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Putting local and international financial markets into context Prepared by BT Financial Group for the adviser market Updated to 28 February 2009.

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Presentation on theme: "Putting local and international financial markets into context Prepared by BT Financial Group for the adviser market Updated to 28 February 2009."— Presentation transcript:

1 Putting local and international financial markets into context Prepared by BT Financial Group for the adviser market Updated to 28 February 2009

2 3.A quick look at the different asset classes 1.Australian share markets – the 1, 10 and 50 year view 2.How have international markets fared? 4. Getting some perspective on market volatility

3 3 Source: BT Financial Group, Premium Data S&P/ASX 300 Accumulation Index – 12 months to 28 February 2009 The Australian share market has fallen 38% in the past 12 months Series Rebased: 28 February 2008 = 100 Feb-08 Apr-08 Jun-08Aug-08Oct-08Dec-08Feb-09

4 4 Source: BT Financial Group, Premium Data S&P/ASX 300 Accumulation Index – 10 years to 28 February 2009 But over the past 10 years, it’s still up 81% Series Rebased: 28 February 1999 = 100 Feb-99 Feb-01 Feb-03 Feb-05 Feb-07 Feb-09

5 2008 was a ‘1 in 50’ year event for Australian share market returns Source: Standard & Poor’s to to to to 00 to 1010 to 2020 to 3030 to 4040 to 5050 to 6060 to 70 All Ords /ASX 300 Accumulation Index – 50 years to 2008

6 But every period of negative returns is generally followed by increased gains Source: Standard & Poor’s to to to to 00 to 1010 to 2020 to 3030 to 4040 to 5050 to 6060 to 70 All Ords /ASX 300 Accumulation Index – 50 years to 2008

7 3.A quick look at the different asset classes 1.Australian share markets – the 1, 10 and 50 year view 2.How have international markets fared? 4. Getting some perspective on market volatility

8 8 Source: BT Financial Group, Premium Data The major international markets also plunged in the past 12 months Series Rebased: 28 February 2008 = 100 FTSE 100 (UK) -35.8%, Nikkei 225 (Japan) -45.7%, S&P500 (US) -46.3%, DJ Euro Stoxx 50 (Europe) -47.8% Feb-08 Apr-08 Jun-08Aug-08Oct-08Dec-08Feb-09

9 And it’s no wonder why – the linchpin of the global economy had its worst year in more than 50 years Source: Value Square Asset Management, Yale University to to to to to 00 to 1010 to 2020 to 3030 to 4040 to 50 The US All Ords /ASX 300 Accumulation Index – 50 years to 2008

10 3.A quick look at the different asset classes 1.Australian financial markets – a 12 month view 2.How have international markets fared? 4. Getting some perspective on market volatility

11 Growth assets have been the most affected by the rise in market volatility in the past year Source: BT Financial Group Cash International listed property – hedged Australian bonds International shares - hedged Australian shares International bonds - hedged Australian listed property International shares 12 months to 28 Feb months to 28 Feb 2008

12 12 While cash saw stronger returns this past year, Aussie shares still outperform over the long-term 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 28 February 2009 Australian bonds Listed property Australian shares Cash Global shares

13 3.A quick look at the different asset classes 1.Australian share markets – the 1, 10 and 50 year view 2.How have international markets fared? 4. Getting some perspective on market volatility

14 Annual returns of Australian shares (%) – All Ords / ASX S&P Accumulation Index (since 1956) Volatility can hurt returns in the short term… 14 Source: Standard & Poor’s

15 Rolling 5 year returns of Australian shares (% annualised) – All Ords / ASX S&P Accumulation Index (since 1960) …but it’s a different picture over the longer term 15 Source: Standard & Poor’s

16 Rolling 10 year returns of Australian shares (% annualised) – All Ords / S&P Accumulation Index (since 1965) Source: Standard & Poor’s And the longer the better!

17 17 This presentation has been prepared by BT Financial Group Limited (ABN ) ‘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 :00am to 6:30pm (Sydney time)


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