My Platform Rules

Disruptors Panel 1

Panelists

• Arnie SelvarajahChief Executive Officer, Bell Direct

• Mark PerryManaging Director, PHAROS Financial Group

• Matt LawlerChief Executive Officer, Yellow Brick Road

2

Facilitator• Connie Mckeage Managing Director, OneVue

3

AUSTRALIANS AND PROPERTY IN SMSFS

Themes

Is leveraging ok in super?

Why Super

Does property belong?

What kind of

property are

SMSFs investing

in?

The self-

directed Does the digital generation want advice?

SMSFs have utilised property and lending

4

Direct Property ASX Listed Separately Managed Accounts

Managed Funds Cash and TDs Other Borrowing0%

5%

10%

15%

20%

25%

30%

35%

40%

SMSF MarketOneVue Clients

Source: ATO as at June 2014 (assumed that 100% of LRBAs relate to property), OneVue as at December 2014

Direct Property in SMSFs increased 1.6% over 5 years

5

June 2009 June 2010 June 2011 June 2012 June 2013 June 20140%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

14.8% 15.3% 15.5% 16.6% 16.2% 16.4%

SMSF Asset Allocation – by Year

Direct Property ASX Listed Managed FundsCash and Term Deposits Other Borrowing

Source: ATO (assumed that 100% of LRBAs relate to property)

Residential property less than one quarter of SMSF property investment

6

June 2009 June 2010 June 2011 June 2012 June 2013 June 20140.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Residential / Total Property

And unchanged in the past 5 years

Source: ATO, excludes classification of LRBAs

Growth has been in residential property between $200,000 and $1m

… but lower for other SMSF sizes

$1-$50k >$50-$100k >$100-150k >$150-200k >$200-$500k >$500k-$1m >$1-$2m >$2-$5m >$5-$10m > $10m0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

Non residential property (2009) Non residential property (2014)Residential Property (2009) Residential Property (2014)Limited recourse borrowing arrangements (2014)

8

PASSING THE SMSF BATON

• Over the next 20 years, the share of financial assets held by Generations X and Y will grow from 36% in 2010 to approximately 70% in 2030

• By 2020 40% (est. 145,786) of today’s managers in family and small businesses will have reached retirement age

• Will this make a difference?