K64 Auxiliary Finance and Insurance Services

Remarkable rebound as June changes its tune

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Original article by David Rogers
The Australian – Page: 29 : 22-Jun-18

Australia’s S&P/ASX 200 has gained nearly three per cent since the start of 2018 and nine per cent so far in 2017-18. However, the market typically posts strong gains in the second half of June, after the tax-loss selling and profit warning season has run its course and bank stocks rebound from initial falls after trading ex-dividend. Meanwhile, bank dividend payments traditionally boost the local market in July, although factors such as the potential for a US-China trade war remain a risk to Australian equities.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, AMP CAPITAL INVESTORS LIMITED, CITIGROUP PTY LTD, BLOOMBERG LP, CSL LIMITED – ASX CSL, ARISTOCRAT LEISURE LIMITED – ASX ALL, TREASURY WINE ESTATES LIMITED – ASX TWE, QANTAS AIRWAYS LIMITED – ASX QAN, MACQUARIE GROUP LIMITED – ASX MQG, TELSTRA CORPORATION LIMITED – ASX TLS, RAMSAY HEALTH CARE LIMITED – ASX RHC, UNITED STATES. DEPT OF THE TREASURY

Investors run for cover amid trade tension

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Original article by David Rogers
The Australian – Page: 19 & 28 : 20-Jun-18

The Australian dollar has fallen to a 13-month low amid renewed concerns about a US-China trade war. The local bourse eased slightly on 19 June but Asian markets fell sharply, with China’s Shanghai Composite Index and Shenzhen Composite Index shedding 3.8 per cent and 5.7 per cent respectively. A move by US President Donald Trump to look at imposing tariffs on more Chinese products prompted China to warn that it would respond in kind, and Louis Kuijis of Oxford Economics says such a move would affect economic growth in China, the US and globally.

CORPORATES
SHANGHAI COMPOSITE INDEX, SHENZHEN COMPOSITE INDEX, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, OXFORD ECONOMICS LIMITED, OANDA AUSTRALIA PTY LTD, HANG SENG INDEX, KOSPI INDEX, NIKKEI 225 INDEX, NASDAQ, RESERVE BANK OF AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Top financial advisers rush for the exits

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Original article by James Kirby
The Australian – Page: 19 : 13-Jun-18

The second annual list of Australia’s Top Fifty Financial Advisers shows that 29 are no longer affiliated with a financial services group such as a bank or insurance company. The growing trend for financial advisers to become non-aligned has coincided with the banking royal commission and moves by some of the major banks to retreat from the wealth management sector. The list is compiled by "The Australian" in partnership with financial magazine "Barron’s".

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AMP LIMITED – ASX AMP, WESTPAC BANKING CORPORATION – ASX WBC

Markets take cautious view of historic talks

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Original article by David Rogers
The Australian – Page: 19 & 28 : 13-Jun-18

The summit meeting between US President Donald Trump and North Korean leader Kim Jong-un has had relatively little impact on global financial markets. Royal Bank of Canada’s Sue Trinh says the upcoming release of key economic data in the US and Australia will be a greater focus for financial markets in the near-term, noting that the two leaders differ on just what "complete denuclearisation" on the Korean peninsula will entail. Meanwhile, the US Federal Reserve is tipped to tighten monetary policy at its monthly meeting.

CORPORATES
UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, ROYAL BANK OF CANADA, UNITED STATES. FEDERAL RESERVE BOARD, RESERVE BANK OF AUSTRALIA, EUROPEAN CENTRAL BANK, BANK OF JAPAN, KOSPI INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, STANDARD AND POOR’S ASX 200 INDEX

Two banks warn of big payouts if grandfathered deal ends

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Original article by Joanna Mather
The Australian Financial Review – Page: 18 : 28-May-18

Certain commissions paid to financial advisers were banned as part of the Future of Financial Advice reforms in 2013. However, other types of commissions were "grandfathered". Michael Wright of Westpac subsidiary BT Financial Group has told the banking royal commission that grandfathered commissions should also be banned, but the ANZ Bank and AMP disagree. They have suggested that the federal government might have to pay compensation to advisers if grandfathered commissions were banned, while they have also suggested that a ban could be in breach of the Constitution.

