ETC – AUSTRALIA

‘Good debt’ to underwrite Future Fund

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Original article by Andrew White
The Australian – Page: 19 & 22 : 1-Sep-17

The Future Fund has posted an annual return of 8.7 per cent for 2016-17, compared with its target return of 6.9 per cent. However, chairman Peter Costello says returns and asset values are likely to be affected by an expected rise in interest rates. He adds that the Federal Government’s decision to postpone drawdowns by five years will allow the sovereign wealth fund to cover all unfunded public sector super liabilities, which are forecast to top $A200bn in 2021. The Government will increase what Treasurer Scott Morrison labels "good" debt to fund super liabilities between 2021 and 2026.

CORPORATES
AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, AUSTRALIA. DEPT OF THE TREASURY, UNIVERSITY OF TASMANIA, QIC LIMITED, PORT OF MELBOURNE

Administrators delay Ten report

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Original article by Darren Davidson
The Australian – Page: 22 : 1-Sep-17

Ten Network administrator KordaMentha has postponed the release of a report on the failed TV broadcaster until 4 September. The report was initially slated to be released on 31 August, and the delay will affect the timing of a creditors’ meeting. Ten’s shareholders will not recoup any of their investment if CBS Corporation buys Ten, which has prompted the Australian Shareholders’ Association to consider a class action on behalf of investors.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, KORDA MENTHA AND COLLEAGUES PTY LTD, CBS CORPORATION, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Ten investors weigh class action

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Original article by Darren Davidson
The Australian – Page: 17 & 28 : 31-Aug-17

Australian Shareholders’ Association director Allan Goldin says it is too soon to know whether Ten Network investors will pursue a class action against the failed network. The ASA has held preliminary talks with law firms after it was revealed that Ten’s shareholders will receive no payout if CBS acquires the network. Meanwhile, Foxtel CEO Peter Tonagh says CBS has indicated that it intends to be a long-term owner of Ten. He also says Foxtel achieved its best monthly sales on record in July, with growth driven by the new Foxtel Now streaming service.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, CBS CORPORATION, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, FOXTEL MANAGEMENT PTY LTD, FOXTEL NOW, AMERICAN CHAMBER OF COMMERCE IN AUSTRALIA, NETFLIX INCORPORATED, AMAZON.COM INCORPORATED, GOOGLE INCORPORATED, YOUTUBE INCORPORATED, FACEBOOK INCORPORATED, TWITTER INCORPORATED, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS, FOX SPORTS AUSTRALIA PTY LTD

Fix it and get back to economy, says BCA

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Original article by Andrew White
The Australian – Page: 4 : 30-Aug-17

Business Council of Australia CEO Jennifer Westacott has urged Parliament to resolve the standoff over marriage equality quickly in order to focus on economic policy. Westacott says the Federal Government must agree to a conscience vote if the majority of Australians support legalising same-sex marriage in the postal plebiscite. She has also criticised the "anti-business agenda" of Opposition Leader Bill Shorten regarding tax cuts for smaller companies and the taxation of trusts.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, QANTAS AIRWAYS LIMITED – ASX QAN

Pratt chases super money to fuel Visy’s $2b Australian expansion

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Original article by John Stensholt
The Australian Financial Review – Page: 1 & 6 : 24-Aug-17

Visy Industry has revealed plans to expand its Australian cardboard packaging and paper recycling operations at a cost of $A2bn over the next decade. Executive chairman Anthony Pratt will seek financial support from superannuation funds to finance the massive expansion, which he forecasts will generate some 5,000 jobs. Visy will increase its investment in clean energy plants, with the aim of eventually generating about 50 per cent of its electricity it uses. Visy’s US arm Pratt Industries announced a $US2bn investment in its business earlier in 2017.

CORPORATES
VISY INDUSTRIES AUSTRALIA PTY LTD, PRATT INDUSTRIES (USA) INCORPORATED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AMAZON.COM INCORPORATED, AUSTRALIANSUPER PTY LTD, IFM INVESTORS PTY LTD

Two strikes rule reining in exec pay

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Original article by Joanna Mather
The Australian Financial Review – Page: 3 : 24-Aug-17

The Australian Council of Superannuation Investors has released the findings of a survey which shows that the top listed companies have not significantly increased their CEOs’ salaries in the last 10 years. The annual fixed pay of S&P/ASX 100 CEOs has been steady at about $A1.9m, while bonuses have also been relatively steady. ACSI CEO Louise Davidson notes that the trend has coincided with the introduction of the "two strikes" rule.

CORPORATES
AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, STANDARD AND POOR’S 500 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, CHALLENGER LIMITED – ASX CGF, MACQUARIE GROUP LIMITED – ASX MQG, JAMES HARDIE INDUSTRIES PLC – ASX JHX, WESTFIELD CORPORATION – ASX WFD, PREMIER INVESTMENTS LIMITED – ASX PMV, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, CSL LIMITED – ASX CSL, FORTESCUE METALS GROUP LIMITED – ASX FMG, QANTAS AIRWAYS LIMITED – ASX QAN

CBA faces $200m-plus class action

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Original article by Ben Butler, Michael Roddan
The Australian – Page: 17 & 21 : 24-Aug-17

Investors who bought shares in the Commonwealth Bank of Australia between 17 August 2015 and 3 August 2017 will be eligible to participate in a proposed class action over the bank’s money-laundering scandal. CBA’s share price has fallen by six per cent since Austrac filed legal action on 3 August, slashing the bank’s market capitalisation by around $A8bn. Maurice Blackburn’s class action is expected to focus on CBA’s disclosures regarding Austrac’s investigation into the money-laundering allegations.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, MAURICE BLACKBURN PTY LTD, IMF BENTHAM LIMITED – ASX IMF, FEDERAL COURT OF AUSTRALIA, COMMINSURE, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, VELOCITY TRADE LIMITED, FITCH RATINGS LIMITED

Directors slam bank exec rules

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Original article by James Eyers
The Australian Financial Review – Page: 1 & 2 : 17-Aug-17

The Australian Institute of Company Directors has concerns about the Federal Government’s proposed Banking Executive Accountability Regime. The AICD’s submission to the Government warns that rather than increasing the accountability of financial industry executives, the reforms could in fact lead to greater risk aversion in the sector. The AICD is also concerned about the increased powers of the Australian Prudential Regulation Authority under the reforms, particularly with regard to executive remuneration.

CORPORATES
AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, UNIVERSITY OF SYDNEY, BANK OF MELBOURNE LIMITED, INSTITUTIONAL SHAREHOLDER SERVICES INCORPORATED

Livingstone ousts CEO Narev, cuts pay, puts execs on notice

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Original article by James Frost
The Australian Financial Review – Page: 1 & 8 : 15-Aug-17

The Commonwealth Bank of Australia’s board has reiterated its intention to take further action on cuts and changes to executive pay and incentives in the wake of the money laundering crisis. Its actions come as it announced that CEO Ian Narev will retire by 30 June 2018, with his successor most likely to be an external appointment. Louise Davidson, the CEO of the Australian Council of Superannuation Investors, says there are clearly some problems with the CBA’s culture, noting its recent problems involving financial planning and life insurance.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, AUSTRALIANSUPER PTY LTD, AUSBIL INVESTMENT MANAGEMENT LIMITED, OWNERSHIP MATTERS PTY LTD, UNISUPER LIMITED, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

CBA chiefs facing more salary pain

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Original article by James Frost
The Australian Financial Review – Page: 6 : 14-Aug-17

The Commonwealth Bank of Australia could announce further cuts to executive pay and incentives in the wake of the money laundering crisis. Its actions could extend to executives who are no longer with the bank but were working for it when the suspicious ATM transactions that led to AUSTRAC’s actions occurred. Alden Toevs, the CBA’s chief risk officer from 2008 to 2016, could potentially lose his rights to CBA shares, as could former chief financial officer David Craig.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE