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looking back, looking forward201046233045

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					                                                                                                                                                    Summer 2008

                                                                                                                               looking back, looking forward
                                                                                                                                   ground breaking research
                                                                                                                                                    who's rich
                                                                                                                                             after the turmoil
                                                                                                                                                50 short cuts
                                                                                                                                         christmas message
                                                                                                                                                    staff news


looking back, looking forward
2008 has been a challenging year indeed. As I write this article the Australian sharemarket has recorded the
second biggest fall of all time. This downturn has been worse than 1929/31 and 1987 but not quite as bad as
1973/74. The rear view mirror does not show a pretty picture.

Many have asked how we are travelling at such a difficult time and we thank you for your kind thoughts. I
am pleased to report that whilst things are tough at the present time, the future for Goodman private wealth
advisers remains bright.

It is true that many in our industry are struggling. At Goodmans we stuck to our conservative value investment
style during the boom times and as a result our clients have fared better than most during the downturn. It
follows that if our clients are faring relatively well then we too are faring relatively well. Our business does not
rely on product sales, but rather, on the strength of long term relationships.

We are determined to keep looking forward and fulfil our purpose. We have long stated that our purpose is to
help our clients invest and use their wealth for their own benefit, the benefit of their family and the benefit of
the broader community.

Over the last twelve months one way in which we fulfilled our purpose was by supporting a unique research
study that was conducted by the Australian Centre for Philanthropy and Nonprofit Studies at Queensland
University of Technology. This research made a major contribution to understanding the needs of high net
worth Australians, particularly in the areas of professional services and philanthropy.

                                                      We also continued to invest in the business during the year. We have
                                                      developed a range of new services for successful families. You will hear
                                                      more about this in 2009 but in a nutshell the new services are designed
                                                      to provide a comprehensive range of “family office” solutions for high
                                                      net worth families.

                                                      We may not be able to predict the future for investment markets but
                                                      we are confident that, in time, economies, sharemarkets and property
                                                      markets will recover. Things may get a little worse before they get better
                                                      and the various economies and markets may follow different paths to
                                                      recovery, but it WILL happen.

                                                      Goodman private wealth advisers is here for the long term. We will
                                                      emerge from this challenging year stronger. We will remember the
                                                      lessons of the last twelve months and use it to improve our business
                                                      intelligence in the future. We will continue to help you and future
  Elephants: are strong, live long and                generations of your family make informed financial decisions, so that
        have good memories.                           you can experience those things that are important to you.

                                                      BRAD CHURCH




Level 16 CPA Centre, 307 Queen Street, Brisbane QLD 4000 | GPO Box 1203 Brisbane Qld 4001
P 07 3221 0333 | F 07 3221 0830 | E advisers@goodmanwealth.com.au | W www.goodmanwealth.com.au |   John Goodman & Company Ltd ABN 95 009 938 514 AFS Licence No. 238363
ground breaking research
We recently released the findings of a ground breaking       We are already working in the area of philanthropy.
research study conducted by the Australian Centre            For clients, we provide information and advice to
for Philanthropy and Nonprofit Studies (CPNS) at             support their family giving programmes. In the wider
Queensland University of Technology. The study               community we seek to increase awareness of giving
was funded by a grant from Goodman private wealth            options to donors by delivering talks to community
advisers.                                                    organisations and write articles for professional
The study comprised personal in-depth interviews             publications on effective ways to organise their giving.
with a number of families, mostly from South East            To find out more about our philanthropy services
Queensland, with significant investment assets.              please contact us. If you or a colleague have an
Dr Kym Madden of the CPNS who headed the project             involvement with a nonprofit organisation, consider
said the study was long overdue and filled a gap in          having one of our directors address your members on
what was known about the advice wanted by better             giving from the donor’s perspective.
off Australian’s managing their wealth.                      While our endeavours in philanthropy are an integral
We sponsored the study for two reasons. First we             part of the Goodman business, don’t forget our catch
wanted to find out more about the advice needs of            phrase – It’s more than business, it’s personal.
better off families which are an increasing segment of       JOHN GOODMAN
our clients. The study also filled a gap in Australian
research on philanthropy from the view point of the          CPNS Research
affluent donor.                                              To read the report, follow this link
We’re using the findings of the study to compliment          http://eprints.qut.edu.au/archive/00015426/
our already substantial experience in advising
successful families. Several additional services to
those we already provide will be introduced in the near
future.


who's rich?
We often hear the comment that being a millionaire is        The accepted definition of rich or high net worth
common place these days.                                     individual is those people with one million dollars in net
You may wonder about whether that’s still true given         investment assets under their control. This measure
the sharp falls in asset prices that have occurred           calculates all of the family’s assets excluding the value
during the past twelve months. In our experience well        of the family home, and then deducts the value of all
off investors do relatively well in bad times. There are     debts.
still plenty with plenty.                                    The graph below provides an estimate on the number
Notwithstanding recent events, it is the case that           of financially well off people in Australia.
we, as a nation, are much richer than we used to
be. Sustained growth in our economy, rising house
prices, and the introduction of superannuation have all
added significantly to the collective wealth of Australian
individuals over the past 15 years.
But how many are rich? And how do they invest their
money?
We have researched this subject. There is a
surprisingly large number of well off Australians. At
least 150,000 families have investment assets of one
million dollars or more.
One source of data on the rich is the 2008 Wealth
Report - produced by Capgemini and Merrill Lynch.
who's rich? continued from page two
You will note that the rich have a minority of their assets invested in the ‘safe’ classes of cash and fixed interest,
and a majority of their assets in the ‘risky’ shares, property and alternatives (hedge funds, private equity, other).
The message here might be that the rich know they need to take on some risk to grow and maintain their
wealth.

