Transurban set to launch $4b-plus rights issue for WestConnex: sources. Transurban set to launch $4.6b rights issue for WestConnex: sources

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1 FRI 31 AUGUST 2018 Mediaportal Report Transurban set to launch $4b-plus rights issue for WestConnex: sources Australian Financial Review 98 words ASR AUD 736 Industry Super Australia - Internet ID: Read on source site 7:55 AM 25,143 UNIQUE DAILY VISITORS, 1,269 UNIQUE DAILY VISITORS Transurban set to launch $4.6b rights issue for WestConnex: sources Australian Financial Review 171 words ASR AUD 1,263 Industry Super Australia - Internet ID: Read on source site 7:55 AM 25,143 UNIQUE DAILY VISITORS, 1,269 UNIQUE DAILY VISITORS Transurban set to launch $4.6b rights issue for WestConnex: sources Australian Financial Review 267 words ASR AUD 1,786 Industry Super Australia - Internet ID: Read on source site 7:55 AM 25,143 UNIQUE DAILY VISITORS, 1,269 UNIQUE DAILY VISITORS ANZ, CBA and NAB to lift rates amid margin squeeze InvestorDaily by James Mitchell 574 words ASR AUD 660 Industry Super Australia - Internet ID: Read on source site 5:32 AM N/A UNIQUE DAILY VISITORS, N/A UNIQUE DAILY VISITORS COPYRIGHT This report and its contents are for the internal research use of Mediaportal subscribers only and must not be provided to any third party by any means for any purpose without the express permission of Isentia and/or the relevant copyright owner. For more information contact copyright@isentia.com DISCLAIMER Isentia makes no representations and, to the extent permitted by law, excludes all warranties in relation to the information contained in the report and is not liable for any losses, costs or expenses, resulting from any use or misuse of the report.

2 S&P Global downgrades AMP credit ratings InvestorDaily by Jessica Yun 653 words ASR AUD 790 Industry Super Australia - Internet ID: Read on source site 5:32 AM N/A UNIQUE DAILY VISITORS, N/A UNIQUE DAILY VISITORS Transurban and friends ready to sign WestConnex deal: sources Australian Financial Review 331 words ASR AUD 1,866 Industry Super Australia - Internet ID: Read on source site 12:15 AM 25,143 UNIQUE DAILY VISITORS, 1,269 UNIQUE DAILY VISITORS Insurance cold calls to end Border Mail, Albury-Wodonga, General News Page words ASR AUD 551 Photo: No Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: COLD calls aggressively pressuring people to buy life and funeral insurance they don't want or can't afford could soon end. The corporate regulator plans to restrict the practice and has demanded insurers stop selling accidental death insurance altogether, saying it's of little value to consumers. View original - Full text: 267 word(s), ~1 min 13,519 CIRCULATION Insurance cold calls to end Newcastle Herald, Newcastle NSW, General News Page words ASR AUD 1,803 Photo: No Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: COLD calls aggressively pressuring people to buy life and funeral insurance they don't want or can't afford could soon end. The corporate regulator plans to restrict the practice and has demanded insurers stop selling accidental death insurance altogether, saying it's of little value to consumers. View original - Full text: 267 word(s), ~1 min 23,625 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

3 Westpac plays lone hand Townsville Bulletin, Townsville QLD, General News Page words ASR AUD 1,493 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: Analyst expects rest of Big Four to hold rates WESTPAC'S major rivals may not rush to follow the lender's move to raise mortgage rates, with regulators' glare and the threat of an increased bank levy keeping them on hold, according to one leading analyst. Westpac plans to raise variable home loan rates by 0.14 percentage points from September 19, due to increased wholesale funding costs. View original - Full text: 407 word(s), ~1 min 16,484 CIRCULATION Banks gone rogue Geelong Advertiser, Geelong VIC, General News Page words ASR AUD 470 Photo: Yes Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: A DAIRY farmer who had been noting the various ethical horrors emerging from the recent banking Royal Commission - thieving, pilfering and systemic ripping off of customers - made the canny remark: 'Those cameras they've got in the banks, they've got them pointing the wrong way." Perhaps we shouldn't expect those who worship at the altar of filthy lucre to have the highest principles when it comes to how they treat their fellow Australians. But even so it is hard to remember a time when the banks of this country were held in greater opprobrium. View original - Full text: 346 word(s), ~1 min 16,687 CIRCULATION Regulator seals Transurban's dominance Australian Financial Review, Australia, Companies and Markets, Jenny Wiggins Page words ASR AUD 9,567 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: Transurban's dominance of the Australian tollroad market has been cemented after the competition watchdog approved its bid for Sydney's WestConnex motorway, declaring the company's scale was not "a competition problem". Transurban, which has a $27 billion market capitalisation and operates 15 of Australia's 19 tollroads, is considered the lead contender to buy a 51 per cent stake in WestConnex. View original - Full text: 811 word(s), ~3 mins 44,635 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

4 Super funds stuck in GAM scandal Australian Financial Review, Australia, Companies and Markets, Vesna Poljak Page words ASR AUD 4,976 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: The scandal surrounding GAM and its suspension of a top fund manager for record-keeping and risk-management issues appears to have ensnared at least three Australian superannuation funds, some of which have joined investors from all over the world demanding their money. Industry super funds Rest and CareSuper are two of GAM'S largest Australian ers, with an estimated $990 million and $260 million allocated on numbers disclosed in their annual reports. The $45 billion Rest was 2.2 per cent invested with GAM under a defensive alternatives mandate, and the $13 billion CareSuper was invested in the GAM Absolute Return Bond Fund, those reports show. View original - Full text: 597 word(s), ~2 mins 44,635 CIRCULATION Perpetual weathers Hurricane Hayne Australian Financial Review, Australia, Companies and Markets, James Frost Page words ASR AUD 5,987 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: Perpetual is poised to make the most of the confronting revelations coming out of the banking royal commission and take advantage of a shift away from the bank-owned wealth managers. The diversified financial services company has the firepower to acquire businesses and consumers as the inquiry rolls towards its conclusion, due on February 1, according to interim chief executive Chris Green. View original - Full text: 597 word(s), ~2 mins 44,635 CIRCULATION Cut immigration and the economy will start bleeding The Australian, Australia, Edition Changes - All-round First, Adam Creighton Page words ASR AUD 8,083 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: Those clamouring to slash population growth should be careful what they wish for. Any plan to cut immigration, from au pairs to chefs, will immediately hit businesses' expectations about the economy's potential. View original - Full text: 427 word(s), ~1 min 94,448 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

5 Chant West in red Australian Financial Review, Australia, Companies and Markets Page words ASR AUD 344 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: Financial services and software group Chant reported a full-year net loss after tax of $1.6 million compared with a loss of $4.2 million last year. Revenue rose 2.8 per cent to $9 million. The loss included $1.1 million of asset impairments and $929,300 of acquisition amortisation. View original - Full text: 47 word(s), <1 min 44,635 CIRCULATION PM to Westpac customers: shop around Australian Financial Review, Australia, General News, James Eyers Page words ASR AUD 12,075 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: No big stick against rate rise Scott Morrison has told Westpac customers to shop around if they are not happy with the bank's interest rate rise, while experts are split on whether the other big banks will follow. Report p6. RBA rate hike delayed p7 Advice Scott Morrison has suggested people look for a better deal if unhappy with their interest rate. View original - Full text: 1081 word(s), ~4 mins 44,635 CIRCULATION CBA to disclose fees to borrowers Australian Financial Review, Australia, General News, Duncan Hughes Page words ASR AUD 4,753 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: The Commonwealth Bank will disclose to home loan customers the value of commissions it pays to mortgage brokers, after being embarrassed by the banking royal commission. A witness for the nation's largest property lender, Daniel Huggins, told the royal commission in March the bank (fid not disclose the value of commissions to customers because they can't be accurately calculated. View original - Full text: 567 word(s), ~2 mins 44,635 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

6 Developers want APRA to ease off Australian Financial Review, Australia, General News, Michael Bleby Page words ASR AUD 2,124 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: For property developers, Westpac's out-of-cycle mortgage rate hike at the start of spring, the key selling season, was a shock. At a time of low stock levels and falling prices in Sydney and Melbourne, developers - just like the vendors of established homes - are hoping for a big burst of activity by confident buyers after the quiet winter months. View original - Full text: 296 word(s), ~1 min 44,635 CIRCULATION Westpac rate hike wins over fund managers Australian Financial Review, Australia, Companies and Markets, Sarah Turner Page words ASR AUD 8,475 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: Fund managers mostly welcomed Westpac's decision to lift its standard variable interest rate by 14 basis points to counter a more difficult operating environment. Shares in Westpac and other banks rallied after news emerged on Wednesday afternoon amid speculation that other lenders could follow Westpac's lead and raise interest rates, although they pared gains on Thursday. Banks have been struggling to grow profits as they have exited areas such as wealth management Credit growth has deteriorated while regulatory costs, capital requirements and offshore funding costs have risen. View original - Full text: 728 word(s), ~2 mins 44,635 CIRCULATION ACCC sends message on toll roads Australian Financial Review, Australia, Companies and Markets, James Thomson Page words ASR AUD 5,744 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: It's hard to say who would be breathing a bigger sigh of relief at the Australian Competition and Consumer Commission's decision to allow Transurban to bid to build and operate the WestConnex toll road. Transurban chief executive Scott Charlton, or NSW premier Gladys Berejiklian? View original - Full text: 713 word(s), ~2 mins 44,635 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

7 Insurance cold calls to end Illawarra Mercury, Wollongong NSW, General News Page words ASR AUD 1,003 Photo: No Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: COLD calls aggressively pressuring people to buy life and funeral insurance they don't want or can't afford could soon end. The corporate regulator plans to restrict the practice and has demanded insurers stop selling accidental death insurance altogether, saying it's of little value to consumers. View original - Full text: 267 word(s), ~1 min 10,806 CIRCULATION Westpac plays lone hand Cairns Post, Cairns, General News Page words ASR AUD 1,209 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: Analyst expects rest of Big Four to hold rates WESTPAC'S major rivals may not rush to follow the lender's move to raise mortgage rates, with regulators' glare and the threat of an increased bank levy keeping them on hold, according to one leading analyst. Westpac plans to raise variable home loan rates by 0.14 percentage points from September 19, due to increased wholesale funding costs. View original - Full text: 401 word(s), ~1 min 13,896 CIRCULATION THE HANDBAG'S TALE Australian Financial Review, Australia, AFR Magazine, Jemima Whyte Page words ASR AUD 61,468 Photo: Yes Type: News Item Size: 3, cm² National Australia Industry Super Australia - Press ID: THE HANDBAG'S TALE It was the sale of the century when Will Vicars bought Oroton from administrators, and the 80-year-old business has resurfaced with big ambitions. If fashion is about flash then Will Vicars might have looked an outside bet. The chief investment officer and part owner of Caledonia Investments manages billions on behalf of some of the country's richest and most private families, and Vicars tends to be just as private. He keeps well below the radar, successfully avoiding the Financial Review Rich List until he popped up in 164th spot for the first time this year (those close to him speculate his wealth is much higher than the estimated $527 million). His clothes look expensive, but you won't get far making small talk about what labels he likes to wear. View original - Full text: 3032 word(s), ~12 mins 44,635 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

8 Bank rivals 'holding off' on rate hikes Geelong Advertiser, Geelong VIC, General News Page words ASR AUD 367 Photo: No Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: WESTPAC'S major rivals may not rush to follow the lender's move to raise mortgage rates, with regulators' glare and the threat of an increased bank levy keeping them on hold, according to one leading analyst. Westpac on Wednesday announced plans to raise variable home loan rates by 0.14 percentage points from September 19, due to increased wholesale funding costs. View original - Full text: 283 word(s), ~1 min 16,687 CIRCULATION Shame on Westpac Herald Sun, Melbourne, Letters Page words ASR AUD 1,943 Photo: No Type: Letter Size: cm² VIC Australia Industry Super Australia - Press ID: SHAME, Westpac, shame. Jacking up interest rates, closing branches, sacking staff and admitting to dodgy practices at the financial services royal commission. Westpac obviously doesn't have any consideration for customers or hardworking staff who run the branches. Its executives should be ashamed of themselves. View original - Full text: 80 word(s), <1 min 303,140 CIRCULATION HOT TOPIC Herald Sun, Melbourne, Letters Page words ASR AUD 22,321 Photo: Yes Type: Letter Size: cm² VIC Australia Industry Super Australia - Press ID: Westpac's decision to increase interest rates raises ire at heraldsun.com.au NICE one, Westpac, $4.5 billion profit in first six months not enough? The banks have made lending criteria tougher and people who got loans five to 10 years ago will find it tougher, and difficult to move banks. View original - Full text: 734 word(s), ~2 mins 303,140 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

9 Watchdog puts leash on cold call insurance Herald Sun, Melbourne, Business News, Karina Barrymore Page words ASR AUD 12,382 Photo: Yes Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: HIGH-pressure sales tactics and low payout rates are among concerns that have prompted the corporate watchdog to restrict call centre sales of life insurance polices, including accidental death and funeral insurance. An investigation by the Australian Securities and Investments Commission found life insurance policies sold through direct "cold calls" had the lowest percentage of successful claims, with only 58 per cent paid out. View original - Full text: 452 word(s), ~1 min 303,140 CIRCULATION Transurban's $16bn bid for WestConnex gets the nod The Australian, Australia, Business News, Perry Williams Andrew Clennell Page words ASR AUD 4,325 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: Transurban is set to tighten its control of Australia's toll roads after receiving clearance from the competition regulator to buy a majority stake in Sydney's $16 billion WestConnex motorway project. The NSW government, which hopes to bank $5bn from selling 51 per cent of the toll road which is under construction, may pick the winner as early as today as it seeks to lock in a critical plank of its $40bn privatisation scheme ahead of a state election in March View original - Full text: 502 word(s), ~2 mins 94,448 CIRCULATION Office market running hot on offshore demand The Australian, Australia, Business News, Ben Wilmot Page words ASR AUD 3,880 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: Two of Australia's best known office blocks have been put up for sale this week, Sydney's Chifley Tower and QIC's new development at top end of Melbourne's Collins Street, raising the prospect the commercial property market is headed towards its peak. The inevitable boom and bust cycle always catches up with property owners, argue sceptics, but those in the sector are investing on the basis that strong conditions will last. View original - Full text: 503 word(s), ~2 mins 94,448 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

10 Perpetual boss must stem fund outflow The Australian, Australia, Business News, Cliona O'Dowd Page words ASR AUD 5,618 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: Incoming Perpetual boss Rob Adams will step into a business next month that is under mounting pressure to stem the tide of outflows at a time of increased regulatory uncertainty for the wealth industry. Perpetual yesterday posted a meagre 2 per cent lift in net profit for the 12 months to June 30, to $140.2 million, as growth in new business in its advice and trustee services units was offset by net outflows in its flagship division. View original - Full text: 544 word(s), ~2 mins 94,448 CIRCULATION Rate hike not helping big banks' reputation Courier Mail, Brisbane, Letters Page words ASR AUD 2,564 Photo: Yes Type: Letter Size: cm² QLD Australia Industry Super Australia - Press ID: THE Big Four banks reported billions of dollars in profit last financial year and are subject to a royal commission into their misconduct, including knowingly charging customers for services not provided. Despite this, Westpac is leading the way to move interest rates up (C-M, Aug 30), outside any official cash rate changes by the Reserve Bank. View original - Full text: 197 word(s), <1 min 135,007 CIRCULATION Government drops the ball on super directors The Australian, Australia, Business News, James Kirby Page words ASR AUD 4,608 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: A government decision to drop plans that would have forced industry funds to have at least one-third independent directors is wrong and, worse still, it is very badly timed: industry funds are now more important than ever. Industry super funds have outperformed all rivals in recent years, but that is certainly not thanks to their board composition. View original - Full text: 595 word(s), ~2 mins 94,448 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

11 Future-prepping Telstra solicitors The Australian, Australia, Legal Affairs, Chris Merritt Page words ASR AUD 9,781 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: Since joining Telstra six months ago, Denise Doyle - who is not a lawyer - has been working with the company's 200 in-house solicitors to transform the way they do business. Ms Doyle is Telstra's "legal transformation lead" and has a ground in process engineering and project management. View original - Full text: 647 word(s), ~2 mins 94,448 CIRCULATION ASIC targets cold-call insurers The Australian, Australia, Business News, Michael Roddan Page words ASR AUD 12,044 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: The corporate watchdog is weighing up legal action against a number of life insurers after a damning sector-wide review on cold-calling sales centres, with the industry on notice to end such tactics or face reprisals. The Australian Securities & Investments Commission tolled the bell on outbound call centres, the hallmark of the "direct" insurance model where policies are sold without financial advice or through superannuation. View original - Full text: 788 word(s), ~3 mins 94,448 CIRCULATION Watchdog's growl could keep banks from following Westpac The Australian, Australia, Business News, Richard Gluyas Page words ASR AUD 3,617 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: Heavy scrutiny by the competition regulator could slow the response by other banks to Westpac's "very courageous" hike in variable mortgage rates earlier this week, a UBS report has said. The report, by Jon Mott, said other banks were not facing the same margin pressure as Westpac, which laid the groundwork for this week's rate hike by revealing last Friday that its net interest margin for the June quarter had slumped by 11 basis points to 2.06 per cent. View original - Full text: 412 word(s), ~1 min 94,448 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

12 Let's now tackle super's gender gap Age, Melbourne, General News, Sarah Saunders Page words ASR AUD 13,594 Photo: No Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: Today is Equal Pay Day. It highlights how much longer women would need to work at the end of the financial year to catch up to men. With new figures suggesting the gender pay gap is at 14.6 per cent, it marks the closest we have been to closing the pay gap in 20 years. View original - Full text: 570 word(s), ~2 mins 83,229 CIRCULATION Huawei ban slammed as 'huge loss' Sydney Morning Herald, Sydney, Business News, JENNIFER DUKE Page words ASR AUD 16,728 Photo: No Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: Australian China Business Council national chief executive Helen Sawczak has called the government's ban on Chinese telecommunications providers' involvement in building the 5G networks a "huge loss" and wants an explanation of the national security concerns behind the decision. The ban, announced last week in a joint statement from Communications Minister Mitch Fifield and Prime Minister Scott Morrison (in his role as Treasurer), was in response to an "extensive review of the national security risks to 5G networks". The decision rules out China-based giant Huawei from partnering with Australian telecommunications companies as they rush to roll out the new networks in the next few years. View original - Full text: 428 word(s), ~1 min 88,634 CIRCULATION Huawei ban slammed as 'huge loss' Age, Melbourne, Business News, JENNIFER DUKE Page words ASR AUD 11,692 Photo: No Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: Australian China Business Council national chief executive Helen Sawczak has called the government's ban on Chinese telecommunications providers' involvement in building the 5G networks a "huge loss" and wants an explanation of the national security concerns behind the decision. The ban, announced last week in a joint statement from Communications Minister Mitch Fifield and Prime Minister Scott Morrison (in his role as Treasurer), was in response to an "extensive review of the national security risks to 5G networks". The decision rules out China-based giant Huawei from partnering with Australian telecommunications companies as they rush to roll out the new networks in the next few years. View original - Full text: 428 word(s), ~1 min 83,229 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

13 Q&A Courier Mail, Brisbane, QBM Page words ASR AUD 10,028 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: FINANCIAL SERVICES COUNCIL CHIEF EXECUTIVE OFFICER Former Brisbane school girl Sally Loane has a long history of landing jobs that put her in the hot seat Where did you grow up? I was born and raised on a wool growing property west of Tenterfield, NSW where my family have been graziers in the district for generations. My country childhood involved early home correspondence schooling, then one-teacher bush schools until I went away to high school in the city, and it had a massive influence on me. Being at my father's side as he pulled dying animals from drying dams during droughts, and seeing my mother learn to paint, then sell her artworks to supplement the family income during the lean times on the land, helped fine tune a strong level of resilience. View original - Full text: 872 word(s), ~3 mins 135,007 CIRCULATION Westpac plays lone hand Gympie Times, Gympie QLD, General News Page words ASR AUD 193 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: Analyst expects rest of Big Four to hold rates WESTPAC'S major rivals may not rush to follow the lender's move to raise mortgage rates, with regulators' glare and the threat of an increased bank levy keeping them on hold, according to one leading analyst. Westpac plans to raise variable home loan rates by 0.14 percentage points from September 19, due to increased wholesale funding costs. View original - Full text: 407 word(s), ~1 min 2,997 CIRCULATION Westpac plays lone hand Daily Mercury, Mackay QLD, General News Page words ASR AUD 264 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: Analyst expects rest of Big Four to hold rates WESTPAC'S major rivals may not rush to follow the lender's move to raise mortgage rates, with regulators' glare and the threat of an increased bank levy keeping them on hold, according to one leading analyst. Westpac plans to raise variable home loan rates by 0.14 percentage points from September 19, due to increased wholesale funding costs. View original - Full text: 407 word(s), ~1 min 7,738 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

14 Westpac plays lone hand News Mail, Bundaberg QLD, General News Page words ASR AUD 229 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: Analyst expects rest of Big Four to hold rates WESTPAC'S major rivals may not rush to follow the lender's move to raise mortgage rates, with regulators' glare and the threat of an increased bank levy keeping them on hold, according to one leading analyst. Westpac plans to raise variable home loan rates by 0.14 percentage points from September 19, due to increased wholesale funding costs. View original - Full text: 407 word(s), ~1 min 6,176 CIRCULATION Westpac plays lone hand Queensland Times, Ipswich QLD, General News Page words ASR AUD 229 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: Analyst expects rest of Big Four to hold rates WESTPAC'S major rivals may not rush to follow the lender's move to raise mortgage rates, with regulators' glare and the threat of an increased bank levy keeping them on hold, according to one leading analyst. Westpac plans to raise variable home loan rates by 0.14 percentage points from September 19, due to increased wholesale funding costs. View original - Full text: 407 word(s), ~1 min 6,256 CIRCULATION Banks in line for $1b profit lift Sydney Morning Herald, Sydney, General News, Clancy Yeates Page words ASR AUD 31,774 Photo: Yes Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: Caption Photo: Jamie Davies INTEREST RATES The big four banks stand to boost their combined profits by about $1 billion if they all match Westpac's mortgage interest rate increase. View original - Full text: 507 word(s), ~2 mins 88,634 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

15 Banks could get $1b boost from copying rate hike Age, Melbourne, General News, Clancy Yeates Page words ASR AUD 11,580 Photo: No Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: The big four banks stand to boost their combined profits by about $1 billion if they all match Westpac's mortgage interest rate increase. But experts are divided over whether Westpac's rivals will follow the bank's Wednesday rate hike as quickly as such changes have often occurred in the past, a pattern the competition regulator has dubbed the "fast follower" approach. View original - Full text: 451 word(s), ~1 min 83,229 CIRCULATION Westpac plays lone hand Gladstone Observer, Gladstone QLD, General News Page words ASR AUD 229 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: Analyst expects rest of Big Four to hold rates WESTPAC'S major rivals may not rush to follow the lender's move to raise mortgage rates, with regulators' glare and the threat of an increased bank levy keeping them on hold, according to one leading analyst. Westpac plans to raise variable home loan rates by 0.14 percentage points from September 19, due to increased wholesale funding costs. View original - Full text: 407 word(s), ~1 min 3,301 CIRCULATION ASIC slams aggressive sales tactics Canberra Times, Canberra, Business News, Clancy Yeates Page words ASR AUD 4,662 Photo: No Type: News Item Size: cm² ACT Australia Industry Super Australia - Press ID: Pressure tactics and bonus schemes that prioritise new sales are causing some customers to take out life insurance policies they may not want or need, and which may not cover them as expected, the corporate watchdog says. The Australian Securities and Investments Commission yesterday unveiled plans to ban life insurance companies from directly selling their policies to consumers through outbound sales calls, after a critical review uncovered a wide range of poor practices in the sector. View original - Full text: 347 word(s), ~1 min 17,579 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

16 Closing nation's gender wage gap is imperative but we need further action to close super gap Canberra Times, Canberra, General News, Sarah Saunders Page words ASR AUD 8,478 Photo: No Type: News Item Size: cm² ACT Australia Industry Super Australia - Press ID: Friday is Equal Pay Day. It highlights how much longer women would need to work at the end of the financial year to catch up to men. With new figures suggesting the gender pay gap is at 14.6 per cent, it marks the closest we have been to closing the pay gap in 20 years. Every year we are reminded that our society has entrenched inequalities that are putting women second. And every year little is done to address the problem. View original - Full text: 622 word(s), ~2 mins 17,579 CIRCULATION ASIC slams aggressive sales tactics Age, Melbourne, Business News, Clancy Yeates Page words ASR AUD 14,937 Photo: Yes Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: Pressure tactics and bonus schemes that prioritise new sales are causing some customers to take out life insurance policies they may not want or need, and which may not cover them as expected, the corporate watchdog says. The Australian Securities and Investments Commission yesterday unveiled plans to ban life insurance companies from directly selling their policies to consumers through outbound sales calls, after a critical review uncovered a wide range of poor practices in the sector. View original - Full text: 370 word(s), ~1 min 83,229 CIRCULATION Surprise dive for business investment Hobart Mercury, Hobart, Business News, Peter Trute Page words ASR AUD 1,402 Photo: No Type: News Item Size: cm² TAS Australia Industry Super Australia - Press ID: AUSTRALIAN business investment took a surprise fall the past quarter as miners spent less on projects. But companies have broadly upgraded their spending plans for the coming year in a positive sign for the economy, the statistics indicate. View original - Full text: 392 word(s), ~1 min 28,265 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

17 Westpac plays lone hand Morning Bulletin, Rockhampton QLD, General News Page words ASR AUD 264 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: Analyst expects rest of Big Four to hold rates WESTPAC'S major rivals may not rush to follow the lender's move to raise mortgage rates, with regulators' glare and the threat of an increased bank levy keeping them on hold, according to one leading analyst. Westpac plans to raise variable home loan rates by 0.14 percentage points from September 19, due to increased wholesale funding costs. View original - Full text: 407 word(s), ~1 min 9,376 CIRCULATION Bank rate lift down to growth in the US West Australian, Perth, General News, Shane Wright Page words ASR AUD 8,818 Photo: Yes Type: News Item Size: cm² WA Australia Industry Super Australia - Press ID: Righteous anger at the nation's banks might feel good but it is not going to accomplish a great deal. The decision by Westpac, about to be followed by the other big banks, to lift all its mortgage interest rates could not come at a worse time. View original - Full text: 387 word(s), ~1 min 147,676 CIRCULATION Westpac plays lone hand Sunshine Coast Daily, Maroochydore QLD, General News Page words ASR AUD 280 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: Analyst expects rest of Big Four to hold rates WESTPAC'S major rivals may not rush to follow the lender's move to raise mortgage rates, with regulators' glare and the threat of an increased bank levy keeping them on hold, according to one leading analyst. Westpac plans to raise variable home loan rates by 0.14 percentage points from September 19, due to increased wholesale funding costs. View original - Full text: 407 word(s), ~1 min 10,046 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

18 Westpac plays lone hand Gold Coast Bulletin, Gold Coast QLD, General News Page words ASR AUD 1,790 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: Analyst expects rest of Big Four to hold rates WESTPAC'S major rivals may not rush to follow the lender's move to raise mortgage rates, with regulators' glare and the threat of an increased bank levy keeping them on hold, according to one leading analyst. Westpac plans to raise variable home loan rates by 0.14 percentage points from September 19, due to increased wholesale funding costs. View original - Full text: 407 word(s), ~1 min 21,468 CIRCULATION Bank rate lift down to growth in the US West Australian, Perth, Edition Changes, Shane Wright Page words ASR AUD 9,607 Photo: Yes Type: News Item Size: cm² WA Australia Industry Super Australia - Press ID: Righteous anger at the nation's banks might feel good but it is not going to accomplish a great deal. The decision by Westpac, about to be followed by the other big banks, to lift all its mortgage interest rates could not come at a worse time. View original - Full text: 440 word(s), ~1 min 147,676 CIRCULATION Institutional tax credits could help solve reports Twitter 4,084 followers Following 73 others 73 tweets Industry Super Australia - Social Media ID: DS View original - Favourite - Retweet - Reply 8:50 AM COPYRIGHT This report and its contents are for the internal research use of Mediaportal subscribers only and must not be provided to any third party by any means for any purpose without the express permission of Isentia and/or the relevant copyright owner. For more information contact copyright@isentia.com DISCLAIMER Isentia makes no representations and, to the extent permitted by law, excludes all warranties in relation to the information contained in the report and is not liable for any losses, costs or expenses, resulting from any use or misuse of the report.

19 Border Mail, Albury-Wodonga Section: General News Article type : News Item Classification : Regional : 13,519 Page: 20 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 551 Words: 267 Item ID: Page 1 of 1 Insurance cold calls to end COLD calls aggressively pressuring people to buy life and funeral insurance they don t want or can t afford could soon end. The corporate regulator plans to restrict the practice and has demanded insurers stop selling accidental death insurance altogether, saying it s of little value to consumers. Insurers have already started moving away from telemarketing sales of life insurance but the Australian Securities and Investments Commission (ASIC) wants the small number of firms that still make cold calls to stop. Its review of direct life insurance, which is sold directly to people rather than by advisers or through superannuation, found consumers are cancelling their policies in high numbers. Life insurance is a longterm product but cancellation rates and poor claim outcomes show that people are being sold products they don t want, can t afford, or don t perform as they expected, ASIC chair James Shipton said on Thursday. ASIC listened to more than 540 recorded sales calls, finding all 11 firms failed to provide adequate information about the insurance cover including key exclusions and future premium increases. Four firms engaged in pressure selling and more than half used incentive schemes, including bonus payments heavily focused on the number or value of sales, that encouraged staff to prioritise closing a sale ahead of customers needs. ASIC s review found one-in-five policies were cancelled in the cooling-off period, with another onein-four ditched within a year. Three-in-five policies were cancelled within three years. When policy-holders tried to make a claim, 15 per cent were rejected and another 27 per cent were withdrawn. Consumers also struggled to understand life insurance products due to their complexity.

20 Newcastle Herald, Newcastle NSW Section: General News Article type : News Item Classification : Regional : 23,625 Page: 43 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 1,803 Words: 267 Item ID: Page 1 of 1 Insurance cold calls to end COLD calls aggressively pressuring people to buy life and funeral insurance they don t want or can t afford could soon end. The corporate regulator plans to restrict the practice and has demanded insurers stop selling accidental death insurance altogether, saying it s of little value to consumers. Insurers have already started moving away from telemarketing sales of life insurance but the Australian Securities and Investments Commission (ASIC) wants the small number of firms that still make cold calls to stop. Its review of direct life insurance, which is sold directly to people rather than by advisers or through superannuation, found consumers are cancelling their policies in high numbers. Life insurance is a longterm product but cancellation rates and poor claim outcomes show that people are being sold products they don t want, can t afford, or don t perform as they expected, ASIC chair James Shipton said on Thursday. ASIC listened to more than 540 recorded sales calls, finding all 11 firms failed to provide adequate information about the insurance cover including key exclusions and future premium increases. Four firms engaged in pressure selling and more than half used incentive schemes, including bonus payments heavily focused on the number or value of sales, that encouraged staff to prioritise closing a sale ahead of customers needs. ASIC s review found one-in-five policies were cancelled in the cooling-off period, with another onein-four ditched within a year. Three-in-five policies were cancelled within three years. When policy-holders tried to make a claim, 15 per cent were rejected and another 27 per cent were withdrawn. Consumers also struggled to understand life insurance products due to their complexity.

21 Townsville Bulletin, Townsville QLD Section: General News Article type : News Item Classification : Regional : 16,484 Page: 38 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 1,493 Words: 407 Item ID: Page 1 of 1 Westpac plays lone hand Analyst expects rest of Big Four to hold rates WESTPAC S major rivals may not rush to follow the lender s move to raise mortgage rates, with regulators glare and the threat of an increased bank levy keeping them on hold, according to one leading analyst. Westpac plans to raise variable home loan rates by 0.14 percentage points from September 19, due to increased wholesale funding costs. That caused the Australian dollar to drop on speculation Commonwealth Bank, National Australia Bank and ANZ would follow suit, forcing the Reserve Bank of Australia to offset rises by cutting a cash rate that has stood at a record low 1.5 per cent since But UBS analyst Jonathan Mott said the contraction in Westpac s net interest margin had been greater than that experienced by its rivals because it pursued growth more aggressively up until June. Mr Mott said they were not under the same pressure to raise rates, while the consumer watchdog s brief to ensure lenders did not pass on the cost of the Federal Government s bank levy could also help keep them in check. While the banks generally follow each other in out-ofcycle repricing, we would not be surprised to see the other banks hold off for a few weeks/ months, Mr Mott wrote in a note released yesterday. A spike in the funding costs had prompted several analysts to predict mortgage rate hikes by banks earlier this year but, faced with public anger over a series of malpractices, the country s major banks had refrained from passing on the cost. Mr Mott noted that the ongoing royal commission, which has publicly flagged poor behaviour by big banks, and previous criticism from Scott Morrison (pictured) prior to his becoming prime minister will also put pressure on other lenders not to raise rates. If the major banks all reprice their mortgage books, one response from the Government may be to increase the bank levy, Mr Mott wrote. In the UK, the bank levy was increased on nine occasions. Westpac on Wednesday said its variable mortgage rate for owner-occupier properties would increase to 5.38 per cent per annum for customers with principal and interest repayments, while the rate for residential investment properties would go up to 5.93 per cent. Shares in Westpac were 0.45 per cent lower at midday yesterday, making them the worst performing of the big four banks. CBA was the next worst performer with a 0.17 per cent decline.

22 Geelong Advertiser, Geelong VIC Section: General News Article type : News Item Classification : Regional : 16,687 Page: 21 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 470 Words: 346 Item ID: Page 1 of 1 Banks gone rogue A DAIRY farmer who had been noting the various ethical horrors emerging from the recent banking Royal Commission thieving, pilfering and systemic ripping off of customers made the canny remark: Those cameras they ve got in the banks, they ve got them pointing the wrong way. Perhaps we shouldn t expect those who worship at the altar of filthy lucre to have the highest principles when it comes to how they treat their fellow Australians. But even so it is hard to remember a time when the banks of this country were held in greater opprobrium. And now that some of the worst of the finance sector s conduct has been dragged into the light, not even the banks themselves are game to claim it s a bad cop and they don t deserve it. It seems what will change now the curtain has been ripped away is not that the banks will behave like angels they ll likely behave much the same but in plain sight. So Westpac lifted its variable rates 0.14 per cent and did so out of cycle that is, without the Reserve Bank of Australia having lifted them first. It s long been noted by unhappy customers that the banks tend to instantly raise rates when the RBA does but aren t so quick to lower them when the RBA does that. This isn t great but in some ways it s the least of our issues. If there was ever an implied gentlemen s agreement that our four major banks wait on the RBA s lead, it lies in tatters now. A better question is what does the decoupling of our banks from the RBA mean for its ability to implement our nation s monetary policy? Are we as consumers and citizens destined to always have the worst of both worlds? When our four big banks want to profiteer and jack up rates of their own volition they are acting properly as globalised entities. But if they are ever on the brink of disaster we, the public, through our government s implicit guarantee indemnify them as national assets against failure.

23 Australian Financial Review, Australia Author: Jenny Wiggins Section: Companies and Markets Article type : News Item Classification : National : 44,635 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 9,567 Words: 811 Item ID: Page 1 of 2 Regulator seals Transurban's dominance Jenny Wiggins Transurban's dominance of the Australian tollroad market has been cemented after the competition watchdog approved its bid for Sydney's WestConnex motorway, declaring the company's scale was not "a competition problem". Transurban, which has a $27 billion market capitalisation and operates 15 of Australia's 19 tollroads, is considered the lead contender to buy a 51 per cent stake in WestConnex. The NSW government which has been comparing Transurban's bid with a competing bid from rival IFM, could announce the successful bidder as early as Friday. The government wants to wrap up the sale of the controversial $16.8 billion motorway well ahead of a state election in March Top Transurban investors said they were pleased with the "sensible" ruling from the Australian Competition and Consumer Commission (ACCC), which requires the tollroad company to release detailed data on how many vehicles use its NSW tollroads as well as what kind of vehicles. Other investors are waiting to find out how much Transurban and its consortium partners (Australian Super, the Canada Pension Plan and the Abu Dhabi Investment Authority) pay for WestConnex, if they are successful. Transurban has already indicated it is likely to raise equity to help fund a potential purchase. "The million-dollar question is, what price?" said Jason Teh, chief investment officer at Vertium Asset Management "If it's $3 billion [for the equity raising] and a 50 per cent geared transaction, it could be a $6 billion acquisition." Transurban's shares closed up 16<t; at $ Both Transurban and IFM declined to comment on the ACCC decision. ACCC chairman Rod Sims said that requiring Transurban to publish additional traffic data from the company's gantries - which electronically charge toll fares - to rival tollroad operators and the general public had "levelled the playing field" for tollroads in NSW. "The models of the other bidders were equally as good as Transurban's models, theyjust didn't have the confidence in them because they couldn't calibrate and validate them in the same way," he said. Transurban's undertaking to provide gantry data only applies to NSW, but Mr Sims urged other states to require the publication of similar data when running future tollroad tenders. Mr Sims said the ACCC was not concerned by Transurban's sheer size in NSW, where it operates seven out of nine tollroads. Many of the advantages attributed to Transurban by its competitors were "more perception than reality", Mr Sims said, arguing the situation was similar to when smaller retailers complained about not getting the same electricity discounts as big retailers because they used less power. "There is nothing the competition law can or should do about that" he said. "If you create an advantage for yourself, thafs not anti-competitive. But if you through growing big, gain an advantage that should be shared and is not shared - such as the traffic data - that is a competition problem." Winning WestConnex would put Transurban in an even stronger position to bid for future tollroads, such as the proposed Western Harbour Tunnel. Transurban claims it does not have a monopoly because it does not set the Continued p20 James Thomson Analysis p32 From page 17 Regulator seals Transurban's top spot terms of its concessions, including the price of toll fares. State governments could address motorists' concerns over the high cost of tollroads by rejecting unsolicited proposals from tollroad companies to create more competition, Mr Sims said. "If state government do accept unsolicited proposals they are very likely to be exposing their motorists to paying more than they should for the tollroads," he said. Transurban has been able to expand its Australian tollroad network by striking four deals with state governments to build new roads: Sydney's NorthConnex; Melbourne's West Gate Tunnel and Citylink Tullamarine freeway widening project; and Brisbane's Logan enhancement project It is the only tollroad operator in the past 30 years that has been granted a tollroad concession in Australia following an unsolicited proposal to a state government, according to the ACCC. Spanish tollroad group Cintra this year also criticised state governments' willingness to accept unsolicited bids, arguing states would get better value for money if they called for competing bids. Greater competition for tollroads should allow governments to receive higher prices, giving them the option to lower toll fares for motorists, Mr Sims said. The cost of toll fares has become a political issue, with NSW and Queens-

24 Australian Financial Review, Australia Author: Jenny Wiggins Section: Companies and Markets Article type : News Item Classification : National : 44,635 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 9,567 Words: 811 Item ID: Page 2 of 2 land running inquiries. Submissions on the NSW inquiry into the impact of WestConnex are due on Friday. Trucking companies have been opposed to Transurban's potential acquisition of a WestConnex stake amid fears the company will strike deals with governments to raise future truck tolls to pay for more tollroad projects. Transurban raised funds to help pay for the construction of Sydney's North- Connex by convincing the NSW government to raise the price of truck tolls on one of its existing tollroads, the WesuinkM7. ACCC chairman Rod Sims has put Transurban on notice it must allow for fair competition. PHOTO: AAP

