News

News

Government Announces Delivery of Budget Measures

Posted by Anton Murray Consulting on . Posted in Market Commentary

InvestorDaily

Key measures have come into effect as of 1 July that the government says will help with the cost of living and help promote a stronger economy. Treasurer Josh Frydenberg released a statement detailing the measures that are coming that will impact a number of financial institutions, including corporate tax changes and superannuation changes. One of the major incoming changes is the Protecting Your Superannuation package to safeguard super savings from excessive fees, unnecessary insurance and the costs of multiple accounts.

Super funds have already notified members of the changes that will cap certain fees on balances less than $6,000 and will ban exit fees. These are important changes for super funds to acknowledge particularly given the rise of class actions against wealth groups for past actions that resulted in excessive fees. Insurance is now also opt-in for inactive accounts, and the ATO will be allowed to automatically consolidate inactive low-balance accounts.

The rest of this article can be found at investordaily.com.au.

RBA Cuts Cash Rate to Record Low of 1%

Posted by Anton Murray Consulting on . Posted in Market Commentary

SBS

The Reserve Bank of Australia has cut the cash rate to a fresh record low of 1.0 per cent, reducing the cost of borrowing for two months in a row for the first time since 2012. The market had largely priced in a second straight 0.25 percentage point cut after RBA Governor Philip Lowe suggested the June reduction would not be enough on its own to boost economic growth. The last cut came a day before the release of another disappointing quarterly GDP result and was the first move in any direction since August 2016.

Dr Lowe on Tuesday noted the impact on Australia of US-the China trade tariff disputes. “The uncertainty generated by the trade and technology disputes is affecting investment and means that the risks to the global economy are tilted to the downside,” Dr Lowe said. Dr Lowe last month denied June’s decision to cut was a response to a deteriorating economic outlook since the RBA’s May meeting, but also noted that a 5.2 per cent unemployment rate and stubbornly low GDP growth indicate that few inroads are being made into the economy’s spare capacity.

The rest of this article can be found at sbs.com.au.

ETF Investors Flock to Fixed Income

Posted by Anton Murray Consulting on . Posted in Funds Management News

InvestorDaily

The first quarter saw global ETF investors rush into fixed income at the expense of equities, according to a BetaShares report. The ‘Quarterly Global ETF Review Q1 2019’ reported that the worldwide ETF industry ended the March quarter at a high of $7.7 trillion in assets under management, posting a quarterly growth rate of 12 per cent. BetaShares expects the industry to continue on a fast growth trajectory for the rest of the year, in line with the average growth rate of 20 per cent per annum in the last decade.

Australian, US and European investors bought more into fixed income over equities during the period. In Australia, bond products were the category observed to have the highest flows in the ETF sector, receiving more than $500 million of net inflows during the period. In the US, fixed income products had 68.2 per cent of flows in the quarter, while equities had 30.3 per cent.

The rest of this article can be found at investordaily.com.au.

Fidelity Launches Sustainability Ratings

Posted by Anton Murray Consulting on . Posted in News

InvestorDaily

Fidelity International has enhanced its global research capabilities with the launch of its proprietary sustainability ratings. The sustainability ratings will leverage Fidelity’s research capabilities and will be comprised of its equities and fixed income coverage. It will assist the management teams in providing a forward-looking evaluation of the company’s focus and ESG-related issues trajectory.

Global head of research, fixed income, Marty Dropkin said this tool was a natural step to match Fidelity’s research processes and was integral to the investment process. “Evaluating how effectively a company serves its stakeholders in the broadest sense is integral to our investment process. Building this proprietary sustainability ratings tool was a natural next step that matches our bottom-up fundamental research process and draws on our deep corporate access,” he said.

The rest of this article can be found at investordaily.com.au.

New ASX Trading Platform Launched

Posted by Anton Murray Consulting on . Posted in News

InvestorDaily

OpenMarkets Australia has launched a new trading platform to meet the needs of self-directed investors and advisers wanting fast, low-cost online tools. OpenMarkets Equix is the new platform by digital ASX trading platform OpenMarkets Australia and is designed to offer a fast, low-cost online solution for trading and investing in Australian securities. Clients will be able to trade in ASX-listed equities, warrants and a full suite of products including ETFs, as well as analyse their performance, access charts, create alerts and download reports.

The mobile and web tool is free for customers utilising its click-refresh-live-data version or users can upgrade to streaming at a cost. Chief executive of OpenMarkets Andrea Marani said it was a significant development and was already gaining traction with clients. “The decision to develop a new trading platform came after identifying the need to give clients trading tools that could be customised and integrated into OpenMarkets broader platform ecosystem, such as access to global markets and complementary third-party tools,” he said.

The rest of this article can be found at investordaily.com.au.

New CEO announced at IOOF

Posted by Anton Murray Consulting on . Posted in News

InvestorDaily

IOOF has appointed a permanent chief executive following the resignation of Chris Kelaher back in April after 10 years in the role. According to a statement to the ASX, IOOF said the appointment of Renato Mota as chief executive is effective immediately. Mr Mota had been in the role of acting chief executive since December 2018 and prior to that was the group general manager of wealth management since January 2016. In addition, he joins the IOOF board as managing director.

According to the ASX announcement, Mr Mota will have a fixed salary (including superannuation) of $1.2 million. As for variable remuneration, he will have no short-term incentives; however, he will have a long-term incentive (LTI) of 100 per of fixed remuneration. Mr Mota will be straight into the deep end at the firm as the group faces a class action from Quin Emanuel Urquhart & Sullivan on behalf of investors who purchased shares in the company between 2015 and December last year. It is the second lawsuit to battle as IOOF subsidiary Australia Executor Trustees is also facing a $75 million case over the lost of investments from a scheme back in the ’80s.

The rest of this article can be found at investordaily.com.au.