BT Monthly Markets Chart Pack – January 2014

An overview of movements in global financial markets

2

Australian shares fell, the S&P/ASX 200 declined by 3.03%

Source: BT Financial Group, S&P

S&P/ASX 200 Price Index – 1 year to 31 January 2014

Feb 13 Apr 13 Jun 13 Aug 13 Oct 13 Dec 134500

4700

4900

5100

5300

5500

3

Global share markets weakened during January

In the United States, shares ended January lower. The S&P 500 fell 3.56% and the NASDAQ lost 1.74%.

European markets declined but by less than other markets. The FTSE-100 lost 3.54%, the French CAC dropped 3.03% and the German Dax shed 2.57%.

In Asia, the Japanese Nikkei fell sharply by 8.45%, while in Hong Kong the Hang Seng lost 5.45%.

Australian shares also weakened in January. The S&P/ASX 200 Price Index dropped 3.03%. The property sector was relatively strong.

Source: BT Financial Group

4

Key Australian economic news – January

The Reserve Bank of Australia (RBA) did not meet to decide on interest rates in January. In early February they chose to leave interest rates unchanged at 2.50%. The RBA said that interest rates would probably remain stable now for some period.

The ABS reported the seasonally-adjusted unemployment rate rose to 6.0% during January. The unemployment rate has risen by 0.6% in the 12 months to January 2014. The participation rate remained unchanged at 64.5%.

Retail sales rose by a seasonally-adjusted 0.5% during December. Food retailing, Restaurant and Takeaway sales contributed most to the growth. Clothing and footwear sales were weaker. All States and Territories showed growth in sales. Retail sales have now risen 5.7% over the year to the end of December.

The RBA’s index of commodity prices fell 1.1% in Australian dollar terms during January. Iron ore and coking coal price declines contributed most to the fall. Gold prices managed to increase after falling for much of the year. During the past 12 months the index has risen 6% in Australian dollar terms but this has been driven by the Australian dollar declining as global commodity prices have generally fallen.

Source: BT Financial Group

5

The Australian dollar fell during January.

The Australian dollar weakened against the major currencies.

As at 31 January 2014:

A$1 bought: US$ 0.8725 - 2.48%

€ 0.6470 - 0.35%

¥ 88.98 - 5.37%

¥ 5.31 - 1.91%

Source: BT Financial Group

6

The Australian dollar versus the US dollar…

Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 140.60

0.70

0.80

0.90

1.00

1.10

Currency markets – A$ per US dollar

Source: BT Financial Group. Figures at 31 January 2014.

7

the Euro…

Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 140.48

0.58

0.68

0.78

0.88

Currency markets – A$ per Euro

Source: BT Financial Group. Figures at 31 January 2014

8

the Yen….

Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 1455

65

75

85

95

105

Currency markets – A$ per Yen

Source: BT Financial Group. Figures at 31 January 2014

9

and the Renminbi.

Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 143

4

5

6

7

8

Currency markets – A$ per Yuan

Source: RBA. Figures at 31 January 2014

10

Current rate Last movedDirection of last move

Australia 2.50% Aug 2013

US 0% - 0.25% Dec 2008

Europe (ECB) 0.25% Nov 2013

Japan 0% - 0.10% Oct 2010

United Kingdom 0.50% Mar 2009

Official world interest rate movements – January

In early February, the RBA decided to leave interest rates unchanged at 2.50%.

Source: BT Financial Group

11

Global share market returns

Source: BT Financial Group. Data as at 31 January 2014

1 year 3 years (pa)

5 years (pa)

Global

S&P 500 Index (US) 18.99% 11.50% 16.63%

Nasdaq (US Tech.) 30.61% 14.98% 22.69%

Nikkei 225 (Japan) 33.90% 13.36% 13.28%

Hang Seng (Hong Kong) -7.14% -2.05% 10.66%

DAX (Germany) 19.68% 9.56% 16.49%

CAC (France) 11.60% 1.32% 6.97%

FTSE 100 (UK) 3.72% 3.55% 9.43%

Australia

S&P/ASX 200 Accum. Ind. 11.06% 7.77% 12.90%

S&P/ASX Small Ords. Acc. -7.39% -6.17% 8.57%

S&P/ASX 300 Listed Prop. Acc. 3.17% 11.21% 11.13%

12

Long term asset class performance

Source: S&P/ASX 200 Accumulation Index, MSCI World ex-Australia (net dividends) Index in A$, S&P/ASX 300 Property Acc Index, UBS Composite 0+ years index, Barclays Capital Global Aggregate Bond Index hedged to $A , UBS Bank Bill 0+ years

2014 returns CYTD and prior year’s annual returns (%) Best performing asset class for the year

  2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999

Australian cash 0.22 2.87 3.97 5.00 4.66 3.47 7.60 6.73 6.02 5.74 5.62 4.90 4.77 5.24 6.27 5.01

Australian bonds 1.09 1.99 7.70 8.70 6.04 1.73 14.95 3.46 3.14 5.8 6.96 3.05 8.81 5.45 12.08 -1.22

Australian property 0.41 7.27 32.79 -1.56 -0.68 9.56 -55.31 -8.36 34.05 12.7 32.18 8.81 11.85 14.99 18.79 -4.2

Australian shares -3.03 20.20 20.26 -10.54 1.57 37.03 -38.44 16.07 24.22 22.83 27.99 14.61 -8.77 10.36 6.36 18.74

International bonds 1.67 2.27 9.66 10.51 9.27 8.04 9.23 6.63 4.41 6.62 8.92 6.62 11.57 8.29 9.74 0.28

International shares -3.11 32.26 18.71 -1.91 13.13 -0.3 -24.92 -2.6 11.49 16.84 9.94 -0.76 -27.44 -9.96 2.19 17.2

13

Short-term asset class performance (cont’d)

Source: S&P/ASX 200 Accumulation Index, MSCI World ex-Australia (net dividends) Index in A$, S&P/ASX 300 Property Acc Index, UBS Composite 0+ years index, Barclays Capital Global Aggregate Bond Index hedged to $A

CYTD return to 31 January 2014 and total 2013 performance (%)

-3.1

1.7

-3.0

0.4

1.1

32.3

2.3

20.2

7.3

2.0

Total 2013 performanceCYTD to 31 January 2014

Australian bonds

Listed property

Australian shares

Global bonds

Global shares

14

Long-term asset class performance

Note: Accumulated returns based on $1,000 invested in December 1984Source: S&P/ASX 300 Accumulation Index, MSCI World ex-Australia (net dividends) Index in A$, S&P/ASX 300 Property Index, UBS Composite 0+ years index, UBS Bank Bill 0+ years

Data as at 31 January 2014

1984 1988 1992 1996 2000 2004 2008 20120

5,000

10,000

15,000

20,000

25,000

CashAustralian BondsListed PropertyAustralian SharesInternational Shares

15

Oil prices fell 0.94% during January

Source: Bloomberg: Front month WTI futures closing price. Data as at 31 January 2014.

Oil prices – US$ per barrel

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 201425

50

75

100

125

150

16

Disclaimer

This presentation has been prepared by BT Financial Group Limited (ABN 63 002 916 458) ‘BT’ and is for general information only.  Every effort has been made to ensure that it is accurate, however it is not intended to be a complete description of the matters described.  The presentation has been prepared without taking into account any personal objectives, financial situation or needs.  It does not contain and is not to be taken as containing any securities advice or securities recommendation.  Furthermore, it is not intended that it be relied on by recipients for the purpose of making investment decisions and is not a replacement of the requirement for individual research or professional tax advice.  BT does not give any warranty as to the accuracy, reliability or completeness of information which is contained in this presentation.  Except insofar as liability under any statute cannot be excluded, BT and its directors, employees and consultants do not accept any liability for any error or omission in this presentation or for any resulting loss or damage suffered by the recipient or any other person.  Unless otherwise noted, BT is the source of all charts; and all performance figures are calculated using exit to exit prices and assume reinvestment of income, take into account all fees and charges but exclude the entry fee.  It is important to note that past performance is not a reliable indicator of future performance.

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