FUND MANAGEMENT – AUSTRALIA

AMP reeling as more pull pin

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Original article by Richard Gluyas
The Australian – Page: 1 & 16 : 9-May-18

Holly Kramer, Van­essa Wallace and Patty Akopiantz have resigned as directors of AMP in the wake of revelations that it charged fees for services that clients did not receive. Kramer and Wallace were seeking re-election at AMP’s AGM on 10 May, and sources within the financial services group have suggested that they were unlikely to gain another term on the board. Akopiantz is not standing for re-election, but she has agreed to step down at the end of 2018. Andrew Harmos is tipped to be re-elected at the AGM, although he is likely to face a backlash from investors.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, WOOLWORTHS GROUP LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, SEEK LIMITED – ASX SEK, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED

NAB joins bank retreat from wealth

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Original article by James Eyers
The Australian Financial Review – Page: 1 & 20 : 4-May-18

National Australia Bank CEO Andrew Thorburn has refuted suggestions that its decision to sell the MLC wealth management unit has been prompted by the banking royal commission. However, he concedes that the commission’s revelations have meant that banks must change their approach to business. Thorburn also notes that the NAB is aware that it may not be able to sell MLC as a single unit if the commission decides that financial planners should no longer be able to work for businesses that manufacture investment and superannuation products.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MLC LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NIPPON LIFE INSURANCE COMPANY LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, CLIME ASSET MANAGEMENT PTY LTD, ONEPATH AUSTRALIA LIMITED, ZURICH FINANCIAL SERVICES AG, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, JBWERE LIMITED, NABTRADE, GREAT WESTERN BANK, CLYDESDALE BANK PLC

AMP rebuffed Mohl in choosing Brenner to fill chair

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Original article by Karen Maley
The Australian Financial Review – Page: 1 & 8 : 3-May-18

It has been revealed that AMP’s former CEO Andrew Mohl had approached acting chairman John Palmer about taking on the role of chairman following the sudden resignation of Simon McKeon in 2016. However, AMP’s board chose to appoint Catherine Brenner as chairman, and it did not even consider Mohl for the role. Brenner subsequently resigned in the wake of the banking royal commission’s revelations about misconduct at the financial services group.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AXA ASIA PACIFIC HOLDINGS LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, EGON ZEHNDER INTERNATIONAL, CLAYTON UTZ, BEST AND LESS PTY LTD

Call for clean-out of AMP board

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Original article by Andrew White
The Australian – Page: 17 & 21 : 1-May-18

Institutional investors say further boardroom changes are needed at AMP following the resignation of chair Catherine Brenner in the wake of the banking royal commission’s revelations. First Super CEO Bill Watson still intends to vote against the election of three directors at the upcoming AGM, arguing that AMP directors must be held accountable. Australian Council of Superannuation Investors CEO Louise Davidson says AMP should also look at stripping bonuses from executives who were involved in the fees-for-no-service scandal. AMP has appointed Mike Wilkins as executive chairman.

CORPORATES
AMP LIMITED – ASX AMP, FIRST SUPER PTY LTD, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, ART GALLERY OF NEW SOUTH WALES, BORAL LIMITED – ASX BLD, COCA-COLA AMATIL LIMITED – ASX CCL, CLAYTON UTZ, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, IMF BENTHAM LIMITED – ASX IMF, PHI FINNEY McDONALD, SHINE LAWYERS, SLATER AND GORDON LIMITED – ASX SGH, QUINN EMANUEL URQUHART AND SULLIVAN LP

AMP chair to be Hayne’s biggest scalp

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Original article by Jennifer Hewett, Alice Uribe
The Australian Financial Review – Page: 1 & 19 : 30-Apr-18

Institutional investors have warned that they will vote against the re-election of three AMP directors at the upcoming AGM, even if chairman Catherine Brenner resigns. She is widely tipped to step down in the wake of a board meeting on 29 April. CEO Craig Meller recently resigned after misconduct at AMP was exposed by the banking royal commission. The revelations have weighed on AMP’s share price, which has fallen to its lowest level in more than five years.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FIRST SUPER PTY LTD, LGSS PTY LTD, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, REST SUPER PTY LTD, HOST-PLUS, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, CGI GLASS LEWIS PTY LTD, BELL POTTER SECURITIES LIMITED, COCA-COLA AMATIL LIMITED – ASX CCL, BORAL LIMITED – ASX BLD, BRAMBLES LIMITED – ASX BXB

