Australia needs to foster FinTech with level playing field
The recent Presidential election in the US and the Brexit vote in the UK clearly show that the public in liberal democracies like Australia are tired of failure by governments to ensure social justice is being served on all levels. Political and corporate leaders appear to the public to act with impunity and social policies are not addressing the increasing inequality of wealth. These leaders seem to be out of touch with their constituents, illustrated by the surprise results in US and UK. Leaders in Australia should be warned — they ignore, at their peril, social justice issues such as the behaviour of the ‘Big Four’ banks, who operate in […]
Exchange trade funds to over take listed investment companies by 2018
Exchange traded funds (ETFs) are poised to overtake listed investment companies as the most popular pooled investment option on the ASX within two years if current trends persist. ASX data for November shows that the value of ETFs rose by 17 per cent to $24.5 billion, while the value of listed investment companies rose just 2.3 per cent to $30.5 billion. Experts point to the increasing sophistication of investors, regulatory change, growing numbers of ETF strategies available at low cost and the rise of the self-managed super fund as among the key forces driving ETF fund flows. Listed investment companies, which have a long history of performing for retail funds, […]
5 Tips For Better Understanding Peer-to-Peer Property Lending in Australia
As a bumper year for property investment comes to a close, emerging trends towards non-bank finance in the property space gather steam heading into the new year. Developers need more funds to deliver their projects as the major banks pull back on finance. As more investors get comfortable with researching higher yielding investment opportunities, we take a look at the key things you need to know about ‘Peer-to-Peer’ (P2P) debt-style lending in the Australian property market. Don’t Chase High Returns If a debt offering is returning 18-30% and is a mezzanine type, deal chances are it is extremely risky. A developer is only paying this pain money as a […]
Returns on IPOs Jump in 2016
Year-to-date returns on Australian Initial Public Offerings (IPOs) sat at an impressive 35.8% as at November 30, compared to just 2.7% for the S&P/ASX200, a sign of a healthy company float market, according to Ben Bucknell, Chief Executive of OnMarket BookBuilds (OMB). The OnMarket November IPO Report reveals over the month of November, 12 companies raised a total $1.95 billion by floating on the Australian Securities Exchange (ASX), well up on the five listings in November 2015 which raised $558 million. The average return on those IPOs was 5.2%, a 2.8% outperformance of the S&P/ASX 200. Ben Bucknell, Chief Executive of OnMarket BookBuilds (OMB), said it has been a good […]
Startup founders say crowdfunding delays are an ‘extreme embarrassment’
Startup founders have hit out at the Labor Party for its refusal to support the passage of a long-awaited crowd sourced equity funding (CSEF) bill, resulting in the legislation being pushed back until February at the earliest. The move from Labor, which was led by digital economy spokesman Ed Husic, comes a week after the bill was introduced to Parliament for a second time, having already been knocked back in December 2015. The new bill, if eventually passed, means unlisted public companies with less than $25 million in assets and turnover would be able to raise capital via crowd-sourced equity funding. A spokesperson for Treasurer Scott Morrison told Fairfax Media […]
Media mogul-backed bank challenger close to breaking even
SocietyOne, a peer-to-peer lender that is partly owned by Rupert Murdoch, Kerry Stokes and James Packer’s companies, expects to start making profits within the next 12 to 18 months. The start-up lender has in recent years been heavily investing in marketing, technology and new staff as it seeks to establish peer-to-peer lending on Australia’s financial landscape, pinching some of the profits banks make from the $100 billion personal credit market. After a year of rapid loan growth, chief executive Jason Yetton said the lender now faced the prospect of breaking even, though this would depend on how much it invested. “We think it can reach profitability over the next 12 […]
Australians are starting to think robot financial advisers might be a good idea
The use of automated investment services, or robo-advice, is still small in Australia but is growing fast. The latest research by analysts Investment Trends shows 27% of online investors have heard of robo-advice, up from 19% just six months ago. Robo-advice, the field of online investment and savings platforms where face-to-face is replaced with automated guidance and execution, is growing via a series of fintech startups in Australia including Stockspot. “Many investors are taking notice of robo-advice, and have an interest in learning more about this potential digital disruptor in the financial services industry,” says Investment Trends research director Recep Peker. “Robo-advice will take centre stage as more solutions become […]
Crowdfunding opened to companies up to $25m
Unlisted public companies with less than $25 million in assets and turnover will soon be able to raise capital via crowd-sourced equity funding, thanks to a new bill introduced by the Coalition on Thursday. The long-awaited bill comes almost a year after the government first tried to introduce the legislation, only for it to be knocked back by the Senate. The new bill has a few amendments from the original legislation, including expanding the size of the unlisted public companies that can access this type of funding from only those with less than $5 million in assets, to $25 million. If the legislation is passed, these small businesses will be […]