25 Australian Financial Review, Australia Author: Vesna Poljak Section: Companies and Markets Article type : News Item Classification : National : 44,635 Page: 21 Printed Size: cm² Market: National Country: Australia ASR: AUD 4,976 Words: 597 Item ID: Page 1 of 1 Super funds stuck in GAM scandal VesnaPoljak The scandal surrounding GAM and its suspension of a top fund manager for record-keeping and risk-management issues appears to have ensnared at least three Australian superannuation funds, some of which have joined investors from all over the world demanding their money. Industry super funds Rest and CareSuper are two of GAM'S largest Australian ers, with an estimated $990 million and $260 million allocated on numbers disclosed in their annual reports. The $45 billion Rest was 2.2 per cent invested with GAM under a defensive alternatives mandate, and the $13 billion CareSuper was invested in the GAM Absolute Return Bond Fund, those reports show. And part of Local Government Super's $1.1 billion absolute return portfolio was invested with the GAM Absolute Return Bond Fund, one of seven managers LGS allocated to. GAM oversees various strategies, not all of which are affected by the suspension of investment director Tim Haywood in late July following a "pattern of potential misconduct" as it described events. He was responsible for the unconstrained/absolute return bond strategy. "The investigation has not raised concerns regarding his honesty," GAM said in public statements issued at the time. Shares of the listed group wiped out 20 per cent of their value on the news. A Rest spokesman responded: "Rest is aware of the recent developments involving GAM. We cannot comment on the internal matters of an external fund manager, but we regularly review all of our fund managers as part of our processes. These developments will not have a material impact on members' returns." CareSuper's chief investment officer, Suzanne Branton, declined to comment on any changes to the industry super fund's investment mandates beyond its periodic updates to members. GAM International Management is listed online as a current CareSuper absolute return investment manager asofjune30,2018. Local Government Super has been invested in the Absolute Return Bond Fund since "LGS is currently in the process of redeeming all of its investment in the fund, which forms only a small portion of LGS' $11 billion investment portfolio," it confirmed. Another industry fund, the $8 billion Statewide, had allocated to GAM under a defensive alternatives mandate but terminated in early July, seeing all of members' money returned before the gates went up at the Swiss group, CIO Con MichalaMs said. According to a report Bloomberg published earlier this month, the Australian feeder fund linked to Mr Haywood's strategy experienced a spike in withdrawals during July after asset consultant Jana recommended clients reallocate, unrelated to the events GAM would disclose on July 31. On Tuesday, GAM confirmed that it would begin the process of liquidating the frozen unconstrained/absolute return bond funds, including Australian feeder funds. It estimated in June that it managed more than $5 billion of Australian money. It chose to freeze redemptions on August 2 upon receiving a "high level" of redemption requests for the CHF7.3 billion ($10.2 billion) of assets involved. While GAM promised "all fund investors will receive their proportionate interest in cash from the liquidation process," the first payment due in early September will see investors who participate via the Australian and Cayman funds get between 60 and 66 per cent of assets, leaving up to 40 per cent still restricted. Luxembourg and Irishdomiciled fund investors will see 74 to 87 per cent "The company expects to make a further distribution for each fund before the end of September, and continue distributions in the coming months, dependent on market conditions," GAM said, without providing definitive dates. GAM froze redemptions on August 2 after receiving a "high level" of redemption requests, PHOTO: TANYA LAKE

26 Australian Financial Review, Australia Author: James Frost Section: Companies and Markets Article type : News Item Classification : National : 44,635 Page: 21 Printed Size: cm² Market: National Country: Australia ASR: AUD 5,987 Words: 597 Item ID: Page 1 of 2 Perpetual weathers Hurricane Hayne James Frost Perpetual is poised to make the most of the confronting revelations coming out of the banking royal commission and take advantage of a shift away from the bank-owned wealth managers. The diversified financial services company has the firepower to acquire businesses and consumers as the inquiry rolls towards its conclusion, due on February 1, according to interim chief executive Chris Green. "There are going to be opportunities to come out of that," said Mr Green, who is leading the company until incoming CEO Rob Adam's arrival on September 24. "We don't speculate on what the royal commission's findings might be but we certainly see an opportunity for Perpetual given the strength of our brand." Perpetual's upbeat assessment of the shake-out from the royal commission came off the of a slight uptick in net profit of 2 per cent to $140 million in an environment that has proved challenging for household names in financial services. Perpetual rose $L07 or 2.4 per cent to $45.52 on Thursday. Mr Green noted the firm had not been asked to deliver witness statements or appear before the royal commission but received notices to produce during the recent round of hearings on superannuation. Perpetual chief financial officer Gillian Larkins said if Commissioner Kenneth Hayne was to recommend that grandfathered commissions should be prohibited it would have "a very minor impact", one that was "immaterial" and estimated to be 0.1 per cent of revenue for Perpetual Private. The Future of Financial Advice reforms outlawed most conflicted commissions linked to the sale of financial advice, but allowed for them to be retained for legacy products - the socalled grandfathered commissions. Full-year net profit rose 2 per cent to $140.2 million with a weaker performance by its fund management arm Per- cen sions are gaining traction and attracting inflows," Mr Green said. Perpetual has been trying to lessen its reliance on its core Australian equities business by building out its global equities business, which amounts to 4 per cent of funds under management with $1.3 billion. The firm has looked to products in the socially responsible investing space and fixed income. Profit before tax for Perpetual Investments was 3 per cent lower at $112.5 million with an increase in operating expenses eating into earnings. Profits before tax at Perpetual Private rose 14 per cent to $46.1 million with Perpetual Corporate Trust recording similar gains of 16 per cent to $42.6 million. Expenses across the business rose 3 per cent for the year from $326 million to $337 million, or within its target range of 2 per cent to 4 per cent as it reinvested in systems and new hires. Perpetual announced a second half dividend of 140<t a share, taking the fullyear dividend to $2.75 a share up 4 per cent Mr Green, who will resume responsibilities as group executive for the corporate trust was bullish about the prospects of the business, saying management had its "eyes on the road and hands on the wheel". The company anticipates rolling out initiatives from Perpetual Investment's incubator, which gave birth to the listed investment company that manages over $300 million. Perpetual said its strong financial position also provided the company with a number of strategic options. petual Investments offset by a relatively stronger result from financial advice arm Perpetual Private and Perpetual Corporate Trust "Market conditions have been challenging for Perpetual Investment, although a number of product extenin it ie

27 Australian Financial Review, Australia Author: James Frost Section: Companies and Markets Article type : News Item Classification : National : 44,635 Page: 21 Printed Size: cm² Market: National Country: Australia ASR: AUD 5,987 Words: 597 Item ID: Page 2 of 2 m Perpetual is upbeat about the royal commission, as its net profit increased by 2 per cent and its shares rose 2.4 per cent to $45.52 yesterday, PHOTO: WOLTER PEETERS

28 The Australian, Australia Author: Adam Creighton Section: Edition Changes - All-round First Article type : News Item Classification : National : 94,448 Page: 1 Printed Size: cm² Market: National Country: Australia ASR: AUD 8,083 Words: 427 Item ID: Page 1 of 2 Cut immigration and the economy will start bleeding ADAM CREIGHTON COMMENT Those clamouring to slash population growth should be careful what they wish for. Any plan to cut immigration, from au pairs to chefs, will immediately hit businesses expectations about the economy s potential. The likelihood that Home Affairs Minister Peter Dutton would cut immigration was the chief reason the dollar and stockmarket bounced in the minutes after Scott Morrison won the Liberal leadership last week. Expect them to sag again if the Prime Minister caves in to pressure from the Right faction to reduce skilled visas further. Indeed, any plans would be drawn up just as the pistons of growth are beginning to sputter. Already business investment is failing to live up to expectations, dropping 2.5 per cent in the June quarter, according to a closely watched ABS survey released yesterday. The vaunted recovery in Continued on Page 6

29 The Australian, Australia Author: Adam Creighton Section: Edition Changes - All-round First Article type : News Item Classification : National : 94,448 Page: 1 Printed Size: cm² Market: National Country: Australia ASR: AUD 8,083 Words: 427 Item ID: Page 2 of 2 Cut immigration and the economy will bleed Continued from Page 1 non-mining investment for which the Reserve Bank and Treasury have been crossing their fingers is painfully slow to emerge. Meanwhile, building approvals, one of the top sources of economic growth and jobs, dropped 5.2 per cent in July, extending a steady decline. Whether we cut immigration or not, our capitals are about to be awash with new apartments. For 3½ years, building approvals have hovered around 19,000 a month. We should aim to have people to fill them. Josh Frydenberg will be hoping his first set of national accounts as Treasurer, out next week, don t fall short of the optimistic remarks he has been making. Meanwhile, Westpac has fired the gun on what will almost certainly be a series of mortgage rate increases just as the royal commission is pressuring banks to tighten their lending standards. Good time to buy a house? The Housing Industry Association is worried that last year s visa changes, which made it harder for students, graduates and skilled workers to stay, are weighing on immigration. Studies show skilled migrants boost economic growth more than the average resident. Far from making it harder to come here, we might need to make it more attractive. Australia has been drawing skilled workers from the rest of the world for a decade, while the rest of the world has been recovering from the financial crisis. That salutary dynamic is changing. The US growth rate was revised up this week, as Australia s looks more likely to slow. The saving grace in the ABS survey was an increase in planned investment, for next year. Plans can quickly change. JOHN FEDER Hutchinson Builders project engineer Ivan Ristic and contract administrator Duy Phan at the Arc development yesterday

30 Australian Financial Review, Australia Section: Companies and Markets Article type : News Item Classification : National : 44,635 Page: 28 Printed Size: 17.00cm² Market: National Country: Australia ASR: AUD 344 Words: 47 Item ID: Page 1 of 1 Chant West in red Financial services and software group Chant reported a full-year net loss after tax of $1.6 million compared with a loss of $4.2 million last year. Revenue rose 2.8 per cent to $9 million. The loss included $1.1 million of asset impairments and $929,300 of acquisition amortisation.

31 Australian Financial Review, Australia Author: James Eyers Section: General News Article type : News Item Classification : National : 44,635 Page: 1 Printed Size: cm² Market: National Country: Australia ASR: AUD 12,075 Words: 1081 Item ID: Page 1 of 2 No big stick against rate rise Scott Morrison has told Westpac customers to shop around if they are not happy with the bank's interest rate rise, while experts are split on whether the other big banks will follow. Report p6 RBA rate hike delayed p7 PM to Westpac customers: shop around Advice Scott Morrison has suggested people look for a better deal if unhappy with their interest rate. James Eyers Prime Minister Scott Morrison told Westpac customers that if they are not happy with the bank's interest rate rise they should look around for a better deal. Experts are split on whether the other big banks would follow Westpac by increasing mortgage rates, suggesting a grab for market share might be on the cards. With Westpac's chief executive Brian Hartzer explaining the sustained, higher cost of funding "seems to be more about domestic borrowing cost competition", Mr Morrison said it was for the bank to explain to customers the reasons for its 14-basis-point increase to the standard variable interest rate in its mortgage portfolio. "They have to justify in this environment, when people are really feeling it, why they believe they need to clip that ticket a little harder..." Mr Morrison said. "So that's for Westpac to explain, not for me." Mr Hartzer suggested that due to rising US interest rates, a growing number of foreign banks have decided it is cheaper to borrow Australian dollars directly through the bank bill market rather than convert US dollars into Australian dollars. This has crowded out the market, increasing the cost of funds as measured by the bank bill swap rate. "The increase in interest rates offshore has meant foreign banks that operate in this market have found it cheaper to borrow locally, rather than borrowing offshore and sending money down here, and that has increased competition for available funds in the Australia market and that has pushed rates up," Mr Hartzer explained in a video posted on the bank's website on Wednesday. Australian banks fund themselves via a combination of deposits, domestic capital markets funding - both short and longer term - and funding from international investors. It appears pressure on funding costs is coming from the short-term domestic market Another factor has been a shift in asset allocation by domestic institutional investors from bank bills to global equities. Mr Morrison said customers will make their own decision on the bank's action. "If you don't like what Westpac has done, go to another bank, because competition is the key to a more competitive and stronger and more accountable banking system," he said. The bank bill swap rate (BBSW), the key wholesale funding rate for mortgages, increased about 25 basis points between February and March r and has remained elevated. Westpac revealed its net interest margin had slumped 11 basis points in the June quarter to 2.06 per cent its lowest level since the first half of 2015, with 5 basis points of the fall due to higher wholesale funding costs. After Westpac shares jumped on Wednesday after its rate decision, shares pulled on Thursday, even after analysts gave that repricing the thumbs up. UBS increased its earnings forecasts about 2 per cent after cutting them last week in the wake of Friday's shock profit warning. While lifting its interest rates outside the cycle of the Reserve Bank has attracted scrutiny from politicians, Mr Hartzer said the official cash rate does not fully reflect banking funding costs for its mortgage book. "The RBA makes a decision on the cash rate, which is essentially a shortterm, risk-free rate - that"s not the rate we borrow at" her said. "That"s an input to what ultimately drives interest rates, but the borrowing rate relevant to mortgages is the 90-day bank bill swap rate". While analysts agreed the repricing would help Westpac's bottom line, there was less consensus about whether other major banks would follow, at least in the short term. Deutsche Bank analyst Anthony Hoo said he thought the other majors would also shortly announce their own repricing moves. "The other majors should be expected to follow with their own repricing moves. Overall, this development is positive for the sector in confirming its ability to pass on higher funding costs," he said. However, UBS analyst Jonathan Mott was more circumspect "While the banks generally follow each other in out-of-cycle repricing, we would not be surprised to see the other banks hold off for a few weeks/months, as they are not facing the same NIM [net interest margin] pressure as Westpac, and are aware of the ongoing focus from the ACCC" he said. "This would also enable the other majors to regain some share." Over the August bank profit reporting season, revenue headwinds was a core theme, however, Westpac's margin contraction reported on Friday was worse than the other banks. Mr Mott suggested Westpac's more aggressive growth until June may have caused the larger NIM contraction than peers. NAB said its NIM had "declined slightly" over the third quarter. Meanwhile, CBA said there was no impact on the NIM in the June half overall because higher funding costs

32 Australian Financial Review, Australia Author: James Eyers Section: General News Article type : News Item Classification : National : 44,635 Page: 1 Printed Size: cm² Market: National Country: Australia ASR: AUD 12,075 Words: 1081 Item ID: Page 2 of 2 had been offset by reducing what it was paying out to depositors. For the full year, CBA's net interest margin expanded 5 basis points to 2.15 per cent driven by the higher interest rates CBA is charging on interest-only and investor loans, a result of the regulatory lending caps. At ANZ, it said at its half-year results in May its net interest margin contracted by 7 basis points, to 1.93 per cent from the same period a year earlier due to the pick-up in short-term funding costs that had started to emerge at that time. Andrew Martin, a portfolio manager at Alphinity Investment Management said from a financial perspective, "it is reasonably clear that there will be ongoing pressure on the other majors to reprice mortgages at some point should the current funding environment persist". However, he also said banks are dealing with "intense public and regulatory scrutiny, so others of course may read the political and public temperature differently to Westpac when weighing up their options this time around". Tm sure there will be some thought from the others to gaining market share, or at least stop losing market share and a 'no move' or a smaller move could help for a time," Mr Martin said. : Under pressure Net interest margin (%) 1 : : 1 : 1 ; I» i ^ - i 1 : ^^^ ^*. i : jog '. i :. : I. Net interest margin ex Treasury and markets 1H 2H 1H 2H 1H 2H 1H 2H 1H 3Q S day Bank Bill Swap Rate (%) : ; : : : : ; : : : : : : ; 2.02% - ; : ; 3Q18average ;Jt \i\ I i 178% ; 1 ' 2-00 : i : 1H18 average : i j F MA M J J A S O N D J F M A M J : SOURCE: WESTPAC Westpac boss Brian Hartzer has cited higher wholesale funding costs, PHOTO: AAP

33 Australian Financial Review, Australia Author: Duncan Hughes Section: General News Article type : News Item Classification : National : 44,635 Page: 8 Printed Size: cm² Market: National Country: Australia ASR: AUD 4,753 Words: 567 Item ID: Page 1 of 1 CBA to disclose fees to borrowers Duncan Hughes The Commonwealth Bank will disclose to home loan customers the value of commissions it pays to mortgage brokers, after being embarrassed by the banking royal commission. A witness for the nation's largest property lender, Daniel Huggins, told the royal commission in March the bank (fid not disclose the value of commissions to customers because they can't be accurately calculated. "We are unable to accurately calculate the amount that will be payable over the full life of the loan," Mr Huggins said, although he conceded that the bank could disclose the upfront fees that were paid and the rate of the trailing commission. Under the new rules, CBA will be providing details in consumer and loan contracts signed at settlement setting out how it calculates upfront and loan commissions. It will state there is an upfront commission in dollar terms and a percentage that is paid as a trailing commission on the outstanding balance at the end of every month. In addition, there will be a separate statement that borrowers can ask their broker about "specific payments" from the brokers' head group, or aggregator, which provide -up services and support "We have enhanced our customer disclosures on broker commission payments," a bank spokesperson said. "These disclosures inform our customers about the commission we pay to their mortgage broker's head group AFRGA1 A008 NR Daniel Huggins: Grilled by commission. for arranging and settling their home loan. "Our enhanced customer disclosures highlight our ongoing commitment to good customer outcomes and becoming a simpler, better bank." Brokers account for about 53 per cent of property deals - and much more among smaller lenders with minuscule branch networks - and more than $2 billion in annual commissions. The Big four's use of mortgage brokers ranges from about 56 per cent for ANZ to 42 per cent for National Australia Bank CBA's broker network accounts for about 43 per cent, according to Morgan Stanley. The Productivity Commission, corporate regulators and banking royal commission are questioning whether borrowers should pay a fee to brokers rather than higher interest payments to lenders. Royal commissioner Kenneth Hayne, QC, questioned whether brokers did more work on a larger loan than a smaller one to justify a bigger upfront commission and Mr Huggins was quizzed about why lenders did not provide more detail. A mortgage broker who arranges borrower finance will receive an average upfront broking commission from lenders of about 0.6 per cent of the loan value and a trailing commission of just under 0.2 per cent of the loan outstanding per year over the life of the loan. That amounts to a mortgage advisory fee of about $6000 for the mortgage of an average loan of about $357,000. Mark Haron, deputy chairman of the Combined Industry Forum, which represents banks, brokers, finance industry and customer-owned banks, said the sector is responsive to calls for change and is improving disclosure of commission payments and strengthening the fiduciary relationship between broker and borrower. But many brokers are deeply sceptical of the major lenders who they believe are attempting to rebuild proprietary sales through their bank networks and sales staff. They also claim that borrowers are already alerted to commission payments at settlement through mandatory credit disclosures. For example, Westpac chief executive Brian Hartzer recently caused outrage among brokers by suggesting a service fee for recommending mortgages because of fears it will tip the balance in favour of branch-based lending.