CORPORATES
BT FINANCIAL GROUP PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AMP LIMITED – ASX AMP, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY

ASIC in sweeping IPO crackdown over favourable treatment

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 25 : 25-May-18

The Australian Securities & Investments Commission has warned stockbrokers that it will clamp down on favourable treatment of certain investors when it comes to allocating shares via IPOs. Cathie Armour of ASIC says it is important that brokers keep the needs of the issuer client in mind when allocating shares. She also says ASIC is concerned about listing standards, particularly with regard to overseas companies that seem to have little business interest in Australia that seek to list on the local bourse.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, STOCKBROKERS AND FINANCIAL ADVISERS ASSOCIATION LIMITED, AUSTRALIA. FINANCIAL ADVISER STANDARDS AND ETHICS STANDARDS AUTHORITY

Financial adviser exodus puts $900b of savings in flux

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Original article by Alice Uribe
The Australian Financial Review – Page: 17 & 20 : 24-May-18

Research by consumer group Adviser Ratings shows that 7,000 Australian financial advisers have left the industry since 2015. An additional 14,000 are expected to do so in the next five years, primarily due to reforms that are likely to be implemented in response to the banking royal commission. The large number of advisers leaving the industry will affect around $A900m worth of clients’ funds, and Mark Hoven of Adviser Ratings says more than 25 per cent of these funds may end up not being under advice.

CORPORATES
ADVISER RATINGS PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AZ NGA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AMP LIMITED – ASX AMP, IOOF HOLDINGS LIMITED – ASX IFL, NETWEALTH GROUP LIMITED – ASX NWL, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

ASX predicts rise of technology titans

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Original article by Yolanda Redrup
The Australian Financial Review – Page: 16 : 21-May-18

Latitude Financial and Colonial First State Global Asset Management are among the companies that could potentially list on the Australian sharemarket before the end of 2018. The bourse has traditionally been heavily weighted toward banking and resources stocks. However, ASX executive Max Cunningham says more technology companies could be added to the S&P/ASX 20 in the next decade, given that the sector continues to be the most popular among investors.

CORPORATES
LATITUDE FINANCIAL SERVICES LIMITED, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, PROSPA PTY LTD, ASX LIMITED – ASX ASX, CSL LIMITED – ASX CSL, XERO LIMITED – ASX XRO, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BIG UN LIMITED – ASX BIG, GETSWIFT LIMITED – ASX GSW

Top pickers reveal their favourite stocks

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Original article by Sarah Turner
The Australian Financial Review – Page: 27 : 16-May-18

Fund managers attending the Future Generation Investment Forum in Sydney have identified their preferred Australian and international stocks. Regal Funds Management’s Philip King likes Qantas, saying it is the cheapest stock in the ASX 100. Mastermyne and Freedom Foods are the top picks for Ben Griffiths of Eley Griffiths Group, while McPherson’s is the preferred stock of Centennial Asset Management’s Matthew Kidman. Wilson Asset Management’s Catriona Burns and Magellan Financial Group’s Domenico Giuliano favour US-listed Sensata Technologies and Facebook respectively.

CORPORATES
REGAL FUNDS MANAGEMENT PTY LTD, QANTAS AIRWAYS LIMITED – ASX QAN, STANDARD AND POOR’S ASX 100 INDEX, MASTERMYNE GROUP LIMITED – ASX MYE, FREEDOM FOODS GROUP LIMITED – ASX FNP, ELEY GRIFFITHS GROUP PTY LTD, McPHERSON’S LIMITED – ASX MCP, CENTENNIAL ASSET MANAGEMENT PTY LTD, WILSON ASSET MANAGEMENT, MAGELLAN FINANCIAL GROUP LIMITED – ASX MFG, SENSATA TECHNOLOGIES INCORPORATED, FACEBOOK INCORPORATED, GOOGLE INCORPORATED, SANDON CAPITAL INVESTMENTS LIMITED – ASX SNC, SPICERS LIMITED – ASX SRS, COOPER INVESTORS PTY LTD, LIFESTYLE COMMUNITIES LIMITED – ASX LIC, TEXAS INSTRUMENTS INCORPORATED, JETSTAR AIRLINES PTY LTD, QANTAS FREQUENT FLYER LIMITED

Bearish key reversal flags more falls ahead

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Original article by David Rogers
The Australian – Page: 24 : 16-May-18

The Australian sharemarket closed at a four-day low on 15 May, after falling just short of its highest level in 10 years. The bourse has gained 1.9 per cent so far in May, but recent history suggests that a further pullback is possible as it has shed an average of 4.3 per cent during May and June over the last decade. A number of factors could weigh on the market in coming days; most of the major banks are set to begin trading ex-dividend, while shares in oil producers are falling despite a rally in the crude oil price.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, MACQUARIE GROUP LIMITED – ASX MQG, TELSTRA CORPORATION LIMITED – ASX TLS, BHP BILLITON LIMITED – ASX BHP, CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX, MORGAN STANLEY AUSTRALIA LIMITED