MLC Quarterly Australian Wealth Sentiment Survey

Transcription

1 Q4 14 More than 1 in 2 Australians believe they will not have money, almost 3% expect with less than $,, and 1 in will have to sell the family home. Post retirement, Australians also expect to have to cut back spending on their children, household items, personal goods, home improvements, eating out and entertainment. With this in mind, MLC wanted to know what older Australians would change if given the chance again to plan for their retirement. Not putting more money aside for savings and super were by far the biggest regrets identified, followed by a desire to invest more in property. Risk taking more or less was not a factor. key findings from our latest wealth survey include: fewer Australians are holding super and debt (with more in cash); investment strategies are set to be slightly more aggressive in next 3 months; and Australians on average expect to work longer with more expecting to transition inment. Expected financial sufficiency at retirement More than to retire Enough to retire Not Far from to retire Dec 13 Sep 14 Dec 14 Expected Savings at retirement: overall Family home in relation ment funding (percent of respondents) Less than $k $k - k $k - 3k $3k - 4k $4k - k k - 7k 7k - $1mn +$1mn Don t know Will sell house Will not sell house Will use equity in house Don t know Q3 14 Q4 14 Sept 14 Dec 14 MLC Quarterly Australian 1

2 Q4 14 Changes in spending behaviour post retirement (net balance) Over s: retirement funding Factors you would change if given the chance again Medical Expenses Utilities Insurances Travel expect to spend less Transport Groceries Savings, super, investments, donations Entertainment Eating out expect to spend more Home improvements Personal goods Major household items Children Q3 14 Q4 14 Set aside more in savings/cash Increased contributions to super Invested more in property Nothing Don t know Sought more professional advice Diversified investments more Invested more in shares Delayed retirement Set up SMSF Returned to work earlier post career break Taken fewer risks Taken more risks Taken more risks Taken more risks of all responses For more information Daniel Wright Corporate Communications MLC Quarterly Australian 2

3 Q4 14 OTHER KEY FINDINGS Current financial situation Fewer Australians holding super and debt, although still dominating overall positions Appetite for cash growing Men holding bigger share of investments in shares and cash, more women holding debt Tasmanians hold biggest share of cash, super and property; Queensland leads for bonds; WA leads for shares and debt Australians in rural areas are least diverse across asset classes strategy Investors to be slightly more aggressive in next 3 months; fewer paying off debt and bonds; more moving into cash, property and super Men allocating more to cash and shares; women more to property, super and paying off debt High income earners more inclined to build up cash, super and property positions; low income earners focused more on cash Investors in NSW/ACT, SA/NT and VIC planning to invest more in property Current financial situation Next 3 months Choice Net Balance Cash or term deposits fixed income Directly held shares property balanced funds Debt - - Cash or term deposits fixed income Directly held shares property balanced funds Pay off debt Dec 13 Sep 14 Dec 14 Dec 13 Sep 14 Dec 14 Time ment and investment strategy Fewer Australians + years from retirement are investing for long-term growth More Australians less than years from retirement investing More men + years from retirement investing for growth; more women investing or not at all Almost 1 in 4 young Australians for their retirement at all Rural Australians most conservative, while capital city residents most aggressive in chasing growth Distance to Retirement and Strategy Concerns about superannuation and investments Inadequate retirement funds the biggest risk for all investors; concerns about high fees and regulation also up over past year Women much more worried than men about not having for retirement and losing money. Australians aged 3-39 express highest concern over all areas of risk Tasmanians express most concern overall while WA residents are least worried Current Concerns About Risks in and s ( = extremely concerned) of Respondents Greater than yrs, Greater than yrs, Greater than yrs, Within yrs, Within yrs, Within yrs, no investments Level of concern Losing money Missing investment opportunities High fees detract overly afrom fees Inadequate funds for retirement Dec 13 Sep 14 Dec 14 Saving eroded by inflation Regulatory concerns MLC Quarterly Australian 3

