K: Financial and Insurance Services

Risks making volatility an asset

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Original article by Samantha Bailey
The Australian – Page: 30 : 27-Jul-18

The prices of asset classes such as equities, bonds, commodities and real estate have risen sharply as global interest rates begin to rise from historic lows. Triple3 Partners’ chief investment officer Simon Ho says now is a good time to invest in volatility, which has been recognised as an asset class for more than a decade. Triple’s portfolio includes about $70 million worth of volatility strategies.

CORPORATES
TRIPLE THREE PARTNERS PTY LTD, TRIBECA INVESTMENT PARTNERS PTY LTD

Aussie stocks still have room to grow: BlackRock

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Original article by David Rogers
The Australian – Page: 27 : 26-Jul-18

The BlackRock Concentrated Industrial Share Fund posted a return of 24.45 per cent net of fees in 2017-18, and its annual return has average 19 per cent since it was founded in December 2015. The fund’s biggest holdings include Wesfarmers, Qantas and Boral, while its focus is on mid-capitalisation industrial stocks. Charlie Lanchester of BlackRock is upbeat about the outlook for Australian industrial stocks.

CORPORATES
BLACKROCK INVESTMENT MANAGEMENT (AUSTRALIA) LIMITED, BLACKROCK CONCENTRATED INDUSTRIAL SHARE FUND, WESFARMERS LIMITED – ASX WES, QANTAS AIRWAYS LIMITED – ASX QAN, BORAL LIMITED – ASX BLD, TREASURY WINE ESTATES LIMITED – ASX TWE, ARISTOCRAT LEISURE LIMITED – ASX ALL, STANDARD AND POOR’S ASX 200 INDEX, PRAEMIUM LIMITED – ASX PPS, KOGAN.COM LIMITED – ASX KGN, TRANSURBAN GROUP LIMITED – ASX TCL, SYDNEY AIRPORT – ASX SYD

What’s in store for listings in 2018

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Original article by James Frost
The Australian Financial Review – Page: 27 : 25-Jul-18

Just 39 companies listed on the Australian sharemarket during the first half of 2018, compared with 57 during the corresponding period in 2017. However, Marcus Ohm of HLB Mann Judd notes that IPO activity is traditionally higher in the second half of a calendar year. IPOs collectively raised $2.5bn in the first half of 2018, although this was dominated by the L1 Long Short Fund. The materials sector is poised to account for a significant proportion of IPOs in the second half, as it did in the first half.

CORPORATES
HLB MANN JUDD, L1 LONG SHORT FUND LIMITED – ASX LSF, LATITUDE FINANCIAL SERVICES LIMITED

Super funds face heat over other expenses

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Original article by Joanna Mather
The Australian Financial Review – Page: 1 & 4 : 25-Jul-18

The classification of superannuation funds’ expenses in the category of "other" has come under scrutiny in a background paper issued by the banking royal commission. About 20 per cent of industry super funds’ expenses are categorised as "other", compared with around 10 per cent of retail funds’ expenses. The background paper also notes that many people who switch super funds in search of lower fees and higher returns often end up with higher fees and lower returns. Superannuation will be a focus of the inquiry’s next round of public hearings, which begin on 6 August.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIA. PRODUCTIVITY COMMISSION, RICE WARNER ACTUARIES PTY LTD

Bank customer satisfaction and NPS slip further during Finance Royal Commission

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Original article by Roy Morgan
Market Research Update – Page: Online : 23-Jul-18

New results from Roy Morgan shows that bank customer satisfaction in Australia has dropped from 82.3% in January 2018, prior to the Finance Royal Commission, to 78.5% in May and 78.3% in June. Bank customer satisfaction is now at the lowest monthly level since April 2012, but it still remains above the long-term average of 73.8% since 2001, and well up on the 60.0% in January 2001. Roy Morgan’s Net Promoter Score for banks has declined in line with satisfaction, going from 0.49 in January to minus 4.03 in June. ING had the highest level of customer satisfaction of the 10 largest banks in the six months to June, at 88.6% (up 0.5% points over the last 12 months), ahead of Bendigo Bank with 87.7% (down 0.9% points over the year). CBA remained the leader among the big four banks with a customer satisfaction rating of 78.3%. All of the big four showed declines in satisfaction over the year. Roy Morgan’s "Customer Satisfaction-Consumer Banking in Australia June Report" is based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes, including over 4,000 bank customers per month.

CORPORATES
ROY MORGAN LIMITED, ING BANK (AUSTRALIA) LIMITED, BENDIGO BANK, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Home buyers falling behind in repayments

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Original article by Michael Roddan
The Australian – Page: 21 : 20-Jul-18

The Northern Territory had the highest percentage of mortgage borrowers who were in arrears among all Australian states and territories in May 2018, according to Standard & Poor’s. Victoria and Western Australia recorded a decline in borrowers who were in arrears, while New South Wales and Queensland recorded an increase. Overall, the number of Australian borrowers falling behind on their mortgage repayments increased by two basis points to 1.38 per cent in May.

CORPORATES
STANDARD AND POOR’S (AUSTRALIA) PTY LTD, RESERVE BANK OF AUSTRALIA

Hayne to probe industry super funds over union sponsorships

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Original article by Michael Roddan
The Australian – Page: 17 & 21 : 20-Jul-18

The superannuation industry will be a key focus of the banking royal commission’s next round of hearings, which will commence on 6 August. AustralianSuper, Hostplus and Cbus are believed to be among the industry super funds that have been asked to provide the inquiry with information on their sponsorship arrangements with unions. However, the inquiry is not believed to have requested similar information regarding such deals with employers’ groups.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIANSUPER PTY LTD, HOST-PLUS, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, HEALTH EMPLOYEES’ SUPERANNUATION TRUST AUSTRALIA LIMITED, AMP LIMITED – ASX AMP, WESTPAC BANKING CORPORATION – ASX WBC, THE NEW DAILY, INDUSTRY SUPER HOLDINGS PTY LTD, ME BANK, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, MASTER BUILDERS AUSTRALIA INCORPORATED, ACTU, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA

Bankwest branch closures hit 200 workers as customers shift online

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Original article by Alice Uribe, David Marin-Guzman
The Australian Financial Review – Page: 19 : 19-Jul-18

Bankwest MD Rowan Munchenberg says consumers’ growing preference for mobile banking has prompted the Commonwealth Bank subsidiary to close 29 bank branches in New South Wales, Victoria and Queensland. The move will result in the loss of 200 jobs, and the Finance Sector Union’s national secretary Julia Angrisano says Bankwest should have engaged in more consultation with staff. She has identified digital disruption as the biggest issue facing the financial services industry.

CORPORATES
BANKWEST, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, FINANCE SECTOR UNION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Super funds notch ninth year of growth

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Original article by Joanna Mather
The Australian Financial Review – Page: 18 : 19-Jul-18

Data from Chant West shows that Australia’s median growth superannuation fund achieved a return of 9.2 per cent in 2017-18. Mano Mohankumar of Chant West says growth funds have achieved positive returns for nine consecutive years, with an average annual return of nine per cent over the period. Hostplus delivered the best return for the financial year, at 12.5 per cent, ahead of AustSafe Super and Statewide Super. Unisuper was the top performer over 10 years, with an average annual return of 7.6 per cent.

CORPORATES
CHANT WEST HOLDINGS LIMITED – ASX CWL, HOST-PLUS, AUSTSAFE PTY LTD, STATEWIDE SUPERANNUATION PTY LTD, UNISUPER LIMITED, AUSTRALIANSUPER PTY LTD, SUNSUPER PTY LTD, SUPERRATINGS PTY LTD

APRA backs banks over Hayne probe

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Original article by James Frost
The Australian Financial Review – Page: 1 & 2 : 19-Jul-18

The Australian Prudential Regulation Authority has defended the banking sector in its submission to the royal commission’s fourth round of public hearings. APRA argued amongst other things that banks have a right to make a profit and to call in bad debts when a borrower is unable to repay a loan. APRA was responding to questions raised by royal commissioner Ken Hayne regarding the need to balance the interests of banks and customers who are experiencing financial problems.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BANKWEST, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION