Bloomberg AusBond Indices · Month in Review 2 January 2018 Page 2 Month in Review Australian Market Performance On December th5 2017, the Reserve Bank of Australia (RBA) left the

Month in Review 2 January 2018

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Page 1

Bloomberg AusBond Indices Month in Review – December 2017

Month in Review ..................................................................................................................................................... 2

Australian Market Performance .............................................................................................................................. 2

New Zealand Market Performance ......................................................................................................................... 4

Global Market Performance .................................................................................................................................... 7

Market Yields ........................................................................................................................................................... 9

Supply .................................................................................................................................................................... 12

Maturities .............................................................................................................................................................. 13

Index Market Capitalisation .................................................................................................................................. 14


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Page 2

Month in Review

Australian Market Performance

On December 5th 2017, the Reserve Bank of Australia (RBA) left the target cash rate unchanged at 1.5%. As

shown in Table 1 below, the AusBond Composite Index’s December return was negative. The worst performing

component of the Index was the Treasury Index at -0.73%. The AusBond Semi-Government and Supra-Sovereign

Indices returned -0.39% and -0.24% respectively, while the AusBond Credit Index was -0.52% lower for the month.

The Inflation Credit Index was also lower at -0.25%, similarly the AusBond Inflation Government Index dropped -

0.74%. The Bank Bill remained steady at 0.14%. Within equities, the S&P/ASX Accumulation 200 Index rose

1.81%.

Table 1. AusBond Total Return Performance: December 2017

Index DEC NOV OCT QTD YTD 2 YR 5 YR Bloomberg AusBond Composite 0+ Yr Index -0.52% 0.87% 1.09% 1.44% 3.66% 3.29% 4.15%

Bloomberg AusBond Treasury 0+ Yr Index -0.73% 1.08% 1.24% 1.59% 3.49% 3.00% 3.73%

Bloomberg AusBond Semi-Govt 0+ Yr Index -0.39% 0.67% 1.01% 1.29% 3.20% 3.25% 4.43%

Bloomberg AusBond SupraSov 0+ Yr Index -0.24% 0.54% 0.79% 1.10% 3.88% 3.47% 4.18%

Bloomberg AusBond Credit 0+ Yr Index -0.21% 0.72% 0.98% 1.49% 5.09% 4.44% 4.84%

Bloomberg AusBond Bank Bill Index 0.14% 0.13% 0.15% 0.42% 1.75% 1.91% 2.34%

Bloomberg AusBond Credit FRN 0+ Yr Index 0.20% 0.20% 0.29% 0.69% 3.45% 3.28% 3.47%

Bloomberg AusBond Infl 0+ Yr Index -0.71% 2.05% 1.26% 2.60% 3.89% 2.58% 3.80%

Bloomberg AusBond Infl Govt 0+ Yr Index -0.74% 2.08% 1.27% 2.62% 3.73% 2.46% 3.58%

Bloomberg AusBond Infl Credit 0+ Yr Index -0.25% 1.49% 1.03% 2.27% 6.40% 4.53% 6.39%

S&P/ASX Accumulation 200 Index 1.81% 1.64% 4.01% 7.64% 11.80% 11.80% 10.23%

Source: Bloomberg Finance L.P. Note: 2 and 5 year returns are annualized.

Chart 1. Bloomberg AusBond Composite Index: Monthly Performance 2017

-2.00%

-1.50%

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1.50%

Jan-17 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec-17

Monthly Retn Prior year comparison


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Chart 2. S&P/ASX200 Accumulation Index vs. Bloomberg AusBond Composite Index:

Monthly Return Performance 20171

Chart 3. Bloomberg AusBond Indices: Recent monthly returns2

1 The following indices are shown: AusBond Composite Index (BACM0) and S&P/ASX 200 Accumulation Index (ASA51).

2The following indices are shown: AusBond Composite Index (BACM0); AusBond Treasury Index (BATY0); AusBond Semi-Government Index (BASG0); AusBond Supra/Sovereign Index (BASS0); AusBond Credit Index (BACR0); AusBond Bank Bill Index (BAUBIL); AusBond Inflation Index (BAIL0); AusBond Inflation Government Index (BAIG0); AusBond Inflation Credit Index (BAIC0) and S&P/ASX 200 Accumulation Index (ASA51).

