A: Thanks for the question.

Only in the most unusual circumstance would I ever recommend 100% equities. I think you need a balance across the asset classes (equities, bonds/fixed interest, cash, property and alternative assets). That balance changes according to your risk profile, investment timeframe, need for income/capital/liquidity etc , and also as markets change and you use the opportunity to change your weightings).

In terms of hybrids and floating rate notes, the market has got pretty pricy and spreads have narrowed. ANZ has announced a new jumbo issue (ANZ Capital Notes 2), which is expected to be priced at a margin of 3.25% to 3.40% over the 180 day bank bill rate. This offer is very much in line with secondary market spreads (pricing adjusts very rapidly), so this might be the best avenue to consider. The offer is due to open on 19 February.

Regards.