34 Australian Financial Review, Australia Author: Michael Bleby Section: General News Article type : News Item Classification : National : 44,635 Page: 7 Printed Size: cm² Market: National Country: Australia ASR: AUD 2,124 Words: 296 Item ID: Page 1 of 1 Developers wantapra to ease off Michael Bleby For property developers, Westpac's out-of-cycle mortgage rate hike at the start of spring, the key selling season, was a shock. At a time of low stock levels and falling prices in Sydney and Melbourne, developers - just like the vendors of established homes - are hoping for a big burst of activity by confident buyers after the quiet winter months. However, many analysts already expect this spring to be more subdued than in the past due to exhaustion of buyers after five years of rising prices and lending controls already in place. Higher borrowing costs will only add to the pressure on prices. "My initial reaction was: 'Oh no, that's all the market needs'," said Jay Carter, the director of sales for Poly Australia. "But then the thoughtful reaction - when I thought about it - was: 'It's OK, we really need to be careful. This isn't just an interest rate story. This is a credit availability story. If credit continues to be restrained and restricted that will continue to have a negative impact on our market'." Mr Carter, whose company hopes to start construction this year on a twotower, 100-dwelling development in Melbourne's Doncaster, said confidence was crucial at a time when developers were launching projects. And while Westpac's move is a concern, Mr Carter is hoping any higher borrowing costs by banks will be offset by an easing in policy on the part of regulator APRA. "I was quite optimistic when I saw they'd lifted that 10 per cent growth cap on investor loans," he said. "It showed they were watching and actively adjusting their policy settings to deliver an outcome. I hope they're also watching what the likes of Westpac and possibly other banks are doing with their rates." Property Approvals fall P34

35 Australian Financial Review, Australia Author: Sarah Turner Section: Companies and Markets Article type : News Item Classification : National : 44,635 Page: 31 Printed Size: cm² Market: National Country: Australia ASR: AUD 8,475 Words: 728 Item ID: Page 1 of 2 Westpac rate hike wins over fund managers Interest rates Sarah Turner Fund managers mostly welcomed Westpac's decision to lift its standard variable interest rate by 14 basis points to counter a more difficult operating environment Shares in Westpac and other banks rallied after news emerged on Wednesday afternoon amid speculation that other lenders could follow Westpac's lead and raise interest rates, although they pared gains on Thursday. Banks have been struggling to grow profits as they have exited areas such as wealth management Credit growth has deteriorated while regulatory costs, capital requirements and offshore funding costs have risen. Katana Asset Management fund manager Romano Sala Tenna said the interest rate move from Westpac "had to happen". He said he had been expecting a 20 to 30 basis point increase from Westpac after its net interest margin disappointed investors last week. "US funding costs have been rising and between 50 per cent to 70 per cent of wholesale funding comes from offshore," he said. Even the Reserve Bank of Australia staying on hold at 1.5 per cent for two years hasn't eased the pain of this year's higher funding costs, he said. "As a bank investor, this is a positive outcome," said Mr Sala Tenna, who holds National Australia Bank and Westpac shares. "If s necessary and a good thing." Other lenders will inevitably follow Westpac's lead, he said, as they also needed to maintain net interest margins and pass on the costs that were crimping their profits. For T Rowe Price's head of Australian equities Randal Jenneke the hike is "not that big" and potentially specific to Westpac. The rest of the sector may wait and see what the reaction is to Westpac's hike before following suit he said. "There's a new prime minister, a new treasurer, they might wait and see how heated this issue becomes," he said. There's an argument that Westpac was the bank most in need of an interest rate hike after aggressive moves to take market share and less effective management of offshore funding issues, Mr Jenneke said. Within the sector he prefers the business-focused lenders, National Australia Bank and ANZ, to CBA and Westpac which both concentrate on residential mortgages. "The bigger issue is what happens to the housing market I think we are in the early stages of this playing out" he said. Aberdeen Standard Investments investment manager Jason Kururangi said he was surprised at the timing of the hike from Westpac. "I was surprised that they moved this quickly given the industry drop and concern about front and book pricing," he said. "In the short term, as a shareholder; you would assume it was positive as it expands net interest margin and interest income." The interest rate hike from Westpac, and potentially other banks, underlines that Australian lenders still operate in a "cosy environment without a lot of competition," said Ben Clark, fund manager at TMS Capital. "When they get cost pressures, they are able to pass them on and maintain margins. That"s pretty unique-to Australia." It shows they still have a strong position and that's positive as a bank shareholder, he said, Even though raising interest rates opens the banks up to more oversight and "another whack" from politicians, it means relief on the margin pressure side, Mr Clark noted. And there has been a steep increase in wholesale funding costs. But one interest rate increase may not make much of a dent in the longerterm earnings outlook for the sector. Mr Clark's growth-oriented fund doesn't own any banks as he believes the sector will show little earnings growth over the next three to four years. Prasad Patkar at Platypus Asset Management said "banks have had one answer in the last few years" and expressed frustration over what he considered a continued lack of imagination in addressing the sector's deeper structural issues. He said the sector needed to get serious about investing, and if short-termism wasn't addressed "if s hard to see Westpac being around in another 200 years". "The market is bullying the banks into holding their dividends," he said. Lenders should be able to reset dividends, reset earnings expectations and invest where they want to, he said. "If I saw a bank do that I would see it as a positive." There's a new prime minister, a new treasurer, they might wait and see how heated this issue becomes. Randal Jenneke, head of Australian equities, T Rowe Price

36 Australian Financial Review, Australia Author: Sarah Turner Section: Companies and Markets Article type : News Item Classification : National : 44,635 Page: 31 Printed Size: cm² Market: National Country: Australia ASR: AUD 8,475 Words: 728 Item ID: Page 2 of 2 Heading higher Westpac share price, daily ($) ii f 1 : : : : : : ': :: Key money market spreads, weekly (index) Bank Bill to I Overnight Index Swap ~SQ M M? ia Jl WTtfr fjl 2900 : "U : ' Bank Bill Swap Rate. to cash S O N D J 1 8 F M A M ] A SOURCE; CITl RESEARCH NR AFRGA1A031

37 Australian Financial Review, Australia Author: James Thomson Section: Companies and Markets Article type : News Item Classification : National : 44,635 Page: 32 Printed Size: cm² Market: National Country: Australia ASR: AUD 5,744 Words: 713 Item ID: Page 1 of 2 James Thomson ACCC sends message on toll roads If s hard to say who would be breathing a bigger sigh of relief at the Australian Competition and Consumer Commission's decision to allow Transurban to bid to build and operate the WestConnex toll road. Transurban chief executive Scott Charlton, or NSW premier Gladys Berejiklian? To have only one bidder - the industry super fund manager IFM - left in the running would have been a major embarrassment for the NSW government And while it remains to be seen whether Transurban or IFM win the rights to WestConnex, Transurban now becomes the clear favourite. Lef s face it if IFM had a knockout bid, then the NSW government would have accepted it already and not waited for ACCC chairman Rod Sims to make his call. Two things have swayed Sims in what he has described as one of his hardest ever decisions, given Transurban controls seven of the nine toll roads in Sydney. First the ACCC believes that Transurban's olive branch offer to share detailed traffic data should help ensure future toll road bids in NSW are much more competitive. While some in the market say the data isn't detailed enough, but Sims said its release is a big win. Indeed, he argued that had it blocked Transurban from the process, and IFM had won WestConnex, the data wouldn't be shared. Second, Sims appears to have recognised that the ability he had to make the awarding of toll road concessions competitive is limited. In a way, he's had no choice but to pass the buck on taming Transurban's power on to the NSW government and indeed all future state governments. "As the sole granter of toll road concessions in NSW, in many respects the degree of competition for concessions depends on the government Our investigation indicates that state governments do have tools at their disposal to promote competition for toll road concessions," he said. The power of Transurban's stranglehold on the east coast market comes not from its initial success in toll road auctions,buthowithas been able to use that success to win other deals. hi the past four years, Transurban has managed to get five unsolicited proposals for new road projects approved by state governments in processes run without competing bids. All the deals have been conditional on Transurban financing the new roads in return for gaining changes to its existing toll road deals, such as increased tolls, extended toll concessions or both. While there is an argument that other toll road operators can potentially make unsolicited proposals, and they could even make these proposals in such a way that they involve Transurban's road concessions, the bald fact is that no other company in Australian history has been successful in doing so. So Sims' message for Berejiklian and other state governments is clear. State governments have the power to change the competition levels for toll roads, and must not give in to the sweet temptation of unsolicited proposals, which might ease the pressure on state budgets today, but merely kick the burden of financing directly onto taxpayers through increased tolls. "The ACCC considers that state governments should only award new toll road concessions through a competitive bid process, and not following an unsolicited proposal, unless there is a truly compelling reason. Accepting unsolicited proposals for new toll road concessions generally leads to higher costs to taxpayers, drivers, or both," Sims said. Transurban must know that it's just squeezed through here.

38 Australian Financial Review, Australia Author: James Thomson Section: Companies and Markets Article type : News Item Classification : National : 44,635 Page: 32 Printed Size: cm² Market: National Country: Australia ASR: AUD 5,744 Words: 713 Item ID: Page 2 of 2 An ACCC knock- would have forced Charlton to focus his expansion efforts offshore. While that wouldn't have been terrible for Transurban investors - the company has already moved into North America - its Australian position will grow stronger. But while Sims declared on Thursday the argument over whether Transurban is a monopoly is effectively over - "Many of the advantages that competitors think that Transurban have are more perception than really," he said - there is a clear sense that the ACCC wants to see the brakes put on. So while Transurban has the chance to build on its Australian empire with WestConnex, politicians must heed Sims' message about ensuring a WestConnex win for Transurban doesn't mean more uncontested road deals down the track Unsolicited proposals are only good for Transurban and its investors. That road should end here.

39 Illawarra Mercury, Wollongong NSW Section: General News Article type : News Item Classification : Regional : 10,806 Page: 54 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 1,003 Words: 267 Item ID: Page 1 of 1 Insurance cold calls to end COLD calls aggressively pressuring people to buy life and funeral insurance they don t want or can t afford could soon end. The corporate regulator plans to restrict the practice and has demanded insurers stop selling accidental death insurance altogether, saying it s of little value to consumers. Insurers have already started moving away from telemarketing sales of life insurance but the Australian Securities and Investments Commission (ASIC) wants the small number of firms that still make cold calls to stop. Its review of direct life insurance, which is sold directly to people rather than by advisers or through superannuation, found consumers are cancelling their policies in high numbers. Life insurance is a longterm product but cancellation rates and poor claim outcomes show that people are being sold products they don t want, can t afford, or don t perform as they expected, ASIC chair James Shipton said on Thursday. ASIC listened to more than 540 recorded sales calls, finding all 11 firms failed to provide adequate information about the insurance cover including key exclusions and future premium increases. Four firms engaged in pressure selling and more than half used incentive schemes, including bonus payments heavily focused on the number or value of sales, that encouraged staff to prioritise closing a sale ahead of customers needs. ASIC s review found one-in-five policies were cancelled in the cooling-off period, with another onein-four ditched within a year. Three-in-five policies were cancelled within three years. When policy-holders tried to make a claim, 15 per cent were rejected and another 27 per cent were withdrawn. Consumers also struggled to understand life insurance products due to their complexity.

40 Cairns Post, Cairns Section: General News Article type : News Item Classification : Regional : 13,896 Page: 32 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 1,209 Words: 401 Item ID: Page 1 of 1 Westpac plays lone hand Analyst expects rest of Big Four to hold rates WESTPAC S major rivals may not rush to follow the lender s move to raise mortgage rates, with regulators glare and the threat of an increased bank levy keeping them on hold, according to one leading analyst. Westpac plans to raise variable home loan rates by 0.14 percentage points from September 19, due to increased wholesale funding costs. That caused the Australian dollar to drop on speculation Commonwealth Bank, National Australia Bank and ANZ would follow suit, forcing the Reserve Bank of Australia to offset rises by cutting a cash rate that has stood at a record low 1.5 per cent since But UBS analyst Jonathan Mott said the contraction in Westpac s net interest margin had been greater than that experienced by its rivals because it pursued growth more aggressively up until June. Mr Mott said they were not under the same pressure to raise rates, while the consumer watchdog s brief to ensure lenders did not pass on the cost of the Federal Government s bank levy could also help keep them in check. While the banks generally follow each other in out-ofcycle repricing, we would not be surprised to see the other banks hold off for a few weeks/ months, Mr Mott wrote in a note released yesterday. A spike in the funding costs had prompted several analysts to predict mortgage rate hikes by banks earlier this year but, faced with public anger over a series of malpractices, the country s major banks had refrained from passing on the cost. Mr Mott noted that the ongoing royal commission, which has publicly flagged poor behaviour by big banks, and previous criticism from Scott Morrison (pictured) prior to his becoming prime minister will also put pressure on other lenders not to raise rates. If the major banks all reprice their mortgage books, one response from the Government may be to increase the bank levy, Mr Mott wrote. In the UK, the bank levy was increased on nine occasions. Westpac on Wednesday said its variable mortgage rate for owner-occupier properties would increase to 5.38 per cent per annum for customers with principal and interest repayments, while the rate for residential investment properties would go up to 5.93 per cent. Shares in Westpac were 0.45 per cent lower at midday yesterday, making them the worst performing of the big four banks. CBA was the next worst performer with a 0.17 per cent decline.

41 Australian Financial Review, Australia Author: Jemima Whyte Section: AFR Magazine Article type : News Item Classification : National : 44,635 Page: 48 Printed Size: cm² Market: National Country: Australia ASR: AUD 61,468 Words: 3032 Item ID: Page 1 of 4 V n ^_-f' s i I xecutive Ross Lane, creative director Sophie Hoft, owner Will Vickers. ^ I

42 Australian Financial Review, Australia Author: Jemima Whyte Section: AFR Magazine Article type : News Item Classification : National : 44,635 Page: 48 Printed Size: cm² Market: National Country: Australia ASR: AUD 61,468 Words: 3032 Item ID: Page 2 of 4 If fashion is about flash then Will Vicars might have looked an outside bet. The chief investment officer and part owner of Caledonia Investments manages billions on behalf of some of the country's richest and most private families, and Vicars tends to be just as private. He keeps well below the radar, successfully avoiding the Financial Review Rich List until he popped up in 164th spot for the first time this year (those close to him speculate his wealth is much higher than the estimated $527 million). His clothes look expensive, but you won't get far making small talk about what labels he likes to wear. Yet here Vicars is, on a sparkling Friday afternoon in June on Sydney Harbour, watching as a glamorous Hungarian model (day rate $40,000) poses in sewn-together silk scarves on the teak deck of his yacht, the 78-foot Drumfire, for a photographer, a battalion of make-up artists, hairdressers and stylists standing by. It's all in aid of creating the perfect image for Oroton, the 80-year-old Australian luxury leathergoods and accessories retailer. "We're putting serious money into this," says Vicars. Six months earlier, a day before Christmas Eve, Vicars emerged as the preferred bidder for Oroton. Asked about his favourite Oroton product, he pauses, smiles, and plays for time ("It's a good question") before answering: "It's the handbags, I think." He then perks up. "What about Meghan Markle? We like Meghan Markle, she's got great taste!" Markle, now Duchess of Sussex, slung the brand's blackand-white cross-body Avalon bag under a jacket by another local label, Camilla and Marc, in April. It was a hit moment for a brand that hasn't had a hit for quite some time. Indeed, when it was placed in voluntary administration in December last year, it almost shuddered to a complete stop. Now Vicars is its owner, and he's taking time out from managing more than $6 billion dollars to oversee a fashion shoot (he later explains he was banned from Caledonia's office that day on account of the lingering effects of anaesthetic after a minor operation). His peers in the fundsmanagement community are confounded as to why he's bought himself a retail minnow and thrown himself into a world of handbags, sunglasses and scarves. Indeed, he's sort of surprised himself. "It's a big departure from my normal raison d'etre of 'Don't put yourself out there'," he says. But this is no folly. It was simply an opportunity too good to resist. THE HANDBAG'S TALE It was the sale of the century when Will Vicars bought Oroton from administrators, and the 80-year-old business has resurfaced with big ambitions. Story JEMIMA WHYTE Photograph LOUIE DOUVIS

43 Australian Financial Review, Australia Author: Jemima Whyte Section: AFR Magazine Article type : News Item Classification : National : 44,635 Page: 48 Printed Size: cm² Market: National Country: Australia ASR: AUD 61,468 Words: 3032 Item ID: Page 3 of 4 A collection of Oroton vintage handbags. Vicars' interview with The Australian Financial Review Magazine is the only one the fund manager plans to do regarding Oroton, and he's going all out; a week after the fashion shoot he has arranged another shoot on his yacht with chief executive Ross Lane and creative director Sophie Holt. Vicars officially took control of Oroton in July, his $25 million offer having wiped out all equity holders - including his own 18 per cent stake. It was a deal with a whiff of controversy. Sitting on a sofa in Caledonia's Sydney offices on Macquarie Street, Vicars wants to be ultra-clear that he's investing in Oroton personally, and it's nothing to do with his fundsmanagement role. "I'm bloody busy," he says, when asked what's he doing owning Oroton. "We manage a lot of funds, both my own and for friends and families and institutions around the world. I spend my life on a plane. And I love it. I wish there were more hours in a day. "But I've seen this thing come and go, and it was bit like a boiling frog. I started off with a little loan, and then I did a big one and then the more I looked at it, I became aware they weren't going to do a deal." Stop. Let's rewind, and explain the loan, the boiling frog and that deal. Oroton started life in 1938 as a textile importing group, but really found its place in the Australian fashion scene with gold- and silver-mesh compacts and bags in the '50s and '60s. Its founder, Boyd Lane, realised that industrial mesh could be fashion, not just safety gloves. Oroton (oro: gold, ton: lots of it) listed on the stock exchange in 1987 and the Lanes kept a tight grip on the business. By the time Vicars joined OrotonGroup's board in 2001, the business was chasing a multi-brand strategy, looking beyond the core Oroton handbags and belts brand. Chaired by Ross Lane, Boyd Lane's grandson, the group also had the lucrative Polo Ralph Lauren franchise in Australia, and local fashion label Morrissey. Oroton had some big successes, and delivered big returns. Lately, however, Oroton lost market share to international brands such as Coach, Kate Spade, Furla and Michael Kors. It lost the licence to Polo Ralph Lauren and tried to fill the gap in its earning with Brooks Brothers and Gap. Instead, its licence with Gap resulted in a $14 million loss in 2017, $11 million of which was associated with getting out of that deal. By June 2017, it was clear the business couldn't keep going without major change. Investment bank Moelis began working on a "strategic process" - market speak for doing something, anything, to stem the bleeding. Investors started circling: in July, Gazal Corp, which has the Australian licence for Calvin Klein and Tommy Hilfiger among others and which had been eyeing Oroton for years, spent $3.1 million buying a 7.35 per cent stake of the business. But in November, just four months later, that money was torched. OrotonGroup appointed administrators, with debts of $40 million. That whiff of controversy? It stems from the fact that by the time the corporate undertakers were called in, Vicars was no longer a director, having stepped off the board in May - although he held onto his stake. In June, he put up $3 million in credit to keep Westpac, its main lender, at bay. Two months later Vicars struck a deal with Westpac giving him the right to buy the bank's $35 million debt. It allowed the company to continue trading without breaching its covenants. In effect, Vicars had thrown the company a lifeline. So when the board appointed administrators in late November, Vicars was sitting in a key position - he had insight as a former director and the power of a creditor. The administrators put Oroton on the block and Vicars beat six other bidders to buy the company. Vicars says any suggestion that things weren't ship shape is ludicrous. Moelis canvassed options and he was the only one to lend money. Then the administrators found that his offer was the best. "Everyone was sensitive," says Vicars, "and I was particularly sensitive that I wasn't at all in some sort of privileged position." His deal was approved by a court and no objections were raised. Creditors have been told to expect around 45 cents in the dollar. Before Caledonia, the Sydney-born Vicars honed his investment skills at NRMA Investments and BT Australia. Married with three children, he avoids the limelight (though he found it hard to duck in 2015 when he advised Gretel Packer on the division of assets with her brother James). Caledonia, where Vicars' official title is co-chief investment officer, has been on a tear. Its short positions are outperforming, and concentrated long positions like US real estate listings portal Zillow, online food ordering company Grubhub and local financial services group Challenger are all delivering. Vicars flies overseas 10 times a year, which by his estimate means he racks up 60 days of jet lag a year. The 52-year-old says he's getting older; at the same time as resigning from the OrotonGroup board in May, he also stepped off the St Luke's Hospital Foundation in a self-described cleansing. He's maintained one listed company board seat - at Oneview Healthcare, a $90 million software company of which he personally owns just under 20 per cent. Oroton is not a late career hobby, says Vicars. He sees a compelling investment thesis, with the aim of boosting sales from about $90 million to $200 or $300 million in five years. Assuming a margin of between 10 and 15 per cent for a luxury brand, Vicars is aiming to make it a material holding in his personal portfolio.

