K: Financial and Insurance Services

Party over with bondcano ready to erupt

roymorgansocial Leave a comment

Original article by David Rogers
The Australian – Page: 27 : 6-Jul-17

The yield on 10-year US Treasuries peaked at 2.35 per cent in early July 2017, compared with a record low of 1.32 per cent in mid-2016. Credit Suisse forecasts that the yield will reach 2.8 per cent by the end of 2017, as some of the world’s leading central banks begin tightening monetary policy. Hasan Tevfik of Credit Suisse warns that Australian-listed "bond proxy" stocks in particular are vulnerable to rising bond yields.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, SYDNEY AIRPORT – ASX SYD, APA GROUP – ASX APA, WESTFIELD CORPORATION – ASX WFD, DEXUS PROPERTY GROUP – ASX DXS, ASX LIMITED – ASX ASX, SONIC HEALTHCARE LIMITED – ASX SHL, MEDIBANK PRIVATE LIMITED – ASX MPL, TATTS GROUP LIMITED – ASX TTS, AUSNET SERVICES LIMITED – ASX AST, HEALTHSCOPE LIMITED – ASX HSO, TABCORP HOLDINGS LIMITED – ASX TAH, MACQUARIE ATLAS ROADS GROUP – ASX MQA, CHARTER HALL GROUP – ASX CHC, INVESTA OFFICE FUND – ASX IOF, BWP TRUST – ASX BWP, COMPUTERSHARE LIMITED – ASX CPU, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, SOUTH32 LIMITED – ASX S32, QANTAS AIRWAYS LIMITED – ASX QAN, CALTEX AUSTRALIA LIMITED – ASX CTX, GRAINCORP LIMITED – ASX GNC, ECLIPX GROUP LIMITED – ASX ECX, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, EUROPEAN CENTRAL BANK, BANK OF ENGLAND, BANK OF CANADA, INSTITUTE FOR SUPPLY MANAGEMENT

‘Savers the big losers’ from rate rises

roymorgansocial Leave a comment

Original article by Myriam Robin
The Australian Financial Review – Page: 31 : 6-Jul-17

Data from Canstar shows that just 15 out of 75 Australian lenders have increased their term deposit interest rates since the last official interest rate cut in August 2016. Steve Mickenbecker of Canstar says term deposit rates have fallen to an unprecedented low, and he warns that rates are unlikely to rise while inflation remains low. He adds that savers can adopt a number of strategies to obtain higher term deposit rates, but this requires a lot of effort. Meanwhile, banks are increasing their rates on interest-only and investor mortgage loans.

CORPORATES
CANSTAR PTY LTD, RESERVE BANK OF AUSTRALIA

AusSuper optimistic on equity outlook

roymorgansocial Leave a comment

Original article by Sally Patten
The Australian Financial Review – Page: 21 : 6-Jul-17

AustralianSuper has posted a return of 12.4 per cent for 2016-17, due to a strong performance by asset classes such as infrastructure, Australian shares and global shares. Chief investment officer Mark Delaney is upbeat about the outlook for sharemarkets in 2017-18, although he cautions that investors should expect lower returns than in 2016-17. He adds that share prices are unlikely to be significantly affected by the prospect of interest rate increases in countries such as the US.

CORPORATES
AUSTRALIANSUPER PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, CHANT WEST FINANCIAL SERVICES PTY LTD

RBA douses talk of rate rises

roymorgansocial Leave a comment

Original article by David Rogers, Adam Creighton
The Australian – Page: 17 & 25 : 5-Jul-17

Financial markets have priced in a nine per cent chance of a rise in Australia’s cash rate before the end of 2017 in the wake of the Reserve Bank’s July board meeting. The chances of a rate rise in the next 12 months have fallen from 84 per cent to 76 per cent. The central bank’s monetary policy statement was largely unchanged from May, although the Reserve Bank noted that a gradual strengthening of the Australia economy is likely. It also highlighted the need for the Australian dollar to remain low as the domestic economy completes its transition from the mining investment boom.

CORPORATES
RESERVE BANK OF AUSTRALIA, CAPITAL ECONOMICS LIMITED, JP MORGAN AUSTRALIA LIMITED, EUROPEAN CENTRAL BANK, BANK OF ENGLAND, BANK OF CANADA

SMSFs trail bigger funds by up to 16pc

roymorgansocial Leave a comment

Original article by Sally Patten
The Australian Financial Review – Page: 3 : 5-Jul-17

Data from Rainmaker shows that Australia’s self-managed superannuation funds achieved an average annual return of 4.6 per cent in the 10 years to May 2017. In contrast, mainstream super funds had an average annual return of 4.5 per cent. However, Rainmaker forecasts that SMSFs underperformed mainstream funds in the year to May 2017, with respective returns of 7.7 and 9.2 per cent. Rainmaker MD Christopher Page says SMSF trustees should focus on the return over 10 years rather than one year.

