BT Monthly Markets Chart Pack – June 2009

1. BT Monthly Markets Chart Pack – June 2009 An overview of movements in global financial markets

2. Global share market performance was mixed in June... • Global share market performance was mixed in June, helped on the one hand by speculation that the world economy is beginning to stabilise but hurt on the other by concerns that higher oil prices will cause inflation to rise. In the US, the benchmark S&P 500 Index ended June flat while markets in the UK (-3.8%) and Europe (-2.0%) closed well in the red. Japan was one of the standout performers, gaining a further 4.6% during the month. • The Australian share market made it four in a row in June, with the S&P/ASX 200 Accumulation Index up 4% thanks mainly to news that our economy had technically avoided a recession. Also contributing to the gains was a significant jump in consumer confidence.

3. …but continue to perform well over the long-term, despite some major market events Impact of major market events on global shares since 1987 Jul 01 Tech Wreck Jun 07 US Sub-prime Crisis Sep 01 Attack on Twin Towers Jul 98 Russian Bond Crisis Aug 97 Asian Currency Crisis Nov 89 Fall of the Berlin Wall Feb 94 Bond Market Crash Mar 03 Troops enter Iraq Oct 87 Wall Street crash Jan 91 Gulf War Global shares measured by the MSCI World ex-Australia (net dividends) Index in A$. Source: BT Financial Group, MSCI

4. The Australian share market closed 4% higher in June S&P/ASX 200 Accumulation Index – year to 30 June 2009 Source: BT Financial Group, Premium Data

5. Key Australian economic news – June • The Reserve Bank of Australia left interest rates on hold at 3.00% following its early July meeting amid further signs that the local economy is beginning to stabilise. • After contracting 0.5% in the last quarter of 2008, the Australian economy grew by a very modest 0.4% in the March quarter. • The Westpac/Melbourne Institute’s consumer sentiment survey jumped 12.7% in June. It was the survey’s largest monthly increase in 22 years, though admittedly the survey was taken the day after it was reported that the Australian economy had avoided a recession. • Australia’s current account deficit came in at A$4.6 billion in the March quarter. The market had expected a deficit of A$5.4 billion. • The Australian economy lost 1,700 jobs in May, causing the unemployment rate to move 0.2% higher (to 5.7%). Source: BT Financial Group

6. The Australian dollar made only a modest gain against the US dollar in June • The Australian dollar (A$) was little changed against the US dollar (US$) in June, closing the month a modest 0.7% higher. The local currency retreated after the RBA’s decision to leave interest rates on hold but this was largely offset by continued US$ weakness. • After such a strong rally last month – the A$ gained 10% against the US$ in May – it was inevitable that we’d see some sort of pullback in June. That said, there’s still a good chance we could see the A$ hit US$0.85 cents by year’s end. • At the end of June: A$1 bought US$0.8065 +0.7% €0.5752 +1.6% ¥77.71 +1.8% Source: BT Financial Group

7. The Australian dollar versus the US dollar… Currency markets – A$ per US dollar Source: BT Financial Group. Figures at 30 June 2009

8. the Euro… Currency markets – A$ per Euro Source: BT Financial Group. Figures at 30 June 2009

9. and the Yen Currency markets – A$ per Yen Source: BT Financial Group. Figures at 30 June 2009

10. Official world interest rate movements – June • June was another quiet month in terms of interest rate movements, with all the major central banks leaving their respective benchmark rates on hold. Source: BT Financial Group

11. Global share market returns 30 June 2009 Source: BT Financial Group

12. Short-term asset class performance 1-year rolling returns to 30 June 2009 (%) Best performing asset class for the year 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, Barclays Capital Global Aggregate Bond Index hedged to $A , UBS Bank Bill 0+ years

13. Short-term asset class performance (cont’d) 1-year returns to 30 June 2009 (%) 30 June 2008 30 June 2009 Australian bonds Listed property Australian shares Global bonds Global shares 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, Barclays Capital Global Aggregate Bond Index hedged to $A

14. Long-term asset class performance 30 June 2009 Australian shares Listed property Australian bonds Global shares Cash 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 were higher in June amid further evidence that the global economy is beginning to stabilise Oil prices – US$ per barrel Source: BT Financial Group. West Texas Intermediate oil price at 30 June 2009

16. Summary • At BT, we believe the Australian economy is currently in a moderate recession and we expect this will continue for some time. • Whilst economic data is expected to deteriorate in the near-term, we don’t see this as a reflection of financial markets. It is our view that we’ve seen the worst of the current downturn and that global markets will soon recover, particularly as government stimulus packages begin to take effect. • There is growing confidence that share markets, including our own, have already seen the bottom. Whilst we believe this to be true, we still expect share markets to remain volatile in the near-term. • Shares are currently trading at historically low levels and we believe they represent good value for investors with a long-term investment horizon. • The trend in the A$ is likely to remain up in the near-term as commodity prices strengthen and the US$ continues to weaken. It’s possible that the local currency could go as high as US$0.85 cents by year’s-end.

17. 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)