finding refuge in challenging markets...markets have rallied through that. unfortunately, good...

Around the tableAN EXCHANGE OF INVESTMENT IDEASCRESTONE INVESTMENT FORUM / SEPTEMBER 2019

Finding refuge inchallenging markets

Around the table Richard QuinCHIEF INVESTMENT OFFICER BENTHAM ASSET MANAGEMENT

Nathan ParkinINVESTMENT DIRECTOR ETHICAL PARTNERS FUNDS MANAGEMENT

Frank UhlenbruchINVESTMENT STRATEGIST JANUS HENDERSON INVESTORS

Domenico GiulianoDEPUTY CHIEF INVESTMENT OFFICER MAGELLAN ASSET MANAGEMENT

Anne AndersonHEAD OF FIXED INCOME AND INVESTMENT SOLUTIONS AUSTRALIA UBS ASSET MANAGEMENT

Michael BuchananDEPUTY CHIEF INVESTMENT OFFICER WESTERN ASSET MANAGEMENT

CRESTONE WEALTH MANAGEMENT

Scott HaslemCHIEF INVESTMENT OFFICER

Stan ShamuSENIOR PORTFOLIO STRATEGIST

Finding refuge in challenging markets 4

Questions to the table: Where are we in the economic and market cycle? 5

What does this mean for equities? 6

How well would Australia weather a global downturn? 8

Is there any value in bonds? 9

Where do you see the biggest opportunities and risks? 10

Important information 11

Contact us 12

CONTENTS

CRESTONE / AROUND THE TABLE / SEPTEMBER 20194

After a strong first half of the year for investment markets, recent months have crystallised both a weaker path for economic growth globally and a rising trajectory for geo-political tension. Investors are now being challenged by equity markets that appear expensive as company earnings trends disappoint and by bond yields that predict a significant global downturn and a return to ultra-low yields not seen since the global financial crisis (GFC).At Crestone’s most recent investment forum, we asked panellists to discuss if the unfolding central bank stimulus would stabilise global growth as we enter 2020, or whether the recent re-escalation in the trade dispute, and resulting global capex uncertainty, had already set in train a near-term recession. Participants broadly see the global growth backdrop as fundamentally healthy, despite rising geo-political risks—though slower growth and lower interest rates are likely to persist. Following the housing downturn and recent policy support, Australia is seen to be in a better position to weather any global downturn that may eventuate.Overall, investor caution was a key message, with a focus on making sure capital was deployed to companies with strong balance sheets and resilient earnings growth, while active managers are seen to be uniquely positioned to outperform. Ensuring portfolios have enough duration and are positioned for an ongoing volatile and sustained low-yield environment is also seen as key.

Four key themes emerged from the forum • A healthy global backdrop, but with rising geo-political risk—The longevity of the cycle has

been unique, yet corporates and consumers are in a favourable position. US-China trade negotiations are seen as critical to the near-term outlook. While the pessimism in bond markets might not be right, central banks seem attuned to the risks and able to support the outlook.

• Opportunities still exist in equities, but mitigating risks is key—Valuations are viewed as concerning, given a potentially poorer earnings outlook, as well as rising regulatory risks for some growth sectors. An ongoing low rate environment is expected to be both problematic for financials and a key risk if interest rates rise. A cautious approach to building strategic positions in emerging markets is seen as warranted at this stage of the cycle.

• Australia is in a good position to weather a global downturn—A number of headwinds, such as the housing correction, are seen to have passed. With recent stimulus, a pick-up in growth in the year ahead is deemed a reasonable expectation, supported by public sector infrastructure spending, exports and business activity. A key risk to the outlook is the lack of consumer income growth. In addition to Australia’s relatively defensive equity market, opportunities further out the credit curve are viewed favourably.

• Investing in bonds and credit requires a nimble and tactical approach—While the path of least resistance for yields is lower, a case was made for buying any decent up-lifts in yield, even a 50 basis points rise. It was argued that investors simply do not have enough duration in their portfolios for this type of environment, with a structurally lower level of interest rates in Australia and globally likely to be in play for some time.

