to review your investment 

strategy and the appropriateness of your asset allocation. 

Uncertainty across the globe is impacting the financial 

markets and volatility is causing many investors to re-think 

their investment strategies. 

06 

WOOLWORTHS: 

ARE THE GLORY 

DAYS OVER 

When analysing a retailer’s 

growth prospects, like-for-like growth is one of the 

most important measures. So with Coles outperforming 

Woolworths on this key measure for 21 consecutive 

quarters, is Woolworths going bad 

07 

PORTFOLIO 

PLANNING FOR THE 

HOLIDAYS 

Fancy some portfolio self-diagnosis 

over the holidays Doug Turek of Professional Wealth has put 

together some key indicators you might use to study your 

investment portfolio health. 

MORE INSIDE... 

MY INVESTING 

JOURNEY 

AGM 

BRICKBATS 

BOUQUETS& 

08 10 15 

REPORTS 

LIFTING THE 

GAME WITH 

SHAREHOLDER 

ENGAGEMENT 

WEBSITE 

UPDATE 

INVESTING 

16 17 18 

TIPS 

ASA 

20 21 22 

events

BOARD OF DIRECTORS 

Ian Curry FCPA FCIS Dip Fin Planning 

Max Bonpain BMan MBA MMktg 

Betty Clarke-Wood ACIP 

Diana D’Ambra BCom MCom FCA MAICD 

Clare Mazzetti BEc MBA AFMA AICD SDIA 

Barry Nunn AO BE 

NATIONAL OFFICE 

Silvana Eccles 

National Operations Manager 

Samantha Clark 

Events & Member Services Officer 

Veronika Ilnycky 

Communications Officer 

Anna Lau 

Head of Research 

Rasheed Davis 

Accounts Officer 

STATE BRANCHES 

ACT Edward Patching 

NSW Richard McDonald 

QLD Alison Harrington 

SA Kevin Parken 

VIC Don Hyatt 

WA Barry Nunn 

EQUITY EDITOR 

Silvana Eccles 

act@asa.asn.au 

nsw@asa.asn.au 

qld@asa.asn.au 

sa@asa.asn.au 

vic@asa.asn.au 

wa@asa.asn.au 

equity@asa.asn.au 

CONTACT DETAILS 

TELEPHONE 1300 368 448 

02 9223 8811 

FAX 02 9223 3964 

ADDRESS Suite 301, Level 3 

90 Pitt Street 

Sydney NSW 2000 

GPO Box 359 

Sydney NSW 2001 

ABN 40 000 625 669 

EMAIL 

share@asa.asn.au 

WEBSITE 

www.asa.asn.au 

www.australianshareholders.com.au 

DISCLAIMER 

This material in EQUITY is provided for information 

only. No responsibility or any form of contractual, 

tortious or other liability is accepted for decisions 

made on the basis of the information contained 

herein. Nothing in EQUITY is intended or should 

be interpreted as being investment advice. 

Investment advice can only be obtained from 

persons who are licensed in accordance with the 

Corporations Act. Views expressed in articles in 

EQUITY do not necessarily reflect ASA policy. 

The ASA does not endorse or favour any specific 

commercial product or company. The ASA is often 

able to negotiate discounts or benefits for ASA 

members however the inclusion of discounts or 

advertisements in EQUITY, on the ASA website 

or within other ASA communications does not 

constitute an endorsement for the products, 

services or companies mentioned. 

COPYRIGHT 

All material published in Equity is copyright, as 

are ASA Policy Statements whether published in 

Equity or not. Reproduction in whole or in part is not 

permitted without written authority from the Editor. 

All graphs for the Company Reports derive from 

www.netquote.com.au. Any correspondence 

regarding matters covered in this magazine should 

be addressed to the Editor. 

Ian Curry 

CHAIR REPORT 

December 2014 

When members read this edition of Equity most annual general meetings will be 

over. December, however, is the month where some important meetings are held, 

including three of the four big banks. These companies are important for shareholders 

due to their inclusion in virtually every portfolio, the dividends they pay and the 

role their lending, trading and financing policies affect individual and corporate life. 

Another interesting issue at these meetings is the demand from some interest groups 

for banks to stop lending money to companies who are claimed to be damaging the 

environment through the use of their products or who operate businesses which 

impact adversely on individuals. 

In broad terms companies are not, now, judged solely on their financial performance. 

They are obliged to consider environmental, social and governance (ESG) issues. 

Resolutions about ESG are being placed on agenda for annual meetings and 

concerned individuals are nominating for board positions. Every annual report has 

to deal with these broader issues together with those of diversity in employment. 

Reports are provided showing how safety is enforced for employees and customers. 

How and where a company sources products or inputs and to what extent it 

influences suppliers and their social and environmental practices is important. 

Relationships with communities and governments need to be positive. The emissions 

intensity of businesses needs to be measured and improvements made to their 

resilience to climate change. None of this can be achieved without the right 

leadership and communication at all levels of the company. 

There is a body of literature now which points to or claims that companies which 

demonstrate a clear understanding of the need to manage all stakeholders can 

expect to perform better than those which do not. 

The concentration of annual meetings in October and November can mean that 

many meetings are not covered by the media. This is where ASA, through its voting 

intentions and reporting of all meetings attended, provides members with accurate 

information. We continue to encourage companies to webcast their meetings and 

where possible provide for shareholder questions by telephone link. 

ASA has also noticed that proxy adviser firms are taking stronger positions on 

remuneration and director voting. It can be said they are catching up with many of 

the principles we have held over the years. Poor financial performance not reflected 

in reduced executive rewards is being highlighted. Directors who fail to act on this 

link are seeing substantial votes against their re-election. 

All shareholders should be grateful to our company monitors and their team leaders 

and to Anna Lau for her work in making sure voting intentions and reports are 

available on the website. We continue to urge all shareholders to vote directly or 

to give ASA their proxy to make sure their vote counts. 

The listing of Medibank will have taken place by the time you read this column. 

Whatever the outcome in terms of support for the float it must go on record that 

it is totally unacceptable to ask investors to pay for a share without knowing the 

price or the number of shares they might receive. 

The end of 2014 is close and I want to acknowledge the contribution from all our 

volunteers. To State chairs and their committees, State CMC chairs and monitors, 

to all convenors of groups and their committees around Australia, all of us owe 

them a great deal. To Silvana Eccles and our staff in the National office my thanks 

for coping with an enormous workload over the year and for their support of the 

directors. 

To my fellow directors I say thank you for contributing so well to our work. 

Finally to all members and their families I wish you a safe and happy Christmas 

and New Year. 

EQUITY December 2014 Page 3

Review your asset allocation 

By Craig Keary, Director of Retail and Corporate Business, AMP Capital 

As we approach the end of the year, now is the time to 

review your investment strategy and the appropriateness 

of your asset allocation. 

Uncertainty across the globe is impacting the financial 

markets and volatility is causing many investors to re-think 

their investment strategies. 

During this time of uncertainty, many investors are straying 

from their set investment plans to satisfy their very human, 

emotional need for security. In Australia, this market volatility 

has caused some investors to move significant proportions 

of their funds to more conservative investments such as 

bank term deposits. 

What many investors may fail to recognise is that investing 

100 per cent of their funds into the traditional safe haven of 

bank term deposits for longer than 12 months may mean 

they won’t reach their financial goals for the medium and 

long term. 

Falling bank term deposit rates mean it’s difficult for investors 

to keep up with inflation over time and many medium to 

long-term bank term deposit investors may not adequately 

meet their future costs of living. 

Investors should instead consider a variety of other sources 

for yield to meet their needs. So, how can investors 

more likely reach their financial goals in these constantly 

changing times 

There are attractive alternatives for yield in Australian shares, 

corporate bonds, infrastructure and property that investors 

should consider. 

AUSTRALIAN SHARES 

Australian shares currently offer a higher income stream 

than bank term deposits. The grossed-up dividend yield on 

Australian shares is approximately 6.5 per cent. This means 

that Australian shares generally provide a high cash flow in 

comparison with bank term deposits. 

Of course, shares come with the risk of capital loss. One 

way to minimise this risk is to focus on shares providing 

sustainable above-average dividend yields. There is also 

evidence that shares paying high dividends are associated 

with higher returns over time as retained earnings are 

often wasted. 

Dividends also reflect confidence in actual and future 

earnings. The key is to focus on those companies that have 

a track record of delivering reliable earnings and distribution 

growth over time but are not reliant on significant leverage. 

EQUITY December 2014 Page 4 

Investors need to be aware that if there is significant leverage, 

the yield is high only because there is something wrong with 

the company. 

AUSTRALIAN CORPORATE BONDS 

Australian corporate bonds are a good option for investors 

who want higher yields than government bonds and bank 

term deposits, but who also want to avoid share market 

volatility. For example, investment grade Australian 

corporate bonds – these are considered high quality – 

have yields from around 5.5 – 6%. Lower quality Australian 

corporate bonds have yields that are even higher, although 

they come at a higher risk. 

INFRASTRUCTURE 

Today, there are more infrastructure investment opportunities 

than ever. As governments worldwide find it increasingly 

difficult to pay for essential infrastructure, the private sector 

is stepping in to build, own and operate these facilities. 

The demand for infrastructure is also being driven by activity 

in developing nations due to increasing urbanisation and 

the need to upgrade ageing infrastructure. To keep pace 

with anticipated global growth, the world needs to spend 

an estimated US$57 trillion on infrastructure by 2030, 

according to McKinsey. 

Infrastructure can be broken into two main categories: 

economic and social. Economic includes facilities and 

services such as toll roads, airports, communication 

systems and power and water distribution and social 

includes hospitals, schools, affordable housing and 

correctional facilities. 

10% 

8% 

6% 

4% 

2% 

12 mth 

Term 

Deposits 

Current yields, % pa 

Aust 

housing 

Aust 10 yr 

bonds 

0% 

Source: Bloomberg, AMP Capital. As at October 2014. 

Aust corporate 

bonds 

Aust 

REITS 

Aust 

shares 

Aust unlisted 

non-res 

property 

Global listed 

infrastructure 

Unlisted 

infrastructure 

// 1

INFRASTRUCTURE’S KEY BENEFITS ARE: 

• Predictable income: Typically, infrastructure assets have 

long-term contracts (30-40 years) to operate a facility, 

thus providing predictable income; 

• Monopolies: Infrastructure businesses often have 

monopolistic characteristics because of high start-up 

costs or government regulation, which protects them 

from entry by competitors; and 

• Built-in consumer demand - due to the fact that 

infrastructure assets provide essential services, 

demand for these assets tends to be stable. This makes 

infrastructure a defensive asset class which is a valuable 

tool to have in a balanced portfolio. 

