16th Annual Report to Our Clients
Another year in which our
clients continued to...
...Live well. Sleep well.
June 2015
An Integrated, Personal,
Tailored Service
INTEGR ATED WEALTH
SERVICE
STR ATEGY
& ADVICE
INVESTMENT
SELF M ANAGED
SUPER FUNDS
WHOLESALE
INVESTORS
RETIREMENT & OTHER
LIFE CHANGES
WRY & DRY
NUTS & BOLTS: FEES,
PUBLICATIONS & OTHER
First Samuel is a boutique wealth management company, founded in 1999.
Our focus is solely on providing individual, indispensable and enduring relationships
that create, manage and protect wealth.
We have just over 220 clients, for whom we provide an individual and
integrated wealth management service.
Our objective is simply for our clients to…
Live well. Sleep well.
2
First Samuel 2015 Annual Repor t
First Samuel Limited ABN 51 086 243 567 AFSL 225 405
First Samuel
Fiscal 2015 saw the continuing fulfilment of our client credo: Live well. Sleep well.
The intersection of
a) increased complexity in taxation,
superannuation and personal finance
regulations; and
b) the probable peaking of asset prices
means that the party is over for easy wealth
management.
Off-the-cuff; mass-media sourced or neighbourly
financial advice won’t work anymore.
o
The complexity is almost overwhelming.
How will you now manage?
Buying the market or a few big stocks won’t work anymore.
o
Buying expensive securities means lower
long-term returns.
You now need to be more intentional about your
wealth management.
First Samuel’s clients have the benefit of a boutique, experienced,
successful and client-centric company serving their needs.
Our response to the escalating complexity of the financial
world is to increase our wealth strategy advice resources
and communications. We want to keep our clients abreast
of regulatory changes and advise them on how to manage
or even restructure their arrangements.
Our response to overvalued and volatile markets has
been to be cautious and patient. We have followed our
long-successful approach of buying securities that, in
combination, provide a portfolio that:
a)
has a dividend yield higher than the market;
b)
has expected profit-growth higher than the market; and
c)
is inexpensive (i.e. a lower Price to Earnings ratio)
compared to the market.
This has resulted, as we exit FY-15, in our clients’ portfolios
having a more defensive structure than usual, and with a
significant cash weighting.
The objective of these moves was to protect our clients’ wealth.
So that they could Live well and Sleep well.
And they have. For yet another year.
Over the next few pages we describe how we help our clients to...
Live well. Sleep well.
www.firstsamuel.com.au
3
From mass production...
Others
Other providers have thousands of clients.
The only way these clients can be served is by mass production.
Mass production of general advice. Mass production of managed funds.
Automated answering services. Generic reports. Computer generated ‘personal’ letters.
Inattention to ethics and relationships.
4
First Samuel 2015 Annual Repor t
...to boutique service
First Samuel
Wealth strategy
& advice
Investment
management
Highly experienced
and qualified advisers
Individually designed
and managed portfolios
Tailored and individual
advice
Investments registered
in client’s name
An adviser who is
accessible, knowledgeable
and responsive
Investing with long-term
after-tax objectives
Client
services
Ethics &
relationships
Leading on-line reporting
No commissions
Independent annual audit
Full fee and cost
transparency
Close co-operation with
each client’s accountant
Relationship enhancement
with strategy, investment
educational and charity
events
www.firstsamuel.com.au
5
From short-term...
Others
Other providers think and manage only as far as the next quarter-end.
Or perhaps think like accountants and see the world as starting on 1st July
and then finishing the following 30th June. And then starting all over again.
Or think perhaps as far as the next bonus.
Or the next sales commission.
Or the next job interview.
6
First Samuel 2015 Annual Repor t
...to long-term
First Samuel
Wealth strategy
& advice
Investment
management
Client
services
Ethics &
relationships
Focus on long-term
strategies
Interested only in
long-term outcomes
Long-term performance
data and reporting
Desire for long-term
relationships
Capital adequacy analysis
Short-term emotion
ignored
Trend analysis
First Samuel Associates
(i.e. employees) have
many years’ experience
Advice updated as
required
Hold securities with
a 3+ years’ view
All reports electronically
archived
Associate stability at
First Samuel
www.firstsamuel.com.au
7
From before-tax...
Others
Other providers think only in pre-tax terms.
They do not have systems to manage on an after-tax basis.
After-tax management is just not possible with managed funds or industry funds.
Investing in a managed fund or industry fund means that an investor is investing
in an existing capital gains tax position.
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First Samuel 2015 Annual Repor t
...to after-tax
First Samuel
Wealth strategy
& advice
Investment
management
Client
services
Structures to optimise
tax payable
Active use of CGT
anniversary
Comprehensive
electronic record keeping
Not only superannuation
but also trusts
Use losses to offset gains
Ongoing dialogue with
clients’ accountants
But no tax schemes
Manage franking credits
Ethics &
relationships
Full transparency
Full independent audit
No tax schemes
Performance reported
after each client’s tax rate
www.firstsamuel.com.au
9
From disparate...
Others
Other providers offer just one or perhaps two pieces of the four critical wealth
management factors.
Other providers probably have an adviser in the suburbs or branch and the investors
remotely elsewhere, with the nuances of the clients’ needs lost in the ether.
With other providers single accountability for all four critical factors is lost.
10
First Samuel 2015 Annual Repor t
...to integrated
First Samuel
Wealth strategy
& advice
Investment
management
Client
services
Ethics &
relationships
www.firstsamuel.com.au
11
Chairman’s remarks
Dear Clients
In presenting our sixteenth annual report, I do so
with much pride, as I consider the journey taken by
First Samuel over the past 16 years in this most volatile
of industries.
The wealth management business is really an integration
of four distinct services:
“It is a sad indictment on the industry that
ethics has now become something that
government has to define and legislate for.”
• Wealth strategy advice (financial advice)
It is a sad indictment on the industry that ethics has now become
something that government has to define and legislate for.
• Investment management
At First Samuel we watch these developments with dismay.
• Client services and reporting (administration)
Whilst we are very comfortable that our clients’ needs are being
met (and well met, according to our clients satisfaction survey
results), we remain concerned at the direction of the industry.
• Ethics and relationships
…each of which is now seeing most profound changes.
Financial advice is suffering from two evils.
Firstly, it is becoming more commoditised and with an
increasing undercurrent of product selling.
And for our part, we will do all we can to provide a distinctive
offering in each aspect of our integrated service.
Yours sincerely,
Secondly, the increasing complexity of regulation.
Investment management is also suffering from twin evils.
It is becoming more complex, with an increasing array of
opaque products being sold.
And, as in other parts of our daily lives, short-term thinking
is prevalent.
The recent sheep-like herding into stocks that pay high
dividends by investors who perhaps shouldn’t be investing
in shares is an example.
The extent of that folly remains to be seen over the long-term.
Murray Baird
Chairman
But what is clear is that those who bought the stocks at
inflated values will have plenty of time to repent.
Client services and reporting (administration) seems to have
embraced all the latest that technology can provide.
Well, actually no.
The bells and whistles are fine. But if your wealth manager
cannot, for example, tell you such basic information as what
stocks are held then the bells and whistles don’t matter.
Finally, the world of ethics and relationships has disintegrated
in much of the wealth management industry.
The clearest evidence of this are media reports concerning the
extraordinary practices that have been allowed to evolve over
the years in erstwhile respected institutions.
All in the name of product selling.
“I’d rather spend my time doing what I do
best and what I enjoy. I’m very comfortable
leaving First Samuel to do what they do
best. Negotiating the Byzantine labyrinth of
retirement income legislation is not something
I could ever enjoy.”
Patrick Hughes, Anaesthetist
12
First Samuel 2015 Annual Repor t
General Manager’s Report
Dear Clients
Number of clients continues to slowly but steadily grow
I am again pleased to present a report on the governance
and operations of First Samuel Limited for the year
ended 30th June 2015.
230
220
210
Board of Directors
200
The Board of Directors is responsible to the shareholders for
setting the strategic direction and objectives for the Company;
for monitoring its performance and for ensuring compliance
with relevant regulatory requirements.
190
180
2010
2011
2012
2013
2014
2015
The Board delegates to me the day-to-day responsibility for the
operation and administration of the Company.
The Board has also delegated limited authority to three Board
Committees: Audit & Risk; Remuneration & Nominations and
Investment Governance. The last of these was established
during the year.
Management
First Samuel has an executive management team comprising
Dennison Hambling (Chief Investment Officer), Nikki Hill
(Head of Wealth Strategy Advice), Anthony Starkins (Executive
Director) and me.
Other governance matters
I received no formal client complaints and no matters were
referred to the Financial Services Ombudsman or to our
regulator (ASIC).
No significant compensation payments were made to
clients for losses arising from administration errors.
No commissions were paid to any third party and all
commissions unavoidably received were paid to the
relevant clients.
Yours sincerely,
Shareholding
First Samuel is owned by the people who work in the business.
Whilst Anthony Starkins holds the largest interest, CIO
Dennison Hambling, other senior Associates and all directors
also have significant holdings.
During the year no shares were issued by the Company.
Financial matters
FY-15 was another successful year.
Joe Flinn
General Manager
Client assets managed exceeded $400m for the first time;
we had our tenth successive year of profit and the number
of clients grew steadily.
And First Samuel retained its policy of having zero debt.
Directors’ meetings FY-15
Director
Board
Eligible
Remuneration & Nominations
Committee
Attended
Eligible
Attended
2
2
Murray Baird
5
5
Elizabeth Parkin
5
5
John Bryson
5
5
Antony Greenwood
5
5
Anthony Starkins
5
5
2
Audit & Risk Committee
Eligible
Attended
4
4
4
3
2
www.firstsamuel.com.au
13
Wealth Strategy & Advice
Dear Clients
Will change in our industry ever cease? Well, probably
not. And the last fiscal year was another one of ongoing
regulatory and taxation uncertainty for the wealth
management industry.
The government was pushed and pulled to make changes
to three intersecting areas of government involvement with
individual wealth management.
These three areas were:
• Taxation and regulation of superannuation
• Taxation of individuals (and also of trusts and companies)
• Old-age pension entitlements
Our clients are principally affected by the first two items. But
any regime for pension entitlements also affects the other two.
Regulatory complexity means advice complexity.
For us. Not our clients.
“The requirement now is for our clients,
and, in fact, all investors, to be intentional
about wealth management. And not just
let it happen.”
Because we have a limited number of clients, we can readily
respond to advice requests with tailored solutions.
I am concerned to ensure that all our clients know that they
can, in addition to formal meetings, call us at any time about
any wealth strategy advice issue.
So what now?
The outcome of these two overlapping regulatory issues
(more advice required; more communication required)
is that our clients know that the wealth strategy advice
aspect of wealth management is no longer easy.
Without going into the detail of the arguments and lobbying,
or the ongoing changes (and many of the changes our clients
just do not see – but we still need to manage them) there
is no doubt that the increased regulation has made wealth
management more complex.
Actually, it probably never was.
But we have kept our clients abreast of the changes and varied
their arrangements if appropriate.
Yours sincerely,
The requirement now is for our clients, and, in fact, all
investors, to be intentional about wealth management.
And not just let it happen.
We certainly don’t expect any slowdown in regulatory change.
But First Samuel is well resourced to not only monitor changes
but also to assess the outcomes for our clients and to take
action if necessary.
And my wealth strategy colleagues have the experience to
manage any issue for our clients.
By way of illustration, I set out on page 16 examples of the sort
of advice (in descriptive form) that we provided during FY-15.
Communicating to ‘Sleep well’.
Nikki Hill
Head of Wealth Strategy
The other aspect of regulatory changes is communication.
As with the other three services First Samuel provides,
I do wish our clients to: Live well. Sleep well.
Integral to sleeping well is our clients being aware of
regulatory changes.
And knowing that experts are managing their wealth structures
to achieve the most efficacious long-term outcomes.
So we communicate through three main channels:
• Formal annual face-to-face (if possible) reviews
• Ad hoc meetings and advice
• Wealth strategy updates in our publications:
Wry & Dry and First Hand
14
First Samuel 2015 Annual Repor t
“I have put my trust in First Samuel for eleven
years. I remain totally satisfied with their
service and performance on my behalf.”
David Blackley, Former Chairman, Clemenger BBDO,
Melbourne
Wealth Strategy & Advice
Wealth Strategy
Over our 16 years, we have always viewed wealth strategy
advice very differently from the rest of the market.
It is not product selling, commission-generating advice.
It is the provision of an individual, long-term and dynamic
framework that optimises your family’s after-tax wealth.
And we have always done this by considering the 10 key
dimensions of wealth strategy advice.
“Wealth strategy is a critical element in
wealth management. The most amazing
investment performance isn’t worth much if
you pay too much tax; your superannuation
fund becomes non-complying; your assets
are vulnerable or your testamentary wishes
cannot be met.”
We want our clients to be intentional about wealth strategy
advice. And not just let things happen.
1. Today and tomorrow
7. Beware of government
You need to know where you are today. It’s more than a list of
assets and liabilities. It is everything that will affect your longterm after-tax wealth.
Sadly, and most pervasively, the role of government is having
an increasing effect on the ability to manage wealth.
And without the clarity of a path to meet your objectives you
will waste time and money. The pathway must be uncluttered
but flexible, to allow you to maximise the opportunities around
and ahead of you.
2. Investing not saving
The simplest dimension is to use your savings to invest.
Investing is putting to work for the long-term that which you
have saved or can save.
This includes tax, regulatory changes, economic policy,
pensions and corporations’ law.
It is crucial to have an expert adviser who understands
the rules and your framework to ensure you maximise
opportunities and avoid disasters.
8. Measurement
You should not be content with just knowing the value of
your wealth.
3. Protecting yourself/ managing risk
You want to know how your wealth is changing. After fees. After
tax. And compared to your benchmarks. And all of the details.
Assets (including your life) are vulnerable to unforeseen events
that diminish the value of that asset and the income it produces.
9. Your legacy?
Assets need to be protected, either by diversification or other
techniques (for investments) or by insurance (lives).
You will not know when you are going to “shuffle off this
mortal coil”.
4. Diversifying investment structures
So you need to plan, now, how you wish your net assets
disposed of when you do. Or before you do.
Nowadays, almost everyone thinks of wealth management
in terms of superannuation. And for many that is true.
10. Ethics
But there are other structures: family trusts, companies, etc
that can also be used. See overleaf for family trust examples.
None of the preceding nine matters matter, if this last one
is ignored.
5. Optimise tax
Your biggest expense in life is tax. Far bigger than investment
fees, school fees or accountant’s fees.
Optimal tax payment comes from sensible structuring,
use of individual portfolios and active management.
6. Wise use of information
Because we are all so much more aware of economic and
markets events – to the point of virtual instantaneousness –
we react differently than if we had more time to reflect upon
new information.
Hence, whilst there has always been the madness of crowds
(Dutch tulip bulb craze, South Sea Bubble, etc), now there is
more: the contagion of hour-by-hour news.
“It is now over 14 years since I was first
introduced to First Samuel. They have proved
themselves to be trustworthy, honest, reliable
and impressively responsive to any query or
need. And the financial results have always
been more than pleasing.”
Rosemary Raffaele, Small Business Owner
Far better to ignore the news and the fashions. And use
information instead.
www.firstsamuel.com.au
15
Wealth Strategy & Advice
Sound wealth management requires
diversification of both structures and
investments
Key points
• Superannuation is extremely tax effective but its complex
rules are constantly changing
• A sound financial strategy often requires diversification by
investing in both superannuation and non-superannuation
structures
Alternatives to superannuation
Superannuation has become so successful and almost
omnipresent that many investors think that superannuation
is the only way to invest.
Not so.
There are non-superannuation investment structures that
provide flexibility and simplicity.
These include joint names, an investment company or a
family trust. A family trust may be the best choice for some.
Think about… family trusts
Family (discretionary) trusts are relatively easy to establish;
do not have the contribution, access rules or the regulatory
complexity of superannuation; are extremely flexible and
can be very tax efficient.
Cash or assets can be gifted or loaned to the trust on
establishment. Annual trust investment income is distributed
between family beneficiaries (which may also include a private
company beneficiary) on a discretionary basis.
Trusts may also provide a level of asset protection and a means
of an inter-generational transfer of assets without triggering tax
implications.
And you don’t need a large family to benefit from a family trust.
“Family (discretionary) trusts are relatively
easy to establish; do not have the
contribution, access rules or the regulatory
complexity of superannuation; are extremely
flexible and can be very tax efficient.”
For example…
A Professional Couple
Chris and Wendy are a professional couple without children
who are some years away from retirement. They intend to wind
down their work arrangements prior to being able to access
superannuation (prior to reaching age 60).
In order to fund their lifestyle after ceasing work they establish
a family trust to accumulate savings (in addition to making
regular superannuation contributions).
Family trust income is distributed principally to an investment
company while they continue to work and trust investment
income is taxed at 30%.
When they retire at age 55 they draw a dividend income
stream from the investment company, supplemented by
drawings from the trust. There is no tax payable on the
dividends paid (up to $80,000 each) net of franking offsets
and when they reach age 60 they can then access a (currently
tax free) superannuation pension.
A Retiree
Will is age 73 and is required to draw annual (tax free) pension
payments from his self managed superannuation fund. This
equates to 5% of his superannuation account balance, which is
much more than he requires to live. As Will is over age 65 and
no longer works he is unable to reinvest the excess pension
income back into his superannuation fund (to maintain his
superannuation fund in pension phase).
Will establishes a family trust and invests the excess pension
income each year into the trust, in addition to a significant level
of savings he has accumulated outside superannuation.
“The First Samuel ‘experience’ is excellent.
They are professional, knowledgeable and
understanding in their management of our
portfolio. I trust them and because of this
I do ‘sleep well’.”
Jack Room, Founding Partner & Director of BADJAR Advertising
16
First Samuel 2015 Annual Repor t
Will continues to fund his grandchildren’s school fees via annual
family trust income distributions made to his daughter each
year. As his daughter is not currently working, trust income
is tax efficiently distributed between Will and his daughter
(and his daughter applies the after-tax income to pay for her
children’s school fees). When Will dies, he has structured the
trust so that control of the trust assets will pass to his daughter
without triggering tax implications.
Summary
Successful wealth management means capturing the
opportunities of the range of investment structures that
are available.
There is more to wealth management than superannuation.
Investment Management
Dear Clients
With the exception of listed property trusts, it was a
dismal year for the Australian securities’ markets.
“So we have sacrificed the ephemerality
of investment happiness (i.e. investing in
higher yielding but over valued stocks) for
the higher probability of longer-term success.”
Context
Only property trusts had a good year
This reduced bank deposit rates to around 2%. And so retail
investors continued their ‘search for yield’ to seek a better
return than bank deposits.
30%
Aided by the intersection of astute marketing and attractive
dividend yields by, especially, banks, retail investors pushed the
prices of higher yielding securities above their intrinsic value.
15%
The market eased near year-end. And then had a final dip as
the financial woes of Greece cut the fiscal year’s outcome to
barely positive.
