K: Financial and Insurance Services

Big business will have to pay for ASIC

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Original article by Patrick Durkin
The Australian Financial Review – Page: 1 : 28-Aug-15

The Australian Securities & Investments Commission would be funded by a user-pays system under a plan proposed by the Federal Government. Big business, banks and the financial services sector would carry the biggest burden under the plan, with a maximum levy of $A320,000 a year on companies with a market capitalisation of more than $A15 billion. A discussion paper to be released by Assistant Treasurer Josh Frydenberg sets a deadline of 9 October 2015 for submissions.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN BANKERS’ ASSOCIATION, ASX LIMITED – ASX ASX, UNITED STATES. FEDERAL RESERVE BOARD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, SUNCORP GROUP LIMITED – ASX SUN, WESTFIELD CORPORATION – ASX WFD, TRANSURBAN GROUP LIMITED – ASX TCL, AMP LIMITED – ASX AMP, BRAMBLES LIMITED – ASX BXB, AMCOR LIMITED – ASX AMC

Calls to limit $21b super fees ‘gouge’

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Original article by Joanna Mather
The Australian Financial Review – Page: 7 : 28-Aug-15

National Seniors Australia has called for rules to force superannuation managers to cut back on fees, which amounted to $A21 billion a year. If funds did not voluntarily moderate fees, the regulator might have to step in, CEO Michael O’Neill said. Grattan Institute CEO John Daley told the National Reform Summit there was insufficient competition in the super industry to drive down fees. He has proposed a plan to save $A5 billion in fees which involves a tender process and a series of no-frills super products.

CORPORATES
NATIONAL SENIORS AUSTRALIA LIMITED, GRATTAN INSTITUTE, SUPERRATINGS PTY LTD, KPMG, AUSTRALIAN LABOR PARTY

Goldman tips high-yielding Australian stocks amid the turmoil

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 22 : 28-Aug-15

Goldman Sachs and Credit Suisse have identified high-yielding Australian equities that would be attractive additions to anyone’s portfolio. Goldman Sachs Asian equity analyst Timothy Moe favours Woolworths, QBE Insurance Group, Amcor, AGL Energy, APA Group, Sonic Healthcare, Coca-Cola Amatil and ALS. Credit Suisse advises investors to buy Asciano, ResMed, Harvey Norman and REA Group.

CORPORATES
GOLDMAN SACHS AUSTRALIA PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, WOOLWORTHS LIMITED – ASX WOW, QBE INSURANCE GROUP LIMITED – ASX QBE, AMCOR LIMITED – ASX AMC, AGL ENERGY LIMITED – ASX AGL, APA GROUP – ASX APA, SONIC HEALTHCARE LIMITED – ASX SHL, COCA-COLA AMATIL LIMITED – ASX CCL, ALS LIMITED – ASX ALQ, ASCIANO LIMITED – ASX AIO, RESMED INCORPORATED – ASX RMD, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, REA GROUP LIMITED – ASX REA

Crowdfunding gathers impetus with investors

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 38 : 27-Aug-15

Property crowdfunding is still a novelty in Australia. In the US, $A1.42 billion has been raised for property investments. CrowdfundUp’s founder Jack Quiqley told a Property Council of Australia breakfast in Sydney on 26 August 2015 that property equity crowdfunding gives retail investors an opportunity to enter the property market with a small sum of money.

CORPORATES
CROWDFUNDUP PTY LTD, PROPERTY COUNCIL OF AUSTRALIA LIMITED, LESTER GROUP LIMITED, REA GROUP LIMITED – ASX REA

The top 20 postcodes at risk of mortgage default

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Original article by Jonathan Barrett
The Australian Financial Review – Page: 3 : 27-Aug-15

Mortgage arrears are at below usual levels, according to Fitch Ratings. The worst performing suburbs are in low socioeconomic areas or in places reliant on single industries, such as tourism. With interest rates at record lows, the main reasons for falling behind in mortgage payments are loss of job, relationship breakup and unexpected expense. Budgewoi, on the Central Coast of New South Wales, was the worst postcode, Mackay in Queensland the worst region and Tasmania the worst state.

CORPORATES
FITCH RATINGS LIMITED

Down one day … up the next but it’s not a crisis, say CEOs

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Original article by Vesna Poljak, Clancy Yeates, Jonathan Shapiro, Misa Han
The Australian Financial Review – Page: 1 : 26-Aug-15

The Australian economy is in a much better shape than the sharemarket would suggest. Investors seem to have overreacted to a slowdown in the Chinese economy. ANZ Banking Group CEO Mike Smith said on 25 August 2015 that China still has huge "potential". Paul Griffiths, chief investment officer for fixed income at Colonial First State, notes that panic among investors is limited to equities, with bonds remaining unaffected.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COLONIAL FIRST STATE GROUP LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, ASX LIMITED – ASX ASX, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S ASX 200 INDEX, AUSCAP ASSET MANAGEMENT PTY LTD, SHENZHEN COMPOSITE INDEX, SHANGHAI COMPOSITE INDEX, CITIGROUP PTY LTD

SMSFs told to hold their nerve and buy

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Original article by Jonathan Barrett
The Australian Financial Review – Page: 9 : 26-Aug-15

Self-managed superannuation funds have been advised to remain calm during a period of extreme volatility on the Australian sharemarket. Wayne Leggett, principal at Paramount Wealth Management in Perth, says the Australian economy is in a good shape. Australian stocks are still relatively cheap and there are many attractive buying opportunities.

CORPORATES
PARAMOUNT WEALTH MANAGEMENT, STANDARD AND POOR’S ASX 200 INDEX, SMSF ASSOCIATION, UBS HOLDINGS PTY LTD, HLB MANN JUDD

ANZ-Roy Morgan Australian Consumer Confidence – Virtually Unchanged at 113.0

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 26-Aug-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell by 0.2 per cent to 113.0 in the week ended 23 August 2015. This leaves confidence around its long run average and similar to levels seen a year ago (-0.4 per cent). The fall in confidence was driven by views on ”economic conditions in the next five years” (down 1.2 per cent), ”finances in the next year” (down one per cent), and ”finances compared to a year ago” (down 0.5 per cent). Increases were recorded in ”economic conditions in the next year” and ”time to purchase a household item”. In comparison to a year ago, consumers’ confidence about economic conditions looks bleak. Views on ”economic outlook for the next year” are down 5.4 per cent and views on ”economic conditions in the next five years” are down 2.6 per cent. This is consistent with the equity market, which is down over seven per cent from a year ago.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

New front opens in activists’ war

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Original article by
The Australian Financial Review – Page: 2 : 24-Aug-15

HESTA’s decision to sell its stake in Transfield Services is a sign of things to come. Australian-listed companies must be prepared to be challenged by environmental and social activists. Divestment campaigns are no longer limited to tobacco, gambling or weapons. Environmental and social issues are now also scrutinised by activists. For investors, this is a worrying development.

CORPORATES
TRANSFIELD SERVICES LIMITED – ASX TSE, HEALTH EMPLOYEES’ SUPERANNUATION TRUST AUSTRALIA LIMITED, ALLAN GRAY AUSTRALIA PTY LTD, WILSON SECURITY SERVICES, AUSTRALIAN NURSING FEDERATION, HEALTH SERVICES UNION OF AUSTRALIA, UNITED VOICE

Big four banks mauled in bear market as capital rules bite

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Original article by Clancy Yeates
The Australian Financial Review – Page: 14 : 24-Aug-15

Shares in Australia’s major banks continue to be under pressure. Since the beginning of 2015, they have lost more than $A85 billion in their combined market value, or more than 20 per cent. Shares in the ANZ Banking Group declined 23.9 per cent from their April peak of $A37.25. Investors worry about the bank’s exposure to Asia and to Australian mining companies.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, CADENCE CAPITAL LIMITED – ASX CDT, BELL POTTER SECURITIES LIMITED, ALPHINITY INVESTMENT MANAGEMENT PTY LTD