K: Financial and Insurance Services

Super climbs 9.6pc to $1.87 trillion

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Original article by Andrew Main
The Australian – Page: 23 : 21-Nov-14

The latest data issued by the Australian Prudential Regulation Authority on the nation’s superannuation sector show that the total funds held in such accounts grew 9.6% to $A1.87trn in the year to late September 2014. Of this, 29% was made up by self-managed super funds. Some experts argue that the figures are meaningless as they do not contain a breakdown by type of fund, or average increases. Research firm Chant West notes that the median growth fund expanded 6.2% between January and October 2014

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, CHANT WEST FINANCIAL SERVICES PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, AUSTRALIAN TAXATION OFFICE

No charges, but watchdog takes civil action after LM property collapse

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Original article by Ben Butler, Roseanne Barrett
The Australian – Page: 19 : 21-Nov-14

The Australian Securities & Investments Commission (ASIC) is bringing a civil action against real estate investor Peter Drake, but it will not pursue criminal charges. His LM fund management firm raised $A800m-plus from small retail shareholders before failing in 2013. The watchdog alleges that Drake channelled $A26m to personal spending, and that director’s duties were breached in approving the loans by LM’s Francene Mulder, Eghard van der Hoven, Simon Jeremy Tickner and Lisa Maree Darcy

CORPORATES
LM INVESTMENT MANAGEMENT LIMITED, LM ADMINISTRATION PTY LTD, LM MANAGED PERFORMANCE FUND, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MADDISON ESTATE PTY LTD, FEDERAL COURT OF AUSTRALIA, AUSTRALIA. DIRECTOR OF PUBLIC PROSECUTIONS, ERNST AND YOUNG

Nexus investors lash ASIC inaction

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Original article by Leo Shanahan
The Australian – Page: 23 : 20-Nov-14

Piper Alderman lawyer Amanda Banton, who represents investors in Nexus Energy opposed to its acquisition by Seven Group Holdings, has criticised the Australian Securities & Investments Commission. The watchdog has taken no action after Seven made a low offer of $A0.02 and then moved to buy the collapsed Nexus following the rejection by stockholders of the original bid. A major issue is the dual role of Don Voelte as Seven CEO and Nexus chair

CORPORATES
SEVEN GROUP HOLDINGS LIMITED – ASX SVW, NEXUS ENERGY LIMITED – ASX NXS, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, PIPER ALDERMAN, AZURE CAPITAL PTY LTD, LIBERAL PARTY OF AUSTRALIA, SUPREME COURT OF NEW SOUTH WALES

Traders benched in rates fix probe

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Original article by Richard Gluyas
The Australian – Page: 1 : 20-Nov-14

The Australian Securities & Investments Commission (ASIC) is continuing its investigation of banks and investment banks that allegedly colluded to manipulate the bank bill swap rate via the Australian Financial Markets Association. BNP Paribas, UBS and Royal Bank of Scotland have already incurred penalties, and ANZ Banking has now stood aside seven market trading staff on full pay due to the ASIC inquiry. ANZ chief risk officer Nigel Williams says the bank is co-operating fully with the watchdog

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN FINANCIAL MARKETS ASSOCIATION INCORPORATED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, UBS AG, ROYAL BANK OF SCOTLAND GROUP PLC, BNP PARIBAS SA

Westpac scores highest satisfaction of the big four banks for personal and business customers

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 19-Nov-14

A Roy Morgan Single Source survey has found that the satisfaction level of the personal customers of Australian banks rose by 0.2 per cent to a record 82.6 per cent in October 2014. Westpac had the highest personal customer satisfaction rating of the four major banks in the six months to October, at 81.5 per cent, ahead of the Commonwealth Bank (81.2 per cent). Westpac also had the highest satisfaction rating among business customers (72.3 per cent), followed by National Australia Bank (69 per cent)

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

Medibank float could raise $5.8b

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Original article by Jessica Gardner, Sarah Thompson, Jake Mitchell
The Australian Financial Review – Page: 21 & 26 : 20-Nov-14

Strong demand for shares in the Medibank Private IPO has prompted the Australian Government to upgrade the indicative share price range. This was initially set at between $A1.55 and $A2, but will now be from $A2 to $A2.30. Some fund managers expect the final issue price to be set at $A2.10 per share, which would value the float at about $A5.8bn. Retail investors will pay a maximum of $A2 per share

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, AUSTRALIA. DEPT OF FINANCE, TELSTRA CORPORATION LIMITED – ASX TLS, QR NATIONAL LIMITED

NAB hires Deloitte ahead of stepping up life division sale

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 21 : 20-Nov-14

Financial market analysts estimate that the life insurance business of National Australia Bank (NAB) is worth around $A1.4bn. Deloitte has been hired to advise the banking major on options for the business, which could include selling all or part of it. Ross Curran of the Commonwealth Bank believes that NAB’s life business can be sold if it is offered at an appropriate price. The life business is part of NAB’s MLC division

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, DELOITTE TOUCHE TOHMATSU LIMITED, MLC LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, METLIFE INSURANCE LIMITED, JP MORGAN AUSTRALIA LIMITED, AXA ASIA PACIFIC HOLDINGS LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, DAI-ICHI LIFE INSURANCE COMPANY LIMITED, NIPPON LIFE INSURANCE COMPANY LIMITED, ZURICH INSURANCE COMPANY, AMERICAN INTERNATIONAL GROUP INCORPORATED, CLSA AUSTRALIA PTY LTD

Medibank book-build under way

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Original article by Jessica Gardner, Sarah Thompson, Jake Mitchell
The Australian Financial Review – Page: 15 & 26 : 19-Nov-14

An unnamed fund manager says there has been a "bidding frenzy" for shares in the IPO of Medibank Private. The institutional bookbuild commenced on 18 November 2014, with some fund managers tendering to buy shares at a price well above the indicative range of $A1.55 to $A2 per share. The retail component of the share offer attracted some $A17bn worth of bids. CLSA analysts have valued Medibank stock at between $A1.55 and $A1.64

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, CLSA AUSTRALIA PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, RAMSAY HEALTH CARE LIMITED – ASX RHC, HEALTHSCOPE LIMITED – ASX HSO

Funds predict tough times ahead for local shares

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Original article by Bianca Hartge-Hazelman
The Australian Financial Review – Page: 28 : 19-Nov-14

Paradice Investment Management founder David Paradice is among the fund managers who forecast lower earnings growth in Australia during 2015. Geoff Wilson of Wilson Asset Management expects the Australian sharemarket to be lower at the end of 2015, while Damien Boey of Credit Suisse says factors such as the weaker Australian economy and the fall in commodity prices will prompt at least one more interest rate cut

CORPORATES
PARADICE INVESTMENT MANAGEMENT PTY LTD, WILSON ASSET MANAGEMENT, CREDIT SUISSE (AUSTRALIA) LIMITED, MORGAN STANLEY AUSTRALIA LIMITED, CALTEX AUSTRALIA LIMITED – ASX CTX, COCHLEAR LIMITED – ASX COH, TABCORP HOLDINGS LIMITED – ASX TAH, SLATER AND GORDON LIMITED – ASX SGH, INFOMEDIA LIMITED – ASX IFM, ARISTOCRAT LEISURE LIMITED – ASX ALL, RESERVE BANK OF AUSTRALIA

Medibank Private float stirs hype as retail demand balloons

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 18 : 18-Nov-14

There has been strong demand for Medibank Private shares from both retail and institutional investors. Retail investors have expressed interest in buying more than $A4.8bn shares in the IPO, while institutional demand is estimated at $A12bn. The share offer for retail investors closed on 14 November 2014, while the bookbuild for institutional investors will commence on 19 November. Retail investors will pay no more than $A2 per share

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, AUSTRALIA. DEPT OF FINANCE, DEUTSCHE BANK AG, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, MACQUARIE CAPITAL PTY LTD, ELEY GRIFFITHS GROUP PTY LTD, PROMINA GROUP LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS