Taking Notes
While I joined the speakers panel at the UBS CFO Conference in Sydney recently, several others from the Montgomery team attended the recent UBS company conference, taking notes from the presentations of many companies. The financial sector is one where we believe there is opportunity and growth and our holdings in fund managers such as Henderson, Magellan, BT Group and Challenger reflect the discovery of hitherto value in the sector as well as bright prospects.
With that in mind a few salient points emerged from the presentations Stuart Jackson attended that we can share here on the blog.
NAB Wealth
- NAB appears to be some way behind on systems and capability. This could be viewed as glass is half full in that there are potentially easy wins. However, it’s also possible they are left behind, perpetually trying to catch up.
- NAB is planning to spend A$800m+ in separating the life business from wealth and building a new system. This will take four years to complete.
- NAB indicated that Nippon Life’s annuity capabilities could offer it access to annuity products given likely new default comprehensive income product requirements.
BTFG
- There is still some risks in the Panorama rollout for BTFG but it is diminishing over time. Full migration will be complete at the end of FY17, so the majority of the cost benefits will flow through in late FY17 and FY18. Errors and the risk of rapid technological obsolescence on BTFG’s investment in Panorama is reduced by the modular nature of the system.
Genworth
- Mortgage insurance premium revenue is down 21 per cent in 3Q15 due to mix shift toward lower LVR lending.
- Underlying delinquencies remain low, and most relate to older low doc loans.
ANZ
- Investing in NSW through increased marketing, branch numbers and mobile lenders as well as increased use of the broker channel. ANZ believes NSW will be the main beneficiary of increased trade with Asia from the lower Australian dollar.
- ANZ admits that it is slightly overweight WA and QLD, and underweight NSW.
Roger Montgomery is the founder and Chief Investment Officer of Montgomery Investment Management. To invest with Montgomery domestically and globally, find out more.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
