What a Wonderful World

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(No Transcript)
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• What a Wonderful World
• Shane Bensted
• State Manager Qld

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Disclaimer

•  
• Important Notice
• This presentation has been prepared by HFA Asset
  Management Limited ACN 082 852 364. Australian
  Financial Services Licence No 246747
• The information in this presentation is not
  personal financial product advice and has been
  prepared without taking into account the
  objectives, financial situation or needs of any
  particular person.
• Before making an investment decision you should
  obtain and read a copy of the Product Disclosure
  Statement / Prospectus for the relevant HFA
  product and consider whether the investment is
  appropriate having regard to those matters.
  Applications may only be made on an application
  form attached to a valid Product Disclosure
  Statement / Prospectus.
• Past performance and asset allocation is no
  indication of future performance.

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• The Stockton Mosquitos

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Housing starts collapse
Source Bloomberg. U.S. Housing Starts
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The great housing bust
Source Bloomberg. Existing home sales median
price, YOY
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From the sublime to the subprime

• Housing crisis
• Subprime and NINJA loans
• Structured credit product crisis
• Capital market crisis
• Monoline crisis

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Expansion to contraction

• Credit expansion to credit contraction
• Multipliers in reverse
• U.S. recession
• The Stockton mosquitos

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• In an age of globalisation no nation can be
  viewed in isolation

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The solution

• Monetary policy
• Fiscal policy
• Sovereign Wealth Funds
• VIC to the rescue

Barack Obama?
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The rest of the wonderful world

• The Asian locomotive replaces America
• China shall slow, but 8 growth is still
  impressive
• India still remarkable

8 million mobile phones
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Rising Phoenix like

• Vietnam attracts FDI of 20 billion in 2007
• Still positive on VIC
• Illuminates potential in Asia

Philippines
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Japan

• Softer growth forecast
• Geared to Asia
• Fundamentally sound

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A two speed Europe

• More pain in Spain
• U.K. slowdown
• Germany stands tall

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Australia

• Still underwritten by Asia
• Exports to India
• Cannot be completely immune

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The rise of the Asian consumer

• 10 years on from 1998
• Thank goodness for Asia

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Navigating a turbulent year

• Recent market volatility
• Volatility provides opportunity and requires
  flexibility
• Participate in the upside, minimise the downside

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Take home message

• US to remain weak
• Europe Germany Vs UK
• Japan?
• China, India and emerging Asia supporting global
  growth
• Australian economic outlook positive
• Market volatility
• Absolute return exposure makes cents!

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Capital Stability Characteristics October 2007 to
January 2008 Returns
Important Note Past Performance is not
necessarily a guide to future performance. Data
Source HFA Asset Management Limited ACN 082 852
364, AFSL No. 246747 (HFA), Bloomberg. MSCI is
represented by Morgan Stanley Capital
International World Ex Australia USD, MSCI Asia
is represented by Morgan Stanley Capital
International Daily Total Return Gross
Accumulated Asia USD, SP 500 is represented by
Standard Poors 500 TR Index (US), Dow Jones is
represented by Dow Jones Industrials Price Index
(US), NASQAQ is represented by NASDAQ 100 Stock
Index, Russell 2000 is represented by Russell
2000 Index, CAC is represented by CAC-40 Index,
DAX is represented by German DAX Index, FTSE100
is represented by FTSE100 Index, Eurostoxx50 is
represented by The Dow Jones EURO SOXX 50 (Price)
Index, Nikkei225 is represented by Nikkei225
Index, Hang Seng is represented by Hang Seng
Index, ASX200 is represented by SP/ASX 200
Accumulation Index. HFA is the issuer of the
PDSs for the HFA Diversified Investments Fund
ARSN 093 497 468 and the HFA International Shares
Fund ARSN 093 497 600 a person should consider
the relevant PDS before making any investment
decision.
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• What a Wonderful World
• Shane Bensted
• State Manager Qld

21
Disclaimer

•  
• Important Notice
• This presentation has been prepared by HFA Asset
  Management Limited ACN 082 852 364. Australian
  Financial Services Licence No 246747
• The information in this presentation is not
  personal financial product advice and has been
  prepared without taking into account the
  objectives, financial situation or needs of any
  particular person.
• Before making an investment decision you should
  obtain and read a copy of the Product Disclosure
  Statement / Prospectus for the relevant HFA
  product and consider whether the investment is
  appropriate having regard to those matters.
  Applications may only be made on an application
  form attached to a valid Product Disclosure
  Statement / Prospectus.
• Past performance and asset allocation is no
  indication of future performance.