CORPORATES
RAINMAKER INFORMATION SERVICES PTY LTD, CHANT WEST FINANCIAL SERVICES PTY LTD, AUSTRALIAN TAXATION OFFICE

Government pushes for progress on group life insurance code

roymorgansocial Leave a comment

Original article by Alice Uribe
The Australian Financial Review – Page: 15 : 4-Jul-17

The Australian life insurance sector’s new code of conduct took effect in the week ending 30 June 2017. The code will be enforced by an independent committee, but it does not come under a legal or regulatory body. As yet, the code does not cover life insurance within superannuation, something that Financial Services Minister Kelly O’Dwyer wants addressed sooner than later. O’Dwyer notes that a working group had been looking at the issue for six months, but with seemingly little progress.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AIA AUSTRALIA LIMITED, FINANCIAL SERVICES COUNCIL, FINANCIAL SERVICES OMBUDSMAN LIMITED

New financial year ‘reset’ for investors

roymorgansocial Leave a comment

Original article by Myriam Robin
The Australian Financial Review – Page: 27 : 4-Jul-17

Australia’s S&P/ASX 200 shed 3.4 per cent in May 2017 and 0.1 per cent in June, due to factors such as tax-loss selling in the lead-up to the end of the financial year. Ophir Asset Management’s Andrew Mitchell is upbeat about the outlook for local equities in July, noting that fund managers will begin reweighting their portfolios. Institutional investors may also buy into stocks prior to the reporting season in August.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, OPHIR ASSET MANAGEMENT PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, TPG TELECOM LIMITED – ASX TPM, ACONEX LIMITED – ASX ACX, SANTOS LIMITED – ASX STO, APN OUTDOOR GROUP LIMITED – ASX APO, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, AVEO GROUP – ASX AOG

Will the RBA join the global rates party?

roymorgansocial Leave a comment

Original article by Timothy Moore
The Australian Financial Review – Page: 20 : 3-Jul-17

Futures pricing suggest that the Australian sharemarket will be bolstered by a positive lead from Wall Street when trading resumes on 3 July. The Reserve Bank’s monetary policy meeting will be a key focus for investors in coming days, although the cash rate is expected to be left on hold in July. Meanwhile, Australian retail sales, building approvals and trade data will be released during the next week.

CORPORATES
RESERVE BANK OF AUSTRALIA, DOW JONES INDUSTRIAL AVERAGE INDEX, UNITED STATIONERS, EUROPEAN CENTRAL BANK, NIKE INCORPORATED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CAPITAL ECONOMICS LIMITED

Calling a truce in the fund war

roymorgansocial Leave a comment

Original article by David Rogers
The Australian – Page: 17 & 20 : 3-Jul-17

The issue of active versus passive fund managers attracts considerable debate in Australia. However, BetaShares MD Alex Vynokur argues that the focus for fund managers should be on acting in the best interests of clients rather than the merits of each investment strategy. He notes that many active funds charge high fees while failing to deliver strong returns. BetaShares’ exchange-traded funds feature low fees and have a proven track record for good returns.

CORPORATES
BETASHARES CAPITAL LIMITED, BETASHARES FTSE RAFI AUSTRALIA 200 ETF – ASX QOZ, S&P DOW JONES INDICES LLP

Domestic woes to weigh on stocks

roymorgansocial Leave a comment

Original article by Myriam Robin
The Australian Financial Review – Page: 24 : 30-Jun-17

Australia’s S&P/ ASX200 index has gained 10.8 per cent in 2016-17, with resources stocks generally performing well while defensive stocks have disappointed. JP Morgan Asset Management’s Kerry Craig notes that some stocks have failed to match their first-half performance in the second half of the financial year. He adds that sector-specific issues and the Australian economy are likely to weigh on the sharemarket in 2017-18.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, JP MORGAN ASSET MANAGEMENT INCORPORATED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, TELSTRA CORPORATION LIMITED – ASX TLS, WESTFIELD CORPORATION – ASX WFD, WHITEHAVEN COAL LIMITED – ASX WHC, THE A2 MILK COMPANY LIMITED – ASX A2M, BLUESCOPE STEEL LIMITED – ASX BSL, QANTAS AIRWAYS LIMITED – ASX QAN, BELLAMY’S AUSTRALIA LIMITED – ASX BAL, DEUTSCHE BANK AG