4 Q4 14 WEALTH IN FOCUS Retirement funding and benefits of hindsight What would you change (over s); and what do you consider important (under 3s)? Australian investors over the age of were asked to nominate 3 factors they would have changed if given the chance again to fund their retirement. Australians under the age of 3 were also asked to nominate 3 factors they thought were most important with regards to their retirement funding. Despite the different generations, the survey results indicate that both groups would set aside more in savings or cash, increase their contributions to superannuation and invest more in real estate. Both groups least regretted or rated least important, investing more in bonds, taking out more insurances and taking more risks. Over s: Not setting aside more savings/cash (36%) or increasing superannuation contributions (3%) were the biggest regrets among over s, followed by not purchasing investment properties. Interestingly, around 17% of all responses said nothing while a further 12% did not know. Over s were least likely to invest more in bonds, take out more insurances or take more risks if given the chance again. Over s: Retirement Funding Factors you would change if given the chance again Under 3s: Setting aside more savings/cash (2%) was considered to be by far the most important factor among under 3s (and much more so than for over s). Investing more in property (32%) and increasing super contributions (28%) drew the next biggest responses. Taking out more insurances, investing in bonds, and doing nothing were considered to be the least important factors for under 3s. Under 3s: Retirement Funding Factors considered to be most important Set aside more in savings/cash Increased contributions to super Invested more in property Nothing Don t Know Sought more professional advice Diversified investments more Invested more in shares Delayed retirement Set up SMSF Returned to work earlier post career break Taken fewer risks Taken more risks Taken more insurances Invested more in bonds of all responses More money in savings/cash Invest in property Increase contributions to super Don t Know Seek more professional advice Take fewer risks Invested more in shares Delay retirement Set up SMSF More diversification of investments Invest in share Return to work post a career break Take more risks Nothing Invest in bonds Take out more insurances of all responses Over s women and men: Both men and women over ranked not setting aside more in savings/cash, increasing their superannuation contributions and investing more in property as the main factors they would change if given the chance again. Interestingly, whereas significantly more men would have diversified their investments, invested more in shares, delayed their retirement and taken fewer risks, more women would have taken out more insurances or were unsure about what actions they would have taken. Over s: Retirement Funding Factors you would change if given the chance again Set aside more in savings/cash Increased contributions to super Invested more in property Nothing Don t Know Sought more professional advice Returned to work earlier post career break Diversified investments more Invested more in shares Taken more insurances Set up SMSF Delayed retirement Taken more risks Taken fewer risks Invested more in bonds Men Women of all responses Under 3s women and men: Significantly more women (6%) considered setting aside more money in savings/cash as the most important factor for their retirement funding than men (44%). Young women also identified property investment, taking fewer risks, seeking more professional advice, setting up an SMSF and returning to work post a career break as more important factors than men. In contrast, more men simply did not know or would diversify investments, invest in shares, do nothing or invest in bonds.planning to invest in property is still positive, but less so than in Q2. Under 3s: Retirement Funding Factors considered to be most important More money in saving s/cash Invest in property Increase contributions to super Don't Know Take fewer risks Seek more professional advice Delay retirement Set up SMSF Return to work post a career break More diversification of investments Invest in shares Take more risks Take out more insurances Nothing Invest in bonds Men Women of all responses MLC Quarterly Australian 4

5 Q4 14 SURVEY DETAILS Current financial situation Overall: Fewer Australians were holding superannuation (6%) and debt (46%) in Q4, although superannuation and debt are still dominating their current financial situations. More Australians also said they were holding cash (3%), with their exposure to all other asset classes broadly unchanged. Current financial situation Gender: Men reported a notably bigger share of their investments held directly in shares (24%) and cash (37%) than women. More men were also holding positions in bonds or fixed income, investment property and diversified or balanced funds. In contrast, more women (48%) were holding debt compared to men (44%).In contrast, more women (48%) were holding debt compared to men (44%). In contrast, more women (48%) were holding debt compared to men (44%). Current financial situation 7 of Respondents Debt Dec 13 Sep 14 Dec 14 Age: Over s invested most in cash and shares in Q4, and much more so than all other age groups. More Australians aged 3-49 were holding super and debt. Financial position of young Australians is least diverse. Income: Portfolio diversification is greatest for higher income earners across nearly all asset classes. Low income earners are the least diversified, with their portfolios dominated by debt, superannuation and cash. Current financial situation Current financial situation of Respondents Debt Debt of Respondents Female of Respondents Fixed Income Debt 18 to 29 3 to 49 + k 7k to k k to 7k 3 to k Under 3k MLC Quarterly Australian

6 Q4 14 Current financial situation continued Current financial situation Current financial situation 7 7 of Respondents Fixed Income Debt of Respondents Debt NSW/ACT VIC QLD WA SA/NT SA/NT Rural Town/Bush Capital city Regional city State: A bigger share of Tasmanians hold cash, super and investment property than any other state. QLD leads for bonds and fixed income, while WA leads for shares and debt. NSW leads the country for other investments. Location: Rural Australians much less diverse in their investments across all asset classes except other. In contrast, Australians living in capital cities hold more investments across most asset classes. strategy net change over the next 3 months Investors are looking to become more aggressive in their investments in the next 3 months. Australians are planning to allocate less to paying off debt and bonds, but are intending to raise their allocations to cash, investment property and superannuation. Next 3 months Choice Net Balance Gender: Men are planning to allocate more investments to cash and shares in the next 3 months, while women plan to allocate a bigger share to property, superannuation and paying off debt. More men are also planning to cut back allocations to bonds and funds. Next 3 months Choice Net Balance of Respondents of Respondents Pay off Debt Debt Dec 13 Sept 14 Dec 14 Female MLC Quarterly Australian 6

7 Q4 14 strategy net change over the next 3 months continued Age: All age groups are focused most on paying down debt in the next 3 months (especially 3-49). Young people are switching more funds to shares and super, but more older Australians are switching to cash. All groups are reducing exposures to bonds or fixed income. Next 3 months Choice Net Balance Gender: Majority in all income groups planning to pay down debts in next 3 months (especially $-7k and +$k groups). Higher income earners are more inclined to build up cash, super and property investment, but low income earners are focused more on cash. Next 3 months Choice Net Balance of Respondents of Respondents Pay off Debt 18 to 29 3 to 49 + State: Significantly more Australians living in QLD are planning to build their cash positions. In contrast, more Australians living in WA are focussing on paying down debts, while those in SA/NT are increasing allocations to superannuation. Residents in NSW/ ACT, SA/NT and VIC plan to invest more in property. Location: Australians in all locations are focused most on paying down debt (esp. in rural towns/bush) and building up cash and super in the next 3 months (esp. regional cities). More people living in regional cities and rural towns are also looking to increase investments in property than those living in capital cities. Next 3 months Choice Net Balance Next 3 months Choice Net Balance of Respondents Pay off Debt Pay off Debt k+ 7k to k k to 7k 3k to k Under 3k of Respondents Pay off Debt NSW/ACT VIC QLD WA SA/NT TAS Capital city Regional city Rural Town/Bush MLC Quarterly Australian 7

8 Q4 14 Concerns about superannuation and investments Australians expressed more concern about their superannuation and investments in Q4 across all areas (except missing investment opportunities) than in Q3. Interestingly, concerns over high fees and regulation have also climbed notably over the past year. Gender: Women expressed more concern about their super and investments than men across all areas, except missing investment opportunities. Women were particularly more worried about losing money and not having for retirement. Current Concerns About Risks in and s ( = extremely concerned) Current Concerns About Risks in and s ( = extremely concerned) Level of concern Losing money Missing investment opportunities High fees detract overly from returns Inadequete funds for retirement Saving eroded by inflation Regulatory concerns Losing money Missing investment opportunities High fees detract overly from returns Inadequete funds for retirement Saving eroded by inflation Regulatory concern Level of concern Dec 13 Sep 14 Dec 14 Female Age: Australians aged 3-49 expressed more concern over all areas of risk in their superannuation and investments, especially with regards to not having for their retirement. Those aged over worried least about missed investment opportunities and worried most about regulation. Income: Low income earners worried most about not having sufficient funds for their retirement. They were also most concerned about having their savings eroded by inflation, losing money and regulation. However, they were by far the least worried group about missing investment opportunities. Current Concerns About Risks in and s ( = extremely concerned) Current Concerns About Risks in and s ( = extremely concerned) Level of concern Losing money Missing investment opportunities High fees detract overly from returns Inadequete funds for retirement Saving eroded by inflation Regulatory concern Level of concern Losing money Missing investment opportunities High fees detract overly from returns Inadequete funds for retirement Saving eroded by inflation Regulatory concern 18 to 29 3 to 49 + k+ 7k to k k to 7k 3 to k Under 3k MLC Quarterly Australian 8

9 Q4 14 Concerns about superannuation and investments continued State: Tasmania worried more than any other state over every aspect of their superannuation and investments, especially missing investment opportunities and losing money. In contrast, people living in WA were least worried, especially in regards to fees and inflation. Location: Location: Australians in all locations worried most about having inadequate funds for retirement and the impact of regulation on their super and investments, with concern highest among those living in rural towns and the bush. Current Concerns About Risks in and s ( = extremely concerned) Current Concerns About Risks in and s ( = extremely concerned) Level of concern Losing money Missing investment opportunities High fees detract overly from returns Inadequete funds for retirement Saving eroded by inflation Regulatory concern Losing money Missing investment opportunities High fees detract overly from returns Inadequete funds for retirement Saving eroded by inflation Regulatory concern Level of concern NSW/ACT VIC QLD WA SA/NT TAS Capital city Regional city Rural town/bush Financial sufficiency at retirement Australians investors were less positive about financial sufficiency at retirement. Although 6% indicated that they had more than (4% in Q3), only 28% had (31% in Q3). Alarmingly, more than 1 in 2 Australians (4%) said they did not have or far from. Expected Financial Sufficiency at Retirement Gender: Women remain more pessimistic about their financial sufficiency at retirement. Less than 1 in 3 (31%) estimate they will have compared to 38% of men. Moreover, around 26% believe they will not have and a further 31% indicate they will have far from. Expected Financial Sufficiency at Retirement More than Enough Not Far from More than Enough Not Far from Dec 13 Sep 14 Dec 14 Female MLC Quarterly Australian 9

10 Q4 14 Financial sufficiency at retirement continued Age: Young Australians are most optimistic about their financial sufficiency at retirement, with 48% expecting to have or more than. Although 3% of older Australians indicate they have, 28% also said they had not and 37% had far from. Income: Income levels impact expected financial sufficiency at retirement. Around 1 in 2 Australians earning less than $3k have far from while a further 12% had not. In contrast, on 17% of those earning +$k had far from and 33% not. Expected Financial Sufficiency at Retirement Expected Financial Sufficiency at Retirement More than Enough Not Far from More than Enough Not Far from 18 to 29 3 to 49 + k+ 7k to k k to 7k 3 to k Under 3k State: Tasmania was the least optimistic state for financial sufficiency at retirement, with more than 6% saying they had far from. Those living in Queensland were the most optimistic, with 36% having and 9% more than. Location: Australians living in rural towns/the bush were the least optimistic with regards to their financial sufficiency at retirement, with only 27% saying they had or more than. This compared to around 3% of Australians living in regional and capital cities. Expected Financial Sufficiency at Retirement Expected Financial Sufficiency at Retirement More than Enough Not Far from More than Enough Not Far from NSW/ACT VIC QLD WA SA/NT TAS Capital city Regional city Rural town/bush MLC Quarterly Australian

11 Q4 14 Consideration of major setbacks ment plans The majority of Australians (around 64%) do not give much consideration to the impact of major future financial setbacks - such as major health issues, another global financial crisis or job loss - on their retirement funds. However, this percentage has fallen slightly from around 68% in Q3. Gender: Women were considerably more optimistic than men, with around 68% giving very low or low consideration to a major financial setback, compared with 9% of men. In contrast, 41% of men gave it medium or high consideration compared to just 32% of women. Level of Consideration for Major Future Financial Setbacks Level of Consideration for Major Future Financial Setbacks Very Low Low Medium High Very Low Low Medium High Dec 13 Sep 14 Dec 14 Female Age: Whereas 36% of all investors over gave very low consideration to a major future financial setback, around 11% gave it high consideration. Overall, 3-49 year olds were the least concerned in all age groups, with 6% giving it very low or low consideration, just ahead of over s (64%). Income: Around 43% of investors earning less than $3k gave very low consideration to a major financial set back on their retirement funds, likely reflecting weaker financial selfsufficiency positions also reported by this group. High income earners were more inclined to give more consideration to these issues. Level of Consideration for Major Future Financial Setbacks Level of Consideration for Major Future Financial Setbacks Very Low Low Medium High 18 to 29 3 to 49 3 to k Very Low Low Medium High 7k to k k to 7k 3k to k Under 3k MLC Quarterly Australian 11

12 Q4 14 Consideration of major setbacks ment plans continued State: Around 7% of investors from WA gave very low or low consideration to a major future financial setback - the highest in the country. In contrast, around 39% of investors in SA/NT gave it medium or high consideration - the highest in the country. Location: Investors in rural areas give the least consideration to the possibility of a major financial setback, followed by regional cities and capital cities. Interestingly, rural areas also report the highest level of concern in terms of not having. Level of Consideration for Major Future Financial Setbacks Level of Consideration for Major Future Financial Setbacks Very Low Low Medium High NSW/ACT VIC QLD WA SA/NT TAS Very Low Low Medium High Capital City Regional City Rural Town/Bush Time ment and investment strategy The percentage of Australians more than years from retirement and investing for long-term growth fell to 22% in Q4 (24% in Q3), while those at all fell to 1% (17% in Q3). There was also a notable increase in the number of Australians within years of retirement and already retired investing.. Gender: A larger number of men more than years from retirement are investing for long-term growth, whereas more women are investing or not at all. More men within years of retirement and already retired were also investing for long-term growth and Distance to Retirement and Strategy Distance to Retirement and Strategy of Respondents of Respondents 2 1 Greater than yrs, Greater than yrs, Greater than yrs, Within yrs, Within yrs, Within yrs, no investments Greater than yrs, Greater than yrs, Greater than yrs, Within yrs, Within yrs, Within yrs, no investments Dec 13 Sep 14 Dec 14 Female MLC Quarterly Australian 12

13 Q4 14 Consideration of major setbacks ment plans continued Age: Although the lions share of Australians under 29 and more than years from retirement are investing for long-term growth, around 1 in 4 are also at all. In contrasts, most Australians over were more conservative. Income: High income earners years away from retirement were most aggressive in chasing long-term investment growth and low income earners least aggressive. Mid-income earners years from retirement or already retired were most conservative. Distance to Retirement and Strategy Distance to Retirement and Strategy of Respondents Greater than yrs, Greater than yrs, Greater than yrs, Within yrs, Within yrs, Within yrs, no investments of Respondents Greater than yrs, Greater than yrs, Greater than yrs, Within yrs, Within yrs, Within yrs, no investments 18 to 29 3 to 49 + k 7k to k k to 7k 3k to k Under 3k State: Over 3% of Australians living in WA and more than years from retirement were chasing long-term growth, the greatest nationally, whereas Tasmanians were most conservative. For those years from retirements, Victorians were notably more conservative. Distance to Retirement and Strategy Location: Rural investors years from retirement were most inclined to invest, while those in capital cities were most aggressive in chasing growth. Retirees in rural towns were also the most conservative, but also had the biggest share with no investments. Distance to Retirement and Strategy of Respondents Greater than yrs, Greater than yrs, Greater than yrs, Within yrs, Within yrs, Within yrs, no investments of Respondents Greater than yrs, Greater than yrs, Greater than yrs, Within yrs, Within yrs, Within yrs, no investments NSW/ACT VIC QLD WA SA/NT TAS Capital City Regional City Rural Town/Bush MLC Quarterly Australian 13

14 Q4 14 Transitioning ment With Australians more concerned about their financial sufficiency at retirement, the number of survey respondents planning to transition ment has also climbed to 43% (36% in Q3). Transition to Retirement: Overall Gender: Although more men (4%) were planning to transition ment than women (4%), more men (28%) were also planning to move straight inment compared to women (18%) Transition to Retirement: Gender Yes No Don t know Yes No Don t know Sept 14 Dec 14 Female Age: More younger Australians are planning to transition to retirement than any other age group, while more middle-aged Australians are planning to move straight inment. A significant percentage across all age groups are unsure of their intentions. Income: Fewer low income earners are planning to transition ment, while more higher income earners expect to stay in the workforce longer. Also notable was the much bigger proportion of mid and low-income workers with no transition plans. Transition to Retirement: Age Transition to Retirement: Income Yes No Don t know Yes No Don t know 18 to 29 3 to 49 + k+ 7k to k k to 7 k 3 k to k Under 3k MLC Quarterly Australian 14

15 Q4 14 Expected Age of Retirement Australians are on average expecting to work longer, with the share of survey respondents planning at 6-64 falling to from 23% to 21% and those retiring at 6-69 falling from 31% to 29%. In contrast, those expecting between 7-74 increased from around 9% to 11%, and those retiring at 7+ rose from 6% to 8%. Expected Age of Retirement: Overall Gender: Australian women are planning from the workforce earlier than men. Around 1 in 4 women expect to retire aged between 6-64, compared to just 17% of men. In contrast, 32% of men are planning between 6-69 (2% of women) and a further 24% are planning over the age of 7, compared to just 14% of women. Expected Age of Retirement: Gender Under Don t know Under Don t know Sep 14 Dec 14 Female Age: Around 4% of over s expect between 6-69, compared to 27% of 3-49 and 23% of year olds. Interestingly, 13% of 3-49 year olds also plan between the highest of any age group. Income: More than 27% of high income earners plan at 6-64, compared to around 16-17% for mid and low income earners. Lower income workers are typically expecting to retire later. Expected Age of Retirement: Age Expected Age of Retirement: Income Under Don t know Under Don t know 18 to 29 3 to 49 + k+ 7k to k k to 7 k 3 k to k Under 3k MLC Quarterly Australian 1

16 Q4 14 Changes in spending behaviour post retirement Australians on average expect to spend more on medical expenses when retired and to a much lesser extent, utilities. Most expect to cut back spending on children and discretionary goods like household items, personal goods, home improvements and eating out. Gender: Both women and men expect to spend more on medical expenses post retirement, with men also spending slightly more on utilities and travel. Both groups plan to spend least on children, household items and personal goods, but women cutting back more. Changes in Spending Behaviour Post Retirement (net balance) Changes in Spending Behaviour Post Retirement (net balance) Medical Expenses Utilities Insurances Travel expect to spend less Transport Groceries Savings, super, investments, donations Entertainment Eating out expect to spend more Home improvements Personal goods Major household items Children Medical Expenses Insurances Utilities Transport expect to spend less Travel Groceries Savings, super, investments, donations Entertainment Home improvements expect to spend more Eating out Personal goods Major household items Children Q3 14 Q4 14 Women Men Plans for family home Almost 19% of Australians intend to sell their homes to fund their retirement, up from 11% in Q3. Some 38% have no plans to sell their home while 3% are unsure. Gender: Around 22% of men intend to sell the family home to fund their retirement (1% of women). Fewer men will use home equity, but more women are unsure. Family Home in Relation to Retirement Funding (percent of respondents) Family Home in Relation to Retirement Funding (percent of respondents) Will sell house Will not sell house Will use equity in house Don t know Will sell house Will not sell house Will use equity in house Don t know Sept 14 Dec 14 Female MLC Quarterly Australian 16

17 Q4 14 Changes in spending behaviour post retirement The NAB Australian Wealth Survey aims to assess the investment environment including investor intentions. The wealth survey is based on survey participants responses to questions related to: Current financial situation asking respondents to indicate current holdings in each asset class. intentions asking the respondent whether they are likely to invest more or less. This is based on respondents intentions to change their portfolio mix. Net values shown are the difference in intentions. Level of concern related to superannuation and other investments Distance ment and investment strategy Over 2, respondents participated in the Q4 14 Wealth Sentiment Survey, with weights applied to age, location and gender to ensure that the survey reasonably reflects the Australian population. The breakdown of our survey respondents by age, location and gender is shown in the charts below: Respondents by gender Respondents by state Respondents by age Female TAS 2% VIC 24% NSW/ACT 34% QLD % SA/NT 9% WA 11% 18 to 29 % 3 to 49 38% + 42% For more information Daniel Wright Corporate Communications MLC Quarterly Australian 17

18 Q4 14 Group Economics Alan Oster Group Chief Economist +(61 3) Jacqui Brand Personal Assistant +(61 3) Australian Economics and Commodities Vacant Head of Australian Economics James Glenn Senior Economist Australia +(61 3) Vyanne Lai Economist Australia +(61 3) Phin Ziebell Economist Agribusiness +(61 4) Industry Analysis Dean Pearson Head of Industry Analysis +(61 3) Robert De Iure Senior Economist Industry Analysis +(61 3) Brien McDonald Economist Industry Analysis +(61 3) Amy Li Economist Industry Analysis +(61 3) Karla Bulauan Economist Industry Analysis +(61 3) Important Notice International Economics Tom Taylor Head of Economics, International Tony Kelly Senior Economist International Gerard Burg Senior Economist Asia John Sharma Economist Sovereign Risk Global Markets Research Peter Jolly Global Head of Research Australia Economics Spiros Papadopoulos Senior Economist David de Garis Senior Economist FX Strategy Ray Attrill Global Co-Head of FX Strategy Emma Lawson Senior Currency Strategist Interest Rate Strategy Skye Masters Head of Interest Rate Strategy Rodrigo Catril Interest Rate Strategist Credit Research Michael Bush Head of Credit Research Simon Fletcher Senior Credit Analyst FI Equities Peter Cashmore Senior Real Estate Equity Analyst Distribution Barbara Leong Research Production Manager New Zealand Stephen Toplis Head of Research NZ Craig Ebert Senior Economist NZ Doug Steel Senior Economist Kymberly Martin Senior Market Strategist Raiko Shareef Currency Strategist Yvonne Liew Publications & Web Administrator UK/Europe Nick Parsons Head of Research, UK/Europe, and Global Co-Head of FX Strategy Gavin Friend Senior Markets Strategist Derek Allassani Research Production Manager Asia Christy Tan Head of Markets Strategy/Research, Asia This document has been prepared by National Australia Bank Limited ABN AFSL ( NAB ). Any advice contained in this document has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice in this document, NAB recommends that you consider whether the advice is appropriate for your circumstances. NAB recommends that you obtain and consider the relevant Product Disclosure Statement or other disclosure document, before making any decision about a product including whether to acquire or to continue to hold it. MLC Limited ABN 9 42 AFSL Part of the National Australia Bank Group of Companies. An investment with MLC is not a deposit or liability of, and is not guaranteed by, NAB. MLC Quarterly Australian M31