IML EIF key takouts slides

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Information about IML EIF key takouts slides

Published on May 31, 2016

Author: TomHickey13

Source: slideshare.net

1. Morningstar Awards 2015 Domestic Equities Category WINNER Australia - 1 - IML Equity Income – key takeouts

2. Morningstar Awards 2015 Domestic Equities Category WINNER Australia - 2 -- 2 - 5.0% 2.8% 0% 2% 4% 6% 8% 10% 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 Investment yield Investment Challenge: where is the yield? Aussie 10yr bond yield ASX200 dividend yield Source: Factset as at 31 December 2015

3. Morningstar Awards 2015 Domestic Equities Category WINNER Australia - 3 -- 3 - IML Equity Income Fund – twin objectives Retiree Objectives IML Equity Income Fund Objectives High Income Greater yield than S&P/ASX300 yield +2% (after fees, pre-franking) Low Absolute Risk Lower standard deviation of returns than S&P/ASX300

4. Morningstar Awards 2015 Domestic Equities Category WINNER Australia - 4 -- 4 - IML Equity Income Fund Drawdown Profile Jan 2011 – Mar 2016 IML Equity Income Fund - downside protection Source: Morningstar

5. Morningstar Awards 2015 Domestic Equities Category WINNER Australia - 5 -- 5 - Income from Equity Income Funds * After fees, pre-franking Steady through the cycle Greater in flat/bear markets Greater in bull markets Multiple Income Sources Long Term Expectation p.a. Dividends 4 % Option Income 2 % Net Realised Capital Gains 1 % Total Distribution (paid quarterly) 7 %*

6. Morningstar Awards 2015 Domestic Equities Category WINNER Australia - 6 -- 6 - IML option strategy – Execution of buy/sell discipline Sell Call Option Sell Put Option High Low Sell Stock Buy Stock SharePrice

7. Morningstar Awards 2015 Domestic Equities Category WINNER Australia - 7 -- 7 - Dividends - Australia the lucky country when it comes to yield Market Yield ASX 5.0% MSCI 2.7% S&P500 2.2% FTSE 4.6% DAX 2.0% Source: Factset aggregates, MSCI as at 31 December 2015

8. Morningstar Awards 2015 Domestic Equities Category WINNER Australia - 8 -- 8 - Income - the least volatile component of investment returns Source: IRESS, ASX300 data since 1993. As at 31 December 2015 13.2% 0.9% 0% 2% 4% 6% 8% 10% 12% 14% Capital Std Dev Income Std Dev 5.4% 4.4% 0% 1% 2% 3% 4% 5% 6% Capital Return Income Return Over 20 years – capital and income return broken up

9. Morningstar Awards 2015 Domestic Equities Category WINNER Australia - 9 -- 9 - IML Equity Income Fund - Top 10 highest yield and sustainability Dividend Yield DPS(FY0) DPS (FY1) DPS (FY2) Duet 8.0% $0.175 $0.18 (+3%) $0.19 (+3%) Hotel Property Investments 7.0% $0.16 $0.18 (+12%) $0.19 (+6%) Spark Infrastructure 6.8% $0.12 $0.13 (+8%) $0.14 (+4%) Suncorp 6.2% $0.88 $0.88 (0%) $0.88 (0%) Insurance Australia 6.0% $0.29 $0.38 (+31%) $0.38 (0%) Ausnet Services 5.9% $0.084 $0.085 (+2%) $0.087 (+2%) Aurizon 5.8% $0.24 $0.24 (+1%) $0.26 (+8%) Fletcher Building 5.8% $0.33 $0.34 (+2%) $0.35 (+2%) As at 19 February 2016

10. Morningstar Awards 2015 Domestic Equities Category WINNER Australia - 10 -- 10 - Total return – Income & growth splits Jan 2011 – Mar 2016 Income p.a. (pre-franking) Growth p.a. Net Return p.a. (pre-franking) IML Equity Income +9.39% +1.61% +11.00% Manager ‘B’ +7.24% -1.22% +6.02% Manager ‘A’ +8.18% -4.86% +3.32% Manger ‘C’ +9.01% -4.05% +4.96% ASX300 +4.69% +1.11% +5.80% * Comparisons are made with funds using options to generate income and/or manage risk Source: Morningstar Performance is net of fees as at 31 March 2016

11. Morningstar Awards 2015 Domestic Equities Category WINNER Australia - 11 -- 11 - Beware of yield illusion – high yield but distribution is shrinking IML EIF Manager ‘A’ Manager ‘B’ Manager ‘C’ Entry Unit Price Rebased to $1 as at 4 Jan 2011 Jan 2011 – Mar 2016 * Comparisons are made with funds using options to generate income and/or manage risk Source: Morningstar $0.7 $0.8 $0.9 $1.0 $1.1 $1.2 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 EntryUnitPrice(rebased)

12. Morningstar Awards 2015 Domestic Equities Category WINNER Australia - 12 - Equity Income Fund – sustained income overtime??? Source: Morningstar Direct. As at 31 December 2015 Yield CY 2011 p.a. Yield CY 2015 p.a. IML Equity Income Fund 10.91% 9.06% Manager ‘A’ 9.17% 6.03% Manager ‘B’ 8.55% 4.68% Manager ‘C’ 11.58% 6.30% Note: The following calculations assume a $100,000 investment into the relevant fund at 1 January 2011 with no reinvestment of income.

13. Morningstar Awards 2015 Domestic Equities Category WINNER Australia - 13 -- 13 - IML Equity Income Fund – lower volatility keeps investors invested Source: Factset. As at 31 March 2016

14. Morningstar Awards 2015 Domestic Equities Category WINNER Australia - 14 - While the information contained in this presentation has been prepared with all reasonable care, Investors Mutual Limited accepts no responsibility or liability for any errors or omissions or misstatements however caused. This is general financial product advice only and is not intended to constitute a securities recommendation. This information does not account for your investment objectives, particular needs or financial situation. Statements of opinion are those of IML unless otherwise attributed. Except where specifically attributed to another source, all figures are based on IML research and analysis. Investors should be aware that past performance is not indicative of future performance. Returns can be volatile, reflecting rises and falls in the value of underlying investments. Potential investors should seek independent advice as to the suitability of the Fund to their investment needs. The fact that shares in a particular company may have been mentioned should not be interpreted as a recommendation to either buy, sell or hold that stock. Any commentary about specific securities is within the context of the investment strategy for the given portfolio. Investors Mutual Limited is the issuer of the Investors Mutual Australian Share Fund, Investors Mutual Industrial Share Fund, Investors Mutual Future Leaders Fund, Investors Mutual Australian Smaller Companies Fund, Investors Mutual Small Cap Fund and Investors Mutual Equity Income Fund. Applications can only be made on the form in the current Product Disclosure Statements dated 1st August 2014, or through IDPS products that include these Funds. The Product Disclosure Statements can be obtained by contacting Investors Mutual or at http://iml.com.au. Potential investors should consider the Product Disclosure Statements before deciding whether to invest, or continue to invest in the Funds. The prospective P/E ratios and earnings forecasts referred to in this presentation constitute estimates which have been calculated by IML's investment team based on IML's investment processes and research. © 2015 Morningstar, Inc. All rights reserved. Neither Morningstar, nor its affiliates nor their content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. To the extent that any of this information constitutes advice, it is general advice and has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 and/or Morningstar Research Limited (subsidiaries of Morningstar, Inc.) without reference to your objectives, financial situation or needs. You should consider the advice in light of these matters and, if applicable, the relevant Product Disclosure Statement (in respect of Australian products) or Investment Statement (in respect of New Zealand products) before making any decision to invest. Neither Morningstar, nor Morningstar’s subsidiaries, nor Morningstar’s employees can provide you with personalised financial advice. To obtain advice tailored to your particular circumstances, please contact a professional financial adviser. Please refer to our Financial Services Guide (FSG) for more information www.morningstar.com.au/fsg.asp

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