44 Australian Financial Review, Australia Author: Jemima Whyte Section: AFR Magazine Article type : News Item Classification : National : 44,635 Page: 48 Printed Size: cm² Market: National Country: Australia ASR: AUD 61,468 Words: 3032 Item ID: Page 4 of 4 Plus - and here's the clincher - once the company was tipped into voluntary administration (VA), it offered the rare opportunity to renegotiate leases and reset the cost base. "What VA gives you as a company is a chance to unwind the bad history," says Vicars. He won't say how much rent reductions were worth, but there has been speculation that some have been lowered by as much as 40 per cent. Some leases were terminated, others are now on much shorter terms, and one or two may even have been extended. It's at the core of why Vicars bought Oroton. "Will has a knack for seeing opportunities that are invisible to the broader market," says Rob Luciano, from fund manager VGI Partners, who used to work at Caledonia with Vicars and executive chair Mark Nelson. "Will has positioned the Caledonia portfolio to take full advantage of his insights and the fund's long-term track record shows this has paid off in spades." Perched on a stool at Oroton's new - and smaller - office and showroom in Sydney's McMahons Point, a tanned Ross Lane, just from a European summer, is reflecting on his career. The same age as Vicars, Lane says he knew there was no point going to university because he wanted to work in the family business, founded by his grandfather and then run by his father. After brief stints as a stockbroker and deckhand, Lane started at Oroton in the warehouse. He then worked in various divisions in the US and UK before returning to Australia where he's been managing director, chairman, a director and, most recently, chief executive again. Asked how it felt to put the business into voluntary administration when he was chief executive - the business he jointly owned 21 per cent of with his father, sister and brother - and he says it was horrible. "It was one of the worst business experiences in my life," he says. "We were about to celebrate our 80th anniversary. It was gut-wrenching." But Lane says he felt relief when Vicars was named as the preferred bidder on Christmas Eve. He has known Vicars since he was in "short pants" - their families were friends. The family connection overlapped into busines in another way: Vicars' stepfather Stan Howard, brother of former prime minister John Howard, chaired Oroton until After Howard stepped down, Lane invited Vicars onto the Oroton board. Vicars had bought his first shares in the company at about 20, and he added financial nous. "Will was talking articulately and passionately about these things that weren't being discussed, about capital management and the financial issues," says Lane. "So I asked Will, as a shareholder with a vested interest, why doesn't he join the board? And he did. It worked really well." Despite recognising mistakes made by the company's previous management and board, Vicars is keeping the family involved. Lane is staying on as CEO, although Vicars says how much equity he stands to earn hasn't yet been sorted out. The legacy of the business is front and centre of the new direction. An insider who runs a fashion brand says Oroton's revival will be dictated by one ingredient: "With such a great history, there is more you can do with the brand. Success will come down to the creative director. Vicars will be all over whether they open stores and whether they do concession deals, but you need a strong creative director." On the morning Lane meets with AFR Magazine in the McMahons Point office in Sydney, he brings in a tan leather men's satchel to show creative director Sophie Holt an example of what he considers a classic piece of Oroton design. At the of the open-plan office is the showroom. It resembles a thoughtfully laid-out store, the walls lined with leather bags, canvas bags with leather details, rattan bags. There's a mood board pinned with sample textures, images of summery days, flowers, bags. Across the floor is the workroom - more mood boards, leather samples, more walls pinned with graphic images of bags. While Vicars, in his Macquarie Street offices, was all big-picture enthusiasm, Lane and Holt are far more circumspect, though both also see an opportunity. In separate interviews they tell AFR Magazine they would have preferred to wait, get a few runs on the board, before going out guns blazing in an interview. Holt built her career reinvigorating tired Australian brands, including Country Road and Witchery. Melbourne-based, she admits she's enjoying Oroton far more than she expected. As creative director she's also the only employee to have so far secured an equity holding. Picking up a canvas tote lined with leather, Holt, whose grandfather was prime minister Harold Holt, gestures around the room. "I think Oroton needs to embrace being Australia's luxury brand and be a little bit more relaxed." She talks of "utilitarian weaves", twills and "straightforward fabrications". "There's a realness to it, but it's also quite fashionable. And to me, fashionable was the word it was missing. I really feel like we need to be on trend, relevant, and mix it up, have a bit of colour and freshness, have beautiful prints, some straw, some great beach bags." Holt acknowledges the challenge facing the reborn company: "There's a lot of risk. But it's a great brand and I think it's worth having a crack at it." "IT WAS SORT OF LIKE POLISHING A LITTLE GENIE BOTTLE. PEOPLE RESPOND TO SOMETHING NICE THAT HAS NICE MEMORIES." Will Vicars Oroton creative director Sophie Holt in the Sydney design studio. For those who follow the money, there's plenty of reasons to steer clear of retail. Naomi Milgrom is reportedly considering a sale of her Sussan, Sportsgirl and Suzanne Grae chain. L Catterton Asia's bootmaking group R.M. Williams - perhaps one of the few other local "legacy brands" - is still losing money, but is forecasting a 50 per cent lift in earnings fuelled by new store fit-outs and a Chinese launch. Australian fashion is a small world: Oroton was outbid by L Catterton when R.M. Williams was put up for sale in The list of Australian mid-sized fashion retailers that have entered into voluntary administration since 2016 is long: Meredith & Moore, Seduce, Payless Shoes, Marcs and David Lawrence, Herringbone and Rhodes & Beckett and Maggie T. In April 2018, Sambag owner Samantha Wagner announced the closure of all stores, while Hong Kong-based retailer Esprit announced in May it was shutting its Australian and New Zealand stores. So, even with the leases being renegotiated, why is Oroton such a tempting buy? Vicars, sipping his tea, is supremely confident. That macro view misses the point, he says. Oroton is small and has outperformed the market before, he says, when sales grew under former chief executive Sally Macdonald as other retailers foundered. Few other brands have a heritage as strong as Oroton's, and company testing shows the brand hasn't been damaged, though it's been neglected. "It was sort of like polishing a little genie bottle. People respond to something nice that has nice memories," he says of Oroton's outperformance under Macdonald. "You can make your own way sometimes. If you're a huge bank, you are part of the economy. You are the economy. This is a very small company that really hasn't had much capital, marketing, nous and smarts... going into it for quite a period of time." But is it really that simple? Former Louis Vuitton Australia chief executive Philip Corne says Oroton operates in one of the most challenging category of the fashion industry, the middle market. "It's very crowded, the competition from international entrants is intense and today the customer can shop the world from their lounge room," says Corne. "Like any brand, it needs to ask itself, 'Why is someone going to shop with me?' The risk is it's seen as the handbag your mother or grandmother used to carry - the challenge is to be perceived as timeless and at the same time contemporary." It's worth the roll of the dice for Vicars: the prospect of growing revenues by three or four times is tantalising, even if it requires a serious upfront investment. I J The new team is still hammering out the details. Vicars says every meeting has proven how hamstrung the company had been in its old form, crippled by capital structure, distracted by other brands, listing requirements, just to name a few. At this stage, everything is up for review. Lane wants to make sure there will be more frequent product drops in-store, from every new season to every few weeks. And that price goals are being met - each store should have price points from $49 to $1500. Holt has already started turning the brand's scarves into clothes for the latest campaign, though they're not for sale. Yet. Vicars has big plans. This isn't about a business shrinking to greatness - and he thinks an extension of its current apparel offering of jackets and coats is a logical next step. Consultants have been engaged to improve the digital strategy, freshen up the stores, think about how to dress staff to fit the brand, and consider customers, brand and pricing strategies. The focus hasn't yet been on the international market, though the company has stores in Malaysia and New Zealand. China is seen as a big opportunity, and some of the team have met with Alibaba. "We're fortunate to have capital, more than the company needs," Vicars says. "It's not a folly, it's an entirely financial decision. It's like having a child: it goes up and down, it just needs to be let go and flourish without all the shackles." II

45 Geelong Advertiser, Geelong VIC Section: General News Article type : News Item Classification : Regional : 16,687 Page: 22 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 367 Words: 283 Item ID: Page 1 of 1 holding off on rate hikes WESTPAC S major rivals may not rush to follow the lender s move to raise mortgage rates, with regulators glare and the threat of an increased bank levy keeping them on hold, according to one leading analyst. Westpac on Wednesday announced plans to raise variable home loan rates by 0.14 percentage points from September 19, due to increased wholesale funding costs. That caused the Australian dollar to drop on speculation Commonwealth Bank, National Australia Bank and ANZ would follow suit, forcing the Reserve Bank of Australia to offset rises by cutting a cash rate that has stood at a record low 1.5 per cent since But UBS analyst Jonathan Mott said the contraction in Westpac s net interest margin had been greater than that experienced by its rivals because it pursued growth more aggressively up until June. Mr Mott said they were not under the same pressure to raise rates, while the consumer watchdog s brief to ensure lenders do not pass on the cost of the Federal Government s bank levy could also help keep them in check. While the banks generally follow each other in out-ofcycle repricing, we would not be surprised to see the other banks hold off for a few weeks/ months as they are not facing the same NIM pressure as WBC and are aware of the ongoing focus from the ACCC, Mr Mott wrote in a note released yesterday. This would also enable the other majors to regain some share. Westpac on Wednesday said its variable mortgage rate for owner-occupier properties would increase to 5.38 per cent per annum for customers with principal and interest repayments, while the rate for residential investment properties would go up to 5.93 per cent.

46 Herald Sun, Melbourne Section: Letters Article type : Letter Classification : Capital City Daily : 303,140 Page: 34 Printed Size: 35.00cm² Market: VIC Country: Australia ASR: AUD 1,943 Words: 80 Item ID: Page 1 of 1 Shame on Westpac SHAME, Westpac, shame. Jacking up interest rates, closing branches, sacking staff and admitting to dodgy practices at the financial services royal commission. Westpac obviously doesn t have any consideration for customers or hardworking staff who run the branches. Its executives should be ashamed of themselves. Treat Westpac as it treats its staff and customers. Withdraw your money from Westpac and close your accounts. The mighty dollar seems to be the only thing that matters to Westpac. Ian Whalley, Port Melbourne

47 Herald Sun, Melbourne Section: Letters Article type : Letter Classification : Capital City Daily : 303,140 Page: 34 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 22,321 Words: 734 Item ID: Page 1 of 2 Westpac s decision to increase interest rates raises ire at heraldsun.com.au NICE one, Westpac, $4.5 billion profit in first six months not enough? The banks have made lending criteria tougher and people who got loans five to 10 years ago will find it tougher, and difficult to move banks. The banks know this and now have their customers over a barrel. Paul IF you shop around, you will probably get a better deal. More than likely, if you then tell your bank you have a better deal and you are walking, it is almost certain they will match it or do better. If they don t, you walk. Westpac customers should do this now and give them the finger going out the door. Thomas GIVEN there are more than 40 banks, credit unions, building societies and other lenders around, yes, there would be a fair chance you could get a better deal. Stephen THEY put rates up outside the RBA rises but never bring them down outside the official rates. Ronald WHY not? This is Australia after all, ripe for the fleecing, just like the wool off a sheep s. We all supposedly want 10 per cent per annum growth on our house prices. Can t have your cake and eat it, too, folks. J ARE retailers increasing prices regularly? No. Why? They have real competition. Banks in collusion with one another have enough power to strangle the market. Shareholders greed is another telling factor. This has nothing to do with government. It s market forces acting with no one to protect the consumer. Nathan WESTPAC is lifting its rate by 0.14 per cent. I got a letter from Credit Union Australia today, telling me it is increasing my rate by 0.25 per cent. Largest credit union in the country and almost double the rise. Scott CUA, a bank in credit union s clothing. Michael IF $8 a week is going to affect you, maybe you shouldn t have bought the house in the first place. Julian MY money s in a non-profit co-op. Better service, better rates. Anthony THIS is what is commonly known as a hint: The rate changes announced today will not recover these costs. We now believe wholesale funding costs will remain high for the foreseeable future. Unless you are sitting on a pile of cash, time to tighten the belts, peeps. Woddles WELL, the bank executives have to get their inflated salaries paid by someone, don t they? Ian THE property market needs a bit of colonic irrigation. Westpac has provided the tube. Sandy GEORGE Frazis (Westpac) said in a statement: This is a tough decision but we have a responsibility to price our mortgage products in a way that reflects the reality of our funding costs. It sounds better than: We are all about profit. It doesn t just increase itself! Peter ARE interest rates on bank and investment accounts rising, too? Mich GO and get your finance from some other joint if you don t like the banks. There have been record low interest rates for basically seven years. If you borrowed to the hilt without factoring in rate rises to give yourself a buffer, then bad luck. No sympathy for the greedy or stupid. Greg THEY have to keep their profits rolling somehow they can t charge dead clients for advice so they will just fleece the live ones. Darren FOR those who are bank bashing, do the right and honourable thing go to your superannuation provider and ask that your money is not invested in bank shares. Tony I DO not borrow, no bank credit cards for me... debit only, no loans, the foolish pay interest. Renting is the way to go. The Christian way is to be the head not the tail. The rich rule over the poor and the borrower is servant to the lender. Richard MY grandma rented the same house forever in the city and loved being there. When she was in her mid-80s and still quite capable of looking after herself, along came the landlord and told her she had to move... not long after, she passed away. You will never convince me that renting is better than buying. Elisabeth GET rid of your big plan mobile phones and internet. Stay home and cook your food. Leave the alcohol alone. Don t smoke etc. Vince

48 Herald Sun, Melbourne Section: Letters Article type : Letter Classification : Capital City Daily : 303,140 Page: 34 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 22,321 Words: 734 Item ID: Page 2 of 2 The interest rate increase by Westpac yesterday was the first this year.

49 Herald Sun, Melbourne Author: Karina Barrymore Section: Business News Article type : News Item Classification : Capital City Daily : 303,140 Page: 56 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 12,382 Words: 452 Item ID: Page 1 of 1 Watchdog puts leash on cold call insurance KARINA BARRYMORE INSURANCE HIGH-pressure sales tactics and low payout rates are among concerns that have prompted the corporate watchdog to restrict call centre sales of life insurance polices, including accidental death and funeral insurance. An investigation by the Australian Securities and Investments Commission found life insurance policies sold through direct cold calls had the lowest percentage of successful claims, with only 58 per cent paid out. About 27 per cent of claims for policies sold directly to consumers were rejected or withdrawn because they did not cover what consumers thought, ASIC said. Aggressive selling practices and products that don t pay out when consumers expect undermine trust in the industry, ASIC chair James Shipton said yesterday. The commission investigated direct sales, or cold calling, by 11 insurance companies. ASIC had listened to more than 540 recorded sales calls, Mr Shipton said. It identified a failure by all firms to provide adequate information about important aspects of the cover, including key exclusions and future premium increases. Four of the companies also engaged in pressure sales techniques, such as refusing to send out paperwork unless the consumer committed to buying the product. More than half the companies offered bonus payments to sales staff based on the number or value of policies sold. Sales of accidental death insurance were particularly problematic, including where consumers were downgraded to accidental death after being rejected for comprehensive life insurance, Mr Shipton said. Accidental death a type of life insurance that has very narrow coverage offered little value, with a successful claims ratio of only 16 per cent, he said. ASIC is also announcing today that we intend to restrict outbound (call centre) sales of life and funeral insurance, in order to protect consumers. Unless firms can demonstrate that accidental death insurance can meet consumer needs, ASIC expects firms to stop selling this product. About 20 per cent of policies sold directly to consumers were cancelled within the cooling-off period, ASIC found. Another 25 per cent were cancelled within a year and 60 per cent within three years. Life insurance is a long-term product but cancellation rates and poor claim outcomes show that people are being sold products they don t want, can t afford or (that) don t perform as expected, Mr Shipton said. The investigation included direct sellers and distributors. The companies included were: Commonwealth Bank s CommInsure, ClearView Life Assurance, NobleOak Life, Suncorp Life & Superannuation, TAL Life, ANZ s One- Path Life, St Andrew s Life Insurance and Hannover Life. The distributors were: Greenstone Financial Services, Auto & General Services and Select AFSL. ASIC has taken action against ClearView, forcing the company to refund more than $1.5 million to 16,000 consumers who were pressured to buy life insurance over the phone. James Shipton

50 The Australian, Australia Author: Perry Williams Andrew Clennell Section: Business News Article type : News Item Classification : National : 94,448 Page: 27 Printed Size: cm² Market: National Country: Australia ASR: AUD 4,325 Words: 502 Item ID: Page 1 of 1 Transurban s $16bn bid for WestConnex gets the nod PERRY WILLIAMS ANDREW CLENNELL INFRASTRUCTURE Transurban is set to tighten its control of Australia s toll roads after receiving clearance from the competition regulator to buy a majority stake in Sydney s $16 billion WestConnex motorway project. The NSW government, which hopes to bank $5bn from selling 51 per cent of the toll road which is under construction, may pick the winner as early as today as it seeks to lock in a critical plank of its $40bn privatisation scheme ahead of a state election in March Transurban currently runs seven of the state s nine toll road concessions and 15 of 19 toll road concessions in Australia. Despite that dominance, a deal to share traffic data with its rivals satisfied the Australian Competition & Consumer Commission that others could successfully compete for new toll road concessions, with chairman Rod Sims saying the company s scale in itself was not a competition problem. If you create an advantage for yourself, that s not anti-competitive, said Mr Sims. That now makes Transurban and its consortium partners AustralianSuper, the Canada Pension Plan Investment Board and the Abu Dhabi Investment Authority sovereign wealth fund the favourites against a rival bid led by infrastructure heavyweight IFM Investors with Canadian pension fund OMERS and Dutch fund APG. The ACCC s decision increases the probability of Transurban being successful in its WestConnex bid, Morgans analyst Nathan Lead said. Transurban is likely to be the favourite with IFM an outside chance, according to CLSA. We believe Transurban is in a strong position, but don t discount IFM, CLSA analyst Anthony Moulder said. Providing traffic data on its roads does provide a benefit for other bidders, but we still expect Transurban to be a very strong competitor for new growth projects. Transurban s undertaking to publish 15-minute interval toll data for each quarter for all toll roads where it holds a stake in Sydney made a big difference to our assessment of this matter, according to Mr Sims. The competition tsar was concerned Transurban would gain an unfair competitive advantage by not sharing the data on future toll roads bids like Sydney s mooted Western Harbour tunnel if its WestConnex bid proves successful. Transurban has previously argued it has no pricing power as this is controlled by the state government, while the road should not be thought of as a monopoly because there are alternative routes available for road users. NSW Treasurer Dominic Perrottet said yesterday the government had yet to finalise a decision on a preferred bidder and will make an announcement in due course. Sources close to the process expect a decision as soon as today given the already drawn-out nature of the transaction. WestConnex is seen as a critical project to drive the next phase of Transurban s growth as new competitors like IFM look to muscle in on the Sydneybased company s toll road revenues. While the company maintains it has plenty of other opportunities in Australia and North America, its chief executive Scott Charlton conceded its growth would slow from double-digit pace to high single or mid-single digits. $ $12.06 Transurban closed up 1.3% Source: Bloomberg

51 The Australian, Australia Author: Ben Wilmot Section: Business News Article type : News Item Classification : National : 94,448 Page: 23 Printed Size: cm² Market: National Country: Australia ASR: AUD 3,880 Words: 503 Item ID: Page 1 of 1 Office market running hot on offshore demand BEN WILMOT COMMENT Two of Australia s best known office blocks have been put up for sale this week, Sydney s Chifley Tower and QIC s new development at top end of Melbourne s Collins Street, raising the prospect the commercial property market is headed towards its peak. The inevitable boom and bust cycle always catches up with property owners, argue sceptics, but those in the sector are investing on the basis that strong conditions will last. The huge prices at which the two assets are expected to trade with the half interest being offered in GIC s iconic Sydney tower to reap more than $900 million and the larger Melbourne block to approach $2 billion will take some digesting. But demand is fierce for prime office assets in both cities and the buildings are tipped to sell at prices showing record rates of return. This confidence is not theoretical, with offers already lodged from Asian tycoons looking to get in ahead of the local listed groups and superannuation funds that are gearing up to bid. Buyers will have plenty of buildings to choose from with the two office assets at the head of about $6bn of office towers being sold. Billions of shopping centres are also on the block but only the best are being snapped up, while demand for logistics centres, benefiting from Amazon s rise, is unabated. Australia s biggest landlords will compete for the towers and are optimistic the health of property fundamentals, with Dexus saying when it delivered its results that only a black swan event could derail the market. Dexus chief executive Darren Steinberg, who oversees a $27bn property empire, told The Australian that vendors were taking advantage of demand from offshore groups chasing exposure to strong leasing conditions that are forecast to run for several years. The underlying property market fundamentals are screening as some of the most attractive in the globe at this point in time, Mr Steinberg said. It s an elongated cycle in Sydney because of the lack of new supply and existing product being taken out of the market, and in Melbourne it is on the of strong population growth and extremely strong leasing demand, he said. Peter Menegazzo, chief investment officer at Investa, which has more than $11bn of office assets, says: Sydney is probably the best office market in the world at the moment. He cited low vacancy rates, low supply, good demand and major infrastructure works. He points to new investors arriving even as prices are rising, with Canada s Oxford Property Group buying a stake in Sydney s harbourside Barangaroo precinct and taking an interest in the Investa Office Fund takeover. Australia is attracting not only local but also global capital, he said. The private money that is staying in to ride the market also tells a story. Tycoon Lang Walker pulled his Collins Square precinct in Melbourne off the market and Winten s Gary Rothwell is keeping a tight grip on the new Channel 9 headquarters in North Sydney. Their actions may speak louder than any market forecasts.

