K: Financial and Insurance Services

Telstra tops super list, warns of coming slowdown

roymorgansocial Leave a comment

Original article by Sally Patten
The Australian Financial Review – Page: 13 &16 : 21-Jul-14

Data from SuperRatings shows that the average Australian superannuation achieved a return of 12.7 per cent in 2013-14. Telstra Super outperformed with a return of 15.8 per cent, followed by Intrust Super, UniSuper and AustralianSuper. Telstra also had the highest return over the last five years, with its balanced fund achieving an average return of 10.7 per cent annually over this period

CORPORATES
SUPERRATINGS PTY LTD, TELSTRA SUPERANNUATION SCHEME, INTRUST SUPER FUND, UNISUPER LIMITED, AUSTRALIANSUPER PTY LTD, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, STANDARD AND POOR’S ASX 200 ACCUMULATION INDEX, MORGAN STANLEY CAPITAL INTERNATIONAL WORLD ACCUMULATION INDEX, REST SUPER PTY LTD, RETAIL EMPLOYEES SUPERANNUATION PTY LTD, WESTERN AUSTRALIA. GOVERNMENT EMPLOYEES’ SUPERANNUATION BOARD, RUSSELL INVESTMENTS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, VISION SUPER PTY LTD, VICSUPER PTY LTD, HOST-PLUS, ENERGY SUPER, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, CLUBSUPER

Majors facing $23bn ‘too big to fail’ slug

roymorgansocial Leave a comment

Original article by Michael Bennet
The Australian – Page: 19 : 18-Jul-14

The interim report by the inquiry into Australia’s financial system has proposed stricter capital requirements for banks that are deemed to be "systemically important". The four major banks will have to lift their tier-one capital holdings to eight per cent from 2016. Jonathan Mott of UBS says that lifting the capital ratio above 10 per cent would require banks to increase their common equity tier one capital by around $A23bn

CORPORATES
UBS HOLDINGS PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, 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, ARNHEM INVESTMENT MANAGEMENT PTY LTD, DEUTSCHE BANK AG

Investors weary from IPO oversupply

roymorgansocial Leave a comment

Original article by Vanessa Desloires
The Australian Financial Review – Page: 26 : 17-Jul-14

Monash IVF, Mantra Group and 3P Learning are among the Australian stocks that have underperformed since their sharemarket float in recent months. Simon Conn of Investors Mutual attributes this to factors such as the high level of IPO activity and the fact that many of these floats are businesses that have been sold by private equity groups. However, Gary Nicholson of Ernst & Young rejects suggestions of "deal fatigue" among investors

CORPORATES
MONASH IVF GROUP LIMITED – ASX MVF, MANTRA GROUP LIMITED – ASX MTR, 3P LEARNING LIMITED – ASX 3PL, SMARTGROUP CORPORATION LIMITED – ASX SIQ, ASALEO CARE LIMITED – ASX AHY, INVESTORS MUTUAL LIMITED, ERNST AND YOUNG, PENGANA EMERGING COMPANIES FUND, OC FUNDS MANAGEMENT

Interest rates set to remain at record lows

roymorgansocial Leave a comment

Original article by Bianca Hartge-Hazelman
The Australian Financial Review – Page: 27 : 17-Jul-14

The general consensus of economists polled by Bloomberg is that Australia’s cash rate will rise in the first half of 2015, although the financial market has priced in a better-than-even chance of a rate cut by the end of 2014. Tim Toohey of Goldman Sachs is also bucking the trend, and believes that the Reserve Bank could potentially reduce the cash rate again by September. The central bank itself has retained a neutral bias on monetary policy

CORPORATES
GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, RESERVE BANK OF AUSTRALIA, DEUTSCHE BANK AG, BLOOMBERG LP, WESTPAC BANKING CORPORATION – ASX WBC, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, AMP CAPITAL INVESTORS LIMITED, AMP LIMITED – ASX AMP

Retirees left to flounder after they leave work

roymorgansocial Leave a comment

Original article by Karen Maley, Ruth Liew
The Australian Financial Review – Page: 6 : 16-Jul-14

The financial system inquiry has found that retirees are not given sufficient guidance by the superannuation sector. It is argued in the interim inquiry report that the sector does not offer sufficient risk management options to retirees in the draw-down phase. For instance, few income stream products with longevity risk cover are available in Australia. A new round of submissions on how to cope with an ageing population is sought by the inquiry

CORPORATES
FINANCIAL SERVICES COUNCIL, AUSTRALIAN LABOR PARTY, CHALLENGER FINANCE PTY LTD, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED

Time for discussion over the meaning of ‘too big to fail’

roymorgansocial Leave a comment

Original article by James Eyers
The Australian Financial Review – Page: 10 : 16-Jul-14

David Murray, head of the new financial system review for the Australian Government, has raised the issue of banks being deemed "too big to fail". He noted that the "moral hazard" created by the Government guaranteeing deposits should be addressed, and that one solution could be to lift the fees charged to the banks in return for the support. The Australian Bankers’ Association concedes that a debate on the issue is needed, while the Customer Owned Banking Association believes Murray should have gone even further