PROPERTY 

Property is a large and diverse asset class that includes a 

broad range of sub-sectors. For retail investors, however, 

there are four key types: commercial (office buildings), retail, 

industrial and residential. 

Property is often a long-term investment, offering investors 

the potential for efficient risk-adjusted returns. 

These returns can be generated from rental income and 

movements in the value of the property, or capital growth. 

Direct and unlisted property can both play an important part 

in an investment portfolio and offers diversification benefits. 

For example, unlisted assets perform well at different times 

to listed assets, helping to smooth returns. 

PROPERTY’S KEY BENEFITS ARE: 

• Regular income: Individual properties often have longterm 

contracts with renters in place, which are linked 

to inflation and generate predictable rental yields; 

• Access to new opportunities: Investing in a property fund 

provides access to a range of global property sectors 

that are generally very difficult to access directly; and 

• Expertise - commercial and industrial properties are 

managed by specialists with expertise in securing quality 

long-term tenants to maximise rental income as well 

as how properties can be improved to generate the 

maximum revenue for investors. 

EMOTIONAL VS. RATIONAL INVESTING 

We have seen investors increasingly make emotional 

decisions about when and where to invest their money. 

As we know, these decisions may not always be based on 

rational thinking. 

For instance, we have seen investors in various investment 

cycles move their money to asset classes at the bottom 

of a cycle that may be less risky but also offer less return 

just at the point in time when the riskier asset classes are 

set for a rebound. 

As such it is important to understand their drivers for making 

an investment decision and consider the following: 

• Researching the facts. It is critical for investors to 

understand the facts and look at what is actually 

happening as a result of an event. For instance, when 

there is an event that causes market volatility to impact 

returns on long-term investments, they should first 

determine whether or not their rationale for their longterm 

outlook has changed before deciding on whether 

or not to change their asset allocation strategy. 

• Asset allocation. Investors who are invested according to 

a set asset allocation strategy based on rational decisionmaking 

should try to avoid changing this strategy when 

they are feeling emotional. They need to research the 

facts and look at the long-term strategy that was set 

and consider if it is still relevant based on balanced and 

logical reasoning. 

• Rational decision making. When markets are stable, 

investors should look at their investment and asset 

allocation strategies and use the available facts to make 

solid investment decisions based on a rational process. 

Making decisions at a time of extreme volatility may 

cause decisions to be based on emotion. This may not 

always be the best decision compared to basing the 

determination on the facts and available data. 

• Working with experts. At times like these when there 

is a heightened level of emotion around investing, 

seeking specialist advice can help investors make 

rational decisions 

NEW YEAR’S RESOLUTION 

As we approach the end of the year and you consider your 

New Year’s resolutions, taking the time to look at your 

investment strategy may be appropriate to ensure your 

investments go into 2015 in good shape. 


Woolworths: 

Are the glory days over 

By Nathan Bell, Intelligent Investor 

After rebates that weren’t rebates and fresh bread that 

wasn’t fresh, Coles is in hot water again over fresh spring 

apples that went into storage last autumn. 

It might seem that the Wesfarmers-owned retailer can’t 

take a trick at the moment, but the real truth is revealed 

at the checkout. In the three months to 30 September, 

Coles’ food and liquor sales rose a whopping 5.8% from 

a year earlier, and 4.3% on a like-for-like basis. With price 

deflation of just 0.5%, that growth is unlikely to have been 

at the expense of margins. 

Meanwhile, archrival Woolworths could 

muster just 3.9% headline growth from 

Australian food and liquor, or 2.1% on 

a like-for-like basis. Despite price 

deflation of 2%, that’s less than 

half achieved by Coles. 

When analysing a retailer’s 

growth prospects, like-forlike 

growth is one of the 

most important measures. 

So with Coles outperforming 

Woolworths on this key measure 

for 21 consecutive quarters, is 

Woolworths going bad 

Not so fast. Coles was a long way 

behind and this figure is a measure 

of the company catching up, not an 

indication of Woolworths turning into 

a poor business. Shareholders shouldn’t 

be unduly alarmed despite the lower-thanexpected 

sales growth. There’s actually a more 

significant issue looming. 

Whilst the core food and liquor division increased sales by 

3.9% to $11bn, with sales slowing in August and September, 

Coles’ faster sales growth is no big deal. 

Nor is the fact that Woolworth’s petrol sales fell 3.6% to 

$1.3bn due to the recent regulatory limits placed on fuel 

discounts and the weak sales growth in New Zealand (just 

1.1%). The same goes for the home improvement business, 

which increased sales by 20% but is still a long way from 

recording a maiden profit, and the hotel division, which 

suffered a 1% fall in sales chiefly due to Queensland and 

the increase in gaming taxes in Victoria. 

As the bulk of Woolworths’ profits come from the Australian 

food and liquor business, these falls aren’t worth worrying 

about. The real issue is whether Woolworths can continue 

to increase profits despite increasing competition, a slower 

store roll out and the maturity of the industry. 

And that boils down to the extent to which Woolies can 

continue to squeeze its suppliers. The company’s secret 

sauce over the past decade or so has been to squeeze 

suppliers for all they’re worth, plus a little bit more. Those 

costs savings have then been passed on to customers 

through lower prices, which in turn has increased sales. 

That’s how Woolies has delivered ‘everyday lower 

prices’ and the company’s suppliers are the 

ones that have paid for it. 

With growing price competition from 

the likes of Aldi, which has increased 

its market share from 3% to over 

10% in the last decade, what 

happens if suppliers can’t 

continue to subside Woolies’ 

profit growth 

Well, the company either has 

to lower its costs base in other 

ways or it has to break the 

virtuous circle of lower prices, 

more customers and higher 

profits. Not a pretty choice is it 

This is a far more important issue 

than when Masters will finally turn a 

profit, or whether same store sales growth 

declines are permanent. 

There are two factors to consider in this regard. First, 

whilst Aldi has been growing market share it has done so 

at the same time as Woolworths has managed to increase 

margins. If Aldi does grow into a substantial threat, we’d 

expect the impact to show up in Woolies’ EBIT margins in 

the food and liquor division. Thus far, there’s no sign of that 

happening and little evidence to suggest it will. 

Second, at least some of these concerns have been baked 

into Woolworths’ share price. Not so long ago the company 

was trading on a price-to-earnings multiple of well over 

20. On a forecast price-to-earnings ratio of 17 and a 4% 

fully franked dividend yield, Woolworths should continue to 

produce satisfactory returns and why the company remains 

on our Buy List. But investors would be well advised to 

watch EBIT margins just as much as they do same store 

sales figures. 

Disclosure: Nathan Bell does not own stock in any of the companies mentioned. 

Nathan Bell is Research Director of Intelligent Investor Share Advisor (AFSL 282288). Unlock all of Share Advisor’s stock research and buy 

recommendations by taking out a 15-day free membership at shares.intelligentinvestor.com.au 


Portfolio planning 

for the holidays 

By Dr Douglas Turek, Professional Wealth 

Were you to arrive at your doctor’s office feeling unwell, she or he might send you off for a blood test to identify anything 

unusual. Based on years of helping Australians analyse and compare their wealth (which you can do for free, online and 

anonymously at www.wealthbenchmarks.com.au) I’ve put together some key indicators you might use to study your investment 

portfolio health. Fancy some portfolio self-diagnosis over the holidays 

Indicator Calculation Explanation 

Equity mix % 

Concentration % 

International % 

Inflation assets % 

Amount of growth assets which 

includes 100% of your shares and 

50% of any property and hybrid 

security investments / Total value 

of investments, of course both 

excluding your home 

% your top and top 5 shares 

represent of your share portfolio, 

% shares invested in and nonguaranteed 

lent to banks 

Total value of international shares 

and non A$ holdings / Total value 

of investments 

Amount of inflation protecting 

assets / Total value of investments 

This fundamentally measures your trade-off between eating well over the long term, 

investing in growth assets versus sleeping well at night, investing in safe defensive 

investments. For most this mix should vary between 1/3 and 2/3. Less means you 

are taking on too much interest-rate risk and being financially repressed. Especially 

for those over 50, too much means your portfolio and perhaps retirement is too 

easily ruined by another GFC. The 70-80% for many industry default funds is too 

high for all but the young. When your ratio goes up, sell shares to reduce it and 

when it goes done, buy shares on sale - that’s called rebalancing. 

All these measures get at how well you have spread your risk. If your top 5 stocks 

count for more than 2/3rds of your share portfolio then you don’t have a portfolio. 

More than 10% in anyone share would make a professional fund manager nervous. 

If more than a third of your money is invested in and lent to the banks, then I worry 

about you being bank(dis)rupt. Choose your own limit if mine is too conservative. 

If perhaps 1/3rd of your expenses (energy, holidays, imported goods) is set offshore 

then perhaps a similar proportion of your investments need to be, to protect you 

from a falling A$. 

While we don’t worry about inflation now, retirees need to worry about this over 

the long term and should have ample assets like resource companies (not banks), 

property and infrastructure and CPI linked bonds or annuities. 

Active % % of your share investments 1) 

directly picked by you, 2) picked 

by an active style fund manager 

(unlisted, listed fund or LIC) and 

3) indexed including an ETF 

These three numbers which should total 100%, and which you might work out 

separately for your domestic and international exposure, measure how much you 

(1) or another (2) are trying to outguess the market. Make sure you benchmark both 

to see if either perform. 

Relative return %pa 

Indebtedness 

Your portfolio return % – return of 

like benchmark % over 12 or more 

months 

Debt / Non-super assets 

(including your home) 

Gross income / debt 

You wouldn’t drive without a speedometer, so don’t drive your portfolio without 

knowing how your returns and those you hire compare – visit Vanguard’s website 

to get performance data for all kinds of apples to compare to yours (ASX200, high 

yield shares, Balanced fund ….) 

Here 3 is the magic number. Keeping your debt to less than 1/3rd of your easily 

accessible assets and less than 3x income is probably a safe number. How young 

people can keep to this to buy their first house I’m sorry I don’t know. 

Super % Investments in super / 

Total investments 

Make Work Optional (Amount of investments – debt) / 

Annual expense target 

As you get older so should the % of your investments sheltered in super. At 50 this 

should be 50% which also directs where you savings should go also 

This multiple measures how many years of expenses you have accumulated. While 

the exact target varies with age and investment style, roughly speaking if this is 

over 25 then I think you have Made Work Optional and could retire. If you or your 

kids haven’t, then this difference also suggests your or their catastrophic lump sum 

insurance need. Don’t be your kids insurer! 

Source: Wealth benchmarks and Professional Wealth © 

In the table above some might think a “Yield %” indicator is missing. In my opinion you should not focus on that. Instead focus on 

your total return and live off both dividend income and capital growth. Indeed focusing on yield right now might mean you’re paying 

too much or holding overvalued shares you might take profits in before an eventual re-rating. 

If your favourite ratio or rule of thumb isn’t here or you thought this was a useful exercise than I would love to hear about it (dturek@ 

professionalwealth.com.au). 

Dr Douglas Turek is principal advisor of family wealth advisory and money management firm Professional Wealth. Doug is a long term proponent of 

investor education and the ASA. The above explanations are based on general observations and should not be considered personal advice – do your 

own research or speak to a licensed financial advisor before making any investment decisions. 


My investing journey 

by John Collins, ASA member 

In 1974 the telephonist at my workplace nagged me about 

buying shares. To keep her quiet I bought 50 BHP shares. 

Work pressures left me with no time to learn about shares; 

all I did was watch how the dividend reinvestment scheme 

contributed to my share holding. 

In 1987 I retired from a semi-government job in Victoria and 

converted half my pension entitlement to cash. Through 

my credit union I experienced my first financial adviser. He 

moved my money into five roll-over funds. In the financial 

pages I followed the price of these funds and quickly saw 

that they were so conservatively managed that, while my 

money was safe, my wealth was not growing quickly. 

I realised that I was paying management fees for little 

result. It was clear to me that I needed to learn about 

money management. 

For many years on ABC radio my wife and I had followed 

an investment adviser named Bruce Bond. I read Bruce’s 

book ‘Money Thoughts’ and began my journey to learn 

about managing my own money. I liquidated my roll-over 

investments and moved my money directly into the stock 

market. I did my own research on companies by reading 

articles and talking to other people who were investors. 

Membership of the Australian Shareholders’ Association 

was of great help because they held night meetings where 

I could meet others who were finding their own way to 

knowledge in the world of finance. 

Despite being American, ‘You Have More Than You Think’ 

by Motley Fool founders David and Tom Gardner was my 

next guide to investing. Their propositions include: you 

can be your own financial advisor; do your own reading 

and study the market; take your time and don’t panic 

about mistakes you make but learn from them; and know 

that most stockbroking firms are salespeople who receive 

commission on products they sell you. 

There are lots of books of advice, but you don’t need to 

buy them – the finance section of your local library can 

lend them to you. I encourage you to read them and decide 

which of them offer you good sense. Reject the books that 

are overly technical, but accept those that you feel offer 

you good practical advice. 

Managing your own portfolio requires some recording 

work, but the advent of computers has made life a lot 

easier. For taxation purposes you have to keep your own 

records. I find that an Excel spreadsheet program is more 

than adequate for all my share records. Each share has its 

own spreadsheet that records the purchase date and cost, 

the dividend rate, the amount of the dividend, the average 

price paid (when shares in the same company are bought 

at different times and brokerage is factored in) and the total 

number of shares. Another spreadsheet records all of the 

dividends and franking credits for each company for each 

financial year. 

You do need the services of a sharebroker. As I was doing 

my own reading and was simply buying and selling shares, 

I did not need a ‘full service’ broker; I simply required a firm 

that can follow instructions about what to buy and sell and 

to hold my CHESS records. Look at http://www.asx.com. 

au, go to ‘Education & Resources’, then ‘Find a Broker’, 

and follow the prompts. Do your own research and choose 

your own broker. I use Commonwealth Securities as my online 

broker and the holder of my CHESS registered shares. 

The internet didn’t exist when I started out, but when it 

became available I began to use it. In 2010 Helen Dent, 

a past Chairperson of the ASA, presented an excellent 

seminar, Internet for Investors, which gave a rundown on 

what is available on the internet and provided excellent 

advice about what to look for and what to be careful about. 

If you need information and advice about share matters 

the internet will give more sites than you need. Once again, 

sample them and make your own mind up as to what is 

useful to you. Here are sites I have found useful: www.asx. 

com.au and www.commsec.com.au. Both sites give detailed 

information about companies and both provide free courses 

to help you educate yourself about the share market. 

It is your money; no one is more interested in looking after 

it than you are. My current portfolio has a market value of 

over a million dollars so, with some effort, I have looked 

after my own money. Sure, you need to educate yourself, 

but why give someone else between 1.5 and 5 per cent 

of your money Especially when you can have a lot of fun 

looking after it yourself and, with some effort, do it quite well. 


FOR A COMPLIMENTARY REPORT 

AND PORTFOLIO REVIEW 

ONLY AVAILABLE TO ASA MEMBERS. 

PLEASE CONTACT KOSEC ON 1300 854 151 OR EMAILINFO@ KOSEC.COM.AU 

Invest Smart! 

Get back to Basics. 

15% 

DISCOUNT 

FOR ASA 

MEMBERS 

Competitive Advantage 

Invest with a solid value 

investing strategy 

Receive cutting edge information, 

covering only the best opportunities 

of over 2000 Australian listed 

companies (KOSEC unique market 

filtering system) 

Pick the correct opportunity 

at the right time (Timing in the 

market is everything) 

Trade with a segregated account 

(Your own individual account with 

all your holdings on a CHESS 

Sponsored HIN) 

Work in a partnership with us 

to grow your portfolio 

Work with a Professional 

Client Advisor (An expert in the 

stock market) 

KOSEC HAS BEEN FEATURED IN, 

T (612) 9955 3151 | F (612) 9955 4623 | WWW.KOSEC.COM.AU | LEVEL 7, 99 MOUNT STREET, NORTH SYDNEY, NSW 2060 

Kodari Securities Pty Ltd (Kosec) is a Corporate Authorised Representative (No. 399 556) of Avestra Capital Pty Ltd (AFSL No. 292464) which is regulated by the Australian Securities and Investment Commission (ASIC).

MONITORS: IAN GRAVES AND 

PHILIP LAIRD 

Date 23 October 2014 

Venue 

City Recital Hall, 

Sydney 

Attendees 

ASA proxies 

Value of proxies 

Proxies voted 

Market cap 

Pre-AGM meeting 

189 shareholders/ 

proxyholders and 

119 visitors 

3.7m shares from 

905 holders 

$12.3m 

Yes, by poll 

$9.1bn 

AGL AGM 

Yes, with Chairman 

23.8% PROTEST VOTE ON REMUNERATION 

DESPITE RECORD HIGH STATUTORY PROFIT 

Chairman Jerry Maycock reported on the FY2014 results noting that although the statutory 

profit of $570 million was a record high, the underlying profit which the company uses 

was $562 million down 3.9% on the prior year. This was a consequence of lower demand 

of electricity and increased funds employed. 

The Chairman explained that the Macquarie Generation acquisition was the reason for 

AGL’s capital raising, which was by way of renounceable rights issue to all shareholders, 

which is in line with ASA’s policy. The raising was a success with 95% of institutional 

shareholders and 70% of retail shareholders accepting the offer. 

He then addressed the coal seam gas exploration and development in NSW and AGL’s 

involvement. The meeting was reminded that fracking was not a new technology. AGL 

has been operating 150 wells near Camden for 13 years, without incident, 100 of these 

having been developed by use of the fracking process. 

In concluding his report, he thanked retiring CEO Michael Fraser for his support and 

efforts over the past seven years and advised that an executive recruitment company 

would assist in the selection of Mr Fraser’s replacement. 

The remuneration report was presented by Mr Les Hosking, Chair of the People and 

Performance Committee. This year, ASA after a review process, which was not unanimous, 

recommended support for the resolution. Although still having concerns about the early 

vesting and large proportion of the LTI share performance rights, 40%, being awarded after 

one year. Before the voting on the resolution, ASA sought an assurance that the Board 

would be reviewing the report especially in relation to ASA’s concerns. The Chairman 

provided the meeting with this assurance. 23.8% voted against the remuneration report 

and the Board was aware how close they were to a “first strike”. 

In relation to the termination benefits for eligible senior executives, ASA asked the Chairman 

whether he could confirm that this resolution only applied to the CEO and the 4 named 

executives. The Chairman advised that it applied to 23 executives in total. 

Except for the remuneration report, all resolutions were passed comfortably. 

MONITOR: DAVID BROOKE 


Venue 

Perth Convention and 

Exhibition Centre 

Attendees Approx 100 

ASA proxies 

601,604 shares from 

62 holders 

Value of proxies Approx $200,000 

Proxies voted 

ATLAS IRON AGM 

Yes, by poll 

Market cap $327m 


Yes, with Chair, CEO, 

Company Secretary 

and IR executive 

ALL RESOLUTIONS PASSED WHILST ATLAS 

CONTINUES SWIMMING WITH SHARKS 

Chairman David Flanagan opened the meeting by thanking his team and providing an 

overview of the company’s achievements throughout the year. During the presentation, 

he twice referred to the company’s compliance with a request from the ASA concerning a 

poll on all motions. In reviewing the company’s performance, the Chairman discussed the 

falling iron ore price and its resulting impact on share price of all junior iron ore miners. In 

this context, he asserted that the major producers were significantly expanding production 

and that they “were swimming with sharks”. 

The remuneration report received a vote of 3% against. The ASA voted ‘for’ this resolution 

on the basis that the company was making progress towards ASA policy objectives. The 

other two resolutions were supported by the ASA and concerned the re-election of a 

director and a proportional takeover position. Both were carried with about 1% against. 

The other seven resolutions concerned the issue of performance rights to directors and 

approval for shares for incentives shares to be issued outside the 15% ceiling. The ASA 

voted against these motions on the principle that performance shares should be purchased 

off the market or failing that taken from the 15% cap. Despite the ASA’s views, all these 

motions were carried with about 97% approval. 

CEO Ken Brinsden reviewed prospects for the company. In his presentation, he claimed 

that the company was still striving for a rail transport solution but viewed, as a potential 

fallback, road transport from some of its deposits within a 200km radius from Port Hedland 

(Corrunna Downs and McPhee Creek). Mr Brinsden also reiterated his position that the 

company was not a high cost iron ore supplier and that some of the higher cost Chinese 

domestic producers were currently going out of business due to falling prices. In response 

to ASA questioning on possible tariff protection for domestic producers, he produced 

figures which demonstrated that much of the high cost supply was from imports and not 

Chinese domestic sources.

