K: Financial and Insurance Services

SMSFs’ returns hurt by local bias

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Original article by Andrew Main
The Australian – Page: 22 : 18-Nov-14

UBS Global Asset Management has conducted new research on the superannuation sector for the Financial Services Council (FSC). It shows that just 17% of self-managed super funds (SMSFs) in the 12 months to November 2014 achieved growth of 10% or more. This compares unfavourably with an average return for large super funds overseen by the Australian Prudential Regulation Authority of 11.6%. A major factor in the gap is the limited allocation of funds by SMSFs to overseas assets. FSC CEO John Brogden nevertheless predicts the SMSFs segment to continue its rapid expansion

CORPORATES
FINANCIAL SERVICES COUNCIL, UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

NAB execs poorer by $44m

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Original article by Richard Gluyas
The Australian – Page: 22 : 18-Nov-14

The 2013-14 annual report of National Australia Bank (NAB) shows that senior managers forfeited some $A44m worth of stock meant as incentive awards. The remuneration of departed CEO Cameron Clyne in his final year at the helm dropped from $A7.8m to $A6m, even when taking into account a "golden parachute" payment of $A1.7m. The lapsed equity in his case amounted to $A19.1m. The details follow the recent news that NAB’s cash profit had fallen by a tenth due to major provisioning charges

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD

Anchorage to buy Pacific’s Brand Collective unit

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Original article by Sarah Thompson, Sue Mitchell
The Australian Financial Review – Page: 15 & 20 : 18-Nov-14

Private equity firm Anchorage Capital Partners is believed to be in talks to acquire the Brand Collective division of Australian-listed Pacific Brands. The division boasted sales of $A205m in fiscal 2014, but it posted a loss of $A0.9m prior to one-off costs. Anchorage will be hoping to emulate its success in turning around the fortunes of Dick Smith. Brand Collective owns brands such as Volley and Grosby, and operates several chains of shoe stores

CORPORATES
PACIFIC BRANDS LIMITED – ASX PBG, BRAND COLLECTIVE, ANCHORAGE CAPITAL PARTNERS PTY LTD, GROSBY FOOTWEAR, VOLLEY, SHOE WAREHOUSE, SHOE SUPERSTORE GROUP PTY LTD, DICK SMITH HOLDINGS LIMITED – ASX DSH, SUPERDRY, MOSSIMO, HUSH PUPPIES, CLARKS SHOES LIMITED, WOOLWORTHS LIMITED – ASX WOW, MYER HOLDINGS LIMITED – ASX MYR, HARD YAKKA, KING GEE CLOTHING COMPANY, STUBBIES CLOTHING COMPANY, WESFARMERS LIMITED – ASX WES, MACQUARIE CAPITAL PTY LTD, KPMG AUSTRALIA PTY LTD, BONDS INDUSTRIES LIMITED, SHERIDAN AUSTRALIA PTY LTD

Regulator eyes bloated goodwill

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Original article by Ben Butler, Sarah Danckert
The Australian – Page: 22 : 17-Nov-14

A growing number of Australian-listed groups, especially in the private education and health services sectors, show excessive levels of goodwill. Those with a ratio of 70% or above on their balance sheets include Affinity Education, Vocation, Primary Health Care, iBuy Group, Vision Eye Institute, Allmine, Asaplus Resources and G8 Education. The issue has prompted a warning to companies about increased scrutiny of such accounting claims by the Australian Securities & Investments Commission

CORPORATES
AFFINITY EDUCATION GROUP LIMITED – ASX AFJ, VOCATION LIMITED – ASX VET, PRIMARY HEALTH CARE LIMITED – ASX PRY, IBUY GROUP LIMITED – ASX IBY, ASAPLUS RESOURCES LIMITED – ASX AJY, G8 EDUCATION LIMITED – ASX GEM, VISION EYE INSTITUTE LIMITED – ASX VEI, ALLMINE GROUP LIMITED – ASX AZG, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FIL INVESTMENT MANAGEMENT LIMITED, FIDELITY AUSTRALIAN EQUITIES FUND, K CAPITAL PTY LTD, NM ROTHSCHILD AND SONS (AUSTRALIA) LIMITED, ENDEAVOUR COLLEGE OF NATURAL HEALTH, BAWM GROUP PTY LTD, ASPIN PTY LTD, PERPETUAL LIMITED – ASX PPT, FORGE GROUP LIMITED, LIVINGSOCIAL

Global dividends tipped to hit $1.4 trillion in 2015

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Original article by Sally Rose
The Australian Financial Review – Page: 24 : 17-Nov-14

