K: Financial and Insurance Services

ASX to face fresh competition

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Original article by Andrew White
The Australian – Page: 19 & 23 : 12-Oct-16

Stock exchange operator ASX Limited could potentially lose its monopoly on clearing and settlement services. Competition in the clearing of securities in particular is being scrutinised by the Australian Government as part of its broader competition law reforms. Several international players have already been granted licences to provide clearing services for over-the-counter derivatives, while share trades were opened to competition in 2011.

CORPORATES
ASX LIMITED – ASX ASX, CHI-X AUSTRALIA PTY LTD, COUNCIL OF FINANCIAL REGULATORS, AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, DIGITAL ASSET HOLDINGS, CME, LCH.CLEARNET SA

Investors circle ailing companies in the valley of debt

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Original article by Vera Sprothen
The Australian – Page: 19 & 23 : 12-Oct-16

Preqin estimates that private debt fund managers had access to a record $US199bn ($A262bn) at the end of June 2016. Such companies are believed to be seeking to acquire distressed assets in Australia, including sectors such as resources, mining services, agricultural and housing. Distressed debt funds are said to be looking to buy debt-burdened companies or the debts of businesses than cannot meet their repayments. Oaktree Capital Management and Lone Star Funds are among the global debt fund managers that have established a presence in Australia.

CORPORATES
PREQIN LIMITED, OAKTREE CAPITAL MANAGEMENT LLC, LONE STAR FUNDS, BAIN CAPITAL CREDIT, SC LOWY FINANCIAL (HK) LIMITED, MOODY’S INVESTORS SERVICE INCORPORATED, ARRIUM LIMITED – ASX ARI, PEABODY ENERGY CORPORATION, RESERVE BANK OF AUSTRALIA, WELLS CAPITAL MANAGEMENT, ALLENS, McALEESE LIMITED – ASX MCS, BHP BILLITON LIMITED – ASX BHP, ROYAL DUTCH SHELL PLC

Investors embrace maiden 30-year government bond

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 1 & 8 : 12-Oct-16

There has been strong demand among international investors for the inaugural issuance of 30-year Australian government bonds. The bonds will mature in March 2047 and investors will receive a rate of 3.25 per cent. The yield on 10-year bonds is currently around 2.25 per cent. The volume and pricing of the 30-year bonds will be determined on 12 October 2016, but the issuance is believed to have attracted around $A7.5bn worth of bids from prospective investors.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY. OFFICE OF FINANCIAL MANAGEMENT, JAMIESONCOOTEBONDS PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA

Tech listings star as IPOs outperform

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Original article by Chris Kohler
The Australian – Page: 20 : 10-Oct-16

Australia’s benchmark S&P/ASX 200 gained 3.9 per cent during the September 2016 quarter. However, data from OnMarket shows that the 24 IPOs during the quarter achieved an average return of 28.2 per cent over the period, and an average of 28.6 per cent in their first week as a listed company. Technology stocks in particular have performed well, although exceptions include Kogan.com, which is trading below its issue price.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, ONMARKET, KOGAN.COM LIMITED – ASX KGN, VIVA ENERGY REIT – ASX VVR, MICHAEL HILL INTERNATIONAL LIMITED – ASX MHJ, PROPERTYLINK GROUP LIMITED – ASX PLG, SCOTTISH PACIFIC GROUP LIMITED – ASX SCO, QANTM INTELLECTUAL PROPERTY LIMITED – ASX QIP

Active fund managers lag those lazy index-huggers

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Original article by David RogersDaniel Palmer
The Australian – Page: 19 & 31 : 7-Oct-16

Data from S&P Dow Jones Indices shows that the returns of most Australian active fund managers have lagged their benchmark index over periods of one, three, and five years. Mid-cap and small-cap funds are the only ones to have outperformed their benchmark over these periods, according to data up to the end of June 2016. BetaShares MD Alex Vynokur notes that global themes and decisions regarding asset allocations have become a major influence on returns.

