K63 Insurance and Superannuation Funds

Medibank book-build under way

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Original article by Jessica Gardner, Sarah Thompson, Jake Mitchell
The Australian Financial Review – Page: 15 & 26 : 19-Nov-14

An unnamed fund manager says there has been a "bidding frenzy" for shares in the IPO of Medibank Private. The institutional bookbuild commenced on 18 November 2014, with some fund managers tendering to buy shares at a price well above the indicative range of $A1.55 to $A2 per share. The retail component of the share offer attracted some $A17bn worth of bids. CLSA analysts have valued Medibank stock at between $A1.55 and $A1.64

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, CLSA AUSTRALIA PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, RAMSAY HEALTH CARE LIMITED – ASX RHC, HEALTHSCOPE LIMITED – ASX HSO

Medibank Private float stirs hype as retail demand balloons

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 18 : 18-Nov-14

There has been strong demand for Medibank Private shares from both retail and institutional investors. Retail investors have expressed interest in buying more than $A4.8bn shares in the IPO, while institutional demand is estimated at $A12bn. The share offer for retail investors closed on 14 November 2014, while the bookbuild for institutional investors will commence on 19 November. Retail investors will pay no more than $A2 per share

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, AUSTRALIA. DEPT OF FINANCE, DEUTSCHE BANK AG, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, MACQUARIE CAPITAL PTY LTD, ELEY GRIFFITHS GROUP PTY LTD, PROMINA GROUP LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS

SMSFs’ returns hurt by local bias

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Original article by Andrew Main
The Australian – Page: 22 : 18-Nov-14

UBS Global Asset Management has conducted new research on the superannuation sector for the Financial Services Council (FSC). It shows that just 17% of self-managed super funds (SMSFs) in the 12 months to November 2014 achieved growth of 10% or more. This compares unfavourably with an average return for large super funds overseen by the Australian Prudential Regulation Authority of 11.6%. A major factor in the gap is the limited allocation of funds by SMSFs to overseas assets. FSC CEO John Brogden nevertheless predicts the SMSFs segment to continue its rapid expansion

CORPORATES
FINANCIAL SERVICES COUNCIL, UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Change laws to boost women’s super: ASFA

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Original article by Nassim Khadem
The Australian Financial Review – Page: 24 : 13-Nov-14

It is estimated that men have an average of $A197,000 in their superannuation fund upon retirement, compared with just $A105,000 for women. The Association of Superannuation Funds of Australia (ASFA) has proposed relaxing discrimination laws to permit higher employer contributions to female employees’ super accounts. The ASFA also proposes scrapping the superannuation guarantee income threshold, which is currently set at $A450 per month

CORPORATES
THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, CHALLENGER LIMITED – ASX CGF, COLONIAL FIRST STATE GROUP LIMITED, VICSUPER PTY LTD, RICE WARNER ACTUARIES PTY LTD, AUSTRALIA. SEXUAL DISCRIMINATION COMMISSION

Banks slow on MySuper switch

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Original article by Andrew White
The Australian – Page: 21 : 11-Nov-14

A new Rainmaker Information study for Industry Super Australia (ISA) shows that retail superannuation funds owned by the major banks have been tardy in moving customers into new low-fee default products. Under the MySuper regulations the switch must occur by mid-2017, but the retail funds have been only half as quick to comply as their rival industry super funds. ISA CEO David Whitely notes this is generating additional fee income for the banks. The submission by his body to the Australian Government’s financial system review also argues that banks should be banned from bundling banking and super products

CORPORATES
INDUSTRY SUPER AUSTRALIA PTY LTD, RAINMAKER INFORMATION SERVICES PTY LTD, FINANCIAL SERVICES COUNCIL, BT FINANCIAL GROUP PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. FAIR WORK COMMISSION

Insurance warning on Airbnb rental

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Original article by Mitchell Bingemann
The Australian – Page: 5 : 11-Nov-14

Online sharing services such as Airbnb for holiday homes and Uber for cars are becoming increasingly popular with Australian consumers. However, those considering agreements under which they provide their properties or vehicles have been warned by the Insurance Council of Australia to check with the provider of their policy. CEO Rob Whelan notes that their cover may not extend to public liability