52 The Australian, Australia Author: Cliona O'Dowd Section: Business News Article type : News Item Classification : National : 94,448 Page: 21 Printed Size: cm² Market: National Country: Australia ASR: AUD 5,618 Words: 544 Item ID: Page 1 of 2 Perpetual boss must stem fund outflow CLIONA O DOWD WEALTH MANAGEMENT Incoming Perpetual boss Rob Adams will step into a business next month that is under mounting pressure to stem the tide of outflows at a time of increased regulatory uncertainty for the wealth industry. Perpetual yesterday posted a meagre 2 per cent lift in net profit for the 12 months to June 30, to $140.2 million, as growth in new business in its advice and trustee services units was offset by net outflows in its flagship division. Perpetual Investments saw outflows pick up pace in the second half, dragging funds under management down 2 per cent to $30.8 billion. Net outflows of $2.5bn for the year were mainly due to the institutional side pulling money out, but the master trust and retail segments also experienced net outflows, on a smaller scale. Outflows in the institutional channels were primarily in Australian equities and partially offset by inflows into cash and fixed income. In a warning to investors, Perpetual said the outflows represent future pressure on revenue. The wealth manager earns most of its revenue from fees charged on assets under management, advice or administration. Operating revenue rose 4 per cent to $533.7m in the 2018 financial year. The money bleeding out of its funds also contributed to the below plan outcome for the year, Perpetual said. Management had been targeting a net profit of $143m but fell short by $2.8bn. Interim CEO Chris Green admitted market conditions had been challenging for Perpetual Investments, but said it was investing for the future. We have expanded into new products with the launch of our Ethical SRI Credit Fund, and our Global Share Fund received a recommended rating from Lonsec, he said. The rating upgrade would assist future flows. We re also happy with the performance in the global fund, so overall we remain committed to that strategy. The phrase we use is good things take time to build and we put the global strategy into that. The activity is all building momentum in that business. Would we like more FUM? Yes we would, and the rating will help that. Mr Green said he had been watching the Hayne royal commission closely to identify opportunities for the business. The results were the first reported by Perpetual since former CEO Geoff Lloyd departed in June. Mr Lloyd, who stepped down after five years in the top job and was recently tapped to head up NAB s wealth business, MLC, is credited with staging a turnaround at Perpetual that saw its share price rocket 91 per cent while he was in charge. Mr Adams, meanwhile, will take on the CEO role as the industry is in a state of flux and the share price has dropped 15 per cent in the past six months. While Perpetual Investments came under pressure, its wealth advice business and trustee business delivered double-digital profit growth. Perpetual Private grew profit before tax 14 per cent to $46.1m, as funds under administration rose 5 per cent to $14.1bn. Perpetual Corporate Trust posted profit growth of 16 per cent to $42.6m. This helped push Perpetual s shares 3.5 per cent higher yesterday to $46.03 at the close.

53 The Australian, Australia Author: Cliona O'Dowd Section: Business News Article type : News Item Classification : National : 94,448 Page: 21 Printed Size: cm² Market: National Country: Australia ASR: AUD 5,618 Words: 544 Item ID: Page 2 of 2 Perpetual s funds under management $bn Source: Bloomberg The phrase we use is good things take time to build and we put the global strategy into that. CHRIS GREEN, PERPETUAL

54 Courier Mail, Brisbane Section: Letters Article type : Letter Classification : Capital City Daily : 135,007 Page: 33 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 2,564 Words: 197 Item ID: Page 1 of 1 Rate hike not helping big banks reputation THE Big Four banks reported billions of dollars in profit last financial year and are subject to a royal commission into their misconduct, including knowingly charging customers for services not provided. Despite this, Westpac is leading the way to move interest rates up (C-M, Aug 30), outside any official cash rate changes by the Reserve Bank. With stagnant wage growth, exorbitant fuel prices, above-inflation private health insurance premium rises and household debt soaring, one in three borrowers have no buffer on their home loan repayments despite the historically low cash rate. It s not surprising to hear reports that one in five children have gone hungry and missed out on meals in the past 12 months because of their parents dire financial challenges. No doubt, for everyday Australians, the thin line between banks dealing with international monetary pressures and profiteering is a hard sell. Milvio DiBartolomeo, Wellington Point SHAME on Westpac. How can a bank that makes a half-yearly profit of $4.2 billion increase interest rates by 14 basis points for those with a mortgage? Maybe Westpac s chief executive, Brian Hartzer (pictured), can give some of his $6.7 million yearly salary to help out. Shaun Fardy, Springwood

55 The Australian, Australia Author: James Kirby Section: Business News Article type : News Item Classification : National : 94,448 Page: 27 Printed Size: cm² Market: National Country: Australia ASR: AUD 4,608 Words: 595 Item ID: Page 1 of 1 Government drops the ball on super directors JAMES KIRBY WEALTH EDITOR A government decision to drop plans that would have forced industry funds to have at least one-third independent directors is wrong and, worse still, it is very badly timed: industry funds are now more important than ever. Industry super funds have outperformed all rivals in recent years, but that is certainly not thanks to their board composition. It is everything to do with their asset allocation in other words, where they place their investments in the market. At present many industry super boards are made up of employer and worker representatives in equal numbers. It is this absence of the corporate structures any reasonable investor could expect at billion-dollar organisations that should be a concern. Crucially, the industry funds sector is now the most important institutional sector in super in dollar terms. In the three months to June 30 this year, industry funds total assets hit $631 billion while retail fund assets were $622bn. Moreover, with the industry funds emerging as clear winners from the examination of super by the royal commission into financial services, this pattern can only be expected to continue. The reality is that industry funds have emerged at the top of the super sector for two outstanding reasons First, they are more aggressive investors often with fewer traditionally defensive assets, such as cash, than their rivals. Second, they do not have to make a profit, which makes their costs for customers lower. A statement this week from Industry Funds Australia suggests the current board structures at industry funds are a safe harbour from the toxic culture of bank-owned and other for-profit super funds. But the ultimate examination of whether industry funds are a safe harbour will come when there is a severe global markets downturn. At the time of the global financial crisis, industry funds were seen as leaders in new areas of investing such as infrastructure and other unlisted assets. This model hit trouble for some, such as the motor trades fund MTAA, which was investigated by APRA after it made a $1.7bn loss in The MTAA has since rebounded to become a top fund. Ten years after the GFC, the trend towards new areas of investing where there is less transparency in sectors such as alternatives and private equity continues unabated at industry funds. Many professional investors outside the super industry argue the industry funds are not as defensive as other players in the sector. Cash holdings at leading industry funds are often less than for-profit rivals or for that matter the Future Fund. Usefully for all concerned, there is no legal definition on what is defensive, but industry funds have pushed the definition into untested directions. The original logic, dating to the Cooper Review in 2009, that at least a third of industry super boards be made up of independent directors is entirely sensible. It has been shelved due to fractious politics, not because it was a bad idea. In fact, it would harmonise corporate standards across Australia and ultimately help make the funds become independent of the union movement a move that could widen their appeal to the general public. It may also temper ambitions by industry funds to expand into new areas of investment which, while outperforming others currently, may not be as successful when interest rates are rising around the world. As Future Fund CEO David Neal said this week, rising rates are going to put downward pressure on asset prices a development that will test fund managers in every corner of the superannuation sector.

56 The Australian, Australia Author: Chris Merritt Section: Legal Affairs Article type : News Item Classification : National : 94,448 Page: 24 Printed Size: cm² Market: National Country: Australia ASR: AUD 9,781 Words: 647 Item ID: Page 1 of 2 Future-prepping Telstra solicitors CHRIS MERRITT Since joining Telstra six months ago, Denise Doyle who is not a lawyer has been working with the company s 200 in-house solicitors to transform the way they do business. Ms Doyle is Telstra s legal transformation lead and has a ground in process engineering and project management. She was formerly head of finance transformation at Westpac and has worked at General Electric and Citibank. So why does the legal department of a major company need transforming? If lawyers continue to act and perform in the way that they have for the last 100 years, they probably won t exist in the same capacity in the future, Ms Doyle said. Legal technology is moving at a very, very rapid rate. The number of software vendors that are popping up, or which have been around the last five or so years, is almost doubling or tripling on a daily basis. If an in-house legal team, or even an external law firm, did not look at some of the technologies of the future they would find it difficult to remain sustainable. The coming changes to the practice of law will be one of the main themes at next month s conference on the future of law and innovation in the profession that is being run by the NSW Law Society. Ms Doyle will be one of the panellists alongside some of the nation s leaders in practice management and legal innovation. The conference, on September 14, will feature Daniel Katz, editor of the International Journal of Law and Information Technology and a member of the editorial board of the Artificial Intelligence and the Law journal. Ms Doyle said the growth of artificial intelligence was one of the factors driving the need for lawyers to adapt, but she said other tools were also being developed to help lawyers manage their responsibilities. Her role at Telstra involves working with the in-house team on automation and productivity in order to free them to focus on matters where they can add greater value. She works with an innovation forum of about 20 lawyers who have been developing new ways of delivering legal services. Ms Doyle and the innovation group have automated Telstra s nondisclosure agreements, built legal triage tools and were testing electronic billing technologies. At the moment, they are examining ways of introducing technology to improve the management of legal matters across the business. The most urgent priority was an improved method of matter management, followed by an end-to-end spend management review to give the company greater clarity about its spending with external law firms. That s the next step: taking an end-to-end view of how our lawyers brief external firms, how the firms come and agree to a price, and how the matter is managed and how it is paid for, she said. The legal team s innovation forum is still working on the details of what that project will involve, but Ms Doyle said one of the most important factors was to ensure that any changes met the needs of the legal department s in-house clients. She said it was normal for people to feel curious and a little apprehensive about change but once you can show them what s in it for them, they become more open. The innovation we are embarking on is to improve the day-to-day lives of our lawyers so when they come to work, they enjoy what they re doing instead of doing what we might classify as low-value, low-risk work, Ms Doyle said. They want to get into the meaty stuff. They are very smart people. They want to use brain power.

57 The Australian, Australia Author: Chris Merritt Section: Legal Affairs Article type : News Item Classification : National : 94,448 Page: 24 Printed Size: cm² Market: National Country: Australia ASR: AUD 9,781 Words: 647 Item ID: Page 2 of 2 Denise Doyle, at Telstra s Sydney offices, is the non-lawyer who goes by the title of legal transformation lead The innovation we are embarking on is to improve the day-to-day lives of our lawyers so when they come to work, they enjoy what they re doing. DENISE DOYLE, TELSTRA JOHN FEDER

58 The Australian, Australia Author: Michael Roddan Section: Business News Article type : News Item Classification : National : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 12,044 Words: 788 Item ID: Page 1 of 3 ASIC targets cold-call insurers MICHAEL RODDAN FINANCIAL SERVICES The corporate watchdog is weighing up legal action against a number of life insurers after a damning sector-wide review on cold-calling sales centres, with the industry on notice to end such tactics or face reprisals. The Australian Securities & Investments Commission tolled the bell on outbound call centres, the hallmark of the direct insurance model where policies are sold without financial advice or through superannuation. Direct sales are the fastestgrowing segment of the scandalridden life insurance sector. ASIC s investigation found highly incentivised sales staff were pushing unneeded products on customers who often cancelled the policies or were rejected when they made a claim. The release of the report also sets the stage for the upcoming royal commission round of hearings into insurance, which is dragging one of the country s largest direct insurers, Freedom Insurance, on to the witness stand next month. ASIC chairman James Shipton said the watchdog would ban outbound sales of life and funeral insurance in order to protect consumers. Life insurance is a long-term product, but cancellation rates and poor claim outcomes show that people are being sold products they don t want, can t afford, or don t perform as they expected, Mr Shipton said. ASIC s investigation covered 11 companies including CommInsure, ClearView, NobleOak, Suncorp, TAL, ANZ s OnePath, St Andrew s Life Insurance and its distributor Select AFSL, Hannover Life Re and its distributors Continued on Page 21 FREEDOM INSURANCE DIP P21

59 The Australian, Australia Author: Michael Roddan Section: Business News Article type : News Item Classification : National : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 12,044 Words: 788 Item ID: Page 2 of 3 ASIC targets cold-calling insurers Continued from Page 17 Greenstone Financial Services and Auto & General Services. The Australian understands outbound sales are only currently continued by TAL, Greenstone and Freedom Insurance, which was not included in ASIC s review but is separately being investigated by the regulator for questionable sales tactics. ASIC also demanded that companies stop selling accidental death insurance, after it found the product was largely useless. However, the regulator will need its proposed product intervention powers to take action against companies that defy its orders. Bannister Law principal Charles Bannister said his firm was now investigating a potential class action against the companies involved in ASIC s review over mis-sold insurance. ASIC has instructed all direct life insurance groups to investigate previous sales and compensate customers where necessary. ASIC is now assessing the conduct of individual firms, whether they were part of the review or not, to determine whether or not enforcement action is required. ASIC will use all of its regulatory tools to address failures in this market including through enforcement action and policy reform. We have several investigations underway, Mr Shipton said. The direct life insurance model, where companies sell policies through outbound call centres or through TV advertising, has come under increasing scrutiny since ASIC conducted its landmark review of the $60 billion life insurance sector. Claim rejection rates are notoriously higher in the direct chan- nel, compared to policies sold through advisers or obtained through superannuation. ClearView Wealth, which is also set to appear at the royal commission hearings, last year immediately moved to shut its direct insurance business after ASIC raised concerns with the sale of some policies. We ve seen four landmark reviews of the financial services industry in the last year and the industry needs to think very carefully about their findings and recommendations, and how it will implement changes to ensure better consumer outcomes, ClearView boss Simon Swanson said yesterday. A spokeswoman for TAL said it had engaged with ASIC through its review and was committed to improving its business. Outbound sales represent one channel in our direct life insurance business, and we intend to engage further with ASIC to understand their recommendations in more detail, TAL said. ASIC s direct insurance investigation found that one in five polices was cancelled during the cooling off period. After this, 25 per cent of all policies were cancelled within 12 months and a third of all policies were cancelled within three years. The watchdog tuned into 540 recorded sales calls and found every company involved in its investigation failed to provide important information about the policies, including key exclusions and future premium increases. Four companies were engaging in high-pressure sales tactics. Bonus payments and sales incentives were found in half the companies involved in the probe. Consumer Action Law Centre chief executive Gerard Brody said direct insurance was a lazy and exploitative cash cow. People are being pressured into buying life insurance that they never wanted and that doesn t suit them. It s unethical, it s wrong and it s gone on for too long, Mr Brody said. The Financial Services Council, which represents the sector, said it was working with ASIC and consumer groups to enhance the industry s code of practice, which had not yet been given legal teeth.

60 The Australian, Australia Author: Michael Roddan Section: Business News Article type : News Item Classification : National : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 12,044 Words: 788 Item ID: Page 3 of 3 HOLLIE ADAMS Clearview chief Simon Swanson says the industry needs better customer outcomes

61 The Australian, Australia Author: Richard Gluyas Section: Business News Article type : News Item Classification : National : 94,448 Page: 21 Printed Size: cm² Market: National Country: Australia ASR: AUD 3,617 Words: 412 Item ID: Page 1 of 1 Watchdog s growl could keep banks from following Westpac RICHARD GLUYAS MORTGAGES Heavy scrutiny by the competition regulator could slow the response by other banks to Westpac s very courageous hike in variable mortgage rates earlier this week, a UBS report has said. The report, by Jon Mott, said other banks were not facing the same margin pressure as Westpac, which laid the groundwork for this week s rate hike by revealing last Friday that its net interest margin for the June quarter had slumped by 11 basis points to 2.06 per cent. While the banks generally follow each other in out-of-cycle repricing, we would not be surprised to see the other banks hold off for a few weeks/months as they are not facing the same NIM (net interest margin) pressure as Westpac, and we are aware of the ongoing focus from the ACCC, Mr Mott said. This would also enable the other majors to regain some share. Westpac broke from the pack on Wednesday, announcing a 14- basis-point increase in variable rates for owner-occupied and residential investment property loans due to a sustained increase in wholesale funding costs. Specifically, the move was blamed on adverse movements in the bank bill swap rate, which lifted by 25 basis points between February and March and had remained elevated. Chief executive Brian Hartzer said Westpac had hoped the increase was temporary but it now appeared structural. I have to run the bank for the long term, Mr Hartzer said. Major-bank share prices rallied after Westpac s announcement on the expectation that other lenders would follow Westpac s lead. New federal Treasurer Josh Frydenberg said it was up to Westpac to explain why it had decided to lift interest rates, while Prime Minister Scott Morrison said customers had the option to switch lenders. Mr Mott raised the possibility of a retaliatory move by the government to raise the bank levy from the current 6 basis points. He noted that a similar levy in Britain had been increased nine times. Morgan Stanley analyst Richard Wiles said Westpac s move had opened the way for its rivals to reprice, although they were likely to be less aggressive. Also, some of the margin benefit to the banks was likely to be competed away due to industry discounting of the so-called front book of new borrowers. Mr Wiles pointed to ACCC research that found front-book rates were on average 32 basis points lower than the book of existing borrowers from Regulatory risk, he said, was elevated, given the various inquiries and the looming federal election. Where the big four stand Standard variable rate % ANZ CBA NAB Westpac Source: RateCity

62 Age, Melbourne Author: Sarah Saunders Section: General News Article type : News Item Classification : Capital City Daily : 83,229 Page: 21 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 13,594 Words: 570 Item ID: Page 1 of 1 Let s now tackle super s gender gap Sarah Saunders Today is Equal Pay Day. It highlights how much longer women would need to work at the end of the financial year to catch up to men. With new figures suggesting the gender pay gap is at 14.6 per cent, it marks the closest we have been to closing the pay gap in 20 years. Every year we are reminded that our society has entrenched inequalities that are putting women second. And every year little is done to address the problem. As the story goes, women are dealt a life path full of hurdles making it difficult to ever catch up to their male counterparts. Women are reminded that from the day they step into their first job, more often than not, they will be delivered less. And, when they retire, around 40 per cent of single women find themselves living in poverty. This simply isn t good enough. The pay gap between men and women has sat between 15 per cent and 19 per cent for two decades, with women still paid less than men in many industries. In a system where wages and super are linked, the gender pay gap feeds into the superannuation gap which is around 40 per cent. On average, men are retiring with a median $171,000 in super, and women with $103,000. For women in their 50s or 60s, time is running out to close this gap. The prospect of retiring with little super, now that access to pension has tightened, is a pressing and stressful reality. For women in their 20s and 30s the system must be changed. We all know the problem, but the solution isn t so straightforward. The reality is the gender pay gap will take a combined effort of business, government and the broader community to address. It is up to policy makers to make targeted changes that will ease the impact of the gap into retirement. Superannuation is a long-term proposition, and because of compound interest, small amounts over time add up to significant amounts meaning even relatively small gaps translate into an enormous balance difference at retirement. For women, time taken out of the workforce is a huge factor in superannuation shortfalls. Currently, unlike other forms of paid leave, it is not included in parental leave entitlements. The system is clearly not working. Women should never have to choose between having children and a comfortable retirement. Addressing this issue will lessen the retirement savings impacts of taking time off to care for others. But alone it will not solve the problem. Women are more likely than men to work in insecure and lower-paid work, often falling foul of the $450-a-month wage threshold at which employers must pay superannuation. Scrapping the threshold would ensure that everyone over age 18 who earns a wage, regardless of how small, can also build their super. Another option could be a targeted capital injection directly into low-balance super accounts. Compound earnings from a small super seed or a later life top-up would help ease financial pressures in retirement. The sooner we can rebalance our super system to make it fairer across the board, the better the long-term retirement outcomes for all Australians. The fact that the gender pay gap is the lowest it has been in 20 years is something to celebrate. It s time now to also focus on the super gap. Sarah Saunders is a consumer advocate with Industry Super Australia.

63 Sydney Morning Herald, Sydney Author: JENNIFER DUKE Section: Business News Article type : News Item Classification : Capital City Daily : 88,634 Page: 23 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 16,728 Words: 428 Item ID: Page 1 of 1 Huawei ban slammed as huge loss COMMUNICATIONS Jennifer Duke Australian China Business Council national chief executive Helen Sawczak has called the government s ban on Chinese telecommunications providers involvement in building the 5G networks a huge loss and wants an explanation of the national security concerns behind the decision. The ban, announced last week in a joint statement from Communications Minister Mitch Fifield and Prime Minister Scott Morrison (in his role as Treasurer), was in response to an extensive review of the national security risks to 5G networks. The decision rules out China-based giant Huawei from partnering with Australian telecommunications companies as they rush to roll out the new networks in the next few years. The fifth generation of mobile networks infrastructure is particularly security-sensitive as the technology is expected to open up a new era of connectivity, potentially linking critical infrastructure like electricity and water, along with driverless cars and medical services. The Australian government s decision regarding the 5G rollout still needs to be properly explored with respect to its application to Huawei, and the national security concerns still need to be explained, Ms Sawczak said. The decision to effectively ban Chinese companies from the rollout of 5G in Australia is a huge loss to the Australian telecommunications industry and consumers, with the potential to lessen competition and deprive access to world-leading technology, she Continued Page 25 Huawei ban slammed From Page 23 said in a statement provided to Fairfax Media. Australian China Business Council president John Brumby is an independent director for Huawei and a former Victorian premier. Security experts have been concerned about the possibility of foreign interference, with the possibility of doors into the network. In particular, China s National Intelligence Law that came into effect in June 2017 states all organisations and citizens shall support, assist, and co-operate with national intelligence efforts in accordance with the law. The new 5G rules specifically state that the involvement of companies likely to be subject to extrajudicial directions from a foreign government that conflict with Australian law, may risk failure by the carrier to adequately protect a 5G network from unauthorised access or interference. Ms Sawczak said Chinese companies and individuals had made a significant contribution to Australia s economic prosperity with China s role as the country s No.1 trading partner undoubtedly a factor in Australia s growth. Bilateral trade is now in excess of $183 billion between our two nations, she said. Bilateral trade is a two-way street. If we want Australian companies to prosper in the Chinese market, then we should also treat Chinese companies with respect and transparency when they operate in the Australian market.

