Investment 102 Chris Morcom – Director & Private Client Adviser, Hewison Private Wealth Darren McConnell – Chief Financial & Operations Officer, Lord Mayor’s Charitable Foundation

The information contained in this presentation is general in nature and is not intended as personal advice. Please obtain advice from your Financial Adviser before acting upon this information

Session Outline Key elements of any effective investment policy Portfolio Management Strategy Questions & Discussion

Key Elements Foundation’s current investment thinking and philosophy Investment Risk appetite and risk philosophy Investment Objectives

Key Elements OBJECTIVES Specific, Measurable, Relevant & Achievable General Protect from loss & achieve foundation objective

Key Elements Short Medium Long term Liquidity Targets Meeting foundation outgoing and grants Long term Grow the real value of the corpus

Key Elements Benchmarks Return – both Income & Growth Liquidity

Benchmarks – example Return / Liquidity 5% of corpus available within 30 days 10% of corpus available within 90 days

Key Elements Asset Allocation

Key Elements Asset allocation for $1 million corpus

Investment Strategy Parameters Limit risk exposure Cash Fixed Interest Term Deposits Hybrids Secured First Mortgages Bonds Property Direct Managed Property Funds Australian Shares Direct Managed Funds International Shares

Portfolio Management Internal or Outsourced Role of risk appetite Rebalancing Reporting

Rebalance Set goals Build a budget Choose a super fund Get insurance Put an estate plan in place Work with a financial planner

Key Messages Tailor your policy for your foundation Keep it simple Avoid decisions based on attitudes to risk Get professional assistance

QUESTIONS

Hewison Private Wealth Phone: 03 8548 4800 Email: info@hewison.com.au Address: Level 8/417 St Kilda Road, Melbourne Lord Mayors Charitable Foundation Phone: 03 9633 0033 Address: Level 15/1 Collins Street, Melbourne