Financial Advisory & Wealth Management Services

(Private Clients)

Roy Walker M.Eng., MBA (Fin.)

Summary 1/3 : Typical Client Profile

o Professional expatriates, aged 30's-50's, here for a period of 2-10 years (sometimes a lot longer!)

o All nationalities, though British and Australians together account for about two-thirds of my client base

o Plus high net worth individuals of all nationalities who either live or have business in Singapore

Summary 2/3 : Typical Client Needso Financial Planning - identifying what financial resources you need at

retirement, to make sure you can live the life you want and don't run out of money

o Tax efficient structures - protection from capital gains tax and mitigate future income tax, wherever you happen to be in the future

o Retirement/pension savings plans - Singapore employers typically don't contribute to expat employee's pensions - they need to set up an offshore pension plan themselves

o Lump sum investing and wealth management – you may have cash or investments that are not working effectively for them, and seek better growth rates than available in their bank account, but want to balance any risk with suitable returns

o Family protection and legacy planning – making sure your obligations are taken care of if something happens to you unexpectedly, and later in life planning to efficiently pass on wealth to the next generation

Summary 3/3 : Service Philosophy

o I respect how hard my clients work for their money, and it's not my job to take unnecessary risks

o Financial Planning is not just about planning to meet objectives and future milestones, but about making sure the 'worst case scenario' doesn't happen

o My clients may not have a financial background, or have time to research markets and investments themselves, but they are smart and have the intellect to make their own decisions: it's my job to make recommendations and explain the best options.

Roy Walker Started career as an engineer MBA (Finance), 1992 (Imperial College, London) Several corporate acquisitions and two IPOs (stock market

listings) Former group commercial director of UK’s largest

independent ISP Qualified and licensed in Singapore and holder of the

International Certificate in Wealth Management (CISI, UK) Over 20 years in Asia Married with 6 children (yes, really!) Build long term client relationships based on trust and mutual

respect

My Role As Your Financial Advisor

Wealth Management Philosophy Intellectual Honesty

Solid academic and time-proven reasons for any recommendation

Straightforward answers to all your questions

Independent Advice Access to the entire market of

products and investments No third-party influence, no artificial

restrictions

Diversified International Investment Risk mitigation and upside

optimisation Diversify across currencies and

region

Investment Safety & Security Rigorous due diligence of funds and

providers Stable, economically sound

domiciles

High Level Personal Service Ongoing, long-term relationship

wherever you are based globally Utmost respect for client’s time,

circumstances, and requirements for confidentiality

Transparent Fees Based on service not sales charges My professional interests are

aligned with yours

Comprehensive Expertise

Wealth Creation Tax-efficient savings and retirement planning University fee planning Other financial milestones

Wealth Management Portfolio risk analysis Portfolio construction Investment management

Wealth Preservation Life & health insurance Offshore companies and trust structures In-retirement asset management

Wealth Transfer Inter-generational wealth transfer Wills & estate planning Universal life & legacy enhancement Trust funds & succession planning

Corporate Solutions Group pension schemes Group protection plans Key man insurance Shareholder succession

Traditional, Consultative Approach

Wealth

Comfort

Security

The Financial Planning Pyramid

Regular savings & retirement planning.Life Assurance. Medical insurance. Home financing.

Enhanced regular savings. Small to medium lump sum investments. Targeted specific investment funds. Income protection.

Offshore Bonds and Wealth Management Accounts. Capital guaranteed investments. Multi asset class diversity. Trusts andinheritance planning.

Your resources and priorities evolve over time.

Together we focus on what’s important to you at your current stage.

Foundation for long term financial security, for self and family. Essential protection.

Financial capacity for widest range of life choices, including option not to work. Wealth management solutions. Wealth preservation.

Financial means for life and family choices. Education fee planning. Enhanced protection.

Wealth

Comfort

Security

The Financial Planning Pyramid

Regular savings & retirement planning.Life Assurance. Medical insurance. Home financing.

Enhanced regular savings. Small to medium lump sum investments. Targeted specific investment funds. Income protection.

Offshore Bonds and Wealth Management Accounts. Capital guaranteed investments. Multi asset class diversity. Trusts andinheritance planning.

Your resources and priorities evolve over time.

Together we focus on what’s important to you at your current stage.

Foundation for long term financial security, for self and family. Essential protection.

Financial capacity for widest range of life choices, including option not to work. Wealth management solutions. Wealth preservation.

Financial means for life and family choices. Education fee planning. Enhanced protection.

Regular Contact via Ongoing Reviews, Mailing List, Market Updates, Website

Step-by-Step Process

1. Needs analysis – ‘Fact Find’ We sit down together to review your objectives

2. Solutions research I research the market to identify options that match your brief

3. Financial plan & recommendation document I prepare your personal financial recommendation

4. Discuss and consider best options We meet to discuss and explain all options so you can decide your preferred

solution

5. Put plan into action I handle the paperwork submissions

6. Continuous monitoring, regular updates and reviews My ongoing service

Helping You Taking Control

The fundamentals of personal finance: Understand the relationship between risk and return Exploit the power of consistent accumulation and

compounding growth Diversify across asset classes, geographies and currencies Take a long term view, be patient, and think for yourself Stay emotionally detached from the markets manic

fluctuations Review and rebalance periodically but not too often Know when to seek assistance from a professional

Are Your Savings Working As Hard As You Think? Example: Assume current inflation – 5%

In 5 years an item purchase price will rise from $100 to $127.63 In 10 years an item purchase price will rise from $100 to $162.89

Bank rates – less than 0.5% In 5 years $100 will grow to $102.52 In 10 years $100 will grow to $105.11

In 5 years time ..the purchasing power of $100,000 will fall to $80,326 (20% loss in value)

In 10 years time ..the purchasing power of $100,000 will fall to $64,528 (35% loss in value)

In real terms, it costs you 4.5% pa to keep your money in a bank

Concerned About Stockmarket Volatility?