BENDIGO BANK AGM 

MONITOR: REX MCKENZIE 


Venue 

Capital Theatre, 

Bendigo 

Attendees 120 

ASA proxies 2.67m shares from 551 

holders 


Proxies voted 

Market cap 


$27.2m 

Yes, by poll 

$5.4bn 


and Company 

Secretary 

“LONG TERM” INCENTIVES FOR MANAGING 

DIRECTOR A MYTH AT TWO YEARS 

Profit increased to $372 million with increases in net interest margin, earnings per share 

and dividends. Basil 2 accreditation work has increased in order to apply for advanced 

accreditation in March 2015. This will, if successful, improve control of risks and reduce 

the cost of doing business, according to Managing Director Mike Hirst. 

Rural banking is strengthened by the purchase of Rural Finance Corporation, which was 

paid for by an institutional placement followed by a share purchase plan. We asked why 

a pro-rata renounceable rights issue was not used because it would be fairer to retail 

shareholders. Chairman Robert Johanson responded that because the Bank had to 

pay the vendor by 1 July, there was insufficient time for a rights issue. Shareholders did 

appreciate that the Bank increased the intended cap of $5,000 to $7,500 per shareholder 

after representation to the Bank by the ASA. 

A shareholder asked about doubtful debts with Great Southern investors and other rural 

debts. The Chairman said that the settlement reached with Great Southern investors was 

being considered for ratification by the Supreme Court. The outstanding rural debts are 

mainly to cattle properties affected by the earlier live cattle to Indonesia embargo and 

years of drought. The Bank is helping these clients and hopes in time to recover the debts. 

We supported the re-election of Jacqueline Hey and asked why directors were not expected 

to hold a reasonable number of shares in the company, particularly in view of the use of 

deferred shares as part of the base pay of senior executives. We suggested a third of their 

fees after three years; she has about a quarter of that. The Chairman did not like the idea. 

Although senior executive payments are mainly in line with shareholder interests, 65% of 

incentive shares which vest at the median point of total shareholder returns is too high. The 

Managing Director’s five year contract was extended by two years, making it impossible to 

award long term incentives (LTI) of four years and align his remuneration with shareholder 

interests. An alternative type of contract could allow for longer LTIs. 

We voted open proxies against the remuneration report and in favour of the rest, including 

the resolution on approval of securities for the placement. 

Jacqueline Hey was elected, the remuneration report and the approval of securities for 

the share purchase plan passed with 99%, 96% and 85% respectively in favour. 

MONITORS: JOSEPH TAN AND 

MALCOLM KEYNES 


Venue 

Adelaide 

Entertainment Centre 


ASA proxies 


Proxies voted 

1.5m shares from 

180 holders 

$1.9m 



HILLS AGM 

Yes, on rem items only 


and Deputy CFO 

ONGOING TRANSFORMATION UNDERWAY, 

AS SECOND STRIKE IS AVOIDED 

The key theme for the AGM was the company’s transformation to an IT and technology 

services company. Both the Chairman and Managing Director reiterated their commitment 

to the company’s transformation: the past year has been the company’s consolidation for 

future business growth. It was obvious during the AGM that this episode of the company’s 

history has been causing tensions for some of the company’s employees and ex-employees. 

The company’s revenue from continuing operations in FY2014 was $448.3 million, a slight 

decrease from FY2013. Net cash flow from operating activities was -$15.3 million due to 

the restructuring and redundancy costs. The company reported a net profit for FY2014 

of $26.4 million. The company did highlight that due to the previous year’s tax losses, the 

company does not expect to produce franked dividends in the short to medium term period. 

A major part of Hill’s growth strategy is the acquisitions of businesses. In the past year, 

six companies were acquired in building and healthcare services. 28 new products were 

developed over the past 12 months, generating $2 million in revenue. 

The mood at the meeting was generally cordial; noted were probing questions from 

shareholders about the company’s share buy backs, financial performance, and heated 

questions on the strategy of the company now being a services and systems importer. 

The re-election or election of Ian Elliot and Phillip Bullock were passed in favour by over 95%. 

Last year’s AGM was marked by a first strike against the Remuneration Report. Hills has 

been consulting and working with shareholders and their representatives (including the 

ASA) to avoid a second strike. 

This year’s report was clear and unambiguous and we voted undirected proxies ‘for’ this 

resolution. No performance rights vested during FY2014. For the long term incentive, 

the ASA would prefer a performance period of four years with a two year holding period. 

The company’s strategy for a quick turn transformation was the reason to skew the 

remuneration more towards the short-term. The Remuneration Report was voted in favour 

by over 95%, so a second strike was avoided. 

The approval of performance rights to CEO Ted Pretty was voted by poll and was voted 

in favour by 88%. We voted ‘for’ this resolution, although the long term incentive plan 

had a three year performance period with one year holding period, we recognise that the 

company is prioritising a quick turnaround of the company and remunerating in this direction. 


MONITOR: MICHAEL WATERHOUSE 


Venue 

Emporium Hotel, 

Brisbane 


ASA proxies 

GWA GROUP AGM 


Proxies voted 


188 holders 

$1.6m 



Yes, on rem items only 

No 

DECLINING SHAREHOLDER VALUE LEADS 

TO NEAR MISS ON FIRST STRIKE 

The GWA Group’s declining total shareholder return caused concerns at the AGM. GWA 

manufactures and supplies kitchen and bathroom materials, hot water and cooling 

systems and doors and lockup systems to the building industry including the following 

home building name brand products: Caroma, Fowler, Dux, Brivis, Gliderol, and Clark. 

Whilst sales revenue was up 2% and trade earnings before interest and tax was up 8% at 

$72.8 million and margins improved over the previous year, net profit after tax was down 

43% at $18.6 million. This decline in profit was due to significant supply interruptions and 

impairment to the product value (goodwill). The Group also announced its Dux Hot Water 

and Brivis air conditioning businesses have been flagged for disposal as ‘non-core’. In 

addition, the Group announced the intended sale of its manufacturing plant in Victoria with 

its intention to source product from China and Asia while maintaining research facilities 

in Australia for new product development. The Group intends to spend approximately $7 

million per annum on research. 

These announcements raise shareholder concerns around declining shareholder value. 

In addition, return on equity was down from 7.6% in 2013 to only 4.4% in 2014. Earnings 

per share declined from 10.6 cents in 2013 to 6.1 cents in 2014, while dividends to 

shareholders declined from 12 cents in 2013 to 5.5 cents in 2014. 

These factors caused shareholders to ask the Board to comment why brokers are advising 

shareholders to seek better investment alternatives. The Chair and CEO indicated it was 

‘tough times’ for the company and it was unlikely shareholders would receive a dividend 

in the current operating financial year. However, with the Group’s disposal of non-core 

assets a special dividend may be paid to shareholders. 

GWA also sought approval from shareholders for a change to the remuneration program 

with the replacement of the peer comparison group and the total shareholder return (TSR) 

performance indicator. The group’s TSR performance has been below the 50th percentile 

of the peer group since August 2011. The proposed performance indicators are earnings 

growth compared to dwelling completion growth. 

The approval of the new remuneration program was approved by 80% of voters, which 

meant that the company fell slightly short of the 25% required to constitute a “first strike”. 

MONITOR: GAVIN MORTON 


Venue 

Pullman Melbourne 

Park Hotel 


ASA proxies 


Proxies voted 

Market cap 

NEWCREST AGM 



268 holders 

$4.3m 

Yes, by poll 

$7.14bn 


SHAREHOLDERS EXPRESS ANGER OVER 

POOR PERFORMANCE AND EXCESSIVE PAY 

The atmosphere was tense at this meeting. Several shareholders were clearly angry with 

the performance of the Board and with senior management. 

Chairman Peter Hay said that the company had made an underlying profit of $432 million. 

Write downs of $3.6 billion on Lihir assets and $2.1 billion on other assets contributed 

to a loss of $2.2 billion. He said that the key objectives were an increase in output and a 

reduction in costs at the Lihir mine. 

Managing Director Sandeep Biswas said that major investments at Cadia and Lihir were 

substantially complete. His focus was on reducing costs and reducing debt. There was 

no quick fix in regards to increasing Lihir output. Target was to increase annual throughput 

to 12 million MT. The Cadia mine was now a major cash generator. 

On the re-election of Lady Winifred Kamit and Richard Knight, one shareholder said that 

any director involved in the merger with Lihir Mining should not be re-elected. The ASA 

monitor said that Lady Winifred added value to the Board through her knowledge of PNG. 

With regards to Richard Knight, he said that the company needed to move on. The people 

directly involved with the merger with Lihir Mining either had left or resigned. 

Lady Winifred was re-elected with an approval vote of 89%. Richard Knight`s approval vote 

of 55%, indicated shareholder resentment in regards to his part in the Audit Committee’s 

approval of the Lihir merger. 

On the Remuneration Report, the ASA monitor said that the maximum payment STI payout 

was in excess of executive’s base salaries. Excessive focus on short term payments could 

have negative longer term outcomes. He said that there were no published STI hurdles. 

Payments were all in cash. ASA policy is for there to be a mixture of cash and shares and 

for some of this to be deferred for 2 years. The LTI hurdles were not sufficiently challenging. 

Performance is measured over 3 years. ASA prefers a minimum of 4 years to ensure long 

term alignment with shareholders’ interests. 

ASA voted open proxies against the adoption of the Remuneration Report, which received 

a 45% against vote. The Chairman was clearly shaken by this result. He said that 

the company would meet with stakeholders and make changes to the remuneration 

arrangements. Shareholders protests continued with a 45% vote against performance 

rights granted to Sandeep Biswas.

MONITORS: RICHARD MCDONALD AND 

JOHN CURRY 


Venue 

Melbourne Convention 

Centre 

Attendees 

MONITORS: KIM D’ARCY AND 

PETER SCHIEFELBEIN 


Venue 

Sofitel Hotel Brisbane 

Attendees 400 


holders 

Value of proxies $54m 

Proxies voted 

Market cap 


150 shareholders and 

50 staff/visitors 


holders 


Proxies voted 

Market cap 


QANTAS AGM 

$1.93m 

Yes, by poll 

$2.96bn 

Yes, with Rem 

Committee chair and 

IR executive 

SUNCORP AGM 

Yes, by poll 

$17.4bn 


TRANSFORMATION PLAN TO CONTINUE 

FOLLOWING BIGGEST LOSS EVER 

Chairman Leigh Clifford said the company had a totally unsatisfactory result in 2014 year. 

Statutory loss after tax was $2.8 billion and included a $2.6 billion write down of the value 

of aircraft. It was stressed that this was a non-cash write down, but at some point in the 

past it was a cash outlay which has now been lost. An underlying profit before tax has been 

earned in the first quarter of the 2015 year and the first half is expected to deliver a profit. 

