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Tag: funds

  • Australia’s Bold Move: Aiming to Eliminate Card Surcharges for Shoppers Everywhere

    Australia’s Bold Move: Aiming to Eliminate Card Surcharges for Shoppers Everywhere

    Australia is currently in the throes of a significant debate regarding a proposal to ban surcharges on credit and debit card transactions. If enacted, this move could potentially save consumers a staggering 1.2 billion Australian dollars (approximately $781 million) each year. Given that cashless payments currently represent 76% of all retail transactions in the country, the stakes in this discussion are high.

    Retail and Banking Communities Rally Against Proposal

    Both the retail and banking sectors are pushing back against the central bank’s suggestion to eliminate these surcharges. Retailers argue that these fees often help them offset the costly processing fees imposed by banks and card companies. They fear that removing this revenue stream could dampen their profit margins, particularly in a recovering market still grappling with the aftereffects of the pandemic. As one retailer noted, it’s somewhat like asking a chef to cook a meal without ever buying groceries: the ingredients (or financial stability) simply aren’t there.

    The Central Bank’s Perspective

    The Reserve Bank of Australia contends that eliminating card transaction fees would enhance competition and potentially lead to lower prices for consumers. Advocates of the ban argue that it would foster a more equitable marketplace where businesses can’t pass unnecessary costs onto consumers. However, this perspective has not resonated universally, as evidenced by the spirited discussions unfolding in stores and boardrooms alike.

    Consumer Impact and Future Considerations

    For the average consumer, the potential ban could translate into significant savings. However, the complexities associated with transaction fees go beyond mere dollars and cents. As Australia adjusts to an increasingly digital economy, the ongoing dialogue underscores the delicate balance between consumer protection and the financial health of retail businesses and banks alike. With the potential for dramatic shifts in the economic landscape, the outcome of this legislative pursuit could very well reshape the way Australians handle their cashless transactions.

    Questions & Answers

    What are the potential savings for consumers if transaction fees are eliminated?
    Consumers could save up to 1.2 billion Australian dollars ($781 million) each year if surcharges on debit and credit card transactions are banned.

    Why are retailers opposed to the ban on transaction surcharges?
    Retailers argue that these fees help cover the processing costs imposed by banks and card companies, and removing this revenue stream may hinder their profit margins in a competitive market.

    What stance does the Reserve Bank of Australia take on this issue?
    The Reserve Bank believes that banning surcharges would boost competition and potentially lead to lower prices for consumers, fostering a more equitable retail environment.

  • Julius Baer Names Hong Kong Head of Fund Specialists

    Julius Baer Names Hong Kong Head of Fund Specialists

    Zurich-headquartered Julius Baer has bolstered its products unit in Hong Kong with the appointment of a new head of fund specialists in Hong Kong.

    Jeffrey Tam has elevated to become Julius Baer’s head of fund specialists Hong Kong, according to a statement, overseeing fund advisory for Greater China clients across traditional and alternative investments.

    Tam first joined Julius Baer in 2018 and was previously a fund specialist at Deutsche Bank Wealth Management with a particular specialization on hedge funds. He started his career at Citi Private Bank where he was a portfolio advisor for client investment.

    «We are pleased to announce that [Tam] has been promoted to take up the role of Head of Fund Specialists Hong Kong, which is a testimony to the depth of talent in our team,» Julius Baer’s Asia head of fund specialists Donald Rice.

  • AirAsia in $246mn fundraise, creditors back AAX restructure

    AirAsia in $246mn fundraise, creditors back AAX restructure

    AirAsia Group shareholders voted on November 11 in favour of a cash call to raise up to MYR1,024,058,370 ringgit (USD245.9 million) to recapitalize the group. Separately, on November 12, reports emerged that all three groups of creditors of AirAsia X (D7, Kuala Lumpur Int’l) had agreed to the airline’s radical restructuring scheme.

    The cash call, which will take the form of a renounceable rights issue of seven-year Redeemable Convertible Unsecured Islamic Debt Securities (RCUIDS) with a nominal value of MYR0.75 (USD0.18) each, was approved by 461 shareholders to 69 against at the company’s extraordinary general meeting, AirAsia Group said in a Bursa Malaysia stock exchange filing.

    The 461 shareholders hold a total of 2.23 billion shares, which indicates 99.95% support for the measure, the disclosure added.

    The issue gives shareholders the right to buy two of the debt securities, together with one detachable warrant, for every six AirAsia Group shares held. The RCUIDS have a profit rate of 8% per year and are convertible to new shares on a one-to-one basis.

    Half of the proceeds will be channeled towards working capital; up to 12% to funding its digital business and for marketing; and the rest for lease, maintenance, and fuel hedging payments. Tony Fernandes and Kamarudin Meranun, AirAsia’s largest shareholders with a 26.4% stake, have said they will put MYR257.27 million (USD61.8 million) towards the cash call via a special purpose vehicle called Sky Accord.

    Meanwhile, in consecutive meetings that had been scheduled for November 12, the first and second of three groups backed AirAsia X’s proposal to pay only 0.5% of its MYR33.65 billion (USD8.1 billion) of liabilities owed, with 100% and 97.6% voting in favor, respectively. The plan also terminates all existing contracts.