64 Age, Melbourne Author: JENNIFER DUKE Section: Business News Article type : News Item Classification : Capital City Daily : 83,229 Page: 23 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 11,692 Words: 428 Item ID: Page 1 of 1 Huawei ban slammed as huge loss COMMUNICATIONS Jennifer Duke Australian China Business Council national chief executive Helen Sawczak has called the government s ban on Chinese telecommunications providers involvement in building the 5G networks a huge loss and wants an explanation of the national security concerns behind the decision. The ban, announced last week in a joint statement from Communications Minister Mitch Fifield and Prime Minister Scott Morrison (in his role as Treasurer), was in response to an extensive review of the national security risks to 5G networks. The decision rules out China-based giant Huawei from partnering with Australian telecommunications companies as they rush to roll out the new networks in the next few years. The fifth generation of mobile networks infrastructure is particularly security-sensitive as the technology is expected to open up a new era of connectivity, potentially linking critical infrastructure like electricity and water, along with driverless cars and medical services. The Australian government s decision regarding the 5G rollout still needs to be properly explored with respect to its application to Huawei, and the national security concerns still need to be explained, Ms Sawczak said. The decision to effectively ban Chinese companies from the rollout of 5G in Australia is a huge loss to the Australian telecommunications industry and consumers, with the potential to lessen competition and deprive access to world-leading technology, she Continued Page 25 Huawei ban slammed From Page 23 said in a statement provided to Fairfax Media. Australian China Business Council president John Brumby is an independent director for Huawei and a former Victorian premier. Security experts have been concerned about the possibility of foreign interference, with the possibility of doors into the network. In particular, China s National Intelligence Law that came into effect in June 2017 states all organisations and citizens shall support, assist, and co-operate with national intelligence efforts in accordance with the law. The new 5G rules specifically state that the involvement of companies likely to be subject to extrajudicial directions from a foreign government that conflict with Australian law, may risk failure by the carrier to adequately protect a 5G network from unauthorised access or interference. Ms Sawczak said Chinese companies and individuals had made a significant contribution to Australia s economic prosperity with China s role as the country s No.1 trading partner undoubtedly a factor in Australia s growth. Bilateral trade is now in excess of $183 billion between our two nations, she said. Bilateral trade is a two-way street. If we want Australian companies to prosper in the Chinese market, then we should also treat Chinese companies with respect and transparency when they operate in the Australian market.

65 Courier Mail, Brisbane Section: QBM Article type : News Item Classification : Capital City Daily : 135,007 Page: 22 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 10,028 Words: 872 Item ID: Page 1 of 2 Q&A SALLY LOANE FINANCIAL SERVICES COUNCIL CHIEF EXECUTIVE OFFICER Former Brisbane school girl Sally Loane has a long history of landing jobs that put her in the hot seat Where did you grow up? I was born and raised on a wool growing property west of Tenterfield, NSW where my family have been graziers in the district for generations. My country childhood involved early home correspondence schooling, then one-teacher bush schools until I went away to high school in the city, and it had a massive influence on me. Being at my father s side as he pulled dying animals from drying dams during droughts, and seeing my mother learn to paint, then sell her artworks to supplement the family income during the lean times on the land, helped fine tune a strong level of resilience. How did you end up as CEO of the FSC? I ve enjoyed a portfolio career which entailed 25 years as a journalist and broadcaster across the nation s biggest media titles. My next move was to Coca- Cola Amatil, where I spent nine years learning about the manufacturing and marketing of fast-moving consumer goods. In 2014 I was head hunted to succeed John Brogden as CEO of the Financial Services Council I guess you could say I m always up for a challenge, and enjoy steep learning curves. What do you tell people who say they don t trust financial advisers? I ask if they ve ever had a relationship with one. It s really important more people get financial advice as we have an ageing population that needs to save for retirement. Having a professional help you navigate the complicated tax and super rules, help you budget and manage your wealth, will have a significant positive impact on the quality of your life. I have a financial adviser and I rely on them to guide me through complex rules to ensure I can (one day) enjoy a comfortable retirement. What is your view about how large organisations can recoup/maintain their standing? The financial services sector has faced enormous public and regulatory scrutiny over the last decade and numerous reviews which have brought about significant reforms. When there have been shocks, as with the current Royal Commission, it can take time for the public to gain confidence that big financial institutions are doing the right thing and put the interests of consumers first. People need to understand that our system is far from broken. We have some of the best performing and best capitalised banks in the world, our superannuation system is ranked third best in the world and our fund managers have a stellar reputation internationally. What has been your reaction to the current banking Royal Commission. I covered many royal commissions as a journalist and they almost always led to change which benefits consumers. I would expect many of Commissioner Haynes recommendations to be adopted by the banking, superannuation and financial sectors. What does the Australian super landscape look like going forward? I m passionate about superannuation and in particular helping younger people to understand it and engage with it. We have a system today which is largely a product of the old-fashioned industrial relations system that was modelled, 26 years ago, on the full-time male worker who spent his time in just one or two jobs. That is patently no longer fit for purpose. We need a system which puts the consumer at the heart of the decision making process, not the employer or union. We have to uncouple the system from industrial relations. Women retire with around half the superannuation of men, so I m also very focused on helping women close the gender super gap. What changes to the financial service

66 Courier Mail, Brisbane Section: QBM Article type : News Item Classification : Capital City Daily : 135,007 Page: 22 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 10,028 Words: 872 Item ID: Page 2 of 2 industry is FSC currently lobbying for? Australia needs a new, fit for purpose Super 2.0 system where every Australian is free to choose and manage their own superannuation fund. Currently our funds management industry only sources about 3.5 per cent of the assets it manages from overseas that compares to around 60 per cent in Hong Kong. We have to close that gap. The FSC has advocated for many years for an Asia Region Funds Passport which, from a regulatory perspective, will allow overseas consumers to invest in Australian funds as though they were based here. In advice, we re committed to ensuring that financial advice becomes a profession. Life insurance is part-way through some of the biggest changes in its history, with high up front commissions being phased out and many other reforms now in place. I guess you could say I m always up for a challenge, and enjoy steep learning curves What has been your favourite career/role? Radio broadcasting was great fun because you develop an intimate relationship with your (unseen) audience. Now shaping and helping deliver good public policy for financial services, which will be a legacy for generations, is extremely rewarding. Do you have a motto you live/work by? Work hard, don t whinge and take responsibility if you make a mistake. Play hard and have fun too because none of us is getting out of here alive. What was your first job? Unpaid mustering sheep with Dad. Paid waitressing, as a uni student, at Top of the Town, a now defunct revolving restaurant in Brisbane.

67 Gympie Times, Gympie QLD Section: General News Article type : News Item Classification : Regional : 2,997 Page: 20 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 193 Words: 407 Item ID: Page 1 of 1 Westpac plays lone hand Analyst expects rest of Big Four to hold rates WESTPAC S major rivals may not rush to follow the lender s move to raise mortgage rates, with regulators glare and the threat of an increased bank levy keeping them on hold, according to one leading analyst. Westpac plans to raise variable home loan rates by 0.14 percentage points from September 19, due to increased wholesale funding costs. That caused the Australian dollar to drop on speculation Commonwealth Bank, National Australia Bank and ANZ would follow suit, forcing the Reserve Bank of Australia to offset rises by cutting a cash rate that has stood at a record low 1.5 per cent since But UBS analyst Jonathan Mott said the contraction in Westpac s net interest margin had been greater than that experienced by its rivals because it pursued growth more aggressively up until June. Mr Mott said they were not under the same pressure to raise rates, while the consumer watchdog s brief to ensure lenders did not pass on the cost of the Federal Government s bank levy could also help keep them in check. While the banks generally follow each other in out-ofcycle repricing, we would not be surprised to see the other banks hold off for a few weeks/ months, Mr Mott wrote in a note released yesterday. A spike in the funding costs had prompted several analysts to predict mortgage rate hikes by banks earlier this year but, faced with public anger over a series of malpractices, the country s major banks had refrained from passing on the cost. Mr Mott noted that the ongoing royal commission, which has publicly flagged poor behaviour by big banks, and previous criticism from Scott Morrison (pictured) prior to his becoming prime minister will also put pressure on other lenders not to raise rates. If the major banks all reprice their mortgage books, one response from the Government may be to increase the bank levy, Mr Mott wrote. In the UK, the bank levy was increased on nine occasions. Westpac on Wednesday said its variable mortgage rate for owner-occupier properties would increase to 5.38 per cent per annum for customers with principal and interest repayments, while the rate for residential investment properties would go up to 5.93 per cent. Shares in Westpac were 0.45 per cent lower at midday yesterday, making them the worst performing of the big four banks. CBA was the next worst performer with a 0.17 per cent decline.

68 Daily Mercury, Mackay QLD Section: General News Article type : News Item Classification : Regional : 7,738 Page: 30 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 264 Words: 407 Item ID: Page 1 of 1 Westpac plays lone hand Analyst expects rest of Big Four to hold rates WESTPAC S major rivals may not rush to follow the lender s move to raise mortgage rates, with regulators glare and the threat of an increased bank levy keeping them on hold, according to one leading analyst. Westpac plans to raise variable home loan rates by 0.14 percentage points from September 19, due to increased wholesale funding costs. That caused the Australian dollar to drop on speculation Commonwealth Bank, National Australia Bank and ANZ would follow suit, forcing the Reserve Bank of Australia to offset rises by cutting a cash rate that has stood at a record low 1.5 per cent since But UBS analyst Jonathan Mott said the contraction in Westpac s net interest margin had been greater than that experienced by its rivals because it pursued growth more aggressively up until June. Mr Mott said they were not under the same pressure to raise rates, while the consumer watchdog s brief to ensure lenders did not pass on the cost of series of malpractices, the country s major banks had refrained from passing on the cost. Mr Mott noted that the ongoing royal commission, which has publicly flagged poor behaviour by big banks, and previous criticism from Scott Morrison (pictured) prior to his becoming prime minister will also put pressure on other lenders not to raise rates. If the major banks all reprice their mortgage books, one response from the Government may be to increase the bank levy, Mr Mott wrote. In the UK, the bank levy was increased on nine occasions. Westpac on Wednesday said its variable mortgage rate for owner-occupier properties would increase to 5.38 per cent per annum for customers with principal and interest repayments, while the rate for residential investment properties would go up to 5.93 per cent. Shares in Westpac were 0.45 per cent lower at midday yesterday, making them the worst performing of the big four banks. CBA was the next worst performer with a 0.17 per cent decline. the Federal Government s bank levy could also help keep them in check. While the banks generally follow each other in out-ofcycle repricing, we would not be surprised to see the other banks hold off for a few weeks/ months, Mr Mott wrote in a note released yesterday. A spike in the funding costs had prompted several analysts to predict mortgage rate hikes by banks earlier this year but, faced with public anger over a

69 News Mail, Bundaberg QLD Section: General News Article type : News Item Classification : Regional : 6,176 Page: 27 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 229 Words: 407 Item ID: Page 1 of 1 Westpac plays lone hand Analyst expects rest of Big Four to hold rates WESTPAC S major rivals may not rush to follow the lender s move to raise mortgage rates, with regulators glare and the threat of an increased bank levy keeping them on hold, according to one leading analyst. Westpac plans to raise variable home loan rates by 0.14 percentage points from September 19, due to increased wholesale funding costs. That caused the Australian dollar to drop on speculation Commonwealth Bank, National Australia Bank and ANZ would follow suit, forcing the Reserve Bank of Australia to offset rises by cutting a cash rate that has stood at a record low 1.5 per cent since But UBS analyst Jonathan Mott said the contraction in Westpac s net interest margin had been greater than that experienced by its rivals because it pursued growth more aggressively up until June. Mr Mott said they were not under the same pressure to raise rates, while the consumer watchdog s brief to ensure lenders did not pass on the cost of series of malpractices, the country s major banks had refrained from passing on the cost. Mr Mott noted that the ongoing royal commission, which has publicly flagged poor behaviour by big banks, and previous criticism from Scott Morrison (pictured) prior to his becoming prime minister will also put pressure on other lenders not to raise rates. If the major banks all reprice their mortgage books, one response from the Government may be to increase the bank levy, Mr Mott wrote. In the UK, the bank levy was increased on nine occasions. Westpac on Wednesday said its variable mortgage rate for owner-occupier properties would increase to 5.38 per cent per annum for customers with principal and interest repayments, while the rate for residential investment properties would go up to 5.93 per cent. Shares in Westpac were 0.45 per cent lower at midday yesterday, making them the worst performing of the big four banks. CBA was the next worst performer with a 0.17 per cent decline. the Federal Government s bank levy could also help keep them in check. While the banks generally follow each other in out-ofcycle repricing, we would not be surprised to see the other banks hold off for a few weeks/ months, Mr Mott wrote in a note released yesterday. A spike in the funding costs had prompted several analysts to predict mortgage rate hikes by banks earlier this year but, faced with public anger over a

70 Queensland Times, Ipswich QLD Section: General News Article type : News Item Classification : Regional : 6,256 Page: 24 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 229 Words: 407 Item ID: Page 1 of 1 Westpac plays lone hand Analyst expects rest of Big Four to hold rates WESTPAC S major rivals may not rush to follow the lender s move to raise mortgage rates, with regulators glare and the threat of an increased bank levy keeping them on hold, according to one leading analyst. Westpac plans to raise variable home loan rates by 0.14 percentage points from September 19, due to increased wholesale funding costs. That caused the Australian dollar to drop on speculation Commonwealth Bank, National Australia Bank and ANZ would follow suit, forcing the Reserve Bank of Australia to offset rises by cutting a cash rate that has stood at a record low 1.5 per cent since But UBS analyst Jonathan Mott said the contraction in Westpac s net interest margin had been greater than that experienced by its rivals because it pursued growth more aggressively up until June. Mr Mott said they were not under the same pressure to raise rates, while the consumer watchdog s brief to ensure lenders did not pass on the cost of series of malpractices, the country s major banks had refrained from passing on the cost. Mr Mott noted that the ongoing royal commission, which has publicly flagged poor behaviour by big banks, and previous criticism from Scott Morrison (pictured) prior to his becoming prime minister will also put pressure on other lenders not to raise rates. If the major banks all reprice their mortgage books, one response from the Government may be to increase the bank levy, Mr Mott wrote. In the UK, the bank levy was increased on nine occasions. Westpac on Wednesday said its variable mortgage rate for owner-occupier properties would increase to 5.38 per cent per annum for customers with principal and interest repayments, while the rate for residential investment properties would go up to 5.93 per cent. Shares in Westpac were 0.45 per cent lower at midday yesterday, making them the worst performing of the big four banks. CBA was the next worst performer with a 0.17 per cent decline. the Federal Government s bank levy could also help keep them in check. While the banks generally follow each other in out-ofcycle repricing, we would not be surprised to see the other banks hold off for a few weeks/ months, Mr Mott wrote in a note released yesterday. A spike in the funding costs had prompted several analysts to predict mortgage rate hikes by banks earlier this year but, faced with public anger over a

71 Sydney Morning Herald, Sydney Author: Clancy Yeates Section: General News Article type : News Item Classification : Capital City Daily : 88,634 Page: 11 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 31,774 Words: 507 Item ID: Page 1 of 2 INTEREST RATES Banks in line for $1b profit lift Clancy Yeates The big four banks stand to boost their combined profits by about $1 billion if they all match Westpac s mortgage interest rate increase. But experts are divided over whether Westpac s rivals will follow the bank s Wednesday rate hike as quickly as such changes have often occurred in the past, a pattern the competition regulator has dubbed the fast follower approach. Heightened scrutiny from regulators, fear of a political lash, and the potential for rivals to pinch some of Westpac s customers are all factors that make some believe the major banks will be more wary about hiking rates in concert this time around. Prime Minister Scott Morrison highlighted the potential for increased competition on Thursday, telling customers to ditch their bank if they were unhappy with their home loan rate. If you don t like what Westpac has done, go to another bank, because competition is the key to a more competitive and stronger and more accountable banking system, Mr Morrison said. Citing higher funding costs, Westpac lifted its mortgage rates by 0.14 percentage points on Wednesday, a move that analysts estimate was worth up to about $320 million, or 3 to 4 per cent in annual profit to the bank. Deutsche Bank analyst Anthony Hoo said that if National Australia Bank, ANZ Bank and Commonwealth Bank raised mortgage rates by the same amount, they would see a 3 per cent lift in profits which would take the big four s combined gain to about $1 billion. This potential increase, however, comes after profit margins have been dragged down over the past six months by a sharp lift in funding costs, which Westpac said was likely to be sustained. Group executive for financial services at Canstar, Steve Mickenbecker, said the rise in banks icosts th was idclear i in thewidening gap between inter-bank wholesale lending rates and official interest rates set by the Reserve Bank. The difference between these two types of rates has roughly doubled in the past year, and is way above its seven-year average, he pointed out. Little wonder that banks are moving while the RBA is holding rates, Mr Mickenbecker said. They re all subject to the same funding market, and now that Westpac has broken the ice, you would have to expect the rest of the big four to dip their toes in, he said. UBS analyst Jonathan Mott, however, said Westpac s profit margins had been crunched more than those of its rivals due to its aggressive loan growth in recent months. With its rivals facing less pressure on their profits, they might take the opportunity to grab market share from Westpac. While the banks generally follow each other in out-of-cycle repricing, we would not be surprised to see the other banks hold off for a few weeks/months, Mr Mott wrote. Before its interest rate change, Westpac last week revealed its profit margins had contracted sharply in the June quarter, and about half the decline was because of higher funding costs. The only way is up BUSINESS Page 22

72 Sydney Morning Herald, Sydney Author: Clancy Yeates Section: General News Article type : News Item Classification : Capital City Daily : 88,634 Page: 11 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 31,774 Words: 507 Item ID: Page 2 of 2 Caption Photo: Jamie Davies

73 Age, Melbourne Author: Clancy Yeates Section: General News Article type : News Item Classification : Capital City Daily : 83,229 Page: 8 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 11,580 Words: 451 Item ID: Page 1 of 1 Banks could get $1b boost from copying rate hike Clancy Yeates The big four banks stand to boost their combined profits by about $1 billion if they all match Westpac s mortgage interest rate increase. But experts are divided over whether Westpac s rivals will follow the bank s Wednesday rate hike as quickly as such changes have often occurred in the past, a pattern the competition regulator has dubbed the fast follower approach. Heightened scrutiny from regulators, fear of a political lash, NATAGE A008 and the potential for rivals to pinch some of Westpac s customers are all factors that make some believe the major banks will be more wary about lifting rates in concert this time around. Prime Minister Scott Morrison highlighted the potential for increased competition yesterday, telling customers to ditch their bank if they were unhappy with their home loan rate: If you don t like what Westpac has done, go to another bank, because competition is the key to a more competitive and stronger and more accountable banking system. Citing higher funding costs, Westpac lifted its mortgage rates by 0.14 percentage points on Wednesday, a move that analysts estimate was worth up to about $320 million, or 3 to 4 per cent in annual profit to the bank. Deutsche Bank analyst Anthony Hoo said that if National Australia Bank, ANZ Bank and Commonwealth Bank raised mortgage rates by the same amount, they would see a 3 per cent lift in profits which would take the big four s combined gain to about $1 billion. This potential increase, however, comes after profit margins have been dragged down over the past six months by a sharp lift in funding costs, which Westpac said was likely to be sustained. Group executive for financial services at Canstar, Steve Mickenbecker, said the rise in banks costs was clear in the widening gap between inter-bank wholesale lending rates and official interest rates set by the Reserve Bank. The difference between these two types of rates has roughly doubled in the past year, and is way above its seven-year average, he pointed out. Little wonder banks are moving while the RBA is holding rates, Mr Mickenbecker said. They re all subject to the same funding market, and now that Westpac has broken the ice, you would have to expect the rest of the big four to dip their toes in. UBS analyst Jonathan Mott, however, said Westpac s profit margins had been crunched more than rivals due to its aggressive loan growth in recent months. With its rivals facing less pressure on profits, they might take the opportunity to grab market share from Westpac. While the banks generally follow each other in out-of-cycle repricing, we would not be surprised to see the other banks hold off for a few weeks/months, he wrote.

