K64 Auxiliary Finance and Insurance Services

Rio reverse reveals investor ire on pay

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Original article by Patrick Durkin
The Australian Financial Review – Page: 15 : 10-Oct-18

Rio Tinto has advised that it will not proceed with plans to adopt a new executive remuneration model after meetings with key shareholders indicated that it was unlikely to secure sufficient support from investors. A number of Australian-listed companies have adopted so-called hybrid remuneration structures, including Telstra, AMP and Wesfarmers. However, investors have raised concerns about the hybrid model, and the issue has attracted scrutiny by the financial services royal commission.

CORPORATES
RIO TINTO LIMITED – ASX RIO, TELSTRA CORPORATION LIMITED – ASX TLS, AMP LIMITED – ASX AMP, WESFARMERS LIMITED – ASX WES, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, QBE INSURANCE GROUP LIMITED – ASX QBE, PERPETUAL LIMITED – ASX PPT, JB HI-FI LIMITED – ASX JBH, ISENTIA GROUP LIMITED – ASX ISD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, INSTITUTIONAL SHAREHOLDER SERVICES INCORPORATED, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Bidders are swinging hard for assets in M&A frenzy

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 17 : 10-Oct-18

Data from Dealogic shows that some $US88bn ($124bn) worth of mergers and acquisitions have been announced in Australia so far in 2018. This compares with $US89.3bn for the whole of 2017. Bankers and lawyers expect M&A activity to remain strong, with cashed-up local private equity firms competing with foreign players. Recently announced M&A transactions include KKR’s bid for MYOB and Affinity Equity Partners’ deal to buy Scottish Pacific Group.

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD, KKR AND COMPANY LP, MYOB GROUP LIMITED – ASX MYO, AFFINITY EQUITY PARTNERS (AUSTRALIA) PTY LTD, SCOTTISH PACIFIC GROUP LIMITED – ASX SCO, PACIFIC EQUITY PARTNERS PTY LTD, LIFEHEALTHCARE GROUP LIMITED, NEXTDC LIMITED – ASX NXT, ASIA PACIFIC DATA CENTRE GROUP – ASX AJD, APA GROUP – ASX APA, CHEUNG KONG INFRASTRUCTURE HOLDINGS LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, TRANSURBAN GROUP LIMITED – ASX TCL, WESTCONNEX, WESTFIELD CORPORATION, MINTER ELLISON, SIRTEX MEDICAL LIMITED, CDH INVESTMENTS FUND MANAGEMENT COMPANY, GREENHILL AND COMPANY, NM ROTHSCHILD AUSTRALIA HOLDINGS PTY LTD, WESFARMERS LIMITED – ASX WES, UBS HOLDINGS PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, MACQUARIE CAPITAL PTY LTD

6000-point level the next test of new down leg

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Original article by David Rogers
The Australian – Page: 28 : 9-Oct-18

The Australian sharemarket’s 1.4 per cent fall on 8 October was its largest single-day loss since late March, with blue-chip stocks in particular retreating. The bearish investor sentiment also weighed on the Australian dollar, which fell to its lowest level in 2.5 years in local trading. Charting suggests that the S&P/ASX 200 could fall below 6,000 points in coming days, although the earnings outlook means it would be unlikely to remain below this level for very long.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BHP BILLITON LIMITED – ASX BHP, CSL LIMITED – ASX CSL, TELSTRA CORPORATION LIMITED – ASX TLS, ARISTOCRAT LEISURE LIMITED – ASX ALL, TREASURY WINE ESTATES LIMITED – ASX TWE, NORSK HYDRO AS, MORGAN STANLEY AUSTRALIA LIMITED, RIO TINTO LIMITED – ASX RIO, SANTOS LIMITED – ASX STO, COCHLEAR LIMITED – ASX COH, RESMED INCORPORATED – ASX RMD, INVOCARE LIMITED – ASX IVC, NUFARM LIMITED – ASX NUF, ANSELL LIMITED – ASX ANN, GOLDMAN SACHS AUSTRALIA PTY LTD, PEOPLE’S BANK OF CHINA

We’re at euphoric stage of cycle: Eley Griffiths

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 27 : 2-Oct-18

Eley Griffiths Group’s co-founder Ben Griffiths is upbeat about the outlook for equities. He believes that global sharemarkets are at what Sir John Templeton dubbed the "euphoric" stage of the current bull market. Eley Griffiths boasts around $1.8bn worth of funds under management, and both its small companies fund and its emerging companies fund outperformed the S&P/ASX Small Ordinaries Accumulation Index in 2017-18.