Finding refuge in

challenging markets

CRESTONE / AROUND THE TABLE / SEPTEMBER 2019 5

This year has blown hot and cold from both a geo-political and macro-economic perspective. On balance, global growth has trended slower, while the heat in the key geo-political hotspots has increased. We asked our panellists where they feel we are in the current macro cycle, whether the US-China trade war has already sown the seeds of a recession, and what the single biggest risk is facing the global economy.

THE CASE AGAINST ENTERING A NEAR-TERM GLOBAL RECESSIONAccording to Michael Buchanan, Deputy Chief Investment Officer at Western Asset Management, the longevity of the cycle has been unique, but the severity of the cycle is different. With global corporates and consumers still in a favourable position and contributing to a healthy backdrop, Buchanan is not anticipating a slowdown nor a recession in the near term: “While we are late cycle, there are no signs that things are turning for the worse. The severity of the crisis in the GFC has been a driver of this prolonged cycle. Unprecedented central bank action and regulatory measures to shore up the financial system have also translated into this unique cycle. There is still a reasonably healthy backdrop with global growth continuing in the 3% region.”

THE SINGLE BIGGEST RISK IS A SHIFTING OF THE GUARD

Anne Anderson, Head of Fixed Income and Investment Solutions Australia at UBS Asset Management, feels we are already in a mini slowdown. Cycles have been redefined, particularly with the shift from manufacturing to services. Having said that, it would be highly unusual for the US to fall into a recession from where we currently are. Anderson feels the single biggest risk is the US and a shifting of the guard as growth in emerging markets converges on developing markets. This convergence results in an overall lower global growth outcome and in a structural shift that makes the volatility set quite unique.

She feels that, while bond markets and the recent yield curve inversion may not be as reliable as a recession indicator, this has to be managed carefully. Central banks seem attuned and aware of this fact, which is a good starting point. With central bank support, we could very easily see the cycle roll on.

THE OUTCOME OF US-CHINA NEGOTIATIONS WILL BE CRUCIAL

Domenico Giuliano, Deputy Chief Investment Officer at Magellan Asset Management, emphasised the importance of separating short-term cyclical issues from long-term trends. Longer term, expectations are for much lower growth rates than we’ve seen for the past half century. In the short term, the outcome of US and China negotiations will be crucial. While there are clearly some headwinds, parts of the US economy are still healthy and there are obvious imbalances in Europe.

Frank Uhlenbruch, Investment Strategist at Janus Henderson Investors, added that tariffs are detrimental from a net wealth perspective with everyone worse off. He expects central banks to remain fully supportive to offset trade headwinds. “It’s been a unique period where we have tight labour markets but low inflation. Once inflation starts to come through, the dynamic might begin to shift. Until then, monetary and fiscal policy is likely to step in to help remove any slack.”

The Crestone view: The recent US-China trade war escalation, and other geo-political disruptions, are unlikely to help key trade and manufacturing data improve in coming months. We have recently recommended a more defensive positioning in portfolios, moving moderately underweight equities and overweight cash, with a continued focus on alternative assets.

WHERE ARE WE IN THE ECONOMIC AND MARKET CYCLE?

FRANK UHLENBRUCHINVESTMENT STRATEGIST JANUS HENDERSON INVESTORS

“It’s been a unique period where we have tight labour markets but low inflation. Once inflation starts to come through, the dynamic might begin to shift. Until then, monetary and fiscal policy is likely to step in to help remove any slack.”


Concerns over slowing global growth have been balanced by dovish forward guidance and outright policy easing from central banks globally. This has driven investors to pay above-average valuations for luke-warm earnings growth. We asked the panellists what this means for equities and whether this valuation support is justified.

IT’S IMPORTANT TO MITIGATE COMPANY-SPECIFIC RISK

Nathan Parkin, Investment Director at Ethical Partners Funds Management, highlighted the importance of mitigating company-specific risk in the current environment. “Valuations are particularly worrying given earnings aren’t coming through.”

As a starting point, Parkin feels that removing or avoiding companies with very high debt is paramount. In Ethical Partners’ investment process, around 10% of the S&P/ASX 200 index is removed because it has too much debt. Even if the companies are paying yield, it is important to note some are not paying it out of cashflow but by borrowing more money. While they may have been the best performing companies, Ethical Partners would not own them because they are too geared. According to Parkin, given where markets are, it seems lower levels of growth have not been considered with valuations merely being supported by lower interest rates.

Parkin worries about a scenario where growth expectations become more realistic. “Earnings expectations for the 2020 financial year have fallen while bond markets have rallied through that. Unfortunately, good balance sheets haven’t really helped at all in that environment—but at some point it will become important, particularly when bond yields get off the floor. Expectations around domestic cyclicals are so low and valuations are so cheap.”

OPPORTUNITIES STILL EXIST BUT BEWARE REGULATORY RISK

Giuliano mentioned that the opportunity set still exists and he has been putting money to work since the beginning of the year, reducing his cash exposure from 14% to 8%. This has been primarily targeted at ‘disruptors’, such as Google, Facebook and Microsoft. He also takes a long-term view on some of the structural themes and where the long-term discount rates might be. “Companies that can earn above the nominal GDP growth rate for an extended period of time with discount rates going down, that’s potentially an incredible opportunity”, according to Giuliano.

Having said that, Giuliano is cognisant of the regulatory risk in some of these companies. “In terms of defensive plays, you have to be careful around companies that are not able to grow. You have to take a long-term view of what defensibility actually means because the disruptors are trying to cut their lunch.” He is careful to acquire defensives that are not prone to disruption. In terms of sectors, he is less optimistic about financials as it is likely to become more challenging to make money given the path yields are on.

WHY HAVE ACTIVE MANAGERS FOUND THE CURRENT ENVIRONMENT SO HARD?

Scott Haslem, Chief Investment Officer at Crestone Wealth Management, highlighted the tough environment active managers have faced, particularly in Australia, and Parkin commented that the narrowness of the domestic equity market has been a challenge for active managers. However, he takes comfort in the fact that active managers have some sort of valuation discipline.

WHAT DOES THIS MEAN FOR EQUITIES?

NATHAN PARKININVESTMENT DIRECTOR ETHICAL PARTNERS FUNDS MANAGEMENT

“Valuations are particularly worrying given earnings aren’t coming through.”

DOMENICO GIULIANODEPUTY CHIEF INVESTMENT OFFICER MAGELLAN ASSET MANAGEMENT

“Companies that can earn above the nominal GDP growth rate for an extended period of time with discount rates going down, that’s potentially an incredible opportunity.”


“Alpha opportunities are primarily in the small and mid-cap space where manager skill can be a differentiator, with valuations particularly challenging in large caps. Good companies trading cheaply that can still grow are the focus. These companies will re-rate over time.” Parkin emphasised it is important to stick to the process to avoid underperforming on both sides of the cycle.

Buchanan highlighted it is a global phenomenon and that in fixed income, investors in passive funds end up with the biggest exposure to the most indebted companies: “You actually want the opposite of that with more ownership of companies that are delevering. In fixed income, active managers are uniquely positioned to outperform going forward.”

Giuliano reinforced the importance of not just focusing on the upside but also the risk protection provided by active managers, as they need to offer a differentiated risk profile to outperform.

IS THERE STILL AN ARGUMENT TO INVEST IN EMERGING MARKETS DESPITE HEADWINDS?

Haslem summarised some of the risks around emerging markets, including the US-China trade dispute, tension in Hong Kong and oil issues. He asked panellists what role they feel geo-political tension plays in this—and if companies’ ability to operate profitably is being impacted.

Buchanan agreed that there is certainly no shortage of things to be anxious about. “It is important to be more selective when investing in this space. Fundamentals in spread sectors are quite appealing, whether it’s corporate credit, bank loans, or local currency emerging markets.”

Although cognisant of some of the market risks, Giuliano is focused on the opportunity set, outlining what happens to spending patterns when the middle class becomes more affluent. “As an example, one just needs to take a look at luxury brand LVMH to get a sense. These thematics are real. There are still opportunities out there.”

Uhlenbruch observed that “if globalisation benefitted emerging markets, then the reverse of globalisation could be detrimental.”

In the context of shorter-term risks, it is important to differentiate between business profiles, opportunities and valuations. Having said that, it is hard to understand where things might go with the China story. Giuliano noted that he does not expect China to digress from some of its strategic ambitions over the long term. He asserted that, heading into a US presidential election, we could see a transactional treaty that includes subsidies. However, increasing escalation of risk is possible and would be terrible for markets.

The Crestone view: We have recently moved moderately underweight equities. This is particularly due to the uncertainty surrounding the recent trade war escalation, but also because of the weakening trend in earnings growth. Quality and strong balance sheets continue to be a key theme.

We believe the escalation of risks places more importance on active management as a risk mitigant. While there are strategic opportunities in emerging markets, it is important to be cautious and selective at this time.

MICHAEL BUCHANANDEPUTY CHIEF INVESTMENT OFFICER WESTERN ASSET MANAGEMENT

“It is important to be more selective when investing in this space. Fundamentals in spread sectors are quite appealing, whether it’s corporate credit, bank loans, or local currency emerging markets.”

SCOTT HASLEMCHIEF INVESTMENT OFFICER CRESTONE WEALTH MANAGEMENT

“There has to be some risk that the ongoing geo-political tension has already sown the seeds of a near-term growth slowdown.”


With building approvals and construction activity still poor, how likely is it that Australia will slip into a recession? Would a stabilisation in housing and stimulus from China be enough to support Australia’s domestic growth in a global downturn?

Uhlenbruch feels the Australian economy will perform better in the second half of 2019 than it did in the first half of the year, with growth likely to head back towards trend rates by 2021. “A number of headwinds for the domestic economy are now behind us. A bit more stimulus is expected, which means it’s not unreasonable to expect a pick-up in the second half. Core support would come from public sector infrastructure spending and business activity.” Uhlenbruch notes that while dwelling investment will be a drag on economic growth over the period ahead, the adjustment that is occurring is one where building approvals are normalising back to underlying levels after playing catch-up to earlier unexpected demand.

Anderson feels Australia is in a good position with appropriate touches to policy, fiscal flexibility and a healthy financial system. However, the convergence of emerging markets to developed markets makes the volatility set quite different. “The bond market is telling us that real yields have to be much lower, which is good news for risk assets. Inflation is likely to hit 2% but unlikely to hit 3%. The biggest threat to Australia is its lack of income growth and where we are going to get it. If we lose the consumer then this could be detrimental.”

Richard Quin, Chief Investment Officer at Bentham Asset Management, emphasised that the Reserve Bank of Australia has changed its tone quite dramatically. He feels we may have seen the airbag deployed too quickly out of fear. “While the situation is not quite as dire just yet, if we start to see contraction in margins, then valuations could roll over easily. If monopoly-style stocks try to extract margin in this environment, they are likely to be regulated. This is likely to come through on the pricing side at some point.”

When asked how much credit risk investors should be prepared to take and how far up the risk curve they should invest, Quin responded that loans appear cheap because they are senior and secured. However, taking a bar-bell approach is prudent, as it is not the time to put all your risk in one basket. Buchanan and Anderson agreed, commenting that parts of the market are still enjoying healthy demand.

Anderson noted, “Going out to low single B and CCC, demand has waned due to the perception we are late cycle. There are some interesting opportunities for investors who are willing to go further out on the credit curve. However, these demand more work and analysis—where the incremental yield will more than compensate for the additional work required.” Anderson added that credit exposures have to be balanced out with some duration exposure.

The Crestone view: Although growth momentum is soft, there are some signs of housing stability and tax cuts helping consumers. While we expect slower growth ahead, Australia is now more resilient to a global downturn. We are neutral domestic equities. With central banks easing and global growth steady, Australian corporate credit remains attractive and likely to remain well supported from here.

HOW WELL WOULD AUSTRALIA WEATHER A GLOBAL DOWNTURN?

RICHARD QUINCHIEF INVESTMENT OFFICER BENTHAM ASSET MANAGEMENT

“While the situation is not quite as dire just yet, if we start to see contraction in margins, then valuations could roll over easily.”


Bond markets are already pricing in significant rate cuts by the US Federal Reserve and other central banks. Can bond yields fall further towards GFC lows or can a rebound in inflation support yields higher?

NOW IS THE TIME TO BE NIMBLE AND TACTICAL

Anderson feels this is the time to be nimble and tactical around volatility bursts. Given yields could fall further, there is a case for buying decent set-backs in yields. A lot of multi-asset investors simply do not have enough duration for this type of environment. “There are opportunities to move up and down the curve. In the US, you could go long the front end because they are going to ease. A low yield environment means that there will be a hunt for yield, which means that you’ll be buying equities, buying alternatives, those assets that benefit from the low discount rate. Inflation is just not a risk but if you think it is, it is so cheap to hedge.” Uhlenbruch is nervous that the bond rally has gone too far. He has been perplexed by the speed and size of some of these moves. Five-year forward rates as a proxy for neutral down the track for Australia were 3.2% in November and are now 1.2%. “Bond markets seem to be pricing in the same news over and over again and if central banks don’t deliver to the level the market is expecting, there could be a snap back, which doesn’t have to be a lot to cause angst.” Quin agreed, highlighting the success of markets versus the margins that have been produced by most companies. “Margins have been excessive and a roll over could exacerbate the valuation issue. A preliminary move by central banks has essentially boosted margins and markets. Either it is required, but the other side of that is it’s dangerous if it doesn’t work.”Buchanan highlighted that while it is difficult to zero in on where you would want to put your money, he always starts off with where he doesn’t want to put money. Developed market sovereign bonds spring to mind with over USD 15 trillion in negative yields. “There is a lot of latent risk built up in government bond markets. Inflation and growth generally suggest low rates. If we ever saw a scenario where inflation surprised to the upside, risks elevate.”

WHERE DO WE THINK LONG-TERM RATES WILL SETTLE?

Anderson starts with real cash as an anchor. “Working backwards you add back inflation expectations and that gives a long-term estimate of around 2%, albeit with a reasonable degree of uncertainty.” Buchanan noted that “growth is stubbornly low and central banks are desperately trying to lift inflation. Therefore, it’s hard to see an environment where rates are materially higher than where we are today. Even 50 basis points higher will be materially detrimental to markets—this presents a risk even though it’s not a high probability. This makes the proposition of spread sectors, particularly credit, quite attractive.”

WILL CREDIT COME UNDER PRESSURE GIVEN SPREADS ARE SO TIGHT?

Quin doesn’t believe spreads are tight, noting that if you use 2008 as a reference, credit will always be expensive. “We used to have inflation targeting when governments weren’t fiscally responsible, now we have responsible governments, notably in Australia. But there is a lot more dispersion of markets and you really need to analyse which ones are cheap/expensive.”Quin is not as confident about Australia on a relative-value basis. He prefers asset-backed securities and considers this market to be defensive as it has a lot of structural protection. He believes there are issues in some emerging markets, noting recent downgrades to Argentina and South Africa. Tariffs are generally inflationary despite being disruptive as it drives uncertainty.

The Crestone view: With central banks in easing mode, the path of least resistance for bond yields is lower and credit spreads tighter. However, we remain tactically underweight bonds, given expensive valuations, balanced by an overweight to credit markets.

ANNE ANDERSONHEAD OF FIXED INCOME AND INVESTMENT SOLUTIONS AUSTRALIA UBS ASSET MANAGEMENT

“A low yield environment means that there will be a hunt for yield, which means that you’ll be buying equities, buying alternatives, those assets that benefit from the low discount rate.”

IS THERE ANY VALUE IN BONDS?


WHERE DO YOU SEE THE BIGGEST OPPORTUNITIES AND RISKS?

RICHARD QUINCHIEF INVESTMENT OFFICER BENTHAM ASSET MANAGEMENT

“One of the safest places to generate a positive real yield is asset-backed securities as they have plenty of protection and are high up the capital stack.

Corporate profit margins are vulnerable for companies and I’m cautious about equities—particularly disruptors, given the level of regulatory risk.”

NATHAN PARKININVESTMENT DIRECTOR ETHICAL PARTNERS FUNDS MANAGEMENT

“I prefer companies with good balance sheets. The value of a good balance sheet has been underappreciated given the low rate environment.

Companies that are very geared are to be avoided. These companies’ share prices have risen and valuations are high.”

FRANK UHLENBRUCHINVESTMENT STRATEGIST JANUS HENDERSON INVESTORS

“From an asset allocation perspective, I would be square growth assets, modestly underweight fixed interest and overweight cash on a 12-month view.”

DOMENICO GIULIANODEPUTY CHIEF INVESTMENT OFFICER MAGELLAN ASSET MANAGEMENT

“I like long duration growth equities or equities that are able to deliver nominal GDP plus growth rates.

I’m avoiding cyclicals—particularly heavy industrials and financials. Banks will find it challenging to make money in a flat or inverted yield curve environment.”

ANNE ANDERSONHEAD OF FIXED INCOME AND INVESTMENT SOLUTIONS AUSTRALIA UBS ASSET MANAGEMENT

“I would be long real yield asset classes, such as global infrastructure, inflation-linked (but not on a break-even basis) and surety of long duration income.

I feel vulnerabilities are in equities, specifically momentum-driven equity beta, primarily in the NASDAQ.”

MICHAEL BUCHANANDEPUTY CHIEF INVESTMENT OFFICER WESTERN ASSET MANAGEMENT

“I have a preference for high quality, short duration corporate bonds.

I feel there is risk in long duration sovereign bonds, particularly European.”

IMPORTANT INFORMATION

About this documentThis document has been prepared by Crestone Wealth Management Limited (ABN 50 005 311 937, AFS Licence No. 231127) (Crestone Wealth Management). The information contained in this document is provided for information purposes only and is not intended to constitute, nor to be construed as, a solicitation or an offer to buy or sell any financial product. To the extent that advice is provided in this document, it is general advice only and has been prepared without taking into account your objectives, financial situation or needs (your “Personal Circumstances”). Before acting on any such general advice, Crestone Wealth Management recommends that you obtain professional advice and consider the appropriateness of the advice having regard to your Personal Circumstances. If the advice relates to the acquisition, or possible acquisition of a financial product, you should obtain and consider a Product Disclosure Statement (PDS) or other disclosure document relating to the product before making any decision about whether to acquire the product.

DisclaimerAlthough the information and opinions contained in this document are based on sources we believe to be reliable, to the extent permitted by law, Crestone Wealth Management and its associated entities do not warrant, represent or guarantee, expressly or impliedly, that the information contained in this document is accurate, complete, reliable or current. All information, including any opinions or recommendations, is current as at the date of this report, but is subject to change without notice and we are under no obligation to update or keep it current. The value of financial products can go up and down. Past performance is not a reliable indicator of future performance and any forward-looking statements are not guaranteed. If you intend to rely on the information, you should independently verify and assess the accuracy and completeness of the information and obtain professional advice regarding its suitability for your Personal Circumstances, including as regards taxation matters. We do not advise on the tax consequences of investments (except to the extent we may be authorised to do so under Tax Agent Services legislation) and you should contact a tax adviser if you have any questions about this.The Crestone Group accepts no liability for any loss or damage relating to the distribution of this document or for any use or reliance on the information contained within it.The opinions and recommendations contained in this document may differ or be contrary to the opinions or recommendations expressed by other parts of our business. The analysis contained in this document, in particular any valuations, projections and forecasts, are based on estimates and numerous assumptions. Different assumptions and estimates could result in materially different results. Crestone Wealth Management and its associated entities make no representations or warranties that any such estimates or assumptions will be met.

Use of credit ratingsCredit ratings contained in this report may be issued by credit rating agencies that are only authorised to provide credit ratings to persons classified as ‘wholesale clients’ under the Corporations Act 2001 (Cth). Accordingly, credit ratings in this report are not intended to be used or relied upon by persons who are classified as ‘retail clients’ under the Corporations Act. A credit rating expresses the opinion of the relevant credit rating agency on the relative ability of an entity to meet its financial commitments, in particular its debt obligations, and the likelihood of loss in the event of a default by that entity. There are various limitations associated with the use of credit ratings, for example, they do not directly address any risk other than credit risk, are based on information which may be unaudited, incomplete or misleading and are inherently forward-looking and include assumptions and predictions about future events. Credit ratings should not be considered statements of fact nor recommendations to buy, hold, or sell any financial product or make any other investment decisions.

Conflicts of interestCrestone Wealth Management, its associated entities, and any of its or their associated entities’ officers, employees and agents (Crestone Group) may receive commissions and distribution fees relating to any financial products referred to in this document. The Crestone Group may also hold, or have held, interests in any such financial products and may at any time make purchases or sales in them as principal or agent. The Crestone Group may have, or may have had in the past, a relationship with the issuers of financial products referred to in this document and may provide, have provided or seek to provide financial services to any companies or their associates mentioned in this document. Directors or employees of the Crestone Group may have served as officers of the companies mentioned in this document.The discretionary compensation of the investment specialist(s) who prepared this report is determined exclusively by management. This compensation is not based on specific trading revenues, but may relate to the revenues of Crestone Wealth Management as a whole, which includes advisory, sales and trading services. The investment specialist(s) responsible for the preparation of this report may interact with investment advisers and product specialists for the purpose of gathering and interpreting market information.This document contains content from reports prepared by UBS Securities Australia Limited or a related body corporate (UBS Report). Please contact your Crestone Wealth Management investment adviser if you would like a copy of the UBS Report. Crestone does not provide research. All securities listed in our recommendations are based on research provided by UBS Global Research or other external research providers. Please contact your investment adviser if you would like a copy of the original research.

DistributionThis document has been authorised for distribution to “wholesale clients” (within the meaning of the Corporations Act 2001 (Cth)) in Australia only and is not intended or permitted to be distributed, or otherwise directed, made available to, or used by, any person in any jurisdiction where the distribution, publication or use would be contrary to law or regulatory requirements or which would require Crestone Wealth Management or any associated entity to be registered or licensed in that jurisdiction. In particular, this document may not be distributed directly or indirectly in the United States or to any US Person (as defined in the Securities Act 1933 (USA)). This document is intended for the use of Crestone Wealth Management clients only and may not be distributed or reproduced without consent.© Crestone Wealth Management Limited 2019

CONTACT US

BrisbaneLevel 11, Waterfront Place 1 Eagle Street Brisbane QLD 4000

T: +61 7 3918 3600

MelbourneLevel 18 120 Collins Street Melbourne VIC 3000

T: +61 3 9245 6000

SydneyLevel 32, Chifley Tower 2 Chifley Square Sydney NSW 2000

T: +61 2 8422 5500

E: [email protected] W: crestone.com.au

Crestone Wealth Management Limited

ABN 50 005 311 937 AFS Licence No. 231127

finding refuge in challenging markets...markets have rallied through that. unfortunately, good...

Documents