In the end what constitutes being rich is
subjective. Each person or family will have
their own yardstick. Certainly, to many
the level of net assets is an important
measure. To others, the better measure
might be having enough to fulfill what’s
important to them. To our simple minds, is
there anything wrong with the definition of
just being healthy and happy.

If you’d like to know more about the
statistics of wealth, please contact us.

JAMES GOODMAN


after the turmoil
The wise and reassuring Bruce Teal, Chairman of              The authorities are carrying out these expansionary
Australian Foundation Investment Company, recently           policies as they rightly dread the thread of spiralling
offered investors some sage advice: “Picture the             deflation which is the stuff of depression. They
portfolio you would like to own after the turmoil is         knowingly risk inflation to avoid the even worse
over. I’m sure it includes shares that were previously       consequences of deflation.
too expensive, in the companies that will continue
to have wonderful businesses.” He went on to say             Central bankers hope that when their economies start
“now is the time to identify and start acquiring those       growing again, they can apply the brakes gently at
companies.”                                                  just the right time to avoid an inflationary blowout.
                                                             What little precedent there is, tells us that this requires
Wonderful advice but I would go further. To identify         an extraordinary degree of finesse. A surge in inflation
the right companies, we as investors need to picture         after the current turmoil is a very credible scenario.
the economic and business environment that will exist
once the dust settles.                                       Our investment committee’s thinking is that an
                                                             environment of high inflation must be one possibility
One issue, a very important one, is how the inflation        when we are applying Bruce Teal’s wise advice.
rate might change. In the recessionary environment
that now exists in many countries around the world,          Companies that can more easily pass on costs are
and which may well exist in Australia shortly, prices        likely to do relatively well in a time of high inflation.
fall. Has any reader contemplated buying a new car,          Borrowers do better than lenders.
appliance, or house recently? We feel no urgency as
                                                             Asset classes that have done well in past inflationary
we expect them to be cheaper next month.
                                                             environments include gold and real assets. Are there
The response of central banks around the world has           others?
been to increase the supply of money to facilitate
                                                             It is early days. But we are already asking ourselves,
bank lending. The extent of this intervention is
                                                             to what extent and when, should such assets be
unprecedented. Governments too are attempting
                                                             acquired. Your comments are welcome.
to prime the pump with substantial government
spending initiatives.
                                                             JOHN GOODMAN
           50 short cuts
           Would you tell your barber everything?
           Brisbane barber of 40 years, Ross Coco asked fifty of his clients for a snapshot of their lives and successes.
           50 Short Cuts is the result. It contains moving and funny anecdotes about the lives of relatively unknown yet
           influential Brisbane people.
           This collection of illustrated and moving stories on local business entities who have influenced the fabric of
           Brisbane culture included Maggie Goodman, John and Meta’s daughter. While not a business identity, her
           poignant story added diversity and complemented those of others.
           As the cost of producing the book was generously met by Peter Flynn, founder of The Amanda Flynn
           Foundation, all of the proceeds go to Prostate Cancer Research. Goodman private wealth advisers were
           proud donors.
           In addition, we have elected to support this charity in lieu of sending Christmas cards this year.
           To find out more and make your purchase visit www.50shortcuts.com.au.



           christmas message


                       We wish you and your loved ones a very happy
                         Christmas and good health and prosperity in
                        2009. Thank you for your support during what
                      has been a challenging year in 2008. As always, it
                                    is much appreciated.
                         Our office will close at 12:30pm on Wednesday
                         24 December 2008 and reopen on Monday 5
                                    January 2009 at 8:30am.
                       If you need to contact us during this time you can
                         call our office on 07 3221 0333. An answering
                          service will take your call and ensure that your
                              message gets through to your adviser.




           staff news
           Our paraplanner Kathryn Schimke, is currently studying the Graduate Diploma in Applied Finance and
           Investment. Kathryn was the recipient of the finsia award - 2007/2008 Queensland Subject Prize for Applied
           Portfolio Management. Well done Kathryn!
           Geraldine Simpson is taking a well deserved long break. After many years at Goodman, Geraldine has
           decided to take two months long service leave during December and January. We hope she has a relaxing
           break and look forward to her returning with renewed energy in the new year.




                             is published by John Goodman & Company Ltd.

In accordance with Section 947B of the Corporations Act we advise that John Goodman & Company Limited, ABN 95 009 938 514, AFS Licence No. 238363, its employees and/or their families may have an interest
in the financial products referred to in this Newsletter and that they may hold financial products or receive brokerage from the managers. The information contained in this publication is given in good faith and has
been derived from sources believed to be reliable and accurate. However, no warranty is given in relation thereto and no liability accepted by the firm, its employees or consultants for errors or omissions or for loss or
damage suffered as a result of any person acting in reliance thereon. It contains general financial products advice only. In preparing this document, John Goodman & Company Limited have not taken into account the
investment objectives, financial situation and particular needs (“Financial circumstances”) of any particular person. Accordingly, before acting on any advice contained in this document, you should assess whether
the advice is appropriate in light of your own financial circumstances or contact your adviser.

				
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