-4.00%

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%


BACM0 Index ASA51 Index

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

BACM0 BATY0 BASG0 BASS0 BACR0 BAUBIL BAIL0 BAIG0 BAIC0 ASA51

Oct-2017 Nov-2017 Dec-2017


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Chart 4. Bloomberg AusBond Indices: Recent quarterly returns

New Zealand Market Performance

As set out in Table 2 below, all NZBond fixed income indices registered a positive performance for the month of

December. The Treasury index rose 0.36%, while the other components of the Composite performed as follows:

NZBond Local Government Index (0.29%), SupraSov Index (0.12%) and Credit Index (0.23%). The Composite

Index on aggregate rose by 0.29% for the month. The Bank Bill Index was steady at 0.16%.

Table 2. NZBond Total Return Performance: December 2017

Index DEC NOV OCT QTD YTD 2 YR 5 YR

Bloomberg NZBond Composite 0+ Yr Index 0.29% 0.64% 0.55% 1.48% 5.35% 4.52% 4.26%

Bloomberg NZBond Treasury 0+ Yr Index 0.36% 0.80% 0.51% 1.69% 5.43% 4.44% 3.99%

Bloomberg NZBond Local Govt 0+ Yr Index 0.29% 0.58% 0.65% 1.54% 5.75% 4.96% 4.91%

Bloomberg NZBond Non-Govt 0+ Yr Index 0.17% 0.40% 0.58% 1.16% 5.16% 4.52% 4.71%

Bloomberg NZBond SupraSov 0+ Yr Index 0.12% 0.32% 0.50% 0.95% 4.52% 4.11% 4.17%

Bloomberg NZBond Credit 0+ Yr Index 0.23% 0.48% 0.67% 1.38% 5.89% 5.00% 5.27%

Bloomberg NZBond Bank Bill Index 0.16% 0.16% 0.17% 0.49% 1.98% 2.22% 2.77%

Bloomberg NZBond Infl 0+ Yr Index 0.46% 1.82% 3.00% 5.36% 10.27% 7.84% 3.96%

S&P/NZX 50 Gross Index 2.58% 0.50% 2.72% 5.90% 22.04% 15.24% 15.61%

Source: Bloomberg Finance L.P. Note: 2 and 5 year returns are annualized.

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

BACM0 BATY0 BASG0 BASS0 BACR0 BAUBIL BAIL0 BAIG0 BAIC0 ASA51

Dec-2016 Mar-2017 Jun-2017 Sep-2017 Dec-2017


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Page 5

Chart 5. Bloomberg NZBond Composite Index: Monthly Performance 2017

Chart 6. S&P/NZX50 Gross Index vs. Bloomberg NZBond Composite Index:

Monthly Return Performance 20173

3 The following indices are shown: NZBond Composite Index (BNZCM0) and S&P/NZX 50 Gross Index (NZSE50FG).

-1.50%

-1.00%

-0.50%

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0.50%

1.00%

1.50%

2.00%


Monthly Retn Prior year comparison

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1.00%

1.50%

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2.50%

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BNZCM0 Index NZSE50FG Index


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Chart 7. Bloomberg NZBond Indices: Recent monthly returns4

Chart 8. Bloomberg NZBond Indices: Recent quarterly returns

4The following indices are shown: NZBond Composite Index (BNZCM0); NZBond Treasury Index (BNZTY0); NZBond Local Govt Index

(BNZLG0); NZBond Non-Govt Index (BNZNG0); NZBond SupraSov Index (BNZSS0); NZBond Credit Index (BNZCR0); NZBond Bank Bill Index (BNZBIL); NZBond Govt Inflation Index (BNZI0) and S&P/NZX 50 Gross Index (NZSE50FG).

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

BNZCM0 BNZLG0 BNZSS0 BNZBIL NZSE50FG

Oct-2017 Nov-2017 Dec-2017

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

BNZCM0 BNZTY0 BNZLG0 BNZNG0 BNZSS0 BNZCR0 BNZBIL BNZI0 NZSE50FG

Dec-2016 Mar-2017 Jun-2017 Sep-2017 Dec-2017


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Page 7

Global Market Performance

Chart 9 illustrates the recent monthly and yearly performance of global sovereign indices. The largest mover in

December, the UK, was up 1.61%. The US Aggregate Treasury Index was at 0.31%. On a twelve month basis, as

shown in Table 3, most indices find themselves in positive territory. Global Sovereign Indices returns were as

follows: Canada (0.11%), US (2.31%), UK (1.95%), Germany (-1.36%), Euro (0.14%), Japan (0.17%), Hong Kong

(1.41%) and China (-1.56%) Indices.

Chart 9. Bloomberg Indices Sovereign Debt Performance: December 20175

Table 3. Bloomberg Indices Sovereign Debt Performance: December 2017

Return AUS NZ CAN US UK DE EUR JP SIN HK CN

Dec -0.52% 0.29% -0.64% 0.31% 1.61% -0.50% -0.85% 0.08% 0.68% -0.26% 0.36%

Nov 0.87% 0.64% 0.45% -0.14% 0.28% -0.07% 0.30% 0.27% 0.03% -0.22% 0.18%

Oct 1.09% 0.55% 1.19% -0.12% 0.32% 0.60% 1.11% 0.02% 0.07% -0.49% -0.85%

12-MTH 3.66% 5.35% 0.11% 2.31% 1.95% -1.36% 0.14% 0.17% 4.18% 1.41% -1.56%

The majority of the global Investment Grade Corporate Indices recorded positive returns for December. The APAC

(ex-JP) benchmark rose by 3.34% following by the UK benchmark at 1.66%. The Bloomberg Barclays China

Corporate Index was flat for the month.

5 The Sovereign Indices shown are: Bloomberg AusBond Treasury (BATY0 Index); Bloomberg NZBond Treasury (BNZTY0 Index); Bloomberg

Barclays Global Treasury Bond Index country subsets for Canada, US, UK, Germany, Euro, Japan, Singapore, Hong Kong and the China Aggregate Treasury subset.

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

AUS NZ CAN US UK DE EUR JP SIN HK CN

Oct Nov Dec 12-MTH


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Chart 10. Bloomberg Indices Investment Grade Corporate Indices: December 20176

Table 4. Bloomberg Indices Investment Grade Corporate Indices: December 2017

Return AUS NZ US UK Pan-Eur Euro JP CN APAC (ex-JP)

Dec -0.21% 0.23% 0.91% 1.66% -0.06% -0.29% 0.01% 0.01% 3.34%

Nov 0.72% 0.48% -0.15% -0.01% -0.23% -0.17% 0.07% -0.55% -1.41%

Oct 0.98% 0.67% 0.40% 0.54% 1.04% 1.10% 0.06% 0.03% -0.23%

12-MTH 5.09% 5.89% 6.42% 4.86% 1.91% 2.41% 0.58% 1.27% 9.35%

6 The global benchmarks for investment-grade corporate bonds shown are: Bloomberg AusBond Credit Index (BACR0 Index); Bloomberg

NZBond Credit Index (BNZCR0 Index); Bloomberg Barclays US Corporate Bond Index (LUACTRUU Index); Bloomberg Barclays Sterling Corporate Bond Index (LC61TRGU Index); Bloomberg Barclays EURO Index; Bloomberg Barclays Pan-European Index; Corporates Bond Index (LECPTREU Index); Bloomberg Barclays Asian-Pacific Japan Corporate Index (LJC1TRJU Index); Bloomberg Barclays China Aggregate: Corporate Index and Bloomberg Barclays Asian-Pacific Non-Japan Corporate Index.

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

AUS NZ US UK Pan-Eur Euro JP CN APAC (ex-JP)

Oct Nov Dec 12-MTH


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Page 9

Market Yields

In December 2017, the Yield to Worst (YTW) on the AusBond Treasury and the Composite Indices rose to 2.47 and

to 2.57 respectively. The Inflation Credit Index YTW was at 2.64, up 18bp since the end of November. The Bank Bill

Yield popped higher to 1.71.

Chart 11. Bloomberg AusBond Indices: Bond Yields

Yields for NZBond Indices is flat across the board. The treasury Index decreased slightly to 2.26, while the

composite Index is flat at 2.51. The New Zealand Bank Bill was steady at 1.81%.

Chart 12. Bloomberg NZBond Indices: Bond Yields

As illustrated in Chart 13, the YTW has been dropping for both the Australian and New Zealand Credit Indices for

the past 12 months. There is also a slight divergence during the last 6 months.

0

0.5

1

1.5

2

2.5

3

3.5

BACM0 BATY0 BASG0 BASS0 BACR0 BAUBIL BAIL0 BAIG0 BAIC0

Oct-2017 Nov-2017 Dec-2017 Dec-2016

0

0.5

1

1.5

2

2.5

3

3.5

4

BNZCM0 BNZTY0 BNZLG0 BNZNG0 BNZSS0 BNZCR0 BNZBIL BNZI0

Oct-2017 Nov-2017 Dec-2017 Dec-2016


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Chart 13. Bloomberg AusBond & NZBond Indices: Yields and Spreads

The Global Bloomberg Barclays Sovereign Indices have mixed YTW figures for December. The YTW for Hong

Kong and US government bonds marginally rose in the past three months, as shown below. The Bloomberg

Barclays UK Treasury Index registered a slight drop lower for the month. The YTW for the German treasuries were

steady and equal to a zero.

Chart 14. Bloomberg Indices Sovereign Bond Yields7

7The Sovereign Bond Indices shown are: Bloomberg AusBond Treasury (BATY0 Index); Bloomberg NZBond Treasury (BNZTY0 Index);

Bloomberg Barclays Global Treasury Bond Index country subsets for Canada, US, UK, Germany, Euro, Japan, Singapore, Hong Kong and

China.

0

0.5

1

1.5

2

2.5

3

3.5

4

S E P - 2 0 1 5 J A N - 2 0 1 6 M A Y - 2 0 1 6 S E P - 2 0 1 6 J A N - 2 0 1 7 M A Y - 2 0 1 7 S E P - 2 0 1 7

AU Treas NZ Credit

AU Credit NZ Treas

AU Creadit vs Treas Spread NZ Creadit vs Treas Spread

-0.5

0

0.5

1

1.5

2

2.5

3

3.5

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4.5

AUS NZ CAN US UK DE EUR JP SIN HK CN

Oct Nov Dec Dec-16


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December 2017 recorded mixed yield movement for Investment-Grade Corporate aggregates.

Chart 15. Bloomberg Indices Investment Grade Corporate Bond Yields8

8The global benchmarks for investment-grade corporate bonds shown are: Bloomberg AusBond Credit Index (BACR0 Index); Bloomberg

NZBond Credit Index (BNZCR0 Index); Bloomberg Barclays US Corporate Bond Index (LUACTRUU Index); Bloomberg Barclays Sterling Corporate Bond Index (LC61TRGU Index); Bloomberg Barclays Euro-Aggregate: Corporates Bond Index (LECPTREU Index); Bloomberg Barclays Asian-Pacific Japan Corporate Index (LJC1TRJU Index); Bloomberg Barclays China Aggregate: Corporate Index and Bloomberg Barclays Asian-Pacific Non-Japan Corporate Index.

0

1

2

3

4

5

6

AUS NZ US UK Pan-Eur Euro JP CN APAC (ex-JP)

Oct Nov Dec Dec-16


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Page 12

Supply

Table 5 shows that the AusBond Composite Index added A$9.85bn of new supply (issuances and taps) in

December. The new supply was 48% lower than the previous month and A$5.05bn lower than the 12 month

average (A$14.9bn). The largest contributors were Treasuries at A$4.3bn followed by Non-Government at

A$2.82bn and Semi-Government at A$2.73bn. Ten new issues were added to the Composite Index amounting to

A$2.54bn, which leaves A$7.31bn in taps.

The new additions to the Composite Index were issued across 6 different sectors. Among Government

Development Banks, LBANK and RENTEN issued a bond each accounting for A$0.2bn. Amongst Banks MQGAU

issued 2 fixed coupon bonds amounting to A$0.675bn in total. The largest tap was carried on the 2.25% November

2022 treasury. Additionally, six Semi-Government issuers upsized last month: NSWTC (A$0.16bn), QTC (A$0.957),

TCV (A$0.19bn), WATC (A$0.673bn), SAFA (A$0.75bn) and TASCOR. The month of December also saw

approximately A$16.91bn of buybacks and maturities, spread between treasuries and Semi-Government securities.

The largest portion was devoted to Treasuries (A$11.81bn).

