Understanding retirement and income - Mark Todd NAB Income & Investment Solutions
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Understanding retirement and income
Mark Todd
NAB Income & Investment Solutions
Important information Disclaimer This document has been prepared by National Australia Bank Limited ABN 12 004 044 937 AFSL 230686 (“NAB”) for the use only by persons who are not retail clients under the Corporations Act nor located outside Australia. This is not an offer or recommendation to buy, sell or deal in any securities, nor is it a product disclosure statement and any advice provided has been prepared without taking into account your objectives, financial situation or needs so you should seek independent financial advice. Prices are indicative only. NAB may have financial or other interests in companies or the securities which are referred to in this document. Although NAB and its related bodies corporate have made every effort to ensure the accuracy of the information as at the date of publication, NAB does not give any warranty or representation as to the accuracy, reliability or completeness of the information. To the extent permitted by law, NAB and its employees, officers and contractors shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided or omitted or from any one acting or refraining to act in reliance on this information. NAB Access Bond Service is only available to investors who qualify as a ‘wholesale investor’ or ‘professional investor’.
NIIS
Your deposit and income investment specialist
Simply, NIIS offers you more.
Risk
More deposit solutions.
More income solutions for your portfolio needs.
More local and global experience.
NIIS offers you a suite of innovative investment solutions tailored to your
Australian portfolio needs:
equities
Property
Term Deposits
Hybrids/ Flexi Deposits
capital
Dual Currency Deposits
notes
Subordinated Enhanced Currency Deposits
debt Inflation Deposits
Senior
unsecured debt Listed debt securities
Senior Unlisted debt securities
secured debt
Bank Equity structured products
deposits
Government Listed and unlisted property investment options
bonds
ReturnOverreliance on deposits
to service conservative appetites
Source: APRA, RBA 2013Performance of equities and bonds
Performance of bonds and equities
Rolling average monthly returns (Dec 2000 – Dec 2012)*
4.00
2.00
% 0.00
Dec-00
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
-2.00
-4.00
UBS Composite Bond Index S&P/ASX 200 Accumulation Index
The above chart has been prepared by National Australia Bank Limited. National Australia Bank Limited is solely responsible for the
completeness of the chart and any inaccuracies contained therein. UBS does not make any warranty, representation or guarantee as to the
accuracy and/or completeness of these charts or any component thereof.
*Rolling 12 month average of monthly returns
Source: UBS, ASX, National Australia Bank, June 2013This is not age-based investing
For illustrative purposes only
Investors should consider the level of
diversification within their portfolios and
regularly rebalancing their asset allocations to
accurately reflect their risk profiles
For instance, investors who are reaching closer
to retirement with a low risk appetite may
consider adjusting their asset allocations to
reflect more of a defensive-to-conservative
portfolio
Like a share portfolio, investors can use a
mixture of government, corporate, listed,
unlisted, fixed rate and floating rate notes within
their portfolio
*Includes high yield income investments
Source: ‘Five-star super strategies’ ASX, 2011Introducing NAB Access Bond Service
1. Simple & affordable access
2. Choice and flexibility
3. Control
4. Easy administration &
safe custodyCorporate bond market
the potential direct investor’s market
Taking a look at a broader spectrum of bonds available
The potential sub-institutional investors’ space
The domestic A$ Medium Term Note Market (MTN) offers
investors a diverse range of investment options
The range of securities on offer are diverse in terms of:
– Issuers;
– Industries;
– Term;
– Coupon/yields;
– Coupon types; and
– Capital ranking
Inflation Investors can utilise a mix of cash, term deposits, unlisted and
Floating listed bonds to maximise the level of diversification within the
debt securities (“fixed income”) component of their portfolios
Fixed
*Indicative yields as at 21 February 2014 are shown in the chart above.
The bonds illustrated above highlight the potential returns available on lower-rated and longer-dated securities.Risks to consider before joining
Access Bond Service
Limited liquidity
The NAB Access Bond Service is designed for investors wishing to hold bonds to maturity. Only limited liquidity will be available for
bonds bought through the service
Transparency
If there is limited liquidity in the market for a particular bond purchased then there may be a lack of price transparency
Spread
Bond prices and the bid/offer spreads may vary depending on the bond chosen
Issuer credit risk
As with all bonds, there is a risk that an issuer may be unable to meet its interest and principal repayments. In the event of default by
an issuer, the principal and coupon may not be paid in full or at all. NAB does not guarantee bonds available via NAB Access Bond
ServiceImportant notices So far as laws and regulatory requirements permit, NAB, its related companies, associated entities and any officer, employee, agent, adviser or contractor thereof (the “NAB Group”) does not warrant or represent that the information, recommendations, opinions or conclusions contained in this document (“Information”) are accurate, reliable, complete or current. The Information is indicative and prepared for information purposes only and does not purport to contain all matters relevant to any particular investment or financial instrument. The Information is not intended to be relied upon and in all cases anyone proposing to use the Information should independently verify and check its accuracy, completeness, reliability and suitability obtain appropriate professional advice. The Information is not intended to create any legal or fiduciary relationship and nothing contained in this document will be considered an invitation to engage in business, a recommendation, guidance, invitation, inducement, proposal, advice or solicitation to provide investment, financial or banking services or an invitation to engage in business or invest, buy, sell or deal in any securities or other financial instruments. The Information is subject to change without notice, but the NAB Group shall not be under any duty to update or correct it. All statements as to future matters are not guaranteed to be accurate and any statements as to past performance do not represent future performance. The NAB Group takes various positions and/or roles in relation to financial products and services, and (subject to NAB policies) may hold a position or act as a price-maker in the financial instruments of any company or issuer discussed within this document, or act and receive fees as an underwriter, placement agent, adviser, broker or lender to such company or issuer. The NAB Group may transact, for its own account or for the account of any client(s), the securities of or other financial instruments relating to any company or issuer described in the Information, including in a manner that is inconsistent with or contrary to the Information. Subject to any terms implied by law and which cannot be excluded, the NAB Group shall not be liable for any errors, omissions, defects or misrepresentations in the Information (including by reasons of negligence, negligent misstatement or otherwise) or for any loss or damage (whether direct or indirect) suffered by persons who use or rely on the Information. If any law prohibits the exclusion of such liability, the NAB Group limits its liability to the re-supply of the Information, provided that such limitation is permitted by law and is fair and reasonable. This document is intended for clients and agents of the NAB Group only and may not be reproduced or distributed without the consent of NAB. The Information is governed by, and is to be construed in accordance with, the laws in force in the State of Victoria, Australia.
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