CORPORATES
S&P DOW JONES INDICES LLPBETASHARES CAPITAL LIMITEDSTANDARD AND POOR’S ASX 200 INDEXSTANDARD AND POOR’S ASX ALL ORDINARIES ACCUMULATION INDEXWILSON ASSET MANAGEMENTWAM EQUITY FUNDWATERMARK FUNDS MANAGEMENT PTY LTDWATERMARK MARKET NEUTRAL FUND LIMITED – ASX WMKANTIPODES GLOBAL INVESTMENT COMPANY LIMITED – ASX APLPENGANA CAPITAL LIMITEDPENGANA AUSTRALIAN EQUITIES FUND

Citi tips ASX to hit 6000 by end of 2017

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Original article by Jessica Sier
The Australian Financial Review – Page: 31 : 7-Oct-16

Citigroup is bullish about the outlook for Australian equities and corporate earnings. It forecasts that the benchmark S&P/ASX 200 will gain 10 per cent over the next year or so to top the 6,000-point level by the end of 2017. Citigroup also expects the corporate sector to post earnings growth of eight per cent in 2016-17, following an 11 per cent decline in 2015-16. The firm is also upbeat about global equities, anticipating a 10 per cent rise by the end of 2017.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEXCITIGROUP PTY LTDMORGAN STANLEY AUSTRALIA LIMITEDRESERVE BANK OF AUSTRALIA

Sovereign debt could well be the driver of the next share selloff

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Original article by Philip Baker
The Australian Financial Review – Page: 32 : 6-Oct-16

Australia’s benchmark S&P ASX 200 is currently trading on a forward price-earnings ratio of around 16 times, compared with its long-term average of about 14.5 times. The index reached a 2016 high of 5,587 points at the start of August, and despite a number of pullbacks it is still three per cent higher than at the start of the year. However, the prospect of an eventual end to quantitative easing by central banks is likely to put upward pressure on government bond yields, which will in turn weigh on sentiment toward equities.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, ROYAL BANK OF SCOTLAND GROUP PLC, THE GOLDMAN SACHS GROUP INCORPORATED, JP MORGAN CHASE AND COMPANY, UNITED STATES. FEDERAL RESERVE BOARD, FEDERAL RESERVE BANK OF RICHMOND, SYDNEY AIRPORT – ASX SYD, TRANSURBAN GROUP LIMITED – ASX TCL

Wrinkles in CBA’s satisfaction crown

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Original article by Vesna Poljak
The Australian Financial Review – Page: 23 : 6-Oct-16

Roy Morgan Research’s latest survey of customer bank satisfaction shows that the Commonwealth Bank of Australia (CBA) ranked first in retail main financial institution customer satisfaction for the six months to August 2016. Customers were less satisfied with CBA’s mortgage products, with CBA ranking third out of the big four banks. CBA dominates Australia’s mortgage market, with a 25.3 per cent market share.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, ROY MORGAN RESEARCH LIMITED, AUSTRALIAN LABOR PARTY

Rates low enough to spur growth: RBA

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Original article by David Rogers
The Australian – Page: 28 : 5-Oct-16

Financial markets have priced in a 20 per cent chance that the Reserve Bank of Australia will reduce the cash rate in November 2016. The central bank left official interest rates on hold at 1.5 per cent on 4 October, and governor Philip Lowe said the board decided that the cash rate is at an appropriate level to deliver sustainable economic growth and meet the bank’s inflation target over the long-term. Lowe’s statement notably made no reference to the upcoming release of inflation data.

CORPORATES
RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, CORELOGIC AUSTRALIA PTY LTD, JP MORGAN AUSTRALIA LIMITED

Henderson, Janus create $US6b giant

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Original article by Vesna Poljak, Jessica Gardner
The Australian Financial Review – Page: 13 & 16 : 4-Oct-16

Australian-listed global fund manager Henderson Group will merge with US-based Janus Capital Group. Henderson shareholders will control 57 per cent of the new entity, which will be called Janus Henderson GlobalInvestors and boast $US320bn worth of assets under management. Henderson CEO Andrew Formica and former Pimco executive Dick Weil will be joint CEOs of the merged company, which will be dual-listed on the Australian and New York stock exchanges.

CORPORATES
HENDERSON GROUP PLC – ASX HGG, JANUS CAPITAL GROUP INCORPORATED, JANUS HENDERSON GLOBALINVESTORS, PACIFIC INVESTMENT MANAGEMENT COMPANY LLC