74 Gladstone Observer, Gladstone QLD Section: General News Article type : News Item Classification : Regional : 3,301 Page: 31 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 229 Words: 407 Item ID: Page 1 of 1 Westpac plays lone hand Analyst expects rest of Big Four to hold rates WESTPAC S major rivals may not rush to follow the lender s move to raise mortgage rates, with regulators glare and the threat of an increased bank levy keeping them on hold, according to one leading analyst. Westpac plans to raise variable home loan rates by 0.14 percentage points from September 19, due to increased wholesale funding costs. That caused the Australian dollar to drop on speculation Commonwealth Bank, National Australia Bank and ANZ would follow suit, forcing the Reserve Bank of Australia to offset rises by cutting a cash rate that has stood at a record low 1.5 per cent since But UBS analyst Jonathan Mott said the contraction in Westpac s net interest margin had been greater than that experienced by its rivals because it pursued growth more aggressively up until June. Mr Mott said they were not under the same pressure to raise rates, while the consumer watchdog s brief to ensure lenders did not pass on the cost of series of malpractices, the country s major banks had refrained from passing on the cost. Mr Mott noted that the ongoing royal commission, which has publicly flagged poor behaviour by big banks, and previous criticism from Scott Morrison (pictured) prior to his becoming prime minister will also put pressure on other lenders not to raise rates. If the major banks all reprice their mortgage books, one response from the Government may be to increase the bank levy, Mr Mott wrote. In the UK, the bank levy was increased on nine occasions. Westpac on Wednesday said its variable mortgage rate for owner-occupier properties would increase to 5.38 per cent per annum for customers with principal and interest repayments, while the rate for residential investment properties would go up to 5.93 per cent. Shares in Westpac were 0.45 per cent lower at midday yesterday, making them the worst performing of the big four banks. CBA was the next worst performer with a 0.17 per cent decline. the Federal Government s bank levy could also help keep them in check. While the banks generally follow each other in out-ofcycle repricing, we would not be surprised to see the other banks hold off for a few weeks/ months, Mr Mott wrote in a note released yesterday. A spike in the funding costs had prompted several analysts to predict mortgage rate hikes by banks earlier this year but, faced with public anger over a

75 Canberra Times, Canberra Author: Clancy Yeates Section: Business News Article type : News Item Classification : Capital City Daily : 17,579 Page: 34 Printed Size: cm² Market: ACT Country: Australia ASR: AUD 4,662 Words: 347 Item ID: Page 1 of 1 ASIC slams aggressive sales tactics LIFE INSURANCE Clancy Yeates Pressure tactics and bonus schemes that prioritise new sales are causing some customers to take out life insurance policies they may not want or need, and which may not cover them as expected, the corporate watchdog says. The Australian Securities and Investments Commission yesterday unveiled plans to ban life insurance companies from directly selling their policies to consumers through outbound sales calls, after a critical review uncovered a wide range of poor practices in the sector. After listening to 540 recorded sales calls for life insurance sold directly, the watchdog said some firms engaged in aggressive sales tactics, often pushing poorly designed products that were of questionable value to customers. The review of direct life insurance sales as opposed to cover sold via an adviser or a super fund also found more than half of all policies were cancelled within three years. Life insurance sold in this way is also much more likely to be rejected if a claim is made. Life insurance is a long-term product but cancellation rates and poor claim outcomes show that people are being sold products they don t want, can t afford, or don t perform as they expected, ASIC chairman James Shipton, said. ASIC reviewed 11 life insurance firms who sell insurance directly via cold calls, internet campaigns, or through branches, after a 2016 review highlighted the high rejection rates in this part of the market. Its report found that consumer outcomes were poor. One in five policies taken out were cancelled in the cooling-off period, and almost half of all policies held beyond the cooling-off period were lapsing within three years. There was a clear link between these poor outcomes for customers, and the dodgy sales practices, it said, claiming some of the companies used tactics to flog insurance that customers could not afford or did not want. Staff incentives were also problematic, with more than half of the businesses reviewed using incentive schemes that encourage staff to focus on closing a deal, rather than thinking about if the policy was right for the customer. ASIC chairman James Shipton.

76 Canberra Times, Canberra Author: Sarah Saunders Section: General News Article type : News Item Classification : Capital City Daily : 17,579 Page: 18 Printed Size: cm² Market: ACT Country: Australia ASR: AUD 8,478 Words: 622 Item ID: Page 1 of 1 Closing nation s gender wage gap is imperative but we need further action to close super gap Sarah Saunders Friday is Equal Pay Day. It highlights how much longer women would need to work at the end of the financial year to catch up to men. With new figures suggesting the gender pay gap is at 14.6 per cent, it marks the closest we have been to closing the pay gap in 20 years. Every year we are reminded that our society has entrenched inequalities that are putting women second. And every year little is done to address the problem. As the story goes, women are dealt a life path full of hurdles making it difficult to ever catch up to their male counterparts. Women are reminded that from the day they step into their first job, more often than not, they will be delivered less. And, when the time comes to retire, currently about 40 per cent of single women find themselves living in poverty. This simply isn t good enough. The pay gap between men and women has sat between 15 per cent and 19 per cent for two decades, with women still paid less than men in many industries. In a system where wages and super are linked, the gender pay gap feeds into the superannuation gap which, at the moment, is about 40 per cent. On average, men are retiring with a median $171,000 in super, and women with $103,000. For women in their 50s or 60s, time is running out to close this gap. The prospect of retiring with little super, now that access to pension has tightened, is a pressing and stressful reality. For women in their 20s and 30s the system must be changed. We all know the problem, but the solution isn t so straightforward. The reality is the gender pay gap will take a combined effort of business, government and the broader community to address. It is up to policy makers to make targeted changes that will ease the impact of the gap into retirement. Superannuation is a long-term proposition, and because of compound interest, small amounts over time add up to significant amounts meaning even relatively small gaps translate into enormous balance difference at retirement. For women, time taken out of the workforce is a huge factor in superannuation shortfalls. Currently, unlike other forms of paid leave, it is not included in parental leave entitlements. The system is clearly not working. Women should never have to choose between having children and a comfortable retirement. Addressing this issue will lessen the retirement savings impacts of taking time off to care for others. But alone it will not solve the problem. Women are more likely than men to work in insecure and lowerpaid work, as they make up the majority of part-time or casual workers. And these types of workers often fall foul of the $450 a month wage threshold at which employers must pay superannuation. Scrapping the threshold would ensure that everyone over age 18 who earns a wage, regardless how small, can also build their super. Another option could be a targeted capital injection directly into low-balance super accounts. Compound earnings from a small super seed or a later life top-up would help ease financial pressures in retirement. Policy solutions like these will deliver for women. The sooner we can rebalance our super system to make it fairer across the board, the better the long-term retirement outcomes for all Australians. The fact that the gender pay gap is the lowest it has been in 20 years is something to celebrate. It s time now to also focus on the super gap. Sarah Saunders is Industry Super Australia s Canberra-based head of consumer advocacy. The sooner we can rebalance our super system... the better the long-term retirement outcomes for all Australians.

77 Age, Melbourne Author: Clancy Yeates Section: Business News Article type : News Item Classification : Capital City Daily : 83,229 Page: 25 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 14,937 Words: 370 Item ID: Page 1 of 2 ASIC slams aggressive sales tactics LIFE INSURANCE Clancy Yeates Pressure tactics and bonus schemes that prioritise new sales are causing some customers to take out life insurance policies they may not want or need, and which may not cover them as expected, the corporate watchdog says. The Australian Securities and Investments Commission yesterday unveiled plans to ban life insurance companies from directly selling their policies to consumers through outbound sales calls, after a critical review uncovered a wide range of poor practices in the sector. After listening to 540 recorded sales calls for life insurance sold directly, the watchdog said some firms engaged in aggressive sales tactics, often pushing poorly designed products that were of questionable value to customers. The review of direct life insurance sales as opposed to cover sold via an adviser or a super fund also found more than half of all policies were cancelled within three years. Life insurance sold in this way is also much more likely to be rejected if a claim is made. Life insurance is a long-term product but cancellation rates and poor claim outcomes show that people are being sold products they don t want, can t afford, or don t perform as they expected, ASIC chairman James Shipton, said. ASIC reviewed 11 life insurance firms who sell insurance directly via cold calls, internet campaigns, or through branches, after a 2016 review highlighted the high rejection rates in this part of the market. Its report found that consumer outcomes were poor. One in five policies taken out were cancelled in the cooling-off period, and almost half of all policies held beyond the cooling-off period were lapsing within three years. There was a clear link between these poor outcomes for customers, and the dodgy sales practices, it said, claiming some of the companies used tactics to flog insurance that customers could not afford or did not want. Staff incentives were also problematic, with more than half of the businesses reviewed using incentive schemes that encourage staff to focus on closing a deal, rather than thinking about if the policy was right for the customer. People are being sold products they don t want, can t afford, or don t perform as they expected. ASIC chairman James Shipton

78 Age, Melbourne Author: Clancy Yeates Section: Business News Article type : News Item Classification : Capital City Daily : 83,229 Page: 25 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 14,937 Words: 370 Item ID: Page 2 of 2 ASIC chairman James Shipton. Photo: Pat Scala

79 Hobart Mercury, Hobart Author: Peter Trute Section: Business News Article type : News Item Classification : Capital City Daily : 28,265 Page: 21 Printed Size: cm² Market: TAS Country: Australia ASR: AUD 1,402 Words: 392 Item ID: Page 1 of 1 Surprise dive for business investment PETER TRUTE AUSTRALIAN business investment took a surprise fall the past quarter as miners spent less on projects. But companies have broadly upgraded their spending plans for the coming year in a positive sign for the economy, the statistics indicate. Business investment fell 2.5 per cent in the three months to June, well short of market expectations for a 0.6 per cent rise. The figures are from the Australian Bureau of Statistics cover investment in capital goods, which include buildings, other structures, machinery and equipment. Spending on equipment, plant and machinery fell 0.9 per cent and will prove a small drag on the economic growth figures for the quarter that are due next week. Those statistics are expected to reveal Australia s $1.8 trillion economy, measured by gross domestic product, expanded between 0.6 per cent and 1 per cent in the three months to June. Bank of Melbourne economist Janu Chan said mining and non-mining investment intentions were somewhat disappointing. We are still yet to see the end of the downturn in mining investment, although the drag on the economy is continuing to lessen, Ms Chan said. ANZ economist Daniel Gradwell said in a report that the ABS figures released yesterday were soft, but should perhaps be considered in the context of the strength of the previous 12 months. Plant and equipment spending had increased over 10 per cent in the year to March, and even after the weak secondquarter result, annual growth remains elevated, he said. The statistics indicated the outlook for the period ahead was positive, with companies upwardly revising spending plans for the new financial year. Official estimates have businesses spending $102 billion over the year to next June 1.1 per cent lower than forecast a year ago but 16.1 per cent higher than estimated three months ago. The Reserve Bank has been optimistic on investment thanks to booming public spending on infrastructure. Mining investment has steadied after years of decline and home building has been a source of strength, with statistics out last week showing a surprising jump in construction work in the June quarter. Separate figures released yesterday showed the number of new houses and flats approved for development last month skidded 5.2 per cent. The Aussie dollar was buying US72.82c last night, down from US72.99c before the ABS released the clutch of statistics at 11.30am. AAP, Reuters

80 Morning Bulletin, Rockhampton QLD Section: General News Article type : News Item Classification : Regional : 9,376 Page: 53 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 264 Words: 407 Item ID: Page 1 of 1 Westpac plays lone hand Analyst expects rest of Big Four to hold rates WESTPAC S major rivals may not rush to follow the lender s move to raise mortgage rates, with regulators glare and the threat of an increased bank levy keeping them on hold, according to one leading analyst. Westpac plans to raise variable home loan rates by 0.14 percentage points from September 19, due to increased wholesale funding costs. That caused the Australian dollar to drop on speculation Commonwealth Bank, National Australia Bank and ANZ would follow suit, forcing the Reserve Bank of Australia to offset rises by cutting a cash rate that has stood at a record low 1.5 per cent since But UBS analyst Jonathan Mott said the contraction in Westpac s net interest margin had been greater than that experienced by its rivals because it pursued growth more aggressively up until June. Mr Mott said they were not under the same pressure to raise rates, while the consumer watchdog s brief to ensure lenders did not pass on the cost of series of malpractices, the country s major banks had refrained from passing on the cost. Mr Mott noted that the ongoing royal commission, which has publicly flagged poor behaviour by big banks, and previous criticism from Scott Morrison (pictured) prior to his becoming prime minister will also put pressure on other lenders not to raise rates. If the major banks all reprice their mortgage books, one response from the Government may be to increase the bank levy, Mr Mott wrote. In the UK, the bank levy was increased on nine occasions. Westpac on Wednesday said its variable mortgage rate for owner-occupier properties would increase to 5.38 per cent per annum for customers with principal and interest repayments, while the rate for residential investment properties would go up to 5.93 per cent. Shares in Westpac were 0.45 per cent lower at midday yesterday, making them the worst performing of the big four banks. CBA was the next worst performer with a 0.17 per cent decline. the Federal Government s bank levy could also help keep them in check. While the banks generally follow each other in out-ofcycle repricing, we would not be surprised to see the other banks hold off for a few weeks/ months, Mr Mott wrote in a note released yesterday. A spike in the funding costs had prompted several analysts to predict mortgage rate hikes by banks earlier this year but, faced with public anger over a

81 West Australian, Perth Author: Shane Wright Section: General News Article type : News Item Classification : Capital City Daily : 147,676 Page: 10 Printed Size: cm² Market: WA Country: Australia ASR: AUD 8,818 Words: 387 Item ID: Page 1 of 2 Bank rate lift down to growth in the US Shane Wright Economics Editor Analysis Righteous anger at the nation s banks might feel good but it is not going to accomplish a great deal. The decision by Westpac, about to be followed by the other big banks, to lift all its mortgage interest rates could not come at a worse time. The improvement in the US economy, where interest rates are already rising, has rippled through international money markets to the point the overseas cash relied on by the major banks is more expensive. That s the reason Westpac has lifted rates despite the official cash rate not moving. Those looking for more sinister reasons should go elsewhere. Even the major banks know the last thing they need as the royal commission pulls apart every one of their dodgy actions is another reason to drive customers away and populist politicians into kneejerk reactions. Smaller banks have, over the past two months, increased their mortgage lending rates. The big banks have had the ability to withstand that pressure but not any longer. The problem now is one for the Reserve Bank and the Morrison Government. The Reserve has always said that it sets its cash rate with an eye to what commercial banks will set as their mortgage rates. But markets, and key members of the Reserve, have been pushing out expectations of a change in the official cash rate for some time. Many are not expecting a lift until The Westpac decision makes that more difficult. On top of the issues playing out in the nation s main property markets, there are stagnant wages, record high household debt, regulator efforts to wind investor activity and the uncertainty created by the leadership turmoil in Canberra. Households are key to the continuing strength of the Australian economy. With one-third of the working population not getting a pay rise for the past year, the Westpac decision especially if followed by the other banks is a real risk to local economic activity. It means the Reserve has to think about holding rates even longer and for the Morrison Government it gives the voters another reason to whack it around the ears. Voters unimpressed by the events of recent weeks were already grumpy because wages have not grown. Something as measurable as an increase in the monthly mortgage repayment will just leave them more ill-tempered.

82 West Australian, Perth Author: Shane Wright Section: General News Article type : News Item Classification : Capital City Daily : 147,676 Page: 10 Printed Size: cm² Market: WA Country: Australia ASR: AUD 8,818 Words: 387 Item ID: Page 2 of 2 UNDER PRESSURE The big four banks variable rates* Commonwealth 5.22% SOURCE: S&P GLOBAL Westpac 5.38% NAB 5.24% ANZ 5.2% *From September 19 HIGHEST ARREARS RATES IN WA* Byford 3.86% 5.99% Beechboro 2.03% 5.8% Port Kennedy 2.68% 5.41% Safety Bay 3.28% 4.9% Butler 5.26% 4.83% High Wycombe 1.71% 4.82% Kalgoorlie 3.79% 4.6% Maddington 3.11% 4.54% South Perth 1.58% 4.03% Quinns Rocks 3.07% 4.02% * Proportion of mortgages where someone is at least 30 days behind

83 Sunshine Coast Daily, Maroochydore QLD Section: General News Article type : News Item Classification : Regional : 10,046 Page: 33 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 280 Words: 407 Item ID: Page 1 of 1 Westpac plays lone hand Analyst expects rest of Big Four to hold rates WESTPAC S major rivals may not rush to follow the lender s move to raise mortgage rates, with regulators glare and the threat of an increased bank levy keeping them on hold, according to one leading analyst. Westpac plans to raise variable home loan rates by 0.14 percentage points from September 19, due to increased wholesale funding costs. That caused the Australian dollar to drop on speculation Commonwealth Bank, National Australia Bank and ANZ would follow suit, forcing the Reserve Bank of Australia to offset rises by cutting a cash rate that has stood at a record low 1.5 per cent since But UBS analyst Jonathan Mott said the contraction in Westpac s net interest margin had been greater than that experienced by its rivals because it pursued growth more aggressively up until June. Mr Mott said they were not under the same pressure to raise rates, while the consumer watchdog s brief to ensure lenders did not pass on the cost of series of malpractices, the country s major banks had refrained from passing on the cost. Mr Mott noted that the ongoing royal commission, which has publicly flagged poor behaviour by big banks, and previous criticism from Scott Morrison (pictured) prior to his becoming prime minister will also put pressure on other lenders not to raise rates. If the major banks all reprice their mortgage books, one response from the Government may be to increase the bank levy, Mr Mott wrote. In the UK, the bank levy was increased on nine occasions. Westpac on Wednesday said its variable mortgage rate for owner-occupier properties would increase to 5.38 per cent per annum for customers with principal and interest repayments, while the rate for residential investment properties would go up to 5.93 per cent. Shares in Westpac were 0.45 per cent lower at midday yesterday, making them the worst performing of the big four banks. CBA was the next worst performer with a 0.17 per cent decline. the Federal Government s bank levy could also help keep them in check. While the banks generally follow each other in out-ofcycle repricing, we would not be surprised to see the other banks hold off for a few weeks/ months, Mr Mott wrote in a note released yesterday. A spike in the funding costs had prompted several analysts to predict mortgage rate hikes by banks earlier this year but, faced with public anger over a

84 Gold Coast Bulletin, Gold Coast QLD Section: General News Article type : News Item Classification : Regional : 21,468 Page: 28 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 1,790 Words: 407 Item ID: Page 1 of 1 Westpac plays lone hand Analyst expects rest of Big Four to hold rates WESTPAC S major rivals may not rush to follow the lender s move to raise mortgage rates, with regulators glare and the threat of an increased bank levy keeping them on hold, according to one leading analyst. Westpac plans to raise variable home loan rates by 0.14 percentage points from September 19, due to increased wholesale funding costs. That caused the Australian dollar to drop on speculation Commonwealth Bank, National Australia Bank and ANZ would follow suit, forcing the Reserve Bank of Australia to offset rises by cutting a cash rate that has stood at a record low 1.5 per cent since But UBS analyst Jonathan Mott said the contraction in Westpac s net interest margin had been greater than that experienced by its rivals because it pursued growth more aggressively up until June. Mr Mott said they were not under the same pressure to raise rates, while the consumer watchdog s brief to ensure lenders did not pass on the cost of the Federal Government s bank levy could also help keep them in check. While the banks generally follow each other in out-ofcycle repricing, we would not be surprised to see the other banks hold off for a few weeks/ months, Mr Mott wrote in a note released yesterday. A spike in the funding costs had prompted several analysts to predict mortgage rate hikes by banks earlier this year but, faced with public anger over a series of malpractices, the country s major banks had refrained from passing on the cost. Mr Mott noted that the ongoing royal commission, which has publicly flagged poor behaviour by big banks, and previous criticism from Scott Morrison (pictured) prior to his becoming prime minister will also put pressure on other lenders not to raise rates. If the major banks all reprice their mortgage books, one response from the Government may be to increase the bank levy, Mr Mott wrote. In the UK, the bank levy was increased on nine occasions. Westpac on Wednesday said its variable mortgage rate for owner-occupier properties would increase to 5.38 per cent per annum for customers with principal and interest repayments, while the rate for residential investment properties would go up to 5.93 per cent. Shares in Westpac were 0.45 per cent lower at midday yesterday, making them the worst performing of the big four banks. CBA was the next worst performer with a 0.17 per cent decline.