K: Financial and Insurance Services

Reserve Bank keeps interest rate mantra

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Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 5-Nov-14

The Australian dollar late in the trading on 4 November 2014 rose to $US0.8724 from $US0.8694, following news that the Reserve Bank of Australia was leaving the official cash interest rate unchanged. The board meeting earlier in the day resulted in the 14th consecutive non-adjustment of the 2.5% rate, and the central bank has signalled that this will remain the case until close to mid-2015. The high foreign exchange rate is a major reason, although there are concerns that the low cost of home mortgage borrowing is creating a residential real estate prices bubble. Inflation is benign but the terms of trade are worsening

CORPORATES
RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN BUREAU OF STATISTICS

Start-up lures Medibank customers

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Original article by Jessica Gardner
The Australian Financial Review – Page: 22 : 5-Nov-14

Online health insurance provider health.com.au enjoyed strong growth in its customer base in 2013-14, and now boasts about 90,000 policyholders. CEO Andy Sheats notes that Medibank Private and Bupa account for the bulk of customers switching to health.com.au. Sheats adds that neither of the big health funds market their products via iSelect, which is the biggest source of customers switching to health.com.au

CORPORATES
HEALTH.COM.AU PTY LTD, MEDIBANK PRIVATE LIMITED – ASX MPL, BUPA AUSTRALIA PTY LTD, ISELECT LIMITED – ASX ISU, AHM HEALTH INSURANCE, THE HOSPITAL CONTRIBUTIONS FUND OF AUSTRALIA LIMITED, REA GROUP LIMITED – ASX REA

‘Corrupt culture’ in super fund

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Original article by Joanna Mather, Sally Patten
The Australian Financial Review – Page: 1 & 6 : 3-Nov-14

Jeremy Stoljar SC, counsel assisting the Royal Commission into Trade Union Governance & Corruption, has criticised the Cbus industry superannuation fund. He argued that evidence of members’ details being leaked to the Construction, Forestry, Mining & Energy Union showed an overly close relationship and a "cultural failure". Industry Super Australia CEO David Whiteley rejects any suggestion the leak is symptomatic of practices in the sector generally. Stoljar also recommended criminal charges against some building union officials over an unlawful secondary boycott

CORPORATES
CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIA. ROYAL COMMISSION INTO TRADE UNION GOVERNANCE AND CORRUPTION, BORAL LIMITED – ASX BLD, LIS-CON HOLDINGS PTY LTD, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN LABOR PARTY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, HIGH COURT OF AUSTRALIA

Ahh, to be young … and rich

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Original article by John Stensholt, Michael Bailey
The Australian Financial Review – Page: 10 & 11 : 31-Oct-14

Members of "BRW" magazine’s 2014 Young Rich List have a combined wealth of $A8.3bn. The list is headed by Mike Cannon-Brookes and Scott Farquhar of software group Atlassian, who are collectively worth $A2.1bn. They are followed by Campaign Monitor’s Dave Greiner and Ben Richardson, who are worth a combined $A500m. Carman’s Fine Foods’ Carolyn Creswell is the highest-ranked woman on the list, with personal wealth of $A83m

CORPORATES
ATLASSIAN SOFTWARE SYSTEMS PTY LTD, CAMPAIGN MONITOR PTY LTD, CARMAN’S FINE FOODS PTY LTD, T ROWE PRICE GROUP INCORPORATED, DRAGONEER INVESTMENT GROUP LLC, INSIGHT VENTURE PARTNERS, WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES, TESCO PLC, J SAINSBURY PLC, VANTAGE, YAHOO! INCORPORATED, AUSTRALIAN CAREERS NETWORK LIMITED – ASX ACO, REWARDLE HOLDINGS LIMITED – ASX RXH, BPM CONSTRUCTION AND DEVELOPMENT GROUP

NAB tells rivals it is ready for a fight

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Original article by James Eyers, Joyce Moullakis
The Australian Financial Review – Page: 13 & 16 : 31-Oct-14

National Australia Bank (NAB) posted a 4.5 per cent decline in net interest income from business lending in the year to 30 September 2014. CEO Andrew Thorburn says the banking major will pursue a range of measures to ensure that it remains Australia’s leading business bank, including hiring more business bankers. He has ruled out relaxing NAB’s lending standards in the sector. NAB has reported a 2013-14 profit of $A5.18bn

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MACQUARIE GROUP LIMITED – ASX MQG, ARNHEM INVESTMENT MANAGEMENT PTY LTD, RESERVE BANK OF AUSTRALIA, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED

Young Australians saved over $650 million

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 30-Oct-14

Roy Morgan Research’s latest Young Australians Survey has found that 74 per cent of Australians aged 6-13 currently have personal savings, which total $A653m. The survey, which was carried out in the year to June 2014, also shows that the average amount saved by Australians in this age group is $A285, while 21.2 per cent have savings of less than $A50 and 10.2 per cent have savings of $A1,000 or more

CORPORATES
ROY MORGAN RESEARCH LIMITED, HERITAGE BANK LIMITED – ASX HBS, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

NAB to step up UK asset sales

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Original article by Clancy Yeates, James Eyers
The Australian Financial Review – Page: 30 : 30-Oct-14

Some analysts believe that National Australia Bank (NAB) will divest the UK’s Clydesdale Bank via an IPO within six months. NAB is likely to reveal its sale options for the Clydesdale and Yorkshire Bank businesses when its 2013-14 financial results are released on 30 October 2014. NAB is tipped to post a full-year profit within the range of $A5.1bn to $A5.2bn, down from $A5.94bn previously

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, YORKSHIRE BANK PLC, GREAT WESTERN BANK, MLC LIMITED, GREAT BRITAIN. FINANCIAL CONDUCT AUTHORITY

Suncorp urges inquiry to level the playing field

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Original article by Clancy Yeates
The Australian Financial Review – Page: 27 : 30-Oct-14

Suncorp CEO Patrick Snowball believes that the Federal Government’s financial system inquiry focuses excessively on the stability of Australia’s banking system while paying little attention to competition in the sector. He said on 29 October 2014 that smaller banks are disadvantaged by the current regulations. Snowball also spoke against allowing foreign insurers to sell policies in north Queensland

CORPORATES
SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, WESTPAC BANKING CORPORATION – ASX WBC, AMERICAN CHAMBER OF COMMERCE IN AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC

Socially responsible investing demands rigour, says adviser

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Original article by Jemima Whyte
The Australian Financial Review – Page: 12 : 30-Oct-14

The socially responsible investment industry in Australia is less mature than the same sector in the US. Alexandra P Cart, co-founder of US impact investment advisory firm Madeira Capital, says more accountability is needed in the sector. Metrics must also be improved. Impact investing recently attracted public attention after the Australian National University opted for the removal of several mining companies from its investment fund

CORPORATES
MADEIRA GLOBAL LLC, JP MORGAN AUSTRALIA LIMITED, AUSTRALIAN NATIONAL UNIVERSITY, PHILANTHROPY AUSTRALIA, OIL SEARCH LIMITED – ASX OSH, SANTOS LIMITED – ASX STO

Fund managers tap cash to drive further buoyancy

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Original article by Bianca Hartge-Hazelman
The Australian Financial Review – Page: 21 : 29-Oct-14

Australia’s benchmark S&P/ASX 200 has risen by 5.5 per cent in the last two weeks, after dipping nearly nine per cent in the previous six weeks. A number of Australian share funds reduced their cash holdings in the September 2014 quarter, according to data from Morningstar. Arnhem Investment Management is among the fund managers to have capitalised on recent share price weakness to increase their exposure to equities

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, MORNINGSTAR PTY LTD, ARNHEM INVESTMENT MANAGEMENT PTY LTD, AIRLIE FUNDS MANAGEMENT PTY LTD, FIDELITY AUSTRALIAN OPPORTUNITIES FUND, PERPETUAL’S INDUSTRIAL SHARE FUND, SCHRODER INVESTMENT MANAGEMENT AUSTRALIA LIMITED, AUSBIL DEXIA LIMITED, INVESTORS MUTUAL AUSTRALIAN SHARE FUND, AMCOR LIMITED – ASX AMC, RESMED INCORPORATED – ASX RMD, WOOLWORTHS LIMITED – ASX WOW, MAGELLAN ASSET MANAGEMENT PTY LTD