CORPORATES
ELEY GRIFFITHS GROUP PTY LTD, ELEY GRIFFITHS GROUP SMALL COMPANIES FUND, ELEY GRIFFITHS GROUP EMERGING COMPANIES FUND, STANDARD AND POOR’S ASX SMALL ORDINARIES ACCUMULATION INDEX, AFTERPAY TOUCH GROUP LIMITED – ASX APT, PINNACLE INVESTMENT MANAGEMENT GROUP LIMITED – ASX PNI, SIMS METAL MANAGEMENT LIMITED – ASX SGM, AUSTRALIS OIL AND GAS LIMITED – ASX ATS, BLUE SKY ALTERNATIVE INVESTMENTS LIMITED – ASX BLA, NETWEALTH GROUP LIMITED – ASX NWL

Record looms as dividends ready to soar

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Original article by Sarah Turner
The Australian Financial Review – Page: 20 : 24-Sep-18

Australia’s S&P/ASX 200 has gained around two per cent so far in 2018, and analysts are hopeful that the market will be bolstered by some $13bn worth of dividend payments in the last week of September. Richard Coppleson of Bell Potter estimates that listed companies will pay out around $18.9bn in dividends for the month, compared with $16.4bn in September 2017. The resources sector has accounted for four of the top five companies in terms of the size of dividend increases in 2017-18, and Shane Oliver of AMP Capital notes that this is having a flow-on effect across the broader market.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, BELL POTTER SECURITIES LIMITED, AMP CAPITAL INVESTORS LIMITED, BHP BILLITON LIMITED – ASX BHP, ALUMINA LIMITED – ASX AWC, WOODSIDE PETROLEUM LIMITED – ASX WPL, RIO TINTO LIMITED – ASX RIO, CSL LIMITED – ASX CSL, CREDIT SUISSE (AUSTRALIA) LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, FORTESCUE METALS GROUP LIMITED – ASX FMG, AMP LIMITED – ASX AMP

Watchdog acts to rein in initial coin offerings

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Original article by Samantha Bailey
The Australian – Page: 26 : 21-Sep-18

The Australian Securities & Investments Commission has the burgeoning cryptocurrencies industry in its sights, revealing a crackdown on so-called initial coin offerings. ASIC has blocked the issuance of cryptocurrency tokens by several companies, due to concerns that their ICO product disclosure statements contained misleading or deceptive information. The corporate regulator notes that ICOs are highly speculative and the sector is largely unregulated.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, NEW DAWN FUND, INVESTORS EXCHANGE LIMITED

Firms face off in AMP class action

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Original article by Michael Roddan
The Australian – Page: 19 : 30-Aug-18

A class action lawsuit against AMP over its fee-for-no-service is likely to be heard in the Supreme Court of New South rather than the Federal Court. Four law firms filed separate class action applications in the Federal Court, but Justice Jonathan Beach has ruled that they should be transferred to the Supreme Court where a competing lawsuit had already been filed. Justice Beach criticised the law firms, noting that their class actions are on behalf of a similar body of shareholders and cover similar grievances. Only one of the class actions will be permitted to proceed.

CORPORATES
AMP LIMITED – ASX AMP, SUPREME COURT OF NEW SOUTH WALES, FEDERAL COURT OF AUSTRALIA, QUINN EMANUEL URQUHART AND SULLIVAN LP, PHI FINNEY McDONALD PTY LTD, SLATER AND GORDON LIMITED – ASX SGH, MAURICE BLACKBURN PTY LTD, SHINE LAWYERS, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Future Fund wary as economy holds up

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 17 & 31 : 30-Aug-18

The Future Fund has posted a 2017-18 return of 9.3 per cent for 2017-18, compared with its targeted return of 6.1 per cent a year. It has achieved a return of 8.7 per cent each year over the last decade. Meanwhile, the Future Fund has reduced its cash holdings in the last year, while its exposure to Australian shares and the private equity sector has increased. MD David Neal says asset prices are likely to fall when synchronised global economic growth comes to an end, while chairman Peter Costello says the tariff war will also affect asset prices.

CORPORATES
AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY

A whiff of optimism behind PE expanders

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Original article by David Rogers
The Australian – Page: 27 : 28-Aug-18

The average forward price-earnings multiple of the 25 most expensive stocks in the S&P/ASX 300 has risen by 9.8 per cent since these companies reported their latest financial results, while the PE multiple of the indice’s 25 cheapest stocks has contracted. Jason Steed of JP Morgan has attributed the PE expansion to factors such as momentum buying, short covering, deployment of high cash balances and the recent political uncertainty. Meanwhile, Steed notes that 30 per cent of the stocks that JP Morgan covers have exceeded expectations during the August reporting season, while 28 per cent have failed to meet expectations.

CORPORATES
STANDARD AND POOR’S ASX 300 INDEX, JP MORGAN AUSTRALIA LIMITED, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, MONADELPHOUS GROUP LIMITED – ASX MND, COCHLEAR LIMITED – ASX COH, COCA-COLA AMATIL LIMITED – ASX CCL, TPG TELECOM LIMITED – ASX TPM, REA GROUP LIMITED – ASX REA, MYER HOLDINGS LIMITED – ASX MYR, APA GROUP – ASX APA, CHEUNG KONG INFRASTRUCTURE HOLDINGS LIMITED, HUAWEI TECHNOLOGIES COMPANY LIMITED, ZTE CORPORATION, DEUTSCHE BANK AG

ASX looks steady as earnings draw to a close

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Original article by Sarah Turner
The Australian Financial Review – Page: 22 : 27-Aug-18

Futures pricing suggests that the Australian sharemarket will drift lower when trading resumes on 27 August. The leadership crisis in Canberra weighed on investors in the previous week, with the S&P/ASX 200 shedding 1.5 per cent. However, US markets posted solid gains for the week, with the S&P 500 officially recording its longest bull run on record.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, NASDAQ COMPOSITE INDEX, UNITED STATES. FEDERAL RESERVE BOARD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, PEOPLE’S BANK OF CHINA, CITIGROUP PTY LTD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET