1. Morgans Mt Gravatt Model Portfolios
Australian Equities
25 September 2015

2. Contents Service Offering Model Portfolio Objectives Risk Management
Portfolio Construction & Process
Research
Model Portfolio Performance
Ongoing Portfolio Management
Communication
Client benefits

3. Service Offering
The model portfolios are an actively managed portfolio consisting of research analysts best ideas in the S&P/ASX 200 Index
Morgans Mt Gravatt Model Portfolios consist of a Growth, Balanced and an Income portfolio
Investment portfolios are suited to various risk profiles and clients tolerance to market volatility
Portfolios are constructed with a focus on long-term fundamental value and bias towards businesses with sustainable competitive advantages and predictable cash flows.
Diversified range of Australian equities
Managed and communicated actively

4. Model Portfolio Objectives
Income:
The primary objective of the portfolio is to provide a reliably high level of income through stocks that have quality, defensive characteristics, as total returns tend to be driven more by income than capital appreciation, although both are desirable
Growth:
The primary objective of the portfolio is to generate a higher level of capital growth through stocks that offer quality and sustainable businesses, as total returns tend to be driven more by capital appreciation than income.
Stock inclusions are measured on forward earnings growth rates and return on equity (ROE).
Balanced:
The primary objective of the portfolio is to balance a moderate to high level of income return from stocks with capital growth potential.
It is expected to achieve this through a combination of the guidelines provided for stock inclusions in the Income and Growth portfolios.

5. Risk Management Investment Diversification (across and within sectors)
Defined Investment Parameters
Process Driven
Blended research for the purpose of managing risk (smoothing institution macro opinions, minimise key-person risk and common behavioral pitfalls)
Reviewed daily to remain actively aware of any market changes or investment themes which may effect the composition of your holdings
Timely, transparent disclosure and completion of any changes will be communicated with you as and when required
Utilising broker consensus research to filter model portfolio investments
The in-depth research by experienced domestic and global analyst forms the foundation of our portfolio management process and facilitates our investments
Built with defined strategy and processes

6. Portfolio Construction and Process
Blended model portfolios utilising and filtering Morgans, CIMB, Morningstar and Broker consensus research.
Once the portfolio is constructed from blended research, it is then filtered to a maximum of 20 stocks based on Return on equity (ROE), Earnings per share growth forecasts (EPSG 3yr) and forecasted dividend yield. Depending on the type of model portfolio, different weightings are given to each financial metric to match the model’s attributes.
Weighted exposures to stock and sectors to reflect current investment themes and market conditions.
Equity portfolios are managed by our investment strategy committee.
The portfolios aim for diversification across sectors, but the suitability of individual stock characteristics to the needs of the portfolio may outweigh this approach.
Stock inclusions have a market capitalisation of at least $1 billion with the exception of Small Cap inclusions where market capitalisation is $250 million plus.
Stock inclusions are companies with a track record of earnings (5 years plus) with the exception of Small Cap inclusions where this criteria may be waived.
The portfolios aim to be fully invested with no more than 10% cash held at any time.
The portfolios are reviewed and rebalanced monthly (if required).

7. Morgans/CIMB Research
Australia's largest national full-service retail stockbroking and wealth management network with over 300,000 clients, 500 authorised representatives and 850 staff operating from 57 offices in all states and territories.
over 75 years of industry experience
award-winning research team providing research on a wide range of ASX listed companies and regular market updates
top-ranked small and mid cap corporate finance house
Morgans/CIMB has a team of 60 analysts who specialise in small to mid cap companies and Fixed Interest. 
Coupled with access to CIMB large cap research, we are able to provide comprehensive, in depth research for approximately 300 companies listed on the Australian Stock Exchange. 
Collectively CIMB Australia and Morgans rated equal 1st by number of awards, receiving 12 analyst awards for stockpicking and/or earnings forecast accuracy in the prominent Australian Financial Review StarMine Awards for StarMine selects the top performing analysts in Australia and New Zealand by measuring the performance of analysts based on the returns of their buy/sell recommendations and the accuracy of their earnings estimates on companies that are based in the region for a 12-month period.

8. Morningstar Research
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia.
Morningstar Australasia has operated in Australia and New Zealand since Morningstar offer comprehensive data and objective information about more than 12,000 managed funds and 2,000 stocks available to individual investors in Australia and New Zealand, including proprietary Morningstar analyst research on 250 individual stocks and 300 investment strategies distributed through 4,000 individual funds. The research also offers independent editorial content produced by Morningstar analysts and journalists based in Sydney and around the world.

9. Model Portfolio Performance
From Inception January 2012 to March 2015
Annualised Return *
Income
20.19%
Balanced
13.02%
Growth
14.49%
Based on share price performance, dividends and franking credits received. Inception date is 1 January 2012
Please note that past performance is not an indication of future performance.

13. Ongoing Portfolio Management
Active Management
Daily reviews
Monthly updates
Investor Communication

14. Communication
Transparent and timely communication of portfolio adjustments
Direct access to investment advisers
Direct access to research
24 hour access to clients personal portfolio via the Wealth+ platform

15. Client Benefits Risk Management Active Portfolio Management
Transparent Investments
Defined processes and investment parameters
Targeting…..better risk adjusted returns

16. Contacts Mark Allara Jarred Brooks Brett Hunter Morgans Mt Gravatt
Manager Private Client Advisor Investment Portfolio Manager
Morgans Mt Gravatt
Suit 29B Level 4
50 – 56 Sanders Street
Upper Mt Gravatt QLD 4122
ph:
fax:

18. General Disclaimer
This presentation is provided for general information purposes only and is not intended as an offer to enter into any transaction. This information contained in it is not necessarily complete and its accuracy can not be guaranteed. We have prepared this presentation without consideration of the investment objectives, financial situation or particular needs of any individual investor.
Before a client makes an investment decision, a client should, with or without Morgans' assistance, consider whether any advice contained in the presentation is appropriate in light of their particular investment needs, objectives and financial circumstances. It is unreasonable to rely on any recommendation without first having spoken to your adviser for a personal recommendation.
The information contained in this presentation has been taken from sources believed to be reliable. Morgans Financial Limited does not represent that the information is accurate or complete and it should not be relied on as such. Any opinions expressed reflect Morgans' judgment at this date and are subject to change. Morgans and/or its affiliated companies may make markets in the securities discussed. Further Morgans and/or its affiliated companies and/or their employees from time to time may hold shares, options, rights and/or warrants on any issue included in this presentation and may, as principal or agent, sell such securities.
The Directors of Morgans advise that they and persons associated with them may have an interest in the above securities and that they may earn brokerage, commissions, fees and other benefits and advantages, whether pecuniary or not and whether direct or indirect, in connection with the making of a recommendation or a dealing by a client in these securities, and which may reasonably be expected to be capable of having an influence in the making of any recommendation, and that some or all of our representatives may be remunerated wholly or partly by way of commission.
The presentation is proprietary to Morgans Financial Limited and may not be disclosed to any third party or used for any other purpose without the prior written consent of Morgans.
Morgans Financial Limited (ABN AFSL )  A Participant of ASX Group Principal Office: Level 29, Riverside Centre, 123 Eagle Street, Brisbane  QLD  4000
This document has been prepared by Morgans Financial Limited in accordance with its Australian Financial Services Licence (AFSL no ). The views expressed herein are solely the views of Morgans Financial Limited.
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