K: Financial and Insurance Services

Bets mount on second cash rate cut in weeks

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Original article by Mark Mulligan
The Australian Financial Review – Page: 22 : 2-Mar-15

Futures traders expect the Australian sharemarket to lose ground when trading resumes on 2 March 2015. With the reporting season over, investors are likely to focus on economic data to be released in the coming week, as well as the Reserve Bank’s monthly board meeting. The recent release of disappointing capital expenditure data has heightened speculation that the central bank could reduce the cash rate again in March, following a 25-basis point cut in February

CORPORATES
RESERVE BANK OF AUSTRALIA, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, UBS HOLDINGS PTY LTD, PEOPLE’S BANK OF CHINA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, STANDARD AND POOR’S ASX 200 INDEX, WOOLWORTHS LIMITED – ASX WOW

Equity volumes soar on low rates

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 18 : 2-Mar-15

Data from IRESS shows that equity trading volumes in Australia rose by 15 per cent to $A438.9bn during the first two months of 2015. This is the highest level of trading activity for the first two months of the year since 2008, and the S&P/ASX 200 Index is close to breaching the 6,000-point level. Meanwhile, a number of companies are slated to undertake IPOs in the near-term, including MYOB, Fleetpartners and GenesisCare

CORPORATES
IRESS LIMITED – ASX IRE, STANDARD AND POOR’S ASX 200 INDEX, MYOB TECHNOLOGY PTY LTD, FLEET PARTNERS PTY LTD, GENESIS CARE PTY LTD, TOUCHCORP LIMITED, ASX LIMITED – ASX ASX, CHI-X AUSTRALIA PTY LTD, AURIZON HOLDINGS LIMITED – ASX AZJ, VEDA GROUP LIMITED – ASX VED, EVOLUTION MINING LIMITED – ASX EVN, FAIRFAX MEDIA LIMITED – ASX FXJ, UBS HOLDINGS PTY LTD, EUROZ LIMITED – ASX EZL, DEUTSCHE BANK AG, CITIGROUP PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, MACQUARIE SECURITIES PTY LTD

Responsible insurance-sale call repeated

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Original article by Shaun Drummond
The Australian Financial Review – Page: 19 : 2-Mar-15

Financial system inquiry member Craig Dunn says Australia should not follow the European Union by introducing an individual appropriateness test for the insurance industry. He argues that such a test would result in significant costs for the industry. He says the inquiry instead favours an increased obligation on the part of product issuers and distributors to act responsibly when selling insurance products

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FINANCIAL SERVICES COUNCIL, GREAT BRITAIN. FINANCIAL CONDUCT AUTHORITY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, INSURANCE COUNCIL OF AUSTRALIA LIMITED

IFM to invest in international equities

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Original article by Amanda Saunders
The Australian Financial Review – Page: 27 : 2-Mar-15

IFM Investors will expand into international shares, as part of its growing push to diversify beyond Australian asset classes. CEO Brett Himbury argues that the nation’s superannuation system needs to reduce its focus on the local sharemarket, noting that many of the group’s clients already have exposure to offshore equities. IFM began investing in overseas infrastructure assets several years ago

CORPORATES
IFM INVESTORS PTY LTD, MAGELLAN FINANCIAL GROUP LIMITED – ASX MFG, PLATINUM ASSET MANAGEMENT LIMITED – ASX PTM

Numbers add up for new millionaires

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Original article by Ruth Liew
The Australian Financial Review – Page: 18 : 2-Mar-15

Data from Investments Trends shows that the number of high net worth investors in Australia rose by 43,500 in 2014, to 443,500. They collectively control some $A1.6trn worth of investable assets. The nation also boasts 580,000 people with investable assets of between $A500,000 and $A1m. The research also shows that just 40 per cent of high net worth investors obtained professional advice in 2014

CORPORATES
INVESTMENT TRENDS PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ANZ PRIVATE BANK, PERPETUAL LIMITED – ASX PPT, COMMONWEALTH FINANCIAL PLANNING LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE PRIVATE WEALTH MANAGEMENT PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

IOOF still on hunt for takeover targets

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Original article by Sally Rose
The Australian Financial Review – Page: 16 : 27-Feb-15

Australian-listed IOOF Holdings has posted a 2014-15 underlying net profit of $A80.58m, which is 39 per cent higher than previously. The financial services group’s statutory net profit rose by 37 per cent to $A65.9m, and revenue was 24 per cent higher at $A458.49m. Shareholders will receive an interim dividend of $A0.25 per share. CEO Chris Kelahar says IOOF is keen for further acquisitions after buying SFG Australia in 2014

CORPORATES
IOOF HOLDINGS LIMITED – ASX IFL, SFG AUSTRALIA LIMITED, JP MORGAN AUSTRALIA LIMITED

Bank price bubble fear

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Original article by Patrick Commins
The Australian Financial Review – Page: 23 : 27-Feb-15

Minack Advisors’ Gerard Minack says valuations in Australia’s banking sector would be severely affected by a sharp downturn in the nation’s economy. He also warns that bank stocks could face a major bubble as investors increasingly turn to equities in search of better yields than those available from cash investments such as term deposits. The shift to equities is likely to accelerate amid expectations of further official interest rate cuts

CORPORATES
MINACK ADVISORS PTY LTD, MAPLE-BROWN ABBOTT LIMITED

Xero soars and eyes US listing

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Original article by Paul Smith
The Australian Financial Review – Page: 23 & 28 : 26-Feb-15

Australian-listed online accounting software developer Xero has received a $NZ132.9 million ($A127.6 million) investment from US firm Accel Partners. Xero CEO Rod Drury said the company will seek a US listing at the end of 2015. Its shares rose sharply on 25 February, closing 27.8 per cent higher at $A22.60

CORPORATES
XERO LIMITED – ASX XRO, ACCEL PARTNERS, ATLASSIAN SOFTWARE SYSTEMS PTY LTD, FACEBOOK INCORPORATED, MATRIX CAPITAL PTY LTD

ASIC used legal powers to extract NAB information

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Original article by Clancy Yeates
The Australian Financial Review – Page: 14 : 26-Feb-15

The corporate regulator is reviewing compensation paid to clients of National Australia Bank who received inappropriate financial advice. Greg Medcraft, the chairman of the Australian Securities & Investments Commission, said on 25 February 2015 that the regulator asked the bank for more information about compensation. The bank paid between $A10 million and $A15 million to aggrieved customers

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AMP LIMITED – ASX AMP, MACQUARIE GROUP LIMITED – ASX MQG

Seven set for uptick

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Original article by Tess Ingram, Anthony Macdonald
The Australian Financial Review – Page: 25 : 26-Feb-15

Seven Group Holdings has posted a 2014-15 interim net profit of $A69.2m, which is 74 per cent lower than previously. The WesTrac division’s sales revenue was down 47 per cent at $A323m, although revenue from equipment servicing and parts sales rose by 16 per cent to $A750m. Meanwhile, Seven Group will undertake an on-market share buyback via Goldman Sachs. The group’s shares closed 11 per cent higher at $A6.85 on 25 February 2015

CORPORATES
SEVEN GROUP HOLDINGS LIMITED – ASX SVW, WESTRAC HOLDINGS PTY LTD, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, CATERPILLAR, WOODSIDE PETROLEUM LIMITED – ASX WPL