Major problems for Qantas are aviation overcapacity and high fuel costs. Customer 

satisfaction has improved. 

The transformation programme will yield $600 million of savings in the first half of 2015 

and there appears to be an easing of the capacity growth that caused major problems 

for Qantas in 2014. The transformation programme should yield cost savings of $2 billion 

over its life. 

While growth will be flat in the first half of 2015, aircraft utilisation is up by 12% so far this 

year and profit will come from cost savings. By June 2015, debt will have been reduced 

by $1 billion. 

Richard Goodmanson and Barbara Ward stood for re-election as Directors and on a poll 

received over 99% of votes cast by shareholders. 

A resolution was proposed to issue 3,248,000 performance rights to CEO Alan Joyce. The 

ASA said it was pleased to see emphasis on performance hurdles had been changed to 

reflect long term rather than short term performance. The ASA noted the value of the rights 

had been calculated at $0.785 cents each (compared with a current share price of about 

$1.35). The ASA requested the remuneration committee examine a method for calculating 

the value of performance rights that is easy for shareholders to understand rather than 

complex calculations utilising theoretical assumptions. The issue of performance rights 

to the CEO was approved on a poll by 97.8% of voting shareholders. 

The Remuneration Report was approved on a poll by 99% of voting shareholders. The 

ASA voted against its adoption because of deficiencies in the STI plan and the LTI plan 

vests in three years. Other terms do not meet ASA guidelines. 

Amendments to the constitution were approved by 99% of voting shareholders. 

ANOTHER SMOOTH-SAILING AGM AS 

SUNCORP HEADS INTO SUNSHINE 

The business performance for 2014 was net operating profit after tax of $730 million, up 

from 2013, but included an impairment charge of $500 million. Dividends were up 40% 

to $1.05 per share. 

The meeting opened with Chairman outlining the group’s performance and strategy, and 

he also gave guidance for 2015. He emphasised the company’s performance of increased 

share price, increased dividends and the simplification of the business would continue to 

increased shareholder benefits. Organic growth was to be the main driver but some bolt 

on acquisitions would be considered if the fit was right. 

Suncorp again paid a special dividend and Dr Switkowski committed to paying out 60% 

to 80% of cash earnings as dividends and returning excess capital to shareholders. 

CEO Patrick Snowball detailed how the group’s performance was achieved and outlined 

the targets that the group was trying to achieve. He emphasised the commitment to 

driving change through simplification of business processes, engaging customers with 

satisfaction, and diversity of staff and community engagement. 

The ASA raised the issue of responsibility for the $500 million impairment charge. Dr 

Switkowski responded that the charge resulted from revaluing assets in its life business due 

to market conditions. The life businesses for all insurance companies were experiencing 

difficulties. As for responsibility, the writedowns mostly occurred in the Promina Insurance 

business purchased in 2009. Dr Switkowski stated that many acquisitions from that period 

were overpriced and as he was a director at that time, he bore some responsibility. 

The ASA also requested that for future performance rights issued to the CEO that they 

consider an increased performance period, hold back on any rights vested and expanding 

the measures from the current TSR to at least 2 measures. The Chairman responded that 

Suncorp at this time considered the metrics for the performance rights to be correct but 

undertook to review any future performance rights issues. He also commented that there 

was a movement towards the ASA position by a number of companies. The meeting voted 

on the remuneration report, the issue of performance rights to the CEO, the re-election 

of 3 directors and a change in the constitution. 

All resolutions were voted for with majorities above 98%. 


OTHER AGM REPORTS RECENTLY PUBLISHED ON ASA’S WEBSITE 

COMPANY NAME 

ASX 

CODE 

DATE MONITOR(S) REPORT 

AFIC AFI 8/10/14 Geoff Read “Massive investor turn-out at AGM for a solid performing LIC” 

Amcor AMC 23/10/14 Gavin Morton “Amcor powers ahead following demerger of Orora” 

Ansell ANN 16/10/14 Rod McKenzie “Shareholders generally happy despite restructure-related write downs” 

ARB Corporation ARP 15/10/14 Brett Morris “Long-standing directors demonstrate extensive business knowledge” 

Ardent Leisure AAD 30/10/14 Richard McDonald “All resolutions passed as shareholders are happy with positive results” 

Ausdrill ASL 31/10/14 D Miller / S Taylor “Ausdrill experiences headwinds from low commodity prices” 

Austal ASB 30/10/14 Peter Tallentire “Attacking the debt enables the big ship to sail ahead” 

Bradken BKN 21/10/14 Elizabeth Fish “ASA only speaker on the floor, raising concerns with executive remuneration” 

Cardno CDD 23/10/14 K D’Arcy / P Schiefelbein “Cardno looking for growth as CEO flags a more favourable year ahead” 

Carsales CRZ 24/10/14 Don Hyatt “Carsales firing on all cylinders, as the company expands into overseas markets” 

Challenger CGF 28/10/14 Peter Metcalf “Challenger forges ahead, ASA supports remuneration report for first time” 

Codan CDA 29/10/14 S Landherr / M Keynes “First strike after dramatic drop in profit” 

Cover-More CVO 14/10/14 Steve Watson “Cover-More to the rescue - Premature Bali baby!!” 

Crown Resorts CWN 16/10/14 J Curry / J Campbell / 

L Roy 

“Strong contribution from Macau JV offsets soft local sentiment” 

Dexus DXS 29/10/14 John Cowling “Strong protest against NED fee increase, as Dexus announces consolidation” 

Echo EGO 31/10/14 C Limmer / S Eccles “Following three CEOs in three years, Echo now sailing on a steady course” 

Fairfax FXJ 06/11/14 P Metcalf / M McDougal “Chairman pushes for government reform of media ownership laws” 

Federation Ctrs FDC 30/10/14 Graham Walker “Sound result delivered against long-term strategy, 14.8% on remuneration” 

JB Hi-Fi JBH 29/10/14 Rod McKenzie “JB Hi-Fi performs well despite economic headwinds” 

Karoon Gas KAR 27/10/14 Duncan Seddon “Disgruntled shareholders flock to AGM, as company faces near first strike” 

Korvest KOV 24/10/14 Y Yu / B Ritchie “Improved financial results, ASA remains concerned with number of independents” 

Legend Corp LGD 30/10/14 Y Yu / B Ritchie “Steady profit in slow economy for electronics, new products in the pipeline” 

Magellan MFG 17/10/14 Peter Metcalf “Productive Q&A’s with MD, proxy advisors have a say on pay” 

McMillan 

Shakespeare 

MMS 29/10/14 Ian Curry “First strike received with 41% voting against remuneration report, as company 

flags growth prospects and UK expansion” 

Mystate MYS 16/10/14 John Quinn “Mystate Chairman looks for improvement” 

Navitas NVT 04/11/14 J Ferguson / L Roy “Another solid year, but angst over goodwill impairment” 

NIB Holdings NHF 29/10/14 Tony Robinson “New products in new countries. Upbeat “bring it on” reaction to Medibank float” 

Origin Energy ORG 22/10/14 Geoff Orrock “Shareholders to reap the benefits of APLNG within 2 years” 

Orora ORA 16/10/14 Gavin Morton “Good start after demerger from Amcor, to be continued into 2015” 

PaperlinX PPX 24/10/14 Geoff Bowd “Optimistic outlook for the prospect of sustained profitability” 

Perpetual PPT 30/10/14 David Jackson “Transformation plan underway as new products are promoted at AGM” 

Ramelius RMS 30/10/14 Michael Davey “Higher grade order and exploration success is the key” 

Sirtex SRX 28/10/14 Tony Robinson “Full steam ahead for Sirtex Express” 

Skilled Group SKE 23/10/14 John Curry “Resolutions sail through as Skilled sees better future” 

Slater & Gordon SGH 20/10/14 David Parkinson “Business expansion into the UK proves big winner” 

SMS Management SMX 21/10/14 P Schiff / D Hyatt “Big changes seeking a reversal of fortune” 

Stockland SGP 28/10/14 Roger Ashley “Steady progress for Stockland” 

Super Retail SUL 22/10/14 Michael Waterhouse “Second strike avoided as shareholders are happy with improved rem” 

Tabcorp TAH 28/1014 John Curry “A safe bet at Tabcorp” 

Tassal TGR 29/10/14 John Quinn “Significant profit growth despite lower volume” 

Toll TOL 23/10/14 Graham Walker “Challenges and board renewal ahead, cost reductions to continue” 

Transpacific TPI 29/10/14 John Collins “Tough times at Transpacific” 

UGL UGL 30/10/14 Estelle Renard “Can changing the guard help UGL” 

Veda Group VED 16/10/14 J Yong / E Fish “Inaugural AGM for a 'star' IPO of 2013” 

Whitehaven Coal WHC 28/10/14 Geoff Orrock “Not for the Western world to deny developing nations access to low cost energy” 

WorleyParsons WOR 28/10/14 T Robinson / A Goldin “Similar earnings expected in 2015, sizeable director protest” 

Full AGM reports are available on our website. To access the full reports, please go to https://www.australianshareholders. 

com.au/companies and search by company name or ASX code. 


BRICKBATS 

BOUQUETS 

To the New Zealand lawmakers for being out of step 

with laws relating to executive remuneration. Australia has 

had the “two strikes” on remuneration regime since 2011 

and since then, with very few exceptions, companies have 

taken steps to engage with shareholders and improve their 

remuneration practices in response to a strike. Recent 

reforms in the UK have also meant that certain votes on 

remuneration are no longer “advisory only” and more 

recently, the Financial Reporting Council consulted publicly 

about whether the UK Corporate Governance Code should 

be amended to clarify that executive remuneration should 

be tied to long-term company performance. ASA started 

to monitor NZ-based Kathmandu this year, where we 

learnt shareholders do not get a formal say on executive 

remuneration! Perhaps time for a change. 

To Cabcharge for sneakily reversing the order of the 

boxes on the proxy voting form for its spill resolution. 

For all the resolutions other than the spill resolution, the 

boxes in order are “for”, “against” and “abstain”. However 

for the spill resolution, the order is “against”, “for” and 

“abstain”. Is this to exploit those who are less focussed 

on detail Either way, proxy forms should be made easier 

to complete. This practice is confusing for shareholders 

and should be discouraged. 

To Lend Lease for sending distribution statements to 

securityholders consistently later than other retail property 

trusts, such as DEXUS, CFS, Stockland and GPT. If 

others with the same balance date are able to finalise 

and distribute their statements earlier, we are not sure 

why Lend Lease is any different. 

To Crown for starting its AGM 15 minutes late and while 

there was a half-hearted apology from Chairman James 

Packer, it indicated a lack of courtesy to the other 49% 

owners of the company. 

To directors such as Neil Chatfield, Peter Campbell and 

Ian Ferrier who have taken note of the ASA’s concerns 

with the independence of long-serving Chairmen and 

have signalled intentions to retire imminently. Whilst the 

ASA will not automatically vote against a long-serving 

director, we will not classify them as independent after 

12 years of service and always encourage companies to 

have a majority of independent directors on the board. 

To Senator Nick Xenophon for purchasing $500 worth 

of shares so that he could attend the Qantas AGM and 

question the board for its series of lousy decisions. 

According to Nick, he has asked for CEO Alan Joyce to 

resign more times than he has had hot lunches in Canberra. 

Qantas also gave an evacuation and safety briefing prior 

to their AGM. Unfortunately it was given 15 minutes 

prior to the commencement of the meeting and many 

shareholders had not taken their seats. A shareholder 

pointed out the safety briefing on an aircraft is given as 

the plane is taxiing out and all passengers are on board, 

not 15 minutes before the flight. 

To ASA’s company monitors and state monitoring 

chairs who have worked hard over the past few months 

meeting with companies, scrutinising very dense annual 

reports within short timeframes and preparing detailed 

voting intentions ahead of AGMs. At the peak of the 

season, we had monitors in attendance at almost 20 

AGMs in a single day! We are now almost at the end of the 

main AGM season, but we sincerely thank our monitors 

for their efforts thus far. 

Correction: In last month’s Equity, we published 

that The Reject Shop’s market capitalisation was 

$2.47 billion. The correct number is $247 million. 

EQUITY provides a platform for members to comment. Comments included here do not necessarily reflect those of all members. 

Please email your contributions to equity@asa.asn.au. 

Upcoming AGMS 

COMPANY 

NAME 

ASX 

CODE 

AGM DATE 

LOCATION 

Westpac WBC 12-Dec-2014 Sydney 

Treasury Wine Estates TWE 16-Dec-2014 Melbourne 

Ten Network TEN 17-Dec-2014 Sydney 

ANZ Group ANZ 18-Dec-2014 Melbourne 

Dulux Group DLX 18-Dec-2014 Melbourne 

National Australia Bank NAB 18-Dec-2014 Brisbane 

Incitec Pivot IPL 19-Dec-2014 Melbourne 

Orica ORI 29-Jan-2015 Melbourne 

Dear Sir 

What do other members think about companies urging 

shareholders to volunteer their email addresses so that 

notifications can be delivered electronically rather than 

by mail 

While saving companies production and postage costs 

it in effect transfers these costs and inconvenience 

to recipients which, with the very high price of print 

cartridges, can become substantial when recipients might 

hold a substantial portfolio. 

For taxation records alone a hard copy of dividend 

statements is necessary and I don’t feel like clogging my 

inbox with statements. 

Yours sincerely 

David Street, ASA MemberEQUITY December 2014 Page 15

Lifting the game with 

shareholder engagement 

By Ian Curry, Chairman, Australian Shareholders’ Association 

For many years the main forum for directors to engage with 

shareholders has been the annual general meeting (AGM). 

More recently, there has been considerable discussion about 

the role of the AGM and its continued relevance. Whilst it 

is true that attendance levels at the annual gathering has 

dwindled over time, shareholders continue to want to be 

heard and it remains important that companies acknowledge 

the significance of providing retail shareholders with an 

appropriate forum to do so. 

The Australian director-shareholder relationship is unique in 

that engagement has unquestionably resulted in changes 

to corporate governance and remuneration practices. As 

the Australian Council of Superannuation Investors recently 

reported, the median take home salary of chief executive 

officers has decreased in the past year. The ASA has also 

witnessed changes to executive remuneration arrangements 

which are generally reflective of longer-term alignment with 

the interests of shareholders, which we see as the result of 

a trend towards shareholders acting more like owners and 

boards responding by becoming more engaged. 

It is important for companies to continue to focus on 

improving the dialogue with shareholders and the AGM 

experience for retail shareholders. More often, we are seeing 

directors speaking to their elections at AGMs and companies 

providing a simple question form with the notice of meeting 

which shareholders can submit ahead of an AGM. The ASA 

was extremely pleased to see ASX provide attendees at 

its AGM in September 2014 with copies of consolidated 

responses to commonly asked investor questions. This 

shows that companies are keen to listen and actively engage 

with shareholders. For example, in some, the responses from 

ASX indicated that ASX was minded to consider changes 

to its practices and policies raised in the questions. 

Companies are increasingly under pressure to make their 

communications clearer and more relevant to readers. Annual 

reports, company filings and other disclosure documents 

should be written with the intended audience in mind, rather 

than simply providing the required legal disclosures and 

assuming that no reader will ever get through the content. 

Readers should not have to sift through pages of materials 

to look for the information that is relevant to their decision 

to invest or disinvest in the company. As an example, banks 

and managed funds often include many pages of individual 

transactions in their substantial shareholding notices. It 

is true that these are included at the end of the lengthy 

disclosures, but that information ought not be included 

unless absolutely required and in any case, thought should 

be put into presenting the information in a manner that is 

useful to the reader. At some point, market practices will 

need to be reconsidered in this regard. 

ASA believes companies should also turn their minds to 

providing information to shareholders in a timelier manner. In 

September 2014, the ASA reported on the companies which 

reported their half-year and full-year results on the last day 

possible. Disclosing financial results and the remuneration 

report earlier means that investors have ample time to review 

that information and make better informed decisions about 

their investments. 

The ASA is seeing more companies wishing to engage with 

not only institutional investors but also retail investors. We are 

frequently contacted by companies to arrange discussions 

about corporate governance and remuneration issues and 

directors are keen to be involved with smaller-scale events 

involving retail investors. The ASA has organised a number 

of successful site tours of ASX companies over the past 

two years, with feedback consistently indicating that the 

tours helped investors better understand the companies 

which they essentially owned. 

Stronger and better communication leads to more 

effective engagement and better informed investors. This 

applies to face-to-face interactions, public disclosures 

and investor information provided on company websites. 

Communications should be prepared with all audiences in 

mind including institutional investors, super funds and retail. 

Important information about the company and its policies 

should be readily available on a company’s website. 

Going forward, we would like to see increased engagement 

with shareholders via less formal forums and on a more 

regular basis. There is no reason why retail shareholders 

could not be invited to and encouraged to attend investor 

briefings and we would encourage companies to embrace 

technology to allow more people to attend and participate 

in AGMs (eg use of webcasting), as opposed to denying 

those not as technologically literate their right to participate 

in activities of interest to shareholders. 

It is one thing to advocate that the AGM has become less 

relevant and should be abandoned. But the more important 

question then is, what alternative will provide an adequate 

forum for retail investors to communicate their views to 

those whom they have entrusted to run their company 

The challenge is and will be for companies to find better 

ways of engaging with shareholders. 

This article was first published in the ASX publication titled Listed@ASX. 


INVESTING TIPS: 

What is CHESS and how does 

the settlement process work 

By Jason Yin, Equities Analyst at Lincoln Indicators 

While not a very exciting concept for share investors, a vital 

part of a share trade is the settlement process and how 

you actually do come to own your shares. 

Gone are the days when an investor’s proof of share 

ownership is printed shareholding certificates. In modern 

security exchanges, the buying and selling of financial 

products are transacted, settled and finally recorded 

electronically. For financial products traded on the Australian 

Securities Exchange (ASX), the settlement process is 

achieved by an efficient computer system known as the 

Clearing House Electronic Subregister System (CHESS), 

and is maintained by ASX Settlement. 

In Australia, investors can choose to have their holdings 

of securities registered in one of two ways – either in their 

name via CHESS or as a company holding known as Issuer 

Sponsored. To register shares on the CHESS subregister, 

investors must first enter into an agreement with a CHESS 

Sponsor (typically a stockbroker), who will open a CHESS 

account in their name. Investors may choose to have more 

than one CHESS Sponsor, which is common if an investor has 

accounts with different brokerage firms. CHESS sponsored 

investors are issued a Holder Identification Number (HIN). 

This is similar to a bank account number, which identifies an 

investor’s registration on the CHESS subregister. Typically, 

most investors have only one CHESS Sponsor so a single 

HIN would identify their entire portfolio. However, an investor 

who trades via multiple CHESS Sponsors will be provided 

a different HIN for each Sponsor. 

Aside from CHESS, a shareholder can register their shares on 

the Issuer Sponsored subregister. The company who issued 

the shares is responsible for maintaining this subregister. 

This is common for participation in IPOs (initial public 

offerings) like the Medibank float. For each Issuer Sponsored 

holding, investors are allocated a unique Security holder 

Reference Number (SRN) by the relevant issuer. The SRN 

is a unique identifier and unlike a HIN, does not identify any 

holdings on the CHESS subregister. Also unlike a HIN, each 

share has a different SRN, so if an investor has a portfolio 

of shares, they will receive one SRN for each company. 

Registration on the Issuer Sponsored subregister is by 

default, if an investor does not have a CHESS sponsorship 

agreement with their stockbroker or have not provided their 

HIN at time of share purchase. Most companies engage a 

share registry to administer their subregister on their behalf, 

with Link Market Services and Computershare being the 

two most common share registries in Australia. 

From the standpoint of trade settlements, the process 

via the CHESS subregister is rather easy and efficient 

as a stockbroker can access CHESS and settle trades 

on behalf of their clients. As a result, the ASX requires 

a settlement period of three business days (T+3) after 

a buyer and seller agrees to a trade on CHESS. This is 

accomplished by electronically transferring the the shares 

whilst simultaneously transferring the money paid for those 

shares between participants via their respective banks. 

In the case of Issuer Sponsored holdings, a stockbroker 

must first convert securities to the CHESS subregister in 

order to trade. 

In summary, CHESS performs two major functions for 

the ASX. Firstly CHESS is necessary for the clearing and 

settlement of share trades. Secondly CHESS provides 

an electronic subregister for shares in listed companies. 

Whilst an investor can choose to have their holdings of 

securities registered with the CHESS or Issuer Sponsored 

subregisters, there are clear advantages to using CHESS. 

Settlement via CHESS is easy and efficient and a portfolio of 

securities can be easily identified via one HIN, as opposed 

to the need for conversion and unique SRNs as with Issuer 

Sponsored holdings. Irrespective of which subregister an 

investor selects, CHESS plays a key role during settlement 

and has greatly streamlined the processes involved with 

share ownership in Australia. 

Lincoln Stock Doctor educates its members in order to equip 

them with the tools to effectively participate in the share 

market and achieve their investment goals with control, 

confidence and peace of mind. 