Small cap stocks, generally not a source of yield, had a year
that reflected a broad view of the short-term outlook for the
Australian economy – mediocre: up just 0.4%.
International shares had a good year, principally propelled by
the decline in the value of the Australian dollar. Without the
benefit of the falling currency, international shares returned
7.2%. But with the currency fall, the return increased to 25.6%.
Exit FY-15 share-market facts
The end-of-fiscal-year Greek financial woes obscured some
significant exit-FY-15 facts:
• the share-market is still over-valued, trading on a P/E of 16
10%
5%
Shares
Bank bills
Listed property
Jun-15
May-15
Apr-15
Mar-15
Feb-15
Jan-15
Dec-14
Nov-14
-5%
Oct-14
0%
Sept-14
Shares had a less fruitful time, returning 5.7%, of which 4.4%
was dividends. The market peaked at just over 12% (including
dividends) in March before sanity set in and investors realised
that the profit outlook for high yielding stocks, especially banks,
wasn’t that rosy.
20%
Aug-14
Listed property trusts were the main beneficiary of this
sentiment, up 20.3%. However, it remains to be seen how this
sector will perform when interest rates rise.
25%
Jul-14
The pallid Australian economy and the Reserve Bank’s desire
to weaken the currency and encourage growth meant interest
rates were pushed to never-before-seen lows.
Small cap
If you invest in more than one asset class, your performance
is a blend of the performances we achieve from each of the
securities’ markets in which we invest for you.
And, as much as we would like to, we cannot hold up the sharemarket. Or any other market.
But what we can, and did, do is to construct portfolios to meet
your long-term objectives. Rather than try to second guess
what the various markets will do in the short-term.
So we have sacrificed the ephemerality of investment
happiness (i.e. investing in higher yielding but over valued
stocks) for the higher probability of longer-term success.
And always so that you can: Live well. Sleep well.
Yours sincerely,
• interest rates are low
• the economy is stagnant
How did we manage for you?
Quite well, under the circumstances. All client portfolio types
outperformed their benchmarks1.
But our focus on our clients ‘sleeping well’ meant that our
defensive strategy cost relative performance as the market
rose until March.
Dennison Hambling
Chief Investment Officer
And, with the market pullback later in the year, our strategy bore
fruit and our performance came to match that of the market.
But, as the share-market had a modest year, absolute returns
were below long-term averages.
We describe this with more clarity over the following pages.
Performances against benchmarks are measured over rolling five-year periods, measured quarterly, after fees.
1
www.firstsamuel.com.au
17
Investment Management
Portfolio performance1
The modest share-market returns dampened outcomes
for all portfolios.
“The modest share-market returns
dampened outcomes for all portfolios.”
First Samuel manages each client’s portfolios on an
individual basis, tailoring each to individual needs.
But for convenience and because of differing asset mixes
we have grouped most client performances into three
CPI-based groups.
Each of the three groups again outperformed their objective.
Post 30th June event
Our clients hold an average weight of about 8% in Energy
Developments Limited in the Australian share’s portion of their
portfolios.
On 20th July 2015, Duet Group made a cash takeover offer for
all the ordinary shares in Energy Developments, at a price of $8
per share, a 28% premium over the company’s twelve-month
volume weighted share price.
First Samuel first purchased the stock at a price of $3.39
in October 2007, with an average purchase price of $3.20.
Subject to no higher bid, we, and all other shareholders,
have accepted the offer.
Blended portfolios
The average asset mixes, or ‘asset allocations’, for each of the
three main portfolio types to those sectors are set out below.
We comment on each of those sectors in the following pages.
Please note that individual client allocations may vary
considerably, reflecting individual investment needs.
Asset mixes (averages): more growth means more shares
in a portfolio
Growth portfolios
Long-term objective
CPI + 5% p.a. over rolling 5 year periods
5-year benchmark
2.4% + 5% = 7.4% p.a.
5-year outcome
9.5% p.a.
FY-15 outcome
6.3%
Many of our clients choose an asset mix that should provide
them with a long-term return that exceeds inflation by 5% p.a.,
after all fees.
As you can see from the chart below, the returns vary from
year-to-year. This variation is caused by, mainly, variations in the
returns of the share-market. This is clearly shown by the two
large negative returns in each of FY-08 and FY-09.
These returns are smoothed over rolling 5 year periods,
to achieve the performance shown by the orange line.
Our clients have enjoyed an average 5-year outcome of 9.5% p.a.
As you might expect, the performance of CPI + 5% is much
smoother. And over the last 5 years has been 7.4% p.a.
So we have comfortably added value to that benchmark.
Of course, future performance will continue to be variable,
but over any 5-year period should exceed CPI by 5% p.a.
On page 19 we set out the performance of our other two large
portfolio types: Balanced and Conservative. You will see that
the pattern of performance is similar for each and for growth
portfolios, but the range of investment returns becomes
narrower as the margin over CPI reduces.
100
Growth portfolios: still comfortably above benchmark
80
40%
60
30%
40
20%
20
10%
-10%
-20%
Annual average (after fees)
Rolling 5-year average
Rolling CPI + 5%
Dr. Geoff Edwards, Gynaecologist
Performance is after fees. Past performance does not guarantee similar future performance.
1
18
First Samuel 2015 Annual Repor t
CPI +5%
“I am always confident that First Samuel is
acting in my best interests. They provide high
quality advice and strategic management and
keep me well informed about where I am at
and where I am heading with my retirement
planning.”
0%
Client
average
Growth
Balanced
Conservative
Shares
International shares
Income securities
Property securities
Alternative securities
FY-01
FY-02
FY-03
FY-04
FY-05
FY-06
FY-07
FY-08
FY-09
FY-10
FY-11
FY-12
FY-13
FY-14
FY-15
0
Investment Management
Balanced portfolios
Long-term objective
CPI + 4% p.a. over rolling 5 year periods
5-year benchmark
2.4% + 4% = 6.4% p.a.
5-year outcome
9.4% p.a.
FY-15 outcome
6.3%
“The share portfolios’ securities’ mix
reflected our view that much of the market
was over-valued, and that securities with
good risk-adjusted returns were scarce.”
Balanced portfolios: outperforming with less volatility
40%
Sector performances2
30%
Australian shares (average client return = 5.7%)
20%
The performance of our clients’ shares’ allocation, on average,
for FY-15 matched the share-market (including dividends,
before fees).
10%
0%
CPI +4%
Annual average (after fees)
Rolling 5-year average
Rolling CPI +4%
Client
average
-20%
FY-01
FY-02
FY-03
FY-04
FY-05
FY-06
FY-07
FY-08
FY-09
FY-10
FY-11
FY-12
FY-13
FY-14
FY-15
-10%
So, it was an acceptable result. But we were disappointed
that some of the companies we hold, including Pacific
Brands, Ausenco, Emeco and Ingenia, made profit-affecting
announcements immediately after 30th June rather than before3.
For our clients this meant that over 1% of performance that
should have been in FY-15 will now be in FY-16.
First Samuel shares matched the market
Conservative portfolios
14%
Long-term objective
CPI + 3% p.a. over rolling 5 year periods
5-year benchmark
2.4% + 3% = 5.4% p.a.
5-year outcome
8.2% p.a.
FY-15 outcome
5.5%
10%
8%
6%
4%
Conservative portfolios: lower return but low volatility
2%
0%
40%
30%
Jun-14
Aug-14
Oct-14
Dec-14
Feb-15
Apr-15
Jun-15
First Samuel Australian Shares
Share-market (including dividends)
20%
10%
The share portfolios’ securities’ mix reflected our view that
much of the market was over-valued, and that securities with
good risk-adjusted returns were scarce.
0%
CPI +3%
Annual average (after fees)
Rolling 5-year average
Rolling CPI +3%
Client
average
FY-01
FY-02
FY-03
FY-04
FY-05
FY-06
FY-07
FY-08
FY-09
FY-10
FY-11
FY-12
FY-13
FY-14
FY-15
-10%
-20%
12%
The market’s passion for high yielding and seemingly safe
stocks (evidenced by investing in banks, regardless of longterm growth outlook) was something that we were, and are,
happy to continue to ignore.
We do not, and never have, invested on the basis of short-term
happiness or fashion. This approach occasionally means that
our relative performance is not as good as otherwise. But we,
and our clients, prefer to focus on long-term outcomes.
“We love no commissions, open disclosure
of costs and the website for watching our
investments at any time.”
Susan Allman, Medical Practitioner
Performance is before fees. Past performance does not guarantee similar future performance.
2
The reasons possibly had to do with bonus calculations for senior executives (i.e. if your performance indicator is underwater in a year, why announce good news
that will not overcome the year’s deficit. Better to wait until the new fiscal year, when the performance hurdles are reset to zero).
3
www.firstsamuel.com.au
19
Investment Management
Australian shares …continued
What didn’t work
The retail market’s fixation with high-yield securities
commenced in FY-13 and continued until February 2015.
Each year we have stocks that ‘do work’ and some that ‘don’t
work’. The ones that don’t work tend to be scrutinised by
clients, and so we focus on these first.
So, whilst absolute returns for clients have been good, relative
returns for each of FY-13 and FY-14 were disappointing and,
as you can see from the chart, this has affected our three-year
returns.
Australian shares: long-term strong, but not ‘searching
for yield’ stocks has hurt short-term performance
15%
In FY-15, we had three stocks whose short-term performance
disappointed. These three underperformers more or less
provided the bulk of our disappointments (whereas our
successes were more widely spread – see opposite).
However, in each case we consider that there is a strong,
positive long-term outlook.
12%
Ausenco (-50%)
9%
Ausenco Limited is a global engineering, procurement,
construction management and operations service provider
to the energy and resources sectors.
6%
3%
0%
Just because a stock doesn’t have success in one year doesn’t
mean that it will not have success in the future, or hasn’t
enjoyed success in the past.
1 year
3 years
5 years 7 years 10 years 15 years
First Samuel Australian shares
All Ordinaries Accumulation Index
Performance is % p.a. for periods to 30-Jun-15. Performance is the asset weighted
average of the share performance of like portfolios and is pre-fees.
Past performance does not guarantee similar future performance.
What is pleasing however is that long-term returns remain
very strong. As our investment process is unchanged we are
confident of relative returns once again being strongly positive.
Please see page 21 for more on how our clients’ share
portfolios are currently structured.
Ausenco had a difficult year, driven by weak operating
conditions.
The company down-scaled aggressively, and it is now wellpositioned to take advantage of new project opportunities
(principally in North and South America).
We assess the current share price to considerably undervalue
the company’s worth.
Emeco (-59%)
Emeco provides and maintains heavy earthmoving equipment
for mining across Australia, Canada and Chile.
Emeco experienced a sharp reduction in demand for
equipment on the back of the mining downturn.
Additionally, there have been some corporate distractions,
including a proposed takeover (which we did not support), and
a proposed merger (which did not go ahead).
We have seen the start of an operational turnaround, with
equipment utilisation at 74% at the end of FY-15 (compared
to 51% at the same time a year prior), and a good pipeline of
opportunities. However, we are yet to see that translate into
the share price.
Cardno (-44%)
Cardno is a global engineering company that provides
infrastructure and environmental services.
“I value relationships – trust, integrity and
competence are the core of my relationship
with First Samuel. I also value the personal
nature of my relationship – when I phone,
I usually know the person who is answering
the phone and they know me.”
Dr. Darryl Shnier, Radiologist and Nuclear Medicine Physician
20
First Samuel 2015 Annual Repor t
Cardno released an unexpected profit downgrade in Nov-14,
principally caused by tough Australian conditions (including
in the mining and resource sectors, and delays in the
infrastructure spending ramp-up), and difficulties in their
US-based businesses.
Cardno has an attractive dividend yield, and has announced a
new CEO, who comes with an excellent track record of growing
engineering businesses globally.
Investment Management
Australian shares …continued
We exited FY-15 with a somewhat defensive portfolio
What worked
The target share portfolio that we have for clients as we exited
FY-15 is the outworking of the way we manage investments.
We had more companies ‘that worked’ than didn’t.
And, pleasingly, the successes were more widely spread.
Energy Developments (+40%)
Energy Developments Limited is an international provider of
safe, clean, low greenhouse gas emissions energy and remote
energy solutions.
It currently manages an international portfolio of over 900MW
of power generation facilities in Australia, the United States and
Europe, utilising a range of fuel sources operating in four main
areas: remote energy, natural gas (NG, CNG & LNG) and diesel,
landfill gas and waste coal mine gas.
FY-15 saw continued strong operational performance from
Energy Developments.
This process has been the same for 16 years – we have not
adjusted it to accommodate what we see are short-term
market whims or fashions.
Our clients know that we have eschewed the ‘search-for-yield’
stocks, as we consider this to be a short-term trend. These
stocks i.e. the big banks, are unlikely to have the profit growth
in future to justify their current share prices. And so their
expected future returns will be lower.
If we look at our target portfolio and break it into common
themes, there are four that emerge. These themes are the
outworking of our process; we didn’t start by saying we must
have, for example, 18% cash. The high cash position is because
we have taken profits and not found, for the moment, anything
better in which to invest.
Good cash generation from long-term contracts, combined
with continued earnings growth and high dividends, was
rewarded by the market.
18%
Cash
20%
Anchor
stocks
See post 30th June event on page 18.
Aveo (+25%)
Aveo Group develops, operates and manages retirement
villages and is Australia’s leading provider of retirement
lifestyles.
It has a portfolio of 75 retirement villages and four aged care
facilities across Australia offering a wide choice of living options
to over 12,000 residents.
Aveo achieved stronger than anticipated earnings from its
retirement operations.
Additionally, Aveo’s exit from its non-retirement business has
been supported by the buoyant residential property market.
These factors have led to the security price of this onceunloved investment to close towards its NTA (net tangible asset
value per security).
360 Capital Group (+36%)
360 Capital is a property investment and funds management
group concentrating on strategic investment and active
investment management of property assets. It manages 10
investment vehicles holding 28 industrial, office and retail
assets across Australia valued at more than $860 million on
behalf of over 8,500 investors.
360 Capital Group has successfully managed a number of listed
and unlisted funds (including 360 Capital Industrial Fund and
360 Capital Office Fund, in which our clients are also invested).
It is in a strong capital position, and earnings have been well
supported by its co-investment in the funds it manages.
23%
Long-term
opportunites
39%
Defensive
stocks
Cash from taking profits was better left in cash, as there were
not any worthy risk-adjusted investments.
Anchor stocks, which included BHP, Challenger, Suncorp and
QBE, were held for business predictability.
Defensive stocks were conservative property-linked securities
or securities linked to aged-care or retirement demographics.
Long-term opportunities were stocks that were very
inexpensive, or that we had purchased and became
inexpensive because of profit downturns (see page 20).
Some of the opportunities caused us discomfort, but we have a
sense of their long-term success.
Pleasingly, the balance and structure worked well. The portfolio
was less volatile than the market and certainly exited FY-15 with
each of the three critical success factors comfortably more
attractive than the market.
FY-15 was exited with a portfolio superior to the ASX
Our target portfolio reflects our desire to have a portfolio of
stocks that together:
• has a yield higher than the market
• has expected profit growth higher than the market
• is inexpensive compared to the market (i.e. has a lower
Price: Earnings ratio).
Factor
First Samuel
ASX 200
First Samuel advantage
Dividend
Profit
growth
Valuation
(yield after
franking
credit)
(EPS
growth
p.a.)
(P/E)
6%
4%
2%
8%
4%
4%
10
15
50%
www.firstsamuel.com.au
21
Investment Management
Income securities (+5.8%)
Investors should expect steady returns and low volatility from
income securities.
And that is what our clients received for FY-15. The returns
(average 5.8%) were comfortably ahead of the benchmark
(2.6%) and without significant volatility.
The target portfolio remains well diversified across maturities
and sectors.
“First Samuel’s foundation of thorough
consultation and clear communication
provides the client with a well thoughtout strategy, tailored to their personal
requirements and aspirations.”
Peter Houghton, Owner & Director Rye Hotel
Income securities: well above benchmark
Nufarm Notes
Property securities (+14%)
Envestra bond
We use property securities to primarily lower the risk of clients’
portfolios, rather than enhance returns.
AMP bond
AA (Vero) Insurance FRN
And so we eschewed what have become over-valued property
securities, that are not likely to prosper in times of higher
interest rates.
NAB floating rate note
Westpac hybrid
AGL hybrid
We were therefore pleased with the return and also the fact
that it came from no single success – but a contribution from
a range of securities.
Electricity Trust of SA
Ramsey Health hybrid
Property securities: well diversified with strong returns
Primary Healthcare hybrid
Seven Network hybrid
National Storage
Challenger hybrid
Generation Healthcare
Multiplex hybrid
-5%
0%
5%
10%
15%
20%
Asset weighted average client performance.
Individual client returns may differ.
Alternative securities (+11.5%)
Not all securities can be readily put in a ‘box’. That is, they are
not equity (i.e. a share), income security or property security.
Often they are a blend of two or more sectors. Our focus is to
diversify risk and sources of return.
Westfield Corp
Charter Hall
Cromwell
Centuria Metropolitan
Dalrymple Bay
Goodman Group
Centuria 8
Cedar Woods Trust
-30%
-10%
10%
30%
50%
Asset weighted average client performance.
Individual client returns may differ.
Alternative investments: outstanding returns from
diversified sources
Sapphire MBS
“I am a client of long standing and have
confidently referred family and friends. My
initial interest was in professional management
of my portfolio and reduced personal effort.
Now it is the financial returns, professionalism
and wise counsel that I value most.”
Seiza bond
UBS property note
Sapphire 13 MBS
Mr Rental convertible note
Peet Ltd Hybrid
Harrick Rd Trust
Heemskirk Note
-5% 0% 5% 10% 15% 20% 25% 30%
Asset weighted average client performance.
Individual client returns may differ.
22
First Samuel 2015 Annual Repor t
Helen Maxwell-Wright, Director Maxwell-Wright Associates’
Investment Management
International shares (+25.6%)
We invest in international shares to diversify risk in clients’
portfolios. We do not seek to add value above the market.
Hence we invest in a ‘global indexed fund’. This fund, managed
by Vanguard, invests in the largest companies in the world
(ex-Australia) in proportion to their share-market capitalisation.
“First Samuel 2:30 says God will honour those
who honour him. This principle guides their
excellence in service and their honest, ethical
approach to finance. A rare combination.
Thanks First Samuel.”
Diversification also comes from currency. That is, the fund is
denominated in US dollars (hence strengthening of the US
dollar against the Australian dollar adds to returns), but it also
captures the underlying currency exposure of the companies in
which it invests.
Dr. Michelle Gajus, Ophthalmologist
The US dollar return of the fund was just 7.2% in FY-15, but the
weakness of the Australian dollar added another 18%.
Economic forecasts are, generally, notoriously unreliable. But
with the probable exception of GDP forecasts, there is a trend
about an economy’s growth that is moderately predictable.
The ten largest international investments
#
Company
%
#
Company
1
2
%
Apple
2.3%
6
General Electric
0.8%
Microsoft
1.1%
7
Nestle
0.8%
3
Exxon
1.1%
8
JP Morgan
0.7%
4
Johnson &
Johnson
0.8%
9
Novartis
0.7%
5
Wells Fargo
0.8%
10 Pfizer
0.7%
US companies have by far the largest portfolio weight
16% Other
4% Canada
59%
United States
4% France
8% UK
9% Japan
GDP growth in 2016?
And economists tend to predict a lot better than government
or politicians.
GDP data does not predict share-market returns (e.g. Japan).
Nor does it provide insights about other things happening
in a country (e.g. Greece).
But it is a useful guide to the expected growth in the wealth
of a nation.
Australia’s neighbours are expecting high growth in 2016
India
China
Indonesia
New Zealand
Australia
USA
UK
Greece
Germany
Euro area
Japan
France
“Having dealt with First Samuel for many years
both professionally as an accountant and in
the management of my personal investments,
I can highly recommend them for your
investment needs.”
Tom Tyrrell, Accountant & Auditor, Tyrrell SMSF Audit
Services Pty Ltd
Italy
Russia
0%
2%
4%
6%
8%
Expected GDP growth 2016. Selected countries.
Source: The Economist, poll forecasters, July 2015.
And it is reasonable to observe that Australia will continue to
enjoy the upward pull of the economic growth of countries
around us.
www.firstsamuel.com.au
23
Client Services & Reporting
Dear Clients
We have always invested considerable resources to
ensure that our clients have access to timely, accurate
and useful information.
During FY-15 we significantly upgraded our website and
communications’ regime.
And in FY-16 we will be rolling out a completely new online
reporting regime.
www.firstsamuel.com.au
Our website has been rebuilt and redesigned.
Firstly, we are always concerned that our online services are
secure (not that any portfolio or access instructions can ever
be made online). And so we changed our website platform to
further enhance security.
Secondly, we have made it easier for clients to access portfolio
information and to do so ‘anytime, anywhere’, with better
access on mobile devices.
“We have always invested considerable
resources to ensure that our clients have
access to timely, accurate and useful
information.”
Wry & Dry
“A weekly review of wealth management matters through
a cynical eye.”
The cynicism hasn’t changed, but Wry & Dry has. And is now
fully web-based. There are more articles, with more charts.
And the important (and serious) investment section has been
extended, as has the Calendar of Events.
By way of reminder, Wry & Dry, emailed on Friday afternoons and
also posted on our website, not only has its cynical review of the
week’s events, but also a full review of investment matters, a roundup
of global business news and a page of light-hearted miscellany.
First Hand
Finally, we refreshed the persona of the website, using ‘tiles’
to make it easier to navigate and find information.
We have also upgraded the delivery of our bi-annual thought
leadership news-sheet, First Hand.
Reporting
The essence here was to make it easier for clients, and others,
to access articles focussed on wealth strategy, investment and
matters of general wealth interest.
Even before the upgrade, our online reporting regime was,
arguably, the finest in Australia.
It allows not only our clients, but also their accountants
(if clients so choose), to keep abreast of everything that is
happening in their portfolios.
When
Delivery
Report
Daily
Online
Portfolio appraisal (latest close)
Daily
Online
Cash statement (Fiscal Year to Date)
Daily
Online
Transaction report (FYTD)
Daily
Online
Performance report (FYTD)
Daily
Online
Realised CGT report (FYTD)
Daily
Online
Unrealised CGT report (latest market close)
Quarterly
Online
Investment commentary
Quarterly
Online
Performance contribution chart
Annual
Online
Flash after-tax performance report
Annual
Hard copy & online
Annual investment review
Annual
Hard copy & online
Annual report
Annual
Online
Accountant’s pack
Annual
Online
Taxation pack
Annual
Online
Independent Audit Certificate
Other services
We continue to provide a range of other services for our clients
that assist them in managing their wealth.
The most often used are our payment service, where we make
regular or irregular payments for our clients. Payments include
not only pension payments, but also accounts to be paid to,
for example, the ATO or a client’s accountant.
Also, some of our senior executives are available to act as
director or trustee for clients’ investment vehicles. This service
is subject to the circumstances of the appointment.
Summary
We are always seeking ways to make our Client Services and
Reporting more accessible, useful and timely.
Responses to our annual client survey have provided us with
the basis for many of the changes. But we are always keen to
receive practical ideas from clients at any time.
Yours sincerely,
Communication
In addition to an increased number of formal and informal meetings
with clients, we have upgraded delivery of client communications.
Joe Flinn
General Manager
24
First Samuel 2015 Annual Repor t
Ethics & Relationships
Dear Clients
‘The provision of individual, indispensable and enduring
relationships…’
“The provision of individual, indispensable
and enduring relationships...”
Since I established First Samuel in 1999, the essence of
the company is the relationships that we have with our
clients. And FY-15 has seen no diminution of our focus
on those relationships.
Events
Individual
CIO Dinners
With the exception of some not-for-profit organisations, all our
clients are individuals and their families.
Because we get to know them reasonably well, we can better
manage their wealth. And respond to their needs, personally.
Importantly, if any client is not satisfied with anything, they can
speak to the person who mostly owns First Samuel. Me.
Enduring
We have again held a series of events so as to strengthen
relationships with our clients.
We hold CIO (Chief Investment Officer) Dinners in private
dining rooms of fine restaurants located near our clients. With
generally 20-25 clients attending each, they provide a pleasant
and informal setting for investment review and analysis.
In FY-15 we held six in the suburbs of Melbourne, as well as on
the Mornington Peninsula, Sydney, Brisbane and London.
We also held four special CIO Dinners later in FY-15 to provide
information on our more defensive investment strategy.
Our business is wealth management, which, by its nature
cannot be short-term. Hence in each service we offer we look
to long-term outcomes for our clients.
Annual Forum
In investment markets in particular, emotional squalls often
overwhelm fundamentals. And so the climate of investment is
often viewed through the lens of today’s weather. This means,
for example, that short-term under-performance is mistaken
for long-term weakness.
In FY-15 we heard from Vladimir Kornovolov, the Moscow-based
head of the International Petroleum Institute.
We prefer a more patient approach. As do our clients.
Indispensable
It is not trite to say that our clients cannot do without us.
Because we successfully deliver the integration of the four
critical wealth management success factors, a client would have
to seek disparate providers to replicate what we do.
Elements of Trust
Our clients put their trust in us because of our character
and that of our Associates. That character is most obviously
reflected in some of the ways we manage our business.
No commissions
First Samuel does not pay or accept commissions. It is as
simple as that. And we never have.
In August each year we invite an interesting wealth management
speaker to address our clients.
First Samuel’s charity focus
First Samuel is a major supporter of two of Melbourne’s
leading charities:
Eat Street, the Melbourne food and wine feast that raises significant
funds for charities. In May we hosted our clients to attend.
We also support The Brainwave Foundation, which provides
support for families of children with brain illnesses and injury.
Art Series
We host an annual event at the National Gallery Victoria.
In FY-15, our clients enjoyed a private viewing of ‘Italian
Masterpieces from the Prado’, a most magnificent event.
Summary
In each of these areas we seek to enhance the relationships we have
with our clients. And with the highest ‘Net Promoter Score’ of any
company in Australia, it seems as though we have again succeeded.
Yours sincerely,
Transparency
Our clients can see everything we do for them. Our online
reporting is so detailed that not only are all securities’ holdings
clearly identified, but also every transaction and cash movement.
Disclosure
Our policy of complete disclosure means that there are no fee
or cost surprises for our clients. And if there is an administrative
error we disclose it, and correct it in our clients’ favour.
Investment disappointments are fully disclosed. We do not hide
behind reporting just the investments that have done well, we
also tell our clients when things haven’t worked out and why.
Anthony Starkins
Founder and
Executive Director
www.firstsamuel.com.au
25
Ethics & Relationships – Governance
Integral to Ethics & Relationships is our independent
Board of Directors.
Unlike many other small providers in our industry, First
Samuel’s Board has a majority of non-executive directors.
First Samuel: Live well. Sleep well.
This is critical to ensure that the Board focusses on
governance, compliance and strategy matters, and not
on the day-to-day running of the Company.
Directors
Murray Philip Baird, Chairman, BA, LLB, FAICD
Mr Baird is Assistant Commissioner General
Counsel of the Australian Charities and Notfor-Profits Commission (ACNC). Prior to June
2012 he was in private legal practice in not-forprofit and charity law and governance. He was
previously Senior Partner and leader of the
Not-for-Profit group at Moores Legal, Melbourne.
Mr Baird is the Chairman and a non-Executive Director of
First Samuel Limited, and Chairman of the Remuneration &
Nominations and Investment Governance Committees.
Elizabeth Henty Parkin, Deputy Chair, B.Bus,
FFin, ACA
Miss Parkin has over 30 years’ experience in
senior management and corporate advisory
roles, working for such firms as Lander &
Rogers, KPMG and E.L & C. Baillieu. She is a
Director of Parkin Corporate and a trustee of
the Northcote Trust Fund.
Miss Parkin is Deputy Chair and a non-Executive Director of
First Samuel Limited and Chair of the Audit & Risk Committee.
John Alexander Bryson, B.Eng (Mech), MBA, MAICD
Mr Bryson has over 30 years’ experience in the
finance industry. As an equity owner of JBWere,
he held the positions of Group General Manager,
Group Retail Manager and Director Corporate
Finance. He has been CEO of the Helen
Macpherson Smith Trust, and Non-Executive
Director of Choiseul Investments Ltd and Praemium Ltd.
Antony Baron Greenwood, LLB, LLM, FAIM, MAICD
Mr Greenwood is currently a consultant to and
was a partner of law firm Ashurst Australia
(formerly Blake Dawson), where he specialises
in corporate law and governance. Prior to that,
he was a Commissioner of the National Companies
and Securities Commission (the forerunner to ASIC).
Mr Greenwood is a non-Executive Director and member of
the Audit & Risk Committee of Rotary Club of Melbourne and
its two community foundations, and Treasurer of St James Old
Cathedral Melbourne.
Mr Greenwood is a non-Executive Director of First Samuel
Limited and member of the Audit & Risk Committee.
Anthony Hamilton Tom Starkins, LLB, B.Ec, CFA,
FFin, MAICD
Prior to founding First Samuel in 1999,
Anthony’s significant experience was working
with J.P. Morgan and Schroders for a combined
19 years.
He is a Chartered Financial Analyst, holds Bachelors’
degrees in both Laws and Economics from Monash University,
has completed the University of Oxford Advanced Management
Program and also the University of Michigan Business School
Strategic Marketing Program; is a fellow of the Financial
Services Institute of Australasia and a member of the Australian
Institute of Company Directors and the CFA Institute.
Mr Starkins is an Executive Director of First Samuel Limited
and a member of the Investment Governance Committee.
He is currently Deputy Chair of the Bionics Institute, Chair
of its Investment Committee and a member of its Risk and
Finance Committee.
Mr Bryson is a non-Executive Director of First Samuel Limited
and a member of its Remuneration & Nominations and
Investment Governance Committees.
First Samuel Limited
ABN 51 086 243 567 AFSL 225 405
Level 11, 350 Collins Street, Melbourne, Victoria 3000
Ph: +61 3 8610 9222
Fax: +61 3 8610 9299
[email protected]
www.firstsamuel.com.au
26
First Samuel 2015 Annual Repor t
General Manager
Counsel
Joseph Anthony Flinn B.Acc, CA
Watkinson Legal
Company Secretary
Auditors
Timothy Watkinson
Watkinson Legal, LLB
MSI Ragg Weir & Co
Joseph Anthony Flinn B.Acc, CA
Registered Office
Level 2, 108 Power Street
Hawthorn, Victoria 3122
From First Samuel…
Murray Baird
Chairman & Director
John Bryson
Director
Simon Devlin
Senior Client Strategist
Joe Flinn
General Manager
...to you
Chris Tsatrafilis
Senior
Client Strategist
Jenny Forbes
Associate Client Strategist
Craig Fraser
Investment
Manager
Anthony Starkins
Fleur Graves
Susanne Retallick
Antony Greenwood
Angela Paterson
Megan Groufsky
Executive
Director
Equities
Analyst
Director
Business
Manager
Senior Investment
Administrator
Elizabeth Parkin
Deputy Chair
& Director
Marketing & Events
Coordinator
Jack Ngo
Client
Strategist
Emma Jeremiejczyk
Controller Investments
& Finance
Nikki Hill
Head of
Wealth Strategy
Dennison Hambling
Chief Investment
Officer
www.firstsamuel.com.au
27
“The provision of individual, indispensable and enduring relationships that create, manage and protect wealth”
“The Lord declares those who honour me I shall also honour” 1 Samuel 2:30
The First Samuel word mark, First Samuel device mark and Wry & Dry word mark are registered trademarks of First Samuel Limited