Table 5. Bloomberg AusBond Composite Index Net New Supply: December 2017

Sector DEC-17 NOV-17 OCT-17 QTD 12-mth AVG % diff on % diff on

(A$bn) (A$bn) (A$bn) (A$bn) (A$bn) prior mth 12-mth AVG

Additions

Treasury 4.3 8.3 9.54 22.14 7.85 -48.19% -45.22%

Semi-Government 2.73 2.08 4.83 9.64 3.03 31.25% -9.90%

Non-Government 2.82 2.65 5.49 10.96 4.02 6.42% -29.85%

Total Composite 9.85 13.03 19.86 42.74 14.9 -24.41% -33.89%

Removals

Treasury 11.81 0.8 4.49 17.1 4.69 1376.25% 151.81%

Semi-Government 0.87 0.94 4.44 6.25 2.4 -7.45% -63.75%

Non-Government 4.23 0.85 3.29 8.37 2.73 397.65% 54.95%

Total Composite 16.91 2.59 12.22 31.72 9.82 552.90% 72.20%

Net new supply

Treasury -7.51 7.5 5.05 5.04 3.16 -200.13% -337.66%

Semi-Government 1.86 1.14 0.39 3.39 0.63 63.16% 195.24%

Non-Government -1.41 1.8 2.2 2.59 1.29 -178.33% -209.30%

Total Composite -7.06 10.44 7.64 11.02 5.08 -167.62% -238.98%

Source: Bloomberg Finance L.P.


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Page 13

Maturities

Table 6. Maturities for AusBond Composite Index: December 2017

ISSUER ISIN VALUE MATURITY

AUSTRALIAN GOVERNMENT AU3TB0000093 10,914,742,000 21-Jan-18

COMMONWEALTH BANK AUST AU3CB0204428 750,000,000 25-Jan-18

INTL BK RECON & DEVELOP AU3CB0204402 1,200,000,000 24-Jan-18

WELLS FARGO & COMPANY AU3CB0204477 400,000,000 25-Jan-18

WESTPAC BANKING CORP AU3CB0204659 250,000,000 24-Jan-18

GE CAP AUSTRALIA FUNDING AU3CB0204691 230,820,000 30-Jan-18

AFRICAN DEVELOPMENT BANK AU3CB0204857 500,000,000 31-Jan-18

L-BANK BW FOERDERBANK AU3CB0218071 500,000,000 23-Jan-18

Table 7. Upcoming maturities for AusBond Composite Index: January 2018


NEW S WALES TREASURY CRP AU3SG0000235 2,711,388,000 01-Feb-18

ASIAN DEVELOPMENT BANK AU0000ATBHH9 700,000,000 22-Feb-18

QUEENSLAND TREASURY CORP AU0000XQLQS4 4,746,000,000 21-Feb-18

KFW AU0000KFWHQ4 2,050,000,000 23-Feb-18

BNP PARIBAS AUSTRALIA AU3CB0204451 450,000,000 01-Feb-18

CITIGROUP INC AU3CB0204808 250,000,000 05-Feb-18

TOYOTA FINANCE AUSTRALIA AU3CB0205607 300,000,000 26-Feb-18

NORDIC INVESTMENT BANK AU0000NIBHH5 525,000,000 28-Feb-18

BK NEDERLANDSE GEMEENTEN AU3CB0218741 200,000,000 21-Feb-18

BMW AUSTRALIA FINANCE AU3CB0227403 500,000,000 23-Feb-18

Medallion Trust AU3CB0205789 250,000,000 22-Feb-18

Table 8. Maturities for NZBond Composite Index: December 2017


BANK OF NEW ZEALAND NZBCBDT345C8 350,000,000 19-Jan-18

NORDIC INVESTMENT BANK NZNIBDT006C6 850,000,000 30-Jan-18

Table 9. Upcoming maturities for NZBond Composite Index: January 2018


ANZ BANK NEW ZEALAND LTD NZANBDG018C4 100,000,000 16-Feb-18

EXPORT DEVELOPMNT CANADA NZEDCDT004C6 600,000,000 20-Feb-18

INTL BK RECON & DEVELOP NZIBDDT006C8 850,000,000 20-Feb-18

INTL FINANCE CORP NZIFCDT006C5 875,000,000 26-Feb-18


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Page 14

Index Market Capitalisation

The AusBond Composite Index ended December 2017 at A$987.26bn.

The NZBond Composite Index stood at NZ$112.89bn at the end of December.

Chart 16. Growth of Bloomberg AusBond Composite Index: 2016 – 2017

Chart 17. Growth of Bloomberg NZBond Composite Index: 2016 – 2017

$840.00

$860.00

$880.00

$900.00

$920.00

$940.00

$960.00

$980.00

$1,000.00

May

-16

Jun

-16

Jul-

16

Au

g-1

6

Sep

-16

Oct

-16

No

v-1

6

Dec

-16

Jan

-17

Feb

-17

Mar

-17

Ap

r-1

7

May

-17

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

Dec

-17

$106.00

$108.00

$110.00

$112.00

$114.00

$116.00

$118.00

$120.00

$122.00

$124.00

May

-16

Jun

-16

Jul-

16

Au

g-1

6

Sep

-16

Oct

-16

No

v-1

6

Dec

-16

Jan

-17

Feb

-17

Mar

-17

Ap

r-1

7

May

-17

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

Dec

-17


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INDEX <GO>

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

“Bloomberg®,” “Bloomberg AusBond IndexSM” and the names of the other indices and subindices that are part of the Bloomberg AusBond and NZBond Index family

(such indices and subindices collectively referred to as the “Bloomberg AusBond Indices”) are service marks of Bloomberg Finance L.P. and its affiliates, including

Bloomberg Index Services Limited, the administrator of the indices (collectively, “Bloomberg”). Bloomberg does not guarantee the timeliness, accuracy or

completeness of any data or information relating to the Bloomberg AusBond Indices or make any warranty, express or implied, as to the Bloomberg AusBond Indices

or any data or values relating thereto or results to be obtained therefrom, and expressly disclaims all warranties of merchantability and fitness for a particular purpose

with respect thereto. It is not possible to invest directly in an index. Back-tested performance is not actual performance. Past performance is not an indication of

future results. To the maximum extent allowed by law, Bloomberg and its licensors, and their respective employees, contractors, agents, suppliers and vendors shall

have no liability or responsibility whatsoever for any injury or damages - whether direct, indirect, consequential, incidental, punitive or otherwise - arising in

connection with the Bloomberg AusBond Indices or any data or values relating thereto - whether arising from their negligence or otherwise. This document

constitutes the provision of factual information, rather than financial product advice. Nothing in the Bloomberg AusBond Indices shall constitute or be construed as an

offering of financial instruments or as investment advice or investment recommendations (i.e., recommendations as to whether or not to “buy,” “sell,” “hold” or enter

into any other transaction involving a specific interest) by Bloomberg or its affiliates or licensors or a recommendation as to an investment or other strategy. Data and

other information available via the Bloomberg AusBond Indices should not be considered as information sufficient upon which to base an investment decision. All

information provided by the Bloomberg AusBond Indices is impersonal and not tailored to the needs of any specific person, entity or group of persons. Bloomberg

and its affiliates express no opinion on the future or expected value of any security or other interest and do not explicitly or implicitly recommend or suggest an

investment strategy of any kind. Customers should consider obtaining independent advice before making any financial decisions.

The data included in these materials are for illustrative purposes only. © 2018 Bloomberg. All rights reserved.

The Bloomberg AusBond Indices are compared to the S&P/ASX 200 Index and S&P/NZX 50 Gross Index, respectively (collectively, the “S&P Indices”). The

S&P/ASX 200 measures the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalization, covering approximately

80% of Australian equity market capitalization. The S&P/NZX 50 Gross Index is designed to measure the performance of the 50 largest, eligible stocks listed on the

Main Board (NZSX) of the NZX by float-adjusted market capitalization, covering approximately 90% of New Zealand equity market capitalization. The volatility of the

S&P Indices may be materially different from that of the Bloomberg AusBond Indices. In addition, the membership in Bloomberg AusBond Indices differs significantly

from the securities that comprise the S&P Indices. The S&P Indices have not been selected to represent appropriate benchmarks to compare the performance of

Bloomberg AusBond Indices, but rather are disclosed to allow for comparison of Bloomberg AusBond Indices to well-known and widely recognized indices.

Standard& Poor’s, S&P, S&P/NZX 50 Gross Index and S&P/ASX 200 are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”), a part of

McGraw Hill Financial.

mailto:[email protected]

Documents

Bloomberg AusBond Indices · Month in Review 2 January 2018 Page 2 Month in Review Australian Market Performance On December th5 2017, the Reserve Bank of Australia (RBA) left the