For more information about Stock Doctor and how it can help 

you achieve your investment goals, please contact Lincoln 

Indicators on 1300 676 333 or enquiries@lincolnindicators. 

com.au. You can also visit our website www.lincolnindicators. 

com.au 

Lincoln Indicators Pty Ltd ACN 006 715 573 (Lincoln) AFSL 237740. This 

information is current as at 6 November 2014. 


From ASIC, 

the financial 

regulator 

Get to know your super 

By Miles Larbey, Senior Executive Leader, ASIC’s MoneySmart team 

Getting to know their super is something many Australians 

put off because they may have more pressing financial issues. 

But taking a few small steps now can make a real difference. 

You’ll be able to watch your super savings grow and improve 

your financial future. 

LOG IN TO YOUR SUPER ACCOUNT 

In a recent poll on ASIC’s MoneySmart website, around 6 in 10 

people said they know how much they have in super. Around 

4 in 10 said they either didn’t know, or only ‘sort of’ know how 

much super they have. This suggests many Australians could 

benefit from finding out more about their super. 

Most super funds have a lot of information online. If you’ve 

never checked out your fund’s website then this is the first 

thing you should do. 

You may need to create a username and password. Once 

you’ve done this, log in and find out about: 

• What investment options you can choose 

• What fees you’ll pay 

• Death and disability benefits and insurance premiums 

• Other fund features and services. 

You may also be able to download statements about your 

account and see your balance. 

CONSIDER YOUR INVESTMENT OPTIONS 

If you’ve never made an active choice about how your money 

is invested, your money will be put into a fund that offers a 

MySuper investment option. This is a simple default option. 

However, most funds offer a range of investment choices. 

When deciding between investment options, consider: 

• Your age 

• How comfortable you are with investment risk 

• How long before you are able to access your funds 

For example, if you’re unlikely to be accessing your super 

for at least five years, focus on growing your total benefit. 

Alternatively, if you’re retiring and intend to withdraw all your 

super in less than five years, you may want to know exactly 

how much you’ll have – and not risk losing any of it in the 

meantime. A lower risk, lower return strategy will help preserve 

the value of your savings. 

The fund’s product disclosure statement (PDS) will give you 

more information about your investment options. 

‘LIFE CYCLE’ INVESTMENT OPTION 

Some funds offer a ready-made investment strategy, usually 

based on age. If you choose this strategy, your fund will select 

an appropriate investment mix based on your age at the time. 

Then, at pre-determined intervals the fund will automatically 

switch your savings into a more defensive mix. 

Typically, over the course of your working life, your investment 

strategy progressively changes from growing to preserving 

your balance. 

FIND OUT WHAT FEES YOU’RE PAYING 

Super funds charge different fees for managing your account, 

contributions, insurance and more. As a general rule, the less 

you pay in fees the more your super will grow. 

You can find out what fees you’re being charged in your annual 

statement, on the fund’s website or in the PDS. Fees can be 

either a dollar amount or a percentage. 

MySuper accounts generally have lower fees and can only 

charge certain types of fees. If you’re looking for a low fee 

option, talk to your super fund about whether a MySuper 

account is right for you. 

To find out if your super fund is charging you high or low 

fees, compare it to other similar funds. MoneySmart has a 

superannuation calculator to help you do this. 

DO YOU NEED INSURANCE 

Super funds typically offer death cover (also known as life 

insurance or term life cover), total and permanent disability 

cover and income protection cover. 

Being insured through super is generally an easy option – and 

cost-effective because premiums are paid from your pre-tax 

income. Insurance premiums are usually deducted from your 

super account, which reduces your super, unless your employer 

pays for your cover. 

Think about whether to take up or keep the insurance 

protection your fund provides, or whether you want more 

cover. If your situation is complex, consider getting professional 

financial advice. 

SHOULD YOU CONSOLIDATE YOUR ACCOUNTS 

If you have money in more than one fund you may decide 

to consolidate it into a single fund. This will make it easier 

to manage your super and you will only pay one set of fees. 

Before you decide which fund to use, it’s a good idea to see 

what each fund offers. 

Consolidating accounts is a lot easier than it used to be 

with the free SuperSeeker tool available via the ATO’s online 

services at ato.gov.au. In the process, you may find you have 

some ‘lost super’. 

It can be hard to find the motivation to engage with your 

super because retirement may seem a long way away, but if 

you take a few small steps to understand your situation now, 

it can make a real difference in the long run. 

ASIC’s MoneySmart website at moneysmart.gov.au, has more information 

and calculators to help you make the most of your super. 


Good buy. 

Cruel world. 

Intelligent Investor Share Advisor tells you which shares to buy, 

when to buy them, and how much to hold. Get 15 days of free 

advice by visiting shares.intelligentinvestor.com.au. 

This publication is general in nature and does not take your personal situation into consideration. You should 

seek financial advice specific to your situation before making any financial decision. Past performance is not 

a reliable indicator of future performance. We encourage you to think of investing as a long-term pursuit.

ASA WEBSITE UPDATE: 

RESOURCES 

As part of our mission to provide improved membership 

services, our new website has an excellent array of 

resources available for members. 

To access the Resources section, firstly login to 

www.australianshareholders.com.au, then go to the 

Education, news & resources tab. 

The ASA resources page is an easy to use search function 

that allows you to explore all the ASA’s resources including: 

• Better Investing Group (BIG) Reports 

• Equity magazine 

• Presentations 

• Tutorials 

• Articles 

• Submissions 

• Policies 

HOW DO YOU FIND A RESOURCE 

Let’s say at your local ASA meeting you overhear someone 

talking about a new resource about setting up an SMSF. How 

would you go about finding it 

Firstly, you could go the SMSF SIG page and select the 

Resources tab. If the resource is a recent one, you may find 

the resource listed near the top of the list. 

Finally, you might go straight to the Resources page via the 

quick link tab on all pages except the home page or through 

the menu under Education, News and Resources. Here you 

can use the ‘search’ function in the left hand menu to find any 

of the ASA’s resources. 

Step 1: Select the category by 

checking the relevant box or boxes 

after you select the drop down menu 

- if you don’t know a category, just 

leave it set at ‘Any’. Once you have 

selected your relevant category, then 

just click anywhere outside the check 

box area and the list will disappear. 

Step 2: If needed - refine your search 

by selecting a special interest group 

relevant to your search - again check 

the relevant box or boxes after you 

select the drop down menu and click 

anywhere outside the check box area 

to close the list - in this case you can 

presume that the SIG will be ‘SMSF’ 

Step 3: If needed- use type to select 

by a resource type - there are four 

resource ‘types’, each denoted by a 

small icon. 

Step 4: Once you have made all your 

selections, click the Apply button and 

a list of resources will be shown that 

meet all your criteria. 

Secondly, you think the resource might be a Tutorial, so you 

could visit the Tutorials page and search the tutorial resources 

attached there. 

Alternatively, you can scroll through the entire list of resources 

on the page or use the ‘Relevance to me’ tab or search 

alphabetically. 

The range of resources available is extensive – happy reading!

MORNINGTON ANNUAL DINNER 

The Mornington Peninsula Group met on the 16 October 

at the Mornington Golf Club for their Annual Dinner. The 

speaker for the evening was Mr Remo Greco, a well-known 

financial advisor and broadcaster on financial matters on 

the ABC. 

The underlying theme of Remo’s talk on investment titled 

“Hope is not a strategy”, was do your own homework and 

not to rely solely on advisors when considering your own 

investments. Often other considerations can influence 

advisors, not always in the investor’s best interests. Remo 

also gave some tips on companies worthy of consideration 

by retail investors, including his analysis of their long-term 

future and growth potential. He also nominated a few 

examples of companies not meeting the criteria he sets 

for good long-term investment. 

All present were suitably impressed by Remo’s presentation 

and felt privileged to have a speaker of his calibre talk at 

the Annual Dinner. 

MARK THESE DATES – ASA CONFERENCE 2015 

Don’t forget to mark 4-6 May 2015 in your diaries so 

you don’t miss one of Australia’s most highly regarded 

conferences for investors and shareholders. Held at the 

Crown Conference Centre in Melbourne, the Learn Build 

Empower Conference has an impressive, high quality 

program with thought provoking international and local 

speakers and a number of interactive and lively panel 

discussions. Details will be posted to the website by 

Christmas and the flier posted to all members in late 

January 2015. A truly not to be missed event! 

LEARN 

BUILD 

EMPOWER 

NATIONAL CONFERENCE 4-6 MAY 2015 

CROWN PROMENADE MELBOURNE 

BENDIGO & ADELAIDE BANK 

HEAD OFFICE SITE TOUR 

On Friday, 7 November a group of ASA Ballarat members 

visited the Bendigo & Adelaide Bank headquarters in 

Bendigo. Following the enlightening and enjoyable tour 

and presentation the group enjoyed a social time together 

over lunch before returning to Ballarat. 

MINING 2014 CONVENTION 

The ASA had a booth at the Mining 2014 Convention which 

was held at the Hilton Hotel, Brisbane 29-30 October. Our 

own Michael Waterhouse presented “A risk tolerant retail 

investor perspective: exploration and natural resource 

development” at the convention. Thank you to Michael 

and all the terrific volunteers for their support and for flying 

the ASA flag. We appreciate your efforts to get the ASA 

message out into the community. 

Let us 

solve your 

Christmas gift 

problem. 

Give an ASA gift membership this 

Christmas to your family or friends and 

set them on the path to financial freedom. 

Special Christmas subscriptions which include a personalised gift card start at just 

$90 for a Green e-membership and $125 for Classic Membership for 12 months. 

Please call the national office 1300 368 448 or complete the form on our website 

www.australianshareholders.com.au/christmas-gift-membership 

EQUITY December 2014 Page 21 

Offer available until 15 December.