Henderson Global Investors forecasts that $US1.19trn worth of dividends will be paid to shareholders globally in 2014, rising to $US1.24trn in 2015. Some $US288.1bn worth of dividends were paid globally during the September 2014 quarter, according to the Henderson Global Dividend Index. Australian-listed Westpac, ANZ Bank, BHP Billiton and Telstra were among the world’s 20 leading stocks in terms of dividend payouts during the period

CORPORATES
HENDERSON GLOBAL INVESTORS LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BHP BILLITON LIMITED – ASX BHP, TELSTRA CORPORATION LIMITED – ASX TLS, STANDARD AND POOR’S ASX 200 INDEX, WESTFIELD CORPORATION – ASX WFD, WOODSIDE PETROLEUM LIMITED – ASX WPL, CHINA CONSTRUCTION BANK, GAZPROM, CHINA MOBILE COMMUNICATIONS CORPORATION

Councils target ANZ on sale of toxic debt

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Original article by Leo Shanahan
The Australian – Page: 31 : 14-Nov-14

Australian local government bodies led by Coffs Harbour City Council are launching legal action in the Federal Court against ANZ Bank. They allege misleading and deceptive conduct, breach of contract, breach of fiduciary duties and breach of the banking code of practice. ANZ had sold the claimants risky collateralised debt obligations between 2006 and 2008, without disclosing its own stake in the instruments. A co-respondent to the suit is credit ratings agency Fitch Ratings, which had given "AAA" status to the Credit Sail II product

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FITCH RATINGS LIMITED, COFFS HARBOUR CITY COUNCIL, FEDERAL COURT OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, LEHMAN BROTHERS INCORPORATED, GLOUCESTER SHIRE COUNCIL

Aussie ‘will hit US76c’

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Original article by Anthony Macdonald
The Australian Financial Review – Page: 27 : 14-Nov-14

Geoffrey Kendick of Morgan Stanley is bearish about the outlook for the Australian dollar, forecasting that it will end 2014 at $US0.85. Kendrick expects the currency to be trading at just $US0.76 at the end of 2015. He also believes that there is the potential for global deflation, and he does not expect the Reserve Bank to increase official interest rates before its US counterpart does so

CORPORATES
MORGAN STANLEY AND COMPANY INCORPORATED, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD

Banking’s first lady

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Original article by Anne Hyland
The Australian Financial Review – Page: 40 & 41 : 14-Nov-14

The market capitalisation of Westpac has risen twofold to $A103bn under the leadership of outgoing CEO Gail Kelly, who took on the role in 2008. Kelly says the corporate culture that was developed at Westpac during her tenure is her greatest achievement in seven years at the helm, and she is particularly pleased that Westpac is now the leading Australian bank in terms of business and consumer satisfaction. Former Commonwealth Bank CEO Ralph Norris and Foreign Minister Julie Bishop are among those to have praised Kelly

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, ST GEORGE BANK LIMITED, FORBES INCORPORATED, THE GOLDMAN SACHS GROUP INCORPORATED, NEDBANK, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COLONIAL GROUP, STATE BANK OF NEW SOUTH WALES LIMITED, ROYAL BANK OF SCOTLAND GROUP PLC, APPLE INCORPORATED, GOOGLE INCORPORATED

Top directors skip the scrip

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Original article by Misa Han
The Australian Financial Review – Page: 13 : 14-Nov-14

A survey by the Australian Council of Superannuation Investors shows that many directors of listed groups do not have equity in the company. One per cent of executive directors of companies in the ASX 100 do not directly hold shares, while 9.7 per cent of non-executive directors are not on the share register. Ian Curry of the Australian Shareholders’ Association says ownership of the company’s shares should be mandatory for all directors

CORPORATES
AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, STANDARD AND POOR’S ASX 100 ACCUMULATION INDEX, STANDARD AND POOR’S ASX 200 INDEX, BHP BILLITON LIMITED – ASX BHP, RAMSAY HEALTH CARE LIMITED – ASX RHC, SONIC HEALTHCARE LIMITED – ASX SHL

Change laws to boost women’s super: ASFA

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Original article by Nassim Khadem
The Australian Financial Review – Page: 24 : 13-Nov-14

It is estimated that men have an average of $A197,000 in their superannuation fund upon retirement, compared with just $A105,000 for women. The Association of Superannuation Funds of Australia (ASFA) has proposed relaxing discrimination laws to permit higher employer contributions to female employees’ super accounts. The ASFA also proposes scrapping the superannuation guarantee income threshold, which is currently set at $A450 per month

CORPORATES
THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, CHALLENGER LIMITED – ASX CGF, COLONIAL FIRST STATE GROUP LIMITED, VICSUPER PTY LTD, RICE WARNER ACTUARIES PTY LTD, AUSTRALIA. SEXUAL DISCRIMINATION COMMISSION