For a cautious saver, volatile markets can be stressful How to reduce risk and remove stress?

Dollar Cost Averaging

January 2008January 2011

January 2008January 2011

FTSE100 – 5 years to August 2011

Dollar Cost Averaging

DCA means saving a fixed amount into your chosen investments each month for a certain period

Thus you automatically buy more units when prices are lower.. DCA guarantees the price you pay per unit is below the average price

during your investment period

A highly popular way to enter the market with reduced risk If markets are rising, you get the benefit of market growth anyway If markets are volatile, dollar cost averaging can turn losses into gains

Reduces risk, but of course ultimate returns depend on the market – no guarantees…

Month Number

Month End Date

Unit Price £

Invested £

Units Bought

1 Jan-08 60.292 5,000 82.9302 Feb-08 58.843 5,000 84.9723 Mar-08 59.471 5,000 84.0754 Apr-08 62.155 5,000 80.4445 May-08 60.535 5,000 82.5976 Jun-08 54.128 5,000 92.3747 Jul-08 53.547 5,000 93.3768 Aug-08 56.366 5,000 88.7069 Sep-08 49.803 5,000 100.396

10 Oct-08 43.773 5,000 114.22611 Nov-08 42.880 5,000 116.60412 Dec-08 45.618 5,000 109.60613 Jan-09 41.496 5,000 120.49414 Feb-09 38.301 5,000 130.54515 Mar-09 40.297 5,000 124.07916 Apr-09 42.432 5,000 117.83617 May-09 44.179 5,000 113.17618 Jun-09 42.363 5,000 118.02819 Jul-09 46.084 5,000 108.49820 Aug-09 49.089 5,000 101.85621 Sep-09 49.887 5,000 100.22722 Oct-09 50.445 5,000 99.11823 Nov-09 53.224 5,000 93.94324 Dec-09 54.129 5,000 92.37225 Jan-10 51.885 5,000 96.36726 Feb-10 53.545 5,000 93.37927 Mar-10 57.449 5,000 87.03428 Apr-10 55.533 5,000 90.03729 May-10 51.884 5,000 96.36930 Jun-10 48.381 5,000 103.34631 Jul-10 52.580 5,000 95.09332 Aug-10 54.281 5,000 92.11333 Sep-10 55.929 5,000 89.39934 Oct-10 56.752 5,000 88.10335 Nov-10 57.453 5,000 87.02836 Dec-10 58.999 5,000 84.74737 Jan-11 59.974 5,000 83.36938 Feb-11 59.904 5,000 83.46739 Mar-11 60.099 5,000 83.19640 Apr-11 60.699 5,000 82.374

£200,000 3885.893

Dollar Cost AveragingBlack Magic Of The Investment World

Example £200k invested into FTSE100 over 40

months commencing January 2008 £5k per month invested only Sample unit prices

• Jan-08: 60.292• Feb-09: 38.301• Apr-11: 60.699

Total units acquired: 3885.893 Value: £235,869 NET RETURN: 17.9%

Drip-feeding money into volatile markets reduces market timing risk

Asset Class Diversity

Investing / saving for the long term means much more than just ‘the market’ Bonds – government, corporate, national and international Equities - global and key local markets Gold and precious metals Property – global and regional Commodities – natural resources, agriculture, soft

commodities Emerging Markets – key regions for growth Themed and specialist investments – e.g. biotechnology,

pharmaceuticals, new energy Alternative Investments – uncorrelated performance

How Much To Save? If you haven’t yet started to save for your retirement, the following can be

used as a basic guideline (rule of thumb only), based on some typical assumptions, including: You plan for 80% replacement of pre-retirement pre-tax income, adjusted for

inflation and with a high likelihood of being sustained for up to 30 years (retirement at age 65)

State pension or other income will provide 25% of your retirement income needs each year

Age when saving starts

% of salary to save each year

20's 10% - 15%30's 15% - 25%

Early 40's 25% - 35%45+ 35% - 55%50+ 55% +

Starting early is important, because once you start, the same savings goal applies until you retire. For example, if you start saving roughly 12% of your income in your mid-20s and have the discipline to maintain your savings plan, you shouldn't have to increase that percentage as you go through your 30s, 40s and so on.

Start Early

Suppose you decide today to save $1000 per month for your retirement at age 65

If you start at age 40, you would have a 54% bigger retirement fund than if you started at age 45 (based on example 7% p.a.)

Your age now Retirement fund accumulated

35 $1,176,065

40 $787,469

45 $510,406

50 $312,864

Make Your Money Work Hard For You

Suppose over the next 25 years you save $1000 per month

A modest 2% per annum extra return would give a 34% bigger retirement fund

Annual average return

Retirement fund accumulated

5% $588,121

7% $787,469

Contact Me To Plan For Your Financial Success

Roy Walkerw: www.roywalker-ifa.com

e: roywalker@ippadvisers.com