K64 Auxiliary Finance and Insurance Services

Rollercoaster spells correction

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Original article by Michael Koziol
The Australian Financial Review – Page: 33 : 17-Oct-14

The US and European sharemarkets were heavily sold down on 16 October 2014. The Dow Jones Industrial Average closed 173 points lower, after shedding 368 points early in the trading session. Sharemarket indices in countries such as Germany, France, Spain and Japan have officially entered correction mode, having shed more than 10 per cent, while Australia’s benchmark S&P/ASX 200 has fallen by more than eight per cent in recent weeks

CORPORATES
DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S ASX 200 INDEX, TOKYO STOCK PRICE INDEX, SHANGHAI COMPOSITE INDEX, CAC 40 INDEX, NASDAQ COMPOSITE INDEX, PSI 20 INDEX, EUROPEAN CENTRAL BANK, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, MORGAN STANLEY AUSTRALIA LIMITED

Hard times loom for Future Fund

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Original article by Richard Gluyas
The Australian – Page: 21 : 16-Oct-14

David Neal, MD of the Future Fund, has unveiled a 2013-14 rate of return of 14.3% for the Australian Government’s civil service superannuation liabilities manager. This is up from the previous estimate of 13.9%, and follows a result of 15%-plus in 2012-13. However despite further growth of 2.9% in the first quarter of 2014-15, Neal warns that the performance will now level off due to the tapering of quantitative easing and rising interest rates in the US. This was backed by investment strategy and risk head Stephen Gilmore, while chief investment officer Raphael Arndt said the Future Fund may invest in infrastructure assets privatised by state governments

CORPORATES
AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, AUSTRALIAN NATIONAL UNIVERSITY

Silicon Valley start-up surges on ASX debut

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Original article by Sally Rose
The Australian Financial Review – Page: 25 & 32 : 16-Oct-14

Shares in online recruitment firm 1-Page closed at $A0.34 on 15 October 2014, capping a $A8.5m Australian sharemarket float for the US-based group. The stock was issued at $A0.20 apiece and listed at $A0.345. Amanda Moyes of ASX Limited says the sharemarket operator would like to see more US technology firms list on the local bourse. Australia’s R&D tax concessions regime contributed to 1-Page’s decision to list in Australia

CORPORATES
1-PAGE LIMITED – ASX 1PG, ASX LIMITED – ASX ASX, FOSTER STOCKBROKING PTY LTD, KTM CAPITAL PTY LTD, CYGNET CAPITAL PTY LTD, NASDAQ, SAN FRANCISCO 49ERS, FRANCE TELECOM SA

Few shares spared as index heads to correction

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Original article by Patrick Commins
The Australian Financial Review – Page: 21 : 15-Oct-14

Bearish sentiment toward equities means that just 11 stocks in Australia’s benchmark S&P/ASX 200 Index have risen in the last six weeks. These include TPG Telecom, Qube Holdings, Recall Holdings and M2 Group. Some 40 per cent of ASX 200 stocks have fallen by more than 10 per cent since early September 2014, while the index itself has shed eight per cent over this period. CIMB’s Shane Lee says the sell-off means that some stocks may now offer good value to investors

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, TPG TELECOM LIMITED – ASX TPM, QUBE HOLDINGS LIMITED – ASX QUB, RECALL HOLDINGS LIMITED – ASX REC, M2 GROUP LIMITED – ASX MTU, CIMB SECURITIES INTERNATIONAL (AUSTRALIA) PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S 500 INDEX, EUROPEAN CENTRAL BANK, RUSSELL INVESTMENTS PTY LTD, CSL LIMITED – ASX CSL, RESMED INCORPORATED – ASX RMD, SONIC HEALTHCARE LIMITED – ASX SHL, TOLL HOLDINGS LIMITED – ASX TOL, BRAMBLES LIMITED – ASX BXB, IINET LIMITED – ASX IIN, TELSTRA CORPORATION LIMITED – ASX TLS, WOOLWORTHS LIMITED – ASX WOW, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, JB HI-FI LIMITED – ASX JBH

RBA warns: share sell-off will be violent

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Original article by Adam Creighton
The Australian – Page: 21 : 15-Oct-14