CBA eyes $4b spin-off of funds manager

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 13 & 16 : 18-Apr-18

The Commonwealth Bank of Australia has appointed John Mulcahy as the chairman of Colonial First State Global Asset Management ahead of its demerger and sharemarket float. Goldman Sachs values CFSGAM at between $A3.7bn and $A4.8bn, which could potentially make it the largest Australian IPO since Medibank Private in 2014. CBA opted for an IPO following a strategic review of CFSGAM, which boasts $A219bn worth of assets under management. CBA sold its life insurance business in 2017, and the latest divestiture will enable it to focus on its core banking business.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, GOLDMAN SACHS AUSTRALIA PTY LTD, MEDIBANK PRIVATE LIMITED – ASX MPL, MIRVAC GROUP – ASX MGR, SUNCORP GROUP LIMITED – ASX SUN, AIA GROUP LIMITED, ARNHEM INVESTMENT MANAGEMENT PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, REGAL FUNDS MANAGEMENT PTY LTD, NEW SOUTH WALES TREASURY CORPORATION, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, ECLIPX GROUP LIMITED – ASX ECX, MACQUARIE GROUP LIMITED – ASX MQG, FIDELITY INVESTMENTS AUSTRALIA LIMITED, ERNST AND YOUNG, JP MORGAN AUSTRALIA LIMITED, UBS HOLDINGS PTY LTD

AusSuper becomes biggest retirement fund

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Original article by Sally Patten
The Australian Financial Review – Page: 26 : 8-Mar-18

NMG Financial Services Consulting has forecast that Australia’s industry superannuation funds will have more assets under management than retail funds by 2019. Data from NMG shows that industry fund AustralianSuper has replaced AMP as the nation’s largest super fund. It boasted some $A120bn worth of assets under management at the end of 2016-17, compared with $A118bn for AMP. AustralianSuper’s net inflows for 2017 totalled $A7bn, while many large retail funds had net outflows.

CORPORATES
NMG FINANCIAL SERVICES CONSULTING LIMITED, AUSTRALIANSUPER PTY LTD, AMP LIMITED – ASX AMP, NMG FINANCIAL SERVICES CONSULTING LIMITED, UNISUPER LIMITED, REST SUPER PTY LTD, HEALTH EMPLOYEES’ SUPERANNUATION TRUST AUSTRALIA LIMITED, SUNSUPER PTY LTD, HOST-PLUS, QSUPER LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, STATE SUPER SCHEME, IOOF HOLDINGS LIMITED – ASX IFL, SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIA POST SUPER PTY LTD, MINE WEALTH AND WELLBEING

Bullish Neilson takes stock

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Original article by Cliona O’Dowd
The Australian – Page: 17 & 21 : 23-Feb-18

Platinum Asset Management has posted a 2017-18 interim profit of $A102.2m, which is seven per cent higher than previously, while revenue was up 15 per cent at $A185.9m. Meanwhile, Platinum’s co-founder and chief investment officer Andrew Clifford will succeed CEO Kerr Neilson in mid-2018. Neilson has downplayed his decision to step down, adding that he will still be actively involved in the company. He says retail investors should be cautious about investing in exchange-traded funds. He also suggests that while China’s economic growth is likely to slow, the nation’s economy will remain strong.

CORPORATES
PLATINUM ASSET MANAGEMENT LIMITED – ASX PTM

Burgeoning ETF industry brings active funds management to the masses

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Original article by David Rogers
The Australian – Page: 27 : 22-Feb-18

Exchange-traded funds are becoming increasingly popular with Australian investors. There has been strong growth in the number of listed active ETFs in particular since 2015, with 16 such funds now listed on the local sharemarket. BetaShares has launched two new active ETFs in a co-branding arrangement with Legg Mason, and BetaShares MD Alex Vynokur says this trend is likely to continue. He adds that institutional investors as well as retail investors are driving the demand for active ETFs.

CORPORATES
BETASHARES CAPITAL LIMITED, BETASHARES LEGG MASON EQUITY INCOME FUND (MANAGED FUND) – ASX EIN, BETASHARES LEGG MASON REAL INCOME FUND (MANAGED FUND) – ASX RIN, LEGG MASON ASSET MANAGEMENT AUSTRALIA LIMITED, AMP CAPITAL INVESTORS LIMITED

Meet the Bond who helped return 74 per cent in 2017

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Original article by Vesna Poljak
The Australian Financial Review – Page: 13 & 27 : 30-Jan-18

Terra Capital founder Jeremy Bond is upbeat about the outlook for equities in 2018, particularly the resources sector. The firm’s natural resources fund achieved a return of 74 per cent in 2017, benefiting from rising demand for raw materials used in electric car and storage batteries, such as lithium and cobalt. However, Bond notes that the rally in the resources sector is broad-based and encompasses most commodities.

CORPORATES
TERRA CAPITAL PTY LTD, TERRA CAPITAL NATURAL RESOURCE FUND PTY LTD, TAWANA RESOURCES NL – ASX TAW, FIRST COBALT CORPORATION – ASX FCC, ECOBALT SOLUTIONS INCORPORATED, OKLO RESOURCES LIMITED – ASX OKU, CHAMPION IRON LIMITED – ASX CIA, CLEVELAND-CLIFFS AUSTRALIA PTY LTD, RIVERSDALE MINING LIMITED, MERCER INVESTMENTS PTY LTD, BENNELONG CONCENTRATED AUSTRALIAN EQUITIES FUND, TRIBECA GLOBAL NATURAL RESOURCES FUND