The document provides information about investing through a self-managed superannuation fund (SMSF). It discusses fundamental analysis to find strong growth shares, SMSF investment rules, and allowed investment choices for SMSFs. It also outlines the SuperBenefit program which provides education, training, and administration services to support SMSFs and helps members become quality controllers of their superannuation futures.
1. Stock Market Shares - an
Investment Mix
Fundamental Analysis to find strong safe
growth shares - the SuperBenefit method
2. Disclaimer
All material of whatsoever nature contained in or provided in
connection with any SuperBenefit presentation, and in particular,
with regard to today’s presentation, is for education and general
information purposes only, and does not constitute advice,
personal or otherwise.
SuperBenefit education and general information is provided on
the strict basis that you
• do not act solely because of anything contained in or
associated with this presentation and, if you do wish to act,
that you first
• seek alternative independent advice where all your
individual objectives and needs are professionally
considered before you make any decisions, financial or
otherwise.
3. SMSF Investment Rules
• Ensure Fund-Ownership of assets is secure (preference in
trustee name (individual(s) or corporate name) – S52(2)(d)
• Invest following the written Investment Strategy - Reg 4.09
• Cannot lend money or financially help others or members –
S65
• Cannot buy assets from members or related members or
entities such as residential property(except shares and
securities at market value, business real property) – S66 &
S69-71E
• Must be no charge over any assets in the fund (no recourse)
S67A-67B & Reg 13.12–13.13
• Meet Sole Purpose Test – Decisions that will provide for
retirement – S62.
4. Investment Choices
SMSFs can invest in various asset classes including:
• Shares, Options, CFD’s ,Covered Call Options
• Property – Residential and Commercial
• Managed Funds
• Term Deposits and Cash
• Government Bonds
• Exotic Assets (with a proviso***) such as:
• Art and Collectables
• Cars, Wine
• Antiques, Jewellery
***Main issue is you cannot USE/Enjoy them YET – breaks the Sole
Purpose Test and is a breach of the SIS Act - S62 & Reg 13.14.
5.
6. Financially Healthy,
Rationally-Valued “Growth” Companies
with “Standout” Superior Management
2
3
4
1
(Value)
(Value)
(Quality)
(Value)
SuperBenefit’s Fundamental-Analysis “Quality” Discipline
What Does it Teach You to Select?
... and how is “Quality”
identified?
SMKI s
SuperiorManagement
KeyIndicators
7. “Standout”
Superior Management
Dr Merv Lincoln’s
(“Thesis-Based”)
Risk-Management
Performance Measures
Gearing Management
Profit-Retention Management
Cash-Flow Management
Inventory Management
Debtor Management
Consistently Strong
FINANCIAL HEALTH
Consistently Strong
STABLE GROWTH
Rationally Valued
Prof. John Price’s
(“Buffett-Based”)
Growth-Management
Performance Measures
Sales – Growth and Stability-of-Growth
EPS – Growth and Stability-of-Growth
ROC and ROE
Debt to Equity % and Income Cover
Share-Price Growth / Investment Return
Margin of Safety
1 2
Financial Health Risk
Management
8. A Statement by Tim Lincoln
of Lincoln Indicators
“In determining whether there is a fundamental growth
opportunity ahead, it is of paramount importance to
assess the financial health of a business.
This is achieved by examining the gearing, the profit
retention, cashflows, inventory and debtor management
as well as the structure of both assets and liabilities.
If these show a company is consistently healthy, and
reporting continually improving results, then investors
can reasonably expect that there will be growth in the
future value of the business.”
Financial Health Risk
Management
9. “Standout”
Superior Management
Dr Merv Lincoln’s
(“Thesis-Based”)
Risk-Management
Performance Measures
Gearing Management
Profit-Retention Management
Cash-Flow Management
Inventory Management
Debtor Management
Consistently Strong
FINANCIAL HEALTH
Consistently Strong
STABLE GROWTH
Rationally Valued
Prof. John Price’s
(“Buffett-Based”)
Growth-Management
Performance Measures
Sales – Growth and Stability-of-Growth
EPS – Growth and Stability-of-Growth
ROC and ROE
Debt to Equity % and Income Cover
Share-Price Growth / Investment Return
Margin of Safety
21
Growth Management & Growth
Potential
10. Professor John Price
Confident and Accurate Forecasts with Stable Growth Companies
Dear Jim
Being able to identify the key factors that enable you to accurately forecast the growth of a company is probably the most
important issue involved in finding “quality” investments. It was Warren Buffett who said:
Your goal as an investor should simply be to purchase, at a rational price, a part
interest in an easily-understandable business whose earnings are virtually
certain to be materially higher next year, the year after, and in five, ten and twenty
years from now.
This is why I developed the notion of stability and the method of calculating it using Staegr. With this approach, earnings
forecasts can be made with greater confidence and greater accuracy. To make the point, extensive back tests I conducted
showed that by filtering the statutory financial returns of companies using my patented Staegr methodology, the average
error size of analysts forecasts were cut by a factor of more than five.
One study in particular involving NYSE-listed stocks and Staegr-related forecasts showed that errors were as low as 15.36%
compared to a 90%-plus forecasting error rate for analysts in general (see below illustration). Similar results were obtained
with studies involving the Australian stock market.
Good-luck Jim with your sharemarket-literacy coaching, and please let me know if I can be of any further help at any future
time.
With kind regards and best wishes,
Professor John Price
Growth Management & Growth
Potential
12. Current
Ratio
Return
on
Assets
Return
on
Assets
Gross
Profit
Margin
Accounts
Receivable
Turnover
Debt
Cover
Debt
to
Assets
Average
Collection
Period
Earnings
Per Share
Returns
Return
on
Capital
Return
on
Equity
A Cascade of “Fundamental Analysis” Financial Ratios
Quick
Ratio
Inventory
Turnover
Debt
to
Equity
Fixed
Charge
Cover
Inventory
Turnover
Operating
Profit
Margin
Return
on
Capital
Return
on
Equity
Net
Profit
Margin
Fixed
Asset
Turnover
Cash Flow
Adequacy
LT Debt to
Capitalisation
Cash Flow
Liquidity
Ratio
Financial
Leverage
Index
Total
Asset
Turnover
Cash Flow
Margin
Cash
Return
on
Assets
Return on
Total
Assets
Margins
Operatin
g
Efficienc
y
Debt
Coverage
Amount of
Debt
Liquidity
of Current
Assets
Current
Solvency
Dividend
Yield
Price
to
Earnings
Liquidity Debt
Management
Asset
Management
Return to
Investors
Profitability
A schematic showing
how analysed data can
produce “sharemarket-
savvy” intelligence
13. Shares: Safe, Growing Companies
Our Broker will Sort and organise all the 2000 stocks on the ASX
3 Interactive Share Workshop
14. Have questions?
Our Broker will Sort and organise all the 2000 stocks on the ASX for our clients
And supply the share list and recommendations
SuperBenefit works with SMSF trustees to
CONNECT them with the advisors they need.
A call is Free.
If you have any questions, why not give us a call – it’s FREE!
No obligation. 0407 361 596, Paul.
Want more detail?
Get our FREE Expert Guide – Self-Managed Super and You – it has all the info you need to know,
with bonus TIPS and CHECKLISTS to determine if SMSF is for you and what steps are needed to
set up. It also gives you ALL the Aust Tax Office publications about SMSF. Get you copy now –
click “Free Download” top right hand side on our website. You’ll also get monthly SMSF news,
investment teaching and upcoming seminar and workshop briefs! Download your FREE Guide
now! www.superbenefit.com.au
More Free Resources, Articles and Seminars
www.superbenefit.com.au
15. Strategy Structure Support
Become Quality
Controller of
Your
Super’s Future
Self-Managed
Superannuation
(Family) Fund
SuperBenefit
Quality-Service
Overlay
“Quality” Outcomes
require a
Total-Quality Discipline
Definition of “Quality”: “Befits Intended Purpose”
Quality Quality Quality
It’ all about “Quality”
“Quality
16. SuperBenefit Programme
... when interlocked with a self-managed super fund
SuperBenefit
Self-Managed
Superannuation
Fund
b
As Members
Strategy Workshops
“Understanding Through Learning”
Estate Planning
Retirement Planning
Tax Planning (etc)
“Sharemarket-Savvy”
Education & Training
”Coaching” Coordinator
Administrator
Education Coordinator
SUPER
ADMIN
SERVICE
Solicitor
(Fund Trust Deed
& Other “Legals”)
As Trustees
Tax
Accountant
Audit
Accountant
All Fund Administration and
Trustee Compliance
Servicing Including:
Establishing and Maintaining
(1) Member & Fund A/cs
(2) Trustee Minutes
(3) Buying, Selling and/or
Lodgement of Managed
& Direct Investments, and
(4) All other Fund/Trustee
Administration Servicing
Seminars, Workshops and
One-on-One Mentoring,
and Coaching
Investment Empowering
Managed Fund
eg Asian Shares
(CMA)
SuperBenefit
Qualifying
Shares
Cash
“Assisted” &
