NAB Income & Investment Solutions

Transcription

1 NAB Income & Investment Solutions Delivering diversified income investment solutions for investors and their advisers. FOR ADVISERS AND INVESTORS

2 Delivering diversified income investment solutions for investors and their advisers Volatile markets and changing retirement needs are combining to create greater demand for secure income-based investment solutions. NAB Income & Investment Solutions (NIIS) is uniquely positioned within the NAB Group to respond to these changing conditions. We provide differentiated deposit and income investment solutions for investors with varying income needs. Responding to investors changing needs As Australia s population ages, investment appetite is moving more in favour of income-based investment options and capital preservation. NIIS provides innovative and flexible product solutions to match the increased demand for cash flow certainty from investors. Our expertise creates leading solutions Our specialist market coverage, insight and product knowledge means we know how to support you to access the solutions your clients need on their investing journey. The range of investment options available can be tailored for specific outcomes and to mitigate specific risks for investors. NIIS delivers relevant, tailored deposit products and innovative income solutions for advisers to use with your clients. Our unique offering provides income based returns that meet your clients cash flow requirements, improved returns and the flexibility they need to change with the world around them. Accessing the NIIS specialist relationship team can create investment outcomes that deliver greater certainty of returns and match your clients cash flow needs. We also offer a simple and efficient execution service along with markets expertise. We use a panel of banks for term deposits given the simple process, competitive rates and good service provided by the team, we favour NAB. Senior adviser, Geelong area 2

3 Generational shift to a greater focus on income solutions for investors Australia is undergoing a profound generational change that is having a significant impact on the suite of investment products required by our ageing population and the financial institutions that invest on their behalf. With the number of Australians either in or near retirement set to dramatically increase by over 250% by 2050 and these retirees enjoying a longer time in retirement than any previous 79.7 years. Life expectancy of Australian males born in years. Life expectancy of Australian females born in. Source: Australian Bureau of Statistics, November generation there s a new focus on providing certainty of income over time. This generational change is coinciding with major legislative change that will also influence the Australian superannuation market, with compulsory super contributions to increase from 9% to 12% by 2020 (proposed Dec 2011). These reforms will increase the volume of superannuation money requiring investment, and heighten the expectations of investors in terms of return, efficiency and simplicity. NIIS understands that these shifting dynamics require a breadth of product solutions to support these changing needs. A$1.4tr Assets under management in Australian superannuation funds. 17 % Growth in assets under management per year. 3,000,000 Australians aged over 65 in. Opportunity to deliver innovative investment options to an ageing population Percentage 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Age ,100,000 Australians aged over 65 by % per annum Growth in Australians aged over 65 by Source: Australian Bureau of Statistics at 26 July 2013 Source: NAB, ASFA presentation, September 3

4 By putting a wholesale spin on traditional products (like cash and term deposits), we offer clients high yield investments that are easy to execute. Rick Sawers, Executive GM, Product and Markets, NAB Australian Financial Review, Jan 2013 How does NAB Income & Investment Solutions benefit investors? Safety and security: Backed by the strength of NAB, the NIIS team combines product innovation and quality for investors from one of the largest and longest serving banks in the country. National Australia Bank is ranked as the safest bank in Australasia and ranked No.16 in the world.* clients for decades and have built our product range based on our experience with what investors want, especially retirement outcomes. Our comprehensive range of deposit, fixed income and debt securities products is based on our deep understanding of what investors and their advisers need. Choice and flexibility: Our comprehensive range of products offer the flexibility to choose the combination that is most relevant to an investor s financial goals. Local and global experience: With over 100 years experience in financial markets both locally and around the world, we bring a wealth of insight and capabilities to the income investment products available to you. Deposit diversity: Our comprehensive range of deposit options represent an opportunity for investors to diversify away from traditional deposits and better match income solutions to their requirements. Easy access to innovative portfolio solutions: We provide easy access to a wide range of solutions that can be tailored to match your clients cash flow needs. Risk Risk v Return Property Capital NIIS Debt Senior Debt Senior Secured Debt Bank cash and term deposits Australian Equities Client-driven solutions based on real client experience: We have been serving advisers and their Government Bonds Return * Comparison of long-term credit ratings and total assets of the 500 largest global banks (World s 50 Safest Bank s Report, Global Finance Magazine 2013) 4

5 We re innovating for the future Portfolio diversification and a higher allocation to defensive assets like fixed income and debt securities are driving innovative approaches to portfolio construction that can match diverse income requirements such as self-managed super funds seeking more flexible deposit solutions or enhanced yield. In response to the demand for more defensive investment options, NAB has positioned itself at the forefront of the Australian fixed income and debt securities market. Our range of innovative fixed income and debt securities products offer further diversification opportunities for investors. And we re always looking for new ways to develop the market to further improve choice for investors and their advisers. Opening up the corporate bond market We are committed to opening up the corporate bond market to retail investors, providing new investment opportunities for them. As a key participant in global and local debt markets, we understand the value fixed income and debt securities can bring to an investor s portfolio. Our NAB Access Bond Service opens up the direct unlisted bond market to investors, enabling individuals, trusts and self-managed super funds to own a more diversified portfolio of bonds and other debt securities delivering an enhanced and predictable income stream, previously only available to institutional investors. What we offer: a comprehensive suite of traditional and innovative deposit solutions from a secure and long-standing bank. We provide tailored deposit solutions that suit the market environment and your clients changing needs. Our standard term deposits offer stability and security, while our tailored term deposits give your clients the choice and flexibility required to tailor their cash flow as and when their needs and views change. NAB Term Deposits Providing competitive interest rates and the security of an investment with a major Australian bank, NAB Term Deposits offer a secure, lowrisk investment for your clients fixed interest needs. Intermediary Term Deposit: standard term deposits offered via an adviser reducing the administrative tasks, for both investors and advisers. Tailored Deposits Our innovative, tailored deposits enable investors to manage currency, inflation and interest rate risk while offering stable income to suit your clients cash flow needs. Products include: Flexi Deposit: provides investors with the certainty of fixed rates and the potential benefit of moving to floating rates (as market rates change). Tailored Income Deposit: provides a flexible stream of payments comprising both principal and interest components over a set period. Dual Currency: offers sophisticated investors with exposure to two currencies an enhanced yield over a specified term. Enhanced Currency Deposit: offers an enhanced yield for investors with non- AUD deposits. Inflation Deposit: protects the value of your clients capital and/or interest income from changes in inflation over time. 5

