Praemium Ltd · ASX:PPS
Praemium — Quantum Warrants — Conference Presentation (March 2010)
16 slides from Praemium's conference presentation, March 2010
Slide 1: Session 6B – Instalment Warrants for SMSF's
Session 6B – Instalment Warrants for SMSF’s Brian Collins National Sales Manager March 2010
Slide 2: Disclaimer
Disclaimer You must not use or rely on this information in any way if you are not a Australian financial services licensees and their representatives (as defined under the Corporations Act). This general information regarding Quantum Portfolio and Property Warrants has been prepared by Quantum Warra
Slide 3: Agenda
Agenda 1. Overview of Instalment Warrants for SMSF gearing 2. Portfolio warrants and how they work 3. Property warrants for residential property 4. Why adopt SMSF Gearing as part of advice model – case study 5. Five key questions to ask when choosing gearing option?
Slide 4: Portfolio Warrants Overview
Portfolio Warrants Overview – Minimum investment $30,000 – Underlying 200+ Shares & 1200+ Managed funds – Leverage Up to 70% LVR – Term 10 years – Dividend income Received by the investor – Interest Deductible 8.80% – Ownership Full beneficial ownership – Reporting Praemium Access – Interest Rate 8.
Slide 5: How does it work?
How does it work? QUANTUM WARRANTS INVESTMENT INSTRUCTION (EQUITY) REPAY LOAN - CASH OR SECURITIES TRANSFERED WA BUYS & HOLDS SECURITIES FOR YOU FUNDS PURCHASE WITH A LOAN
Slide 6: Quantum Portfolio Lifecycle…
Quantum Portfolio Lifecycle…
Slide 7: Why gear SMSF's into Property?
Why gear SMSF’s into Property? 1.Tax advantages within SMSF’s 2.Simple – all via a PDS 3.Safe – held by External Trustee
Slide 8: How does it work?
How does it work? *at 7.2% pa capital growth.
Slide 9: Property Warrant Lifecycle…
Property Warrant Lifecycle… Rental payments are used to meet property outgoings and to offset interest costs. *The property is fully managed for you **Annual shortfall from SMSF is deductible against other income
Slide 10: Case Study: SMSF gearing as part of advice model
Case Study: SMSF gearing as part of advice model
Slide 11: Case Study: SMSF Geared Investing
Case Study: SMSF Geared Investing Peter is 48 years old, a doctor with $400,000 invested in 3 Industry Super Funds; His wife, Susan also works in his medical practice The couple are seeking advice to maximise their retirement savings; and Like to access investments within super that will: – Potentia
Slide 12: Case Study: SMSF Geared Investing
Case Study: SMSF Geared Investing Solution:- Establish a SMSF – to take control of your retirement funds and access gearing; Use Property Warrants to fund, purchase, settle and manage a residential investment property; and Use Portfolio Warrants to leverage equities and managed funds exposure. Use a
Slide 13: Case Study: SMSF Geared Investing
Case Study: SMSF Geared Investing Solution:- Purchase a $400,000 investment property using $120,000 deposit plus fees* Purchase a $200,000 share and managed fund portfolio with a 50% LVR (i.e. $100k) Invest cash balance of $180,000 in cash, fixed interest or alternates = geared, diversified portfoli
Slide 14: SMSF Geared Property Investing Strategy "Gems"
SMSF Geared Property Investing Strategy “Gems” “Gem 1” – Cashflow benefits “Gem 2” - Taxation benefits “Gem 3” – Simple Value added advice
Slide 15: Top questions to ask
Top 5 questions to ask 1. Ensure Trust Deed Allows Instalments 2. Make sure SMSF has sufficient cashflow to fund 3. Understand how the asset is held (bare trust); 4. Make sure loan is non recourse – no personal guarantees; 5. Make sure Trustees understand it.
Slide 16: Next Steps…
Next Steps… 1. Establish SMSF advice as part of your value proposition; 2. Introduce an appropriate level of gearing into fund – diversify to manage risk; 3. Use Instalment Warrants as simple, safe and preferred lending option; 4. Come and see us at our stand for more information. Brian Collins Nati
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