ASA Events 

Location Date Time Venue Speaker Topic 

AUSTRALIAN CAPITAL TERRITORY 

Weston 02-Dec-14 12.30pm Weston Club, 

1 Liardet Street, Weston 

Macquarie 11-Dec-14 12.30pm The Canberra Southern Cross Club 

Jamison, Cnr Catchpole & Bowman 

Street, Macquarie 

Canberra 15-Dec-14 6.30pm Federal Golf Club, Gowrie Drive, 

Red Hill 

Canberra 4-Mar-15 6.00- 

9.00pm 

Hellenic Club City, 13 Moore Street, 

Canberra 

Southside 

Discussion Group 

Northside 


General investment topics 


John Abernethy, Clime Canberra Christmas Dinner 

Vik Sundar, 

Chamberlains; Tim 

Anderson & Tim 

McLaughlan, Elston 

Partners 

Strategies for getting the 

most out of your SMSF 

NEW SOUTH WALES 

Sydney 

Christmas Lunch 

02-Dec-14 12.00 

midday 

South Steyne Floating Restaurant, 

Cockle Bay, Darling Harbour 

Bondi Junction 09-Dec-14 10.00am Mill Hill Community Centre, 

31-33 Spring Street, Bondi Junction 

Sydney Investor 

Forum 

Sydney - North 

Shore 

Sydney Investor 

Forum 

Sydney - North 

Shore 


midday 

Sydney Mechanics' 

School of Arts, Mitchell Theatre, 

280 Pitt Street, Sydney 

19-Dec-14 10.00am Killara Uniting Church Hall, 

9 Karranga Avenue, Killara 

15-Jan-15 12.00 

midday 

Sydney Mechanics' 

School of Arts, Mitchell Theatre, 

280 Pitt Street, Sydney 

16-Jan-15 10.00am Killara Uniting Church Hall, 

9 Karranga Avenue, Killara 

Anna Lau, ASA Head 

of Research 

Bondi 


Elio D’Amato, Lincoln 

Indicators 

Sydney North Shore 


Nathan Bell, 

Intelligent Investor 

Sydney North Shore 


2014 AGM wrap up 

& Christmas Lunch 

Investment topics 

Stocks for your 

Christmas stocking 

General investment 

related topics 

Market outlook for 2015 

General investment 

related topics 

Newcastle 19-Jan-15 10.30am Club Macquarie, 

458 Lake Road, Argenton 

Sydney 3-Mar-15 6.00- 

9.00pm 

QUEENSLAND 

Harbourview Hotel, 

17 Blue Street, North Sydney 

Anna Lau, ASA & 

Geoff Orrick, ASA 

Peter Hogan, NAB & 

Paul Rickard, Switzer 

An AGM wrap up 



Gold Coast 9-Dec-14 9.30am Robina Community Centre 196 

Robina Town Centre Drive, corner 

San Antonio Court, Robina 

Brisbane 

Investor Forum 

10-Dec-14 11.00am The Melbourne Hotel, The 12 

Function Room, 10 Browning Street, 

West End 

Sunshine Coast 16-Dec-14 10.00am Good Life Centre, 100 Buderim Pines 

Road, Buderim 

Brisbane 5-Mar-15 6.00- 

9.00pm 

Riverside Hotel Southbank, 20 

Montague Road, Southbank 

Gold Coast 


ASA Company 

Monitors 

Tom Wigzell, 

Patersons Securities 

Warrick Hanley, 

Fitzpatricks & David 

Busoli, Cavendish 

Members general discussion 

AGM reviews & Christmas 

function 

Exchange-traded funds & 

market update 



SOUTH AUSTRALIA 

Adelaide 3-Dec-14 10.30am University of Adelaide Club, North 

Terrace, Adelaide 

Adelaide 10-Dec-14 10.30am University of Adelaide Club, North 

Terrace, Adelaide 

Adelaide 



midday 

Adelaide 25-Feb-15 6.00- 

9.00pm 

Scots Church Hall, Corner Pulteney 

Street & North Terrace, Adelaide 

Adelaide Royal Coach, 24 

Dequetteville Terrace, Kent Town 

Discussion Group Led 

by Keith Potts, ASA 

Discussion Group led 

by Genevieve Ward, 

ASA 

TBA 

Julie Steed, Australian 

Executor Trustees & 

Tim Miller, Cavendish 

Adelaide Resources 


Adelaide Industrial Shares 


Adelaide Investor Forum 




Location Date Time Venue Speaker Topic 

VICTORIA 

Geelong 2-Dec-14 6.00pm Simonds Stadium, 'Members Room', 

370 Moorabool Street, 

South Geelong 

Melbourne 


Melbourne 

Christmas Lunch 

3-Dec-14 12.00pm Melbourne City Conference Centre 

333 Swanston Street, Melbourne 

05-Dec-14 12.30pm William Angliss Institute, 

555 La Trobe Street, Melbourne 

Manningham 9-Dec-14 10.00am Koonarra Hall, 

7 Balwyn Road, Bulleen 

Geelong 9-Dec-14 6.00pm St George Workers Club, 

212 Pakington Street, Geelong West 

Gippsland 10-Dec-14 11.00am Westpac Bank Building, 

Corner of Hotham and 

Franklin Streets, Traralgon 

Ballarat 10-Dec-14 7.30pm McCallum Conference Centre, 

Leopold Street, Alfredton 

Kingston 11-Dec-14 10.30am Longbeach Place, 

15 Chelsea Road, Chelsea 

Mornington 18-Dec-14 10.30am Mornington Golf Club, 

Tallis Drive, Mornington 

Melbourne 24-Feb-15 6.00- 

9.00pm 

WESTERN AUSTRALIA 

Batman's Hill on Collins, 

623 Collins Street, Melbourne 

Perth 2-Dec-14 10.30am State Library Building of Western 

Australia, 25 Francis Street, Perth 

Perth Investor 

Forum 

Perth South of 

the River Group 

Perth Investors' 

Corner 


midday 

State Library Building of Western 

Australia, 25 Francis Street, Perth 

12-Dec-14 12.30pm Mt Henry Tavern, 

27 Manning Road, Como 

18-Dec-14 10.00am Citiplace Community Centre, 

City Station Complex, 

Wellington Street, Perth 

Perth 26-Feb-15 6.00- 

9.00pm 

Adina Apartment Hotel, 

33 Mounts Bay Road, Perth 

Sam Stobart, 

Arnhem Investment 

Management 

Dale Gillham, 

Wealth Within 

Anna Lau, ASA Head 

of Research 

Stephen Mayne 

and Don Hyatt, ASA 

Geelong Night 


Trent McGregor, 

Perpetual 

Jamie Nemstas, 

Centre for Investor 

Education 

Round table 

discussion 

Dr Adrian Raferty, 

Deakin University 

Max Newhnam, 

Taxbiz & Aaron Dunn, 

SMSF Academy 

Perth Members 

Monthly Meeting 

Perpetual 

Perth South of the 

River Group 

Discussion group led 

by Lorraine Graham, 

ASA 

Ron Doig, Munro Doig 

& Stuart Fulton, SFR 

Group 

Australian equities 

and the importance 

of industry structure 

Keys to technical analysis 

that enhance portfolio 

returns 

2014 AGM wrap-up 

& Christmas Lunch 

A review of the AGM season 

and board elections 

General Financial Issues 

Estate planning 

Stocks for your stocking 

Factors that shaped the 

equity market during 2014 

Professionalising the 

financial planning industry 




TBA 

Christmas lunch 

A focus on companies with 

strong yield performance 



SYDNEY CHRISTMAS LUNCH, TUESDAY, 2 DECEMBER from 12.00pm, South Steyne 

Floating Restaurant, featuring a presentation by Anna Lau, Head of Research ASA - $48pp. 

MELBOURNE CHRISTMAS LUNCH, FRIDAY, 5 DECEMBER from 12.30pm, William 

Angliss Institute, featuring a presentation by Anna Lau, Head of Research, ASA - $45pp. 

Come along 

and join our 

end of year 

celebrations! 

GOLD COAST MORNING TEA, TUESDAY, 9 DECEMBER, following the conclusion 

of the Gold Coast meeting, Robina Community Centre. 

BRISBANE CHRISTMAS LUNCH, WEDNESDAY, 10 DECEMBER, 

following the conclusion of the Investor Forum, The Melbourne Hotel – pay on the day. 

CANBERRA CHRISTMAS DINNER, MONDAY, 15 DECEMBER, from 6.30pm, 

Federal Golf Club, featuring a presentation by John Abernethy, Clime - $65 pp 

For more information, please visit the ASA website www.asa.asn.au or call 1300 368 448 


STRATEGIES FOR 

GETTING THE MOST 

OUT OF A SMSF 

This evening seminar will provide 

insightful tips to help you maximise 

outcomes for a SMSF both in the 

pre-retirement and pension phase. 

Whether you have a SMSF or are 

considering one, you will gain useful 

tips to help you make the most of 

your SMSF. 

BY ATTENDING YOU WILL... 

• Learn how to structure your SMSF to maximise 

the pension phase 

• Gain an insight into the various transition to 

retirement strategies to ensure your pension 

meets your needs in retirement 

• Gain understanding of the preservation rules 

and how to deal with lump sums 

• Be able to consider pension strategies in light 

of recontributions and Centrelink considerations 

MEMBERS 

AND PARTNERS 

NON-MEMBERS 

Includes supper, tea and coffee. 

To register, please call 

1300 368 448 or register 

online at www.asa.asn.au 

$ 

45 PP 

$ 

65 PP 

Spaces strictly limited, 

book early to avoid 

disappointment. 

MLB 

ADL 

PER 

SYD 

CNB 

BNE 

MELBOURNE 

Batman’s Hill on Collins, 

623 Collins St Melbourne 

Max Newnham – Partner, Taxbiz Australia 

Aaron Dunn – Managing Director, SMSF Academy 

ADELAIDE 

Adelaide Royal Coach, 

24 Dequetteville Tce, Kent Town 

Julie Steed – Technical Services Manager, 

Australian Executor Trustees 

Tim Miller – Head of Education & Market 

Development, Cavendish Superannuation 

PERTH 

Adina Apartment Hotel, 

33 Mounts Bay Rd, Perth 

Ron Doig – Director, Munro Doig 

Stuart Fulton – Financial Adviser, 

SFR Advisory Group 

SYDNEY 

Harbourview Hotel, 

17 Blue St, North Sydney 

Peter Hogan – National Manager SMSF Advice, NAB 

Paul Rickard – Director, Switzer Financial Group 

CANBERRA 

Hellenic Club City, 

13 Moore St, Canberra City 

04 

MAR 

6PM-9PM 

Vik Sundar – Practice Leader, Chamberlains Law Firm 

Tim Anderson – Private Wealth Manager, Elston Partners 

Tim McLaughlan, Strategic Wealth Adviser, Elston Partners 

BRISBANE 

Riverside Hotel Southbank, 

20 Montague Rd, Southbank 

Warrick Hanley – Principal, Fitzpatricks 

Private Wealth 

David Busoli – SMSF Specialist Mentor, 

Cavendish Superannuation 

24 

FEB 

6PM-9PM 

25 

FEB 

6PM-9PM 

26 

FEB 

6PM-9PM 

03 

MAR 

6PM-9PM 

05 

MAR 

6PM-9PM

eq-2014-12

Create successful ePaper yourself

Delete template?

Save as template?