BT Monthly Markets Chart Pack – January 2014

1. 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% S&P/ASX 200 Price Index – 1 year to 31 January 2014 Source: BT Financial Group, S&P

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… Currency markets – A$ per US dollar Source: BT Financial Group. Figures at 31 January 2014.

7. the Euro… Currency markets – A$ per Euro Source: BT Financial Group. Figures at 31 January 2014

8. the Yen…. Currency markets – A$ per Yen Source: BT Financial Group. Figures at 31 January 2014

9. and the Renminbi. Currency markets – A$ per Yuan Source: RBA. Figures at 31 January 2014

10. 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

12. Long term asset class performance Best performing asset class for the year 2014 returns CYTD and prior year’s annual returns (%) 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

13. Short-term asset class performance (cont’d) CYTD return to 31 January 2014 and total 2013 performance (%) Total 2013 performance CYTD to 31 January 2014 Australian bonds Listed property Australian shares Global bonds Global shares 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

14. Long-term asset class performance Data as at 31 January 2014 Note: Accumulated returns based on $1,000 invested in December 1984 Source: S&P/ASX 300 Accumulation Index, MSCI World ex-Australia (net dividends) Index in A$, S&P/ASX 300 Property Index, UBS Composite 0+ years index, UBS Bank Bill 0+ years

15. Oil prices fell 0.94% during January Oil prices – US$ per barrel Source: Bloomberg: Front month WTI futures closing price. Data as at 31 January 2014.

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. This document was accompanied by an oral presentation, and is not a complete record of the discussion held. No part of this presentation should be used elsewhere without prior consent from the author. For more information, please call BT Customer Relations on 132 135 8:00am to 6:30pm (Sydney time)