K64 Auxiliary Finance and Insurance Services

ASIC taking strong action

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Original article by Nassim Khadem
The Australian Financial Review – Page: 11 : 1-Aug-14

Greg Tanzer of the Australian Securities & Investments Commission (ASIC) has issued its report on regulation of the financial planning profession, for the six months ending 30 June 2014. A total 256 enforcement actions were taken by ASIC, with 173 of these relating to small business operators. During the half-year 28 individuals were banned from providing financial advice. The watchdog has to contend with budget cuts of $A120m as well as recent amendments to the Future of Financial Advice laws

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, VIRGIN MONEY (AUSTRALIA) PTY LTD, GE MONEY, AUSTRALIAN LABOR PARTY

Woodside buyback in doubt

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 21 & 23 : 31-Jul-14

Woodside Petroleum shareholders will vote on a proposed share buyback at an extraordinary general meeting on 1 August 2014. The deal to buy $US2.68bn ($A2.85bn) worth of shares from Royal Dutch Shell must be supported by 75 per cent of votes, but a number of superannuation funds are expected to oppose it. There is concern that the selective buyback treats Shell more favourably than other Woodside shareholders

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, ROYAL DUTCH SHELL PLC, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, PLATO INVESTMENT MANAGEMENT LIMITED, ALPHINITY INVESTMENT MANAGEMENT PTY LTD, ISS PROXY AUSTRALIA, OWNERSHIP MATTERS PTY LTD, CGI GLASS LEWIS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, WESTFIELD CORPORATION – ASX WFD, STANDARD AND POOR’S ASX 300 INDEX

$3.6b float boosts share confidence

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Original article by Jessica Gardner
The Australian Financial Review – Page: 15 & 20 : 29-Jul-14

Healthscope’s stock closed $A0.11 higher at $A2.21 on 28 July 2014, after dipping to $A2.09 early in its debut trading session The stock was issued at $A2.10 in a $A3.6bn IPO. Private equity firms TPG Capital and The Carlyle Group will retain their 38 per cent stake until Healthscope releases its financial results for fiscal 2015. The two firms had paid $A2.7bn for the private hospitals operator in 2010

CORPORATES
HEALTHSCOPE LIMITED – ASX HSO, TPG CAPITAL LP, THE CARLYLE GROUP, AURIZON HOLDINGS LIMITED – ASX AZJ, MEDIBANK PRIVATE LIMITED, STANDARD AND POOR’S ASX 200 INDEX, RAMSAY HEALTH CARE LIMITED – ASX RHC

Shares rebound and the seven-year itch

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Original article by Philip Baker
The Australian Financial Review – Page: 29 : 29-Jul-14

Australia’s benchmark S&P/ASX 200 Index rose to a new high only six years after the 1987 sharemarket correction, and just three years after the correction in 1980. In contrast, the market is approaching the seventh anniversary of its record close in November 2007, and it has yet to return to or surpass this level. The underperforming junk bond market may prove to be the "turning point" that investors are seeking for shares

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES ACCUMULATION INDEX, UNITED STATES. FEDERAL RESERVE BOARD, NUMERICABLE GROUP SA, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, BARCLAYS GLOBAL INVESTORS

Woodside gains the backing of ASA

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Original article by Barry FitzGerald
The Australian – Page: 17 : 28-Jul-14

Investors in Woodside Petroleum will on 1 August 2014 vote on the proposed stock repurchasing move worth $A2.85bn that has been triggered by Royal Dutch Shell’s partial divestment. The latter is reducing its stake from 23.1% to 4.5%, and Woodside wants to buy back 9.5% at $A36.49 a share. The company has gained the backing, with some qualifications, of the Australian Shareholders Association. However it must still address concern by institutional investors such as superannuation funds at the lack of franking credits. On 25 July the stock closed at $A42.70

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, ROYAL DUTCH SHELL PLC, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION

Mesoblast sows the seeds for stem cell success

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Original article by Rick Wallace
The Australian – Page: 15 & 16 : 28-Jul-14

A new regulatory environment in Japan means it will be the initial market in which Australian-listed biotechnology group Mesoblast launches its revolutionary stem cells therapy product. CEO Silviu Itescu notes that this will be a world first, and should boost stock analysts’ forecasts for the company. A 2016 launch in the US is also being aimed for. In that nation Mesoblast has concluded phase III clinical trials of mesenchymal stem cells for treating childhood graft-versus-host-disease. The group has cash holdings of about $A220m, and can allocate funding to separate trials of its degenerative disc repair product

CORPORATES
MESOBLAST LIMITED – ASX MSB, UNITED STATES. FOOD AND DRUG ADMINISTRATION, JCR PHARMACEUTICALS COMPANY LIMITED, TEVA PHARMACEUTICAL INDUSTRIES LIMITED, GOLDMAN SACHS AUSTRALIA PTY LTD, BELL POTTER SECURITIES LIMITED, BELL FINANCIAL GROUP LIMITED – ASX BFG

ASX faces income loss after fee cuts

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Original article by Shaun Drummond
The Australian Financial Review – Page: 17 : 25-Jul-14