CORPORATES
INSURANCE COUNCIL OF AUSTRALIA LIMITED, AIRBNB AUSTRALIA PTY LTD, AIRBNB INCORPORATED, UBER TECHNOLOGIES INCORPORATED, VICTORIA. TAXI SERVICES COMMISSION

Fund’s bid to cut costs, lift returns

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Original article by Andrew White
The Australian – Page: 19 : 10-Nov-14

The 2014 annual report of industry superannuation fund AustralianSuper shows growth in investment income from $A2.08bn to $A2.9bn and funds under management from $A65bn to $A78bn. Head of equities Innes McKeand also notes that $A8.8bn of the latter has been reallocated to internal managers during the past year, with a target of around $A40bn by 2019. At the moment, all overseas equities are still managed by external providers, such as MFS Institutional Investors, Baillie Gifford Overseas and State Street Global Advisers

CORPORATES
AUSTRALIANSUPER PTY LTD, MFS INSTITUTIONAL ADVISORS (AUSTRALIA) LIMITED, BAILLIE GIFFORD AND COMPANY, STATE STREET GLOBAL ADVISORS AUSTRALIA LIMITED, IFM INVESTORS PTY LTD, ISPT PTY LTD, PERPETUAL LIMITED – ASX PPT, FIL INVESTMENT MANAGEMENT LIMITED, ALPHINITY INVESTMENT MANAGEMENT PTY LTD, AIRLIE FUNDS MANAGEMENT PTY LTD, BENTHAM ASSET MANAGEMENT PTY LTD, PORT BOTANY, PORT KEMBLA, QUEENSLAND MOTORWAYS LIMITED, TRANSURBAN GROUP LIMITED – ASX TCL

Start-up lures Medibank customers

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Original article by Jessica Gardner
The Australian Financial Review – Page: 22 : 5-Nov-14

Online health insurance provider health.com.au enjoyed strong growth in its customer base in 2013-14, and now boasts about 90,000 policyholders. CEO Andy Sheats notes that Medibank Private and Bupa account for the bulk of customers switching to health.com.au. Sheats adds that neither of the big health funds market their products via iSelect, which is the biggest source of customers switching to health.com.au

CORPORATES
HEALTH.COM.AU PTY LTD, MEDIBANK PRIVATE LIMITED – ASX MPL, BUPA AUSTRALIA PTY LTD, ISELECT LIMITED – ASX ISU, AHM HEALTH INSURANCE, THE HOSPITAL CONTRIBUTIONS FUND OF AUSTRALIA LIMITED, REA GROUP LIMITED – ASX REA

‘Corrupt culture’ in super fund

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Original article by Joanna Mather, Sally Patten
The Australian Financial Review – Page: 1 & 6 : 3-Nov-14

Jeremy Stoljar SC, counsel assisting the Royal Commission into Trade Union Governance & Corruption, has criticised the Cbus industry superannuation fund. He argued that evidence of members’ details being leaked to the Construction, Forestry, Mining & Energy Union showed an overly close relationship and a "cultural failure". Industry Super Australia CEO David Whiteley rejects any suggestion the leak is symptomatic of practices in the sector generally. Stoljar also recommended criminal charges against some building union officials over an unlawful secondary boycott

CORPORATES
CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIA. ROYAL COMMISSION INTO TRADE UNION GOVERNANCE AND CORRUPTION, BORAL LIMITED – ASX BLD, LIS-CON HOLDINGS PTY LTD, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN LABOR PARTY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, HIGH COURT OF AUSTRALIA

Suncorp urges inquiry to level the playing field

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Original article by Clancy Yeates
The Australian Financial Review – Page: 27 : 30-Oct-14

Suncorp CEO Patrick Snowball believes that the Federal Government’s financial system inquiry focuses excessively on the stability of Australia’s banking system while paying little attention to competition in the sector. He said on 29 October 2014 that smaller banks are disadvantaged by the current regulations. Snowball also spoke against allowing foreign insurers to sell policies in north Queensland

CORPORATES
SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, WESTPAC BANKING CORPORATION – ASX WBC, AMERICAN CHAMBER OF COMMERCE IN AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC