Supplementary Information

SUPPLEMENTARY INFORMATION

CONDITIONS

The conditions in the global economy showed moderate increases for most countries in the June quarter 2013. According to the Organisation for Economic Cooperation and Development (OECD), preliminary real GDP estimates in seasonally adjusted terms showed movement in quarterly growth for: China (1.7%), Korea (1.1%), Germany (0.7%), Japan (0.6%), UK (0.6%), France (0.5%), USA (0.4%), Spain (-0.1%), Italy (-0.2%) and Netherlands (-0.2%).

Australia's international investment activities during the quarter were as follows:

foreign asset transactions were $5.3b in the June quarter 2013 compared to $3.1b in the March quarter 2013

foreign liability transactions were $10.9b in the June quarter 2013 compared to $13.5b in the March quarter 2013.

The Australian share market, as measured by the MSCI global index, decreased 2.9% in the June quarter 2013, compared to the 7.3% increase in the March quarter 2013. There were decreases in: Hong Kong 6.0%, Singapore 5.6%, Canada 4.5%, the UK 3.2%, New Zealand 2.8%, Switzerland 1.7%, Europe ex UK 1.4%, Germany 0.7% and France 0.4%. Market increases were seen in Japan 10.1% and the USA 2.2%. A market price change of $18.7b was recorded for foreign equity assets and -$28.9b in foreign equity liabilities during the June quarter 2013.

According to Bloomberg, the composite corporate benchmark yield increased in Australia from 4.36% to 4.40%, in the UK from 3.30% to 3.74%, in the USA from 2.83% to 3.44%, in Germany from 2.02% to 2.26% and in Japan from 0.51% to 0.62%. The long term 10 year government bond yields increased in the UK from 1.78% to 2.46%, in the USA from 1.87% to 2.52%, in Germany from 1.28% to 1.73% and in Japan from 0.56% to 0.84%. In Australia, the rate increased from 3.51% to 3.54%. Market price changes were recorded for both portfolio debt securities liabilities of -$5.9b and assets of $1.3b in the June quarter 2013.

The Australian dollar depreciated against a...