Analysts do not expect a move by ASX Limited to cut some fees to have much long-term impact on the stock market operator’s earnings. The ASX will reduce fees on over-the-counter derivatives and interest rate futures in October 2014. The changes include a shift from flat rate fees to a system of volume-based fees for derivatives clients. Ryan Fisher of Goldman Sachs expects the new fee structure to enhance the ASX’s competitiveness

CORPORATES
ASX LIMITED – ASX ASX|GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD|LCH.CLEARNET SA|CHI-X AUSTRALIA PTY LTD|COUNCIL OF FINANCIAL REGULATORS

Boards ‘hungry for growth’

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Original article by Damon Kitney
The Australian – Page: 19 : 24-Jul-14

A Business Leaders Forum in Perth on 23 July 2014 heard from Michael Chaney, chair of National Australia Bank and Woodside Petroleum. He said company boards were once more interested in pursuing growth via acquisitions or capital investment in new developments, as stockholders were also ready to fund such initiatives. However there was often a lack of suitable takeover targets, Chaney added. Recent mergers and acquisitions moves have featured Goodman Fielder, Treasury Wine Estates, David Jones, SAI Global and Aquila Resources

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL|NATIONAL AUSTRALIA BANK LIMITED – ASX NAB|TELSTRA CORPORATION LIMITED – ASX TLS|RIO TINTO LIMITED – ASX RIO|GOODMAN FIELDER LIMITED – ASX GFF|TREASURY WINE ESTATES LIMITED – ASX TWE|DAVID JONES LIMITED – ASX DJS|SAI GLOBAL LIMITED – ASX SAI|AQUILA RESOURCES LIMITED – ASX AQA|SEEK LIMITED – ASX SEK|DEUTSCHE BANK AG

The future of mega-cap stocks

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Original article by James Frost|Matthew Smith
The Australian Financial Review – Page: 23 : 23-Jul-14

The S&P/ASX 20 Index has outperformed the S&P/ASX 200 in the last 12 months, as well as the last three and five years. The composition of the ASX 20 has changed significantly over the last five and 10 years, and astute investors can potentially enjoy big returns by backing the right stocks. Johan Carlberg of Alphinity Investment Management says companies whose focus is the domestic market could be displaced by peers that pursue growth offshore. Paul Taylor of Fidelity says healthcare and technology stocks could potentially be elevated to the top 20 index in coming years

CORPORATES
STANDARD AND POOR’S ASX 20 INDEX|STANDARD AND POOR’S ASX 200 INDEX|ALPHINITY INVESTMENT MANAGEMENT PTY LTD|FIDELITY INTERNATIONAL PTY LTD|PERENNIAL GROWTH MANAGEMENT|AUSTRALIAN ETHICAL INVESTMENT LIMITED – ASX AEF|NEWS CORPORATION – ASX NWS|FOSTER’S GROUP LIMITED|ST GEORGE BANK LIMITED|SEEK LIMITED – ASX SEK|WESFARMERS LIMITED – ASX WES|WOOLWORTHS LIMITED – ASX WOW|APPLE INCORPORATED|EXXONMOBIL CORPORATION|FIDELITY AUSTRALIAN EQUITIES FUND|FACEBOOK INCORPORATED|GOOGLE INCORPORATED|HEALTHSCOPE LIMITED – ASX HSO|MEDIBANK PRIVATE LIMITED|NEWCREST MINING LIMITED – ASX NCM|FORTESCUE METALS GROUP LIMITED – ASX FMG|WOODSIDE PETROLEUM LIMITED – ASX WPL|ORIGIN ENERGY LIMITED – ASX ORG|SANTOS LIMITED – ASX STO|OIL SEARCH LIMITED – ASX OSH|BHP BILLITON LIMITED – ASX BHP|RIO TINTO LIMITED – ASX RIO|TRANSURBAN GROUP LIMITED – ASX TCL|S&P DOW JONES INDICES LLP|WESTFIELD CORPORATION – ASX WFD|SCENTRE GROUP – ASX SCG|SYDNEY AIRPORT – ASX SYD|MACQUARIE GROUP LIMITED – ASX MQG

Soul Patts chief blasts attacks on company’s board

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Original article by Andrew White
The Australian – Page: 21 : 22-Jul-14

The Australian Taxation Office has issued a private ruling that states a capital gains tax charge of $A311m would be created by an unwinding of the cross-shareholdings of Brickworks and Washington H Soul Pattinson. Brickworks has 42.7% of Soul Patts and the listed investment company 44.3% of the building materials group. Soul Patts chair Robert Millner has criticised fund management firm Perpetual and activist shareholder Mark Carnegie for pursuing the split plan, noting that it has caused costs of several millions of dollars

CORPORATES
WASHINGTON H SOUL PATTINSON AND COMPANY LIMITED – ASX SOL, BRICKWORKS LIMITED – ASX BKW, PERPETUAL LIMITED – ASX PPT, TPG TELECOM LIMITED – ASX TPM, NEW HOPE CORPORATION LIMITED – ASX NHC, BKI INVESTMENT COMPANY LIMITED – ASX BKI, MILTON CORPORATION LIMITED – ASX MLT, AMP LIMITED – ASX AMP, QBE INSURANCE GROUP LIMITED – ASX QBE, BRAMBLES LIMITED – ASX BXB, TRANSURBAN GROUP LIMITED – ASX TCL, MH CARNEGIE AND COMPANY PTY LTD, AUSTRALIAN TAXATION OFFICE