6 NAB Deposit Solutions Overview Relevent Investors Product Description Innovative execution Price specialists and one-stop phone dealing Intermediary Term Deposit Financial advisor/other intermediaries Standard Term Deposit dealt via a licensed financial advisor Innovative product and solutions Balancing the security of a Term Deposit with exposure to market indices and a range of fixed/ floating return options Tailored Income Deposit Inflation Deposit Traditional depositors into Annuities who want bank-rated security or specific pay down profiles Clients looking to protect future purchasing value against inflation Fixed term, principal and interest paid out over term (can be fixed, floating or combination) Return linked to CPI (investment amount and/or interest) Flexi Deposit Investors seeking to capitalise on their view of likely monetary policy or with particular cash flow requirements Term is divided into two periods, one fixed and the other floating Enhanced Currency Deposit Investors with non-aud deposits Provides an increased rate of return on a client s foreign currency holdings Dual Currency Deposit Investors managing offshore funds Term Deposit in multi currency (e.g. AUD and other) Note: Deposits held via investment platforms may not qualify the investor for the government guarantee 6

7 Access to investment products In addition to our comprehensive range of deposits, NIIS provides you and your clients with access to a broad suite of alternative investment product options. Listed fixed income and debt securities NAB is the market leader in ASX-listed debt securities and has been at the forefront of virtually every key retail and capital note transaction in recent times. We have been rated as the No.1 Debt House in Australia and New Zealand by the Peter Lee 2013 Survey and No.1 per the AUD Listed Debt League Table (including self-led deals) by KangaNews. We offer a diverse range of ASX-listed debt securities across the risk spectrum, including capital notes, subordinated notes, senior unsecured bonds and convertible bonds. These securities pay a fixed or floating income return and some offer the investor the option to convert into equity (shares) of the issuing company at specified times. Unlisted fixed income and debt securities Our NAB Access Bond Service provides an innovative way for investors and their advisers to access the bigger unlisted bond market and so improve the diversification of their direct fixed income and debt securities holdings. Equity structured products We offer a range of equity structured product options designed to give advisers and their clients an alternative way to manage equity income returns; Options Collars Enhanced Yield Deposit Property NIIS provides access to a variety of property investment options (both ASXlisted and unlisted) for investors seeking to diversify their income sources. KangaNews Listed Debt of the Year Healthscope II $305,000,000 5 Year Joint Lead Manager and Joint Bookrunner 2013 NAB CPS $1,514,000,000 Perpetual 8 NC 6 Year Convertible Preference Share Sole Arranger, Joint Lead Manager & Joint Bookrunner 2013 Bank of Queensland CPS $300,000,000 Perpetual 7 NC 5 Year Convertible Preference Share Suncorp CPS2 $560,000,000 Perpetual 7 NC 5 Year Convertible Preference Share Crown $532,000, NC 6 Year Joint Lead Manager & Joint Bookrunner Caltex $550,000, NC 5 Year Insto 2011 Hybrid Deal of the Year NAB $1,172,000, NC 5 Year Sole Arranger, Lead Manager & Bookrunner AGL Energy $650,000, NC 7 Year Origin Energy $900,000, NC 5 Year 2011 Woolworths II $700,000, NC 5 Year and Joint Bookrunner 2011 Peet $50,000,000 5 Years Convertible Arranger, Joint Lead Manager & Underwriter 2011 Genworth Unsecured $140,000, NC 5 Year Arranger, Joint Lead Manager & Underwriter

8 For more information please contact a NAB Income & Investment Solutions representative listed below. Greg Szwarc Head of Wealth Phone: Mobile: greg.szwarc@nab.com.au Trent Faehndrich Associate Director, NSW & ACT Phone: Mobile: trent.faehndrich@nab.com.au Stefan Visser Associate Director, NSW Phone: Mobile: stefan.visser@nab.com.au Elva Xenos Associate Director, VIC & SA Phone: Mobile: elva.xenos@nab.com.au Amanda Lambert Associate Director, VIC & TAS Phone: Mobile: amanda.lambert@nab.com.au Andrew Groves Associate Director, WA Phone: Mobile: andrew.groves@nab.com.au Nathan Ahboo Senior Manager, National Intermediary Distribution, Qld & NT Phone: Mobile: nathan.ahboo@nab.com.au General advice warning. Disclaimer: 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. General Disclaimer: Although National Australia Bank and its related bodies corporate ( NAB ) has 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 National Australia Bank Limited ABN AFSL and Australian Credit Licence A