A Citi investment conference in Sydney on 14 October 2014 heard from Guy Debelle, head of financial markets at the Reserve Bank of Australia. He argued investors were showing irrational exuberance and were ignoring risk at their own peril. Debelle said the stock market volatility of recent weeks was coming unexpectedly late given factors such as rising geopolitical tensions, and an eventual selling of fixed-interest instruments globally would be "violent". He also noted that new regulations prompted by the global financial crisis had reduced the scope for liquidity

CORPORATES
RESERVE BANK OF AUSTRALIA, CITIGROUP PTY LTD, CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX, STANDARD AND POOR’S ASX 200 INDEX, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD

After the wipeout, Great Southern investors stand to lose homes

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Original article by Dennis Shanahan, Leo Shanahan
The Australian – Page: 21 : 15-Oct-14

The Supreme Court of Victoria will in late October 2014 rule on whether a settlement can be ratified that will mean Bendigo & Adelaide Bank can bring bankruptcy proceedings against investment loan borrowers. The about 47,000 customers had bought into the rural managed investment schemes of Great Southern between 2005 and 2008, and owe some $A398m. They will also claw back less than $A16 for every $A10,000 they lost in the collapse. Law firm MacPherson & Kelley, representing the investors, will gain close to $A20m

CORPORATES
BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, GREAT SOUTHERN LIMITED, MACPHERSON AND KELLEY LAWYERS PTY LTD, SUPREME COURT OF VICTORIA, TIMBERCORP LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Tax breaks to be reintroduced

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Original article by Phillip Coorey
The Australian Financial Review – Page: 3 : 13-Oct-14

The Australian Government will unveil its National Industry Investment and Competitiveness Agenda on 14 October 2014. The policy includes unwinding the Australian Labor Party’s changes to regulations governing employee share schemes and changes to the significant investor scheme to ensure that money is invested in sectors of the economy where it is needed. The Government will also encourage greater co-operation between the business and education sectors

CORPORATES
AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF INDUSTRY, AUSTRALIA. OFFICE OF THE CHIEF SCIENTIST

4000 ask for CBA advisory review

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Original article by Michael Bennett
The Australian – Page: 23 : 13-Oct-14

Those affected by deficient advice received from Commonwealth Financial Planning and Financial Wisdom between 2003 and 2012 have one year to ask for a formal review. Parent Commonwealth Bank of Australia (CBA) says that after three months of the offer overseen by Promontory Financial, some 4,200 clients have taken advantage of the deal. If this rate persists for the remaining nine months, fewer than 5% of all CBA financial services division customers will participate. CBA has so far made restitution to 1,100-plus people, costing a total $A52m

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COMMONWEALTH FINANCIAL PLANNING LIMITED, FINANCIAL WISDOM LIMITED, PROMONTORY FINANCIAL GROUP LLC, MACQUARIE BANK LIMITED – ASX MBL, HIGH COURT OF AUSTRALIA

Regis Healthcare float finds favour

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Original article by Nick Lenaghan, James Thomson, Jessica Gardner
The Australian Financial Review – Page: 15 & 20 : 8-Oct-14

Regis Healthcare listed on the Australian sharemarket on 7 October 2014. The aged care operator raised $A486 million in its IPO. The company was founded by Bryan Dorman and Ian Roberts in 1991. It has grown from two facilities to 45, and is now positioned for further growth. The stock was issued at $A3.65 and closed at $A4.02. Dorman and Roberts each kept a stake of 27.3 per cent, together worth $A658 million after the first day of trade

CORPORATES
REGIS HEALTHCARE LIMITED – ASX REG, STANDARD AND POOR’S ASX 200 INDEX, HEALTHSCOPE LIMITED – ASX HSO, VIRTUS HEALTH LIMITED – ASX VRT, JAPARA HEALTHCARE LIMITED – ASX JHC, MEDIBANK PRIVATE LIMITED, MACQUARIE CAPITAL PTY LTD, RETIREMENT CARE AUSTRALIA

Investors return to golden safe haven

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Original article by Jared Lynch
The Australian Financial Review – Page: 16 : 3-Oct-14

The Perth Mint and the US Mint have reported a strong rise in demand for gold coins in September 2014. This coincided with a 6.1 per cent fall in the gold price during the month. The Perth Mint’s gold bars are also in demand, with sales rising by 37 per cent in September. The mint’s Bron Suchecki notes that demand from China in particular has improved in the wake of the fall in the gold price

CORPORATES
PERTH MINT, UNITED STATES MINT, GUARDIAN VAULTS PTY LTD, RESERVE BANK OF AUSTRALIA