CORPORATES
MACQUARIE BANK LIMITED – ASX MBL, AUSTRALIAN BANKERS’ ASSOCIATION, CUSTOMER OWNED BANKING ASSOCIATION, MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, NATIONAL PRESS CLUB (AUSTRALIA), GROUP OF TWENTY (G-20)

Platinum moves in on emerging Asia

roymorgansocial Leave a comment

Original article by Vesna Poljak
The Australian Financial Review – Page: 28 : 16-Jul-14

Platinum Asset Management founder Kerr Neilson is increasing his fund’s exposure to Asian markets. Neilson believes that Chinese companies have good growth prospects, which will be reflected in their share prices. The fund is buying Asian stocks in sectors such as financials, metals, minerals and software development

CORPORATES
PLATINUM ASSET MANAGEMENT LIMITED – ASX PTM, PLATINUM CAPITAL LIMITED – ASX PMC, MORGAN STANLEY CAPITAL INTERNATIONAL INDEX, ZILLOW.COM, QIWI PLC, AMADEUS GLOBAL TRAVEL DISTRIBUTION SA, F HOFFMAN-LA ROCHE LIMITED, F HOFFMAN-LA ROCHE AG, YONYOU SOFTWARE COMPANY LIMITED, TOYOTA MOTOR CORPORATION, HOYA CORPORATION, ROHM COMPANY LIMITED, SBI HOLDINGS INCORPORATED, SUMITOMO METAL MINING CORPORATION, NORILSK NICKEL, MINING AND METALS COMPANY NORILSK NICKEL, CANADIAN OIL SANDS LIMITED, CHINA LIFE INSURANCE COMPANY LIMITED, CHINA PACIFIC INSURANCE COMPANY (GROUP) LIMITED, YANDEX NV, TENCENT HOLDINGS LIMITED, YOUKU TUDOU INCORPORATED, LINKEDIN LIMITED

South Africans wrap up DJs

roymorgansocial Leave a comment

Original article by Blair Speedy
The Australian – Page: 21-22 : 15-Jul-14

Gordon Cairns, chair of Australian-listed department stores chain David Jones (DJs), has announced that the takeover bid worth $A4 a share by South Africa’s Woolworths has been accepted. Support among investors was strong, with 50% of stockholders required to vote "yes" and the actual result being 89.6%. In terms of voted scrip, the 75% needed compares with an outcome of 96.8%. Entrepreneur Solomon Lew will sell his 9.9% holding into the scheme of arrangement and has abstained from the vote, meaning the deal can be ratified by the Federal Court on 17 July 2014. Lew will now also gain $A209m from the suitor for his interest of 11.8% in Country Road

CORPORATES
DAVID JONES LIMITED – ASX DJS, COUNTRY ROAD LIMITED – ASX CTY, WOOLWORTHS HOLDINGS LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, WITCHERY FASHIONS PTY LTD, MIMCO DESIGNS PTY LTD, ASX LIMITED – ASX ASX

Coles to play banks at own game

roymorgansocial Leave a comment

Original article by Jared Lynch
The Australian Financial Review – Page: 19 : 15-Jul-14

Coles will expand its product offerings in the financial services sector, with the introduction of personal loans. The grocery retailer expects to receive regulatory approval by the end of 2014, but Coles Finance director Rob Scott has declined to comment on the possibility that Coles could also seek a banking licence. The new products will be offered in partnership with GE Capital

CORPORATES
COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES, GE CAPITAL AUSTRALIA, TESCO PLC, J SAINSBURY PLC, MARKS AND SPENCER PLC, MASTERCARD AUSTRALIA LIMITED, VISA INTERNATIONAL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

The $2500 house deposit; high-risk mortgages return

roymorgansocial Leave a comment

Original article by Nick Lenaghan
The Australian Financial Review – Page: 1 & 6 : 14-Jul-14

The Australian Prudential Regulation Authority has made banks cut the number of mortgages they write that have high loan-to-valuation ratios (LVRs). However smaller and nonbank providers now offer LVRs of as high as 99.375%, causing concern about a situation similar to the sub-prime mortgages crisis in the US in 2007. A new joint venture by home construction businesses BGC and Metricon even advises buyers to rely both on the first-home owners’ grant and a personal loan to raise a 5% deposit, with as little as $A2,500 of their own money. Meanwhile residential real estate prices have risen some 10% during 2013-14

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BGC (AUSTRALIA) PTY LTD, METRICON HOMES, HIVE EMPIRE PTY LTD, DIGITAL FINANCE ANALYTICS, RP DATA LIMITED, CORELOGIC AUSTRALIA PTY LTD, RISMARK INTERNATIONAL PTY LTD, RESERVE BANK OF AUSTRALIA, RAMS MORTGAGE CORPORATION LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, THE LOAN COMPANY, MOODY’S INVESTORS SERVICE INCORPORATED, BANK OF ENGLAND