A GLIMPSE INTO SMSF PORTFOLIOS

October 2019

Important legal disclaimer:

The information and opinions contains in this presentation is for informational purposes only and does not constitute a product recommendation, or taxation or financial advice and should not be relied upon as such. Please check with your adviser or accountant to obtain the correct tax treatment for your situation.

SHARESIGHT

SMSF Portfolios 15,477

SMSF Investors 2,778

Average SMSF Portfolio Value $1,396,371

Median SMSF Portfolio Value $552,071

Median Open Portfolio Positions 44

Paid % of SMSFs 65%

SHARESIGHT’S AUSTRALIAN SMSF DATASET50% OF OUR USERBASE IS AUSTRALIAN DOMICILED

Total Portfolios 75,596

Total Investors 51,749

Cult of dividends a dangerous obsession Sydney Morning Herald, March, 2014

SHARESIGHT

Cult of dividends a dangerous obsessionDividend Contribution to Total Annualised Returns 1 January 2016 – 10 October 2019*

51%

STW

10%

SPY

31%

VGS

32%

VAE

50%

SMSFS

62%

VHY

STW: SPDR ASX 200

SPY: SPDR S&P 500

VGS: Vanguard MSCI International

VAE: Vanguard Asia ex-Japan

SMSF: Sharesight Dataset

VHY: Vanguard Australian High Yield

Source: Sharesight

SHARESIGHT

Cult of dividends a dangerous obsessionWhere are those dividends coming from?

% Mkt Cap of ASX

Div Yld %

CBA 13.7% 5.5%

BHP 10.4% 5.5%

CSL 10.2% 1.1%

WBC 9.9% 6.6%

NAB 8.2% 6.5%

% Total SMSF

HoldingsDiv Yld %

TLS 1.9% 2.9%

BHP 1.7% 5.5%

CBA 1.5% 5.5%

NAB 1.5% 6.5%

ANZ 1.4% 5.9%

Most Popular Sharesight SMSF Holdings*Top 5 ASX Shares by Market Cap

*Based on 162,600 open positionsSource: ASX, Sharesight

How Aussie loyalty could be hurting your share portfolioMoney Magazine, March, 2018

SHARESIGHT

How Aussie loyalty could be hurting your share portfolio19 Category ATO Breakdown of SMSF Asset Allocation (March 2019)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Listed shares Cash and term deposits Unlisted trusts

Non-residential real property Limited recourse borrowing arrangements Residential real property

Other managed investments Listed trusts Other assets

Debt securities Unlisted shares Overseas shares

Loans Other overseas assets Overseas managed investments

Collectables and personal use assets Overseas residential real property Overseas non-residential real property

Insurance policy Source: ATO, SMSF Quarterly Statistical Report, March 2019

SHARESIGHT

How Aussie loyalty could be hurting your share portfolio

Listed shares

Cash and term deposits

Unlited trusts

Other managedinvestmentsListed trusts

Unlisted shares

Overseas shares

Overseas manangedinvestments

1.4%Overseas Exposure

Australia

Overseas

Direct Listings

14%Overseas Exposure

Simplified ATO Breakdown of Capital Asset Classes Most Popular Sharesight SMSF Holdings

Source: ATO, SMSF Quarterly Statistical Report, March 2019, Sharesight

Australia underweight on the value of technology Australian Financial Review, July, 2019

SHARESIGHT

Australia underweight on the value of technology

Technology Representation of S&P 500 & ASX by Market Cap

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Tech Non-Tech

Source: ASX, Listcorp, Morningstar, ABC

SHARESIGHT

Australia underweight on the value of technology

Sectors Represented by Sharesight Users

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% of Total Users % of SMSF UsersSource: Sharesight

SHARESIGHT

Australia underweight on the value of technologyTop SMSF Tech Shares

Tech Services Health Tech Elec TechSource: Sharesight

Australia is On the Brink of a Housing Collapse That Resembles 2008 Forbes, April, 2019

SHARESIGHT

AUSTRALIA IS ON THE BRINK OF A HOUSING COLLAPSE THAT RESEMBLES 2008

17

Build a $30K Portfolio

Highly Leveraged to Australian Housing

Buy All Shares on 1 Jan 2016

SHARESIGHT

AUSTRALIA IS ON THE BRINK OF A HOUSING COLLAPSE THAT RESEMBLES 2008

SHARESIGHT

AUSTRALIA IS ON THE BRINK OF A HOUSING COLLAPSE THAT RESEMBLES 2008

Annualised Return 1 Jan 2016 – 11 Oct 2019

STW: 12.61%

SHARESIGHT

AUSTRALIA IS ON THE BRINK OF A HOUSING COLLAPSE THAT RESEMBLES 2008

Annualised Return 1 Jan 2016 – 11 Oct 2019

Aussie Housing Portfolio:

7.25%

…of which 7.31% came from dividends…

SMSFs underperform APRA funds Nestegg, February, 2018

SHARESIGHT

SMSFs UNDERPERFORM APRA FUNDSTrailing 3 Year Annualised Returns

13%

STW

19%

SPY

12%

Qsuper Aus

Shares

11%

AusSuper Balanced

13%

SMSFs on Sharesight

Dividend Component

Capital Component

10%

Mstar Aus

Large Blend

11%

Schroder WS Plus

Aus Equity

12%

Vanguard Aus

Shares Index

Source: Morningstar, Sharesight

Cult of dividends a dangerous obsession Sydney Morning Herald, March, 2014

Australia is On the Brink of a Housing Collapse That Resembles 2008 Forbes, April, 2019

How Aussie loyalty could be hurting your share portfolioMoney Magazine, March, 2018

Australia underweight on the value of technologyAustralian Financial Review, July, 2019

SMSFs underperform APRA funds Nestegg, February, 2018

Are the Headlines Correct?

01LESSON

• Capital movements• Dividend contribution• FX impact• Fee “bleed”

TRACK THE DRIVERS OF YOUR RETURN

02LESSON

• Sector & Industry• Geographic

MONITOR YOUR EXPOSURE

03LESSON

• Fee pressure• More products available• More technology

available

FUTURE IS BRIGHT FOR DIY INVESTORS

Lessons for Investors

THANK YOU&

HAPPY INVESTING