    The first group includes airports, financial institutions, and maintenance providers, the second one lessors, engine suppliers, travel agents, and passengers. Airbus (AIB, Toulouse Blagnac), the low-cost long-haul carrier’s biggest creditor, is the sole entity in the third “group”, and AirAsia confirmed earlier media reports that it too approved the deal.

    AirAsia said in a statement that across all three classes, 99.0% of all creditors had voted in favor of the scheme.

    “When the scheme was initially announced in October 2021, it was comprehensively rejected and widely derided as being wholly inadequate and unreasonable. However, through a process of many transparent discussions on our business plan and alignment of common business interests, all major creditors have agreed that the combined interests of the various groups of stakeholders are best served by allowing the airline to proceed with the scheme intact and without substantial changes to what was initially presented,” it said.

    The approvals will now be presented for court sanction in the coming weeks and, once approved, AirAsia X will embark on its recapitalization which shareholders approved in June. Completion is expected in the first quarter of 2022, after which the airline “will be well poised to compete very effectively in the markets where it will operate,” it added.

    The airline also reached a deal with Airbus to cut its outstanding order book for seventy-eight A330-900s and thirty A321-200NX(XLR)s to just fifteen A330neo and twenty A321neo(XLR)s.

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  • J.P. Morgan Opens Crypto Fund Access to All Wealth Clients

    J.P. Morgan Opens Crypto Fund Access to All Wealth Clients

    J.P. Morgan has reportedly allowed all of its wealth management clients to access cryptocurrencies via funds.

    J.P. Morgan’s wealth management clients gained access to five crypto products, effective July 19.

    Four of the products are from Grayscale Investments and one is from Osprey funds.

    According to the memo, J.P Morgan advisors will only execute unsolicited crypto trades for clients, including those who use the bank’s Chase trading app.

    J.P. Morgan is the latest U.S. bank to ramp up its digital currency offering following global custodian BNY Mellon’s entry into a crypto consortium that includes State Street and six other banks.

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  • Google Debuts P2P Fund Transfers in Singapore

    Google Debuts P2P Fund Transfers in Singapore

    With OCBC enabling peer-to-peer (P2P) fund transfers on Google Pay, the city-state becomes the third globally to offer the service, after India and the United States.

    The integration means that OCBC customers can now transfer or receive payments directly from their bank accounts to or from anyone registered to PayNow using the Google Pay app, the bank announced in a statement this week.

    At the same time, bank account holders without credit cards can also Google Pay to make payments to merchants in Singapore.

    We have long rejected the ‘digital wallet’ approach that requires customers to top up an e-wallet and hold funds in one without earning interest. Instead, we put a lot of effort into developing OCBC Pay Anyone as an open-loop payment system, whereby customers literally ‘pay anyone’ directly from their bank accounts, Ching Wei Hong, OCBC head of Global Wealth Management & Consumer Banking, said.

    Introduced in 2017, Singapore’s national e-payments system PayNow enables digital payments directly between customers’ bank accounts and funds transfers using their recipients’ mobile numbers.

    The integration of Google Pay and PayNow is expected to significantly impact the adoption and usage of PayNow in Singapore, which already recorded more than 70 million transactions worth S$12.16 billion in 2019, OCBC noted.

    Google previously said it is looking at adding more banks to Google Pay, including DBS and Standard Chartered, with launches expected by the end of 2020.

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  • How to Invest Online in Best SIP Plans

    How to Invest Online in Best SIP Plans

    Investing in a systematic investment plan (SIP) is a smart thing. In SIP, an investor invests a pre-determined amount into a mutual fund scheme each month. These investments could be made on a weekly, quarterly, or even on monthly basis. Further, they have the flexibility of diversifying your investments by investing in different SIPs.

    Key Benefits of Investing in a SIP

    Investing in a mutual fund, and especially in a SIP scheme comes with its own benefits. Some benefits which you can reap by investing in a mutual fund SIP online include:

    • Cost-efficiency

    By planning the amount of money, you want to invest in different SIP schemes each month, you can eliminate the need to invest a lump sum amount, thus, cutting down on the costs involved in your investments. So, by starting a SIP online, you don’t have to invest huge sums of money at once, but you can still reap huge benefits.

    • Low Average Cost

    One of the biggest benefits you can get out of these investments is a low average cost. That is, investing in such schemes tend to improve your average cost of investment as they work in both bullish and bearish market trends.

    • Disciplined Investments

    With SIP online, it’s possible for the investor to make controlled investments. This means the investor doesn’t have to time the markets for making the investments. He or she can invest even during volatile market conditions.

    • Professional Management

    One other major advantage of investing in mutual fund SIP online is that most of the mutual funds are managed by experienced experts. Therefore, you don’t have to do all the work.

    Achieve your Goals with SIP investments

    To get the most out of your SIP investments, you need to ensure that you have set goals. You also need to ensure you have calculated the amount you must save each month from achieving these goals. Next, you must determine the amount you are going to invest each month or quarter in the scheme, so it can help you achieve all your financial goals.

    Once you are done deciding on your savings and the amount you are going to invest each month or quarter, it’s now time to do some homework on the different schemes available. When conducting your research, make sure you check and compare different schemes that have performed well in the markets in the last couple of years. By comparing the different schemes, you can determine which scheme you should be investing.

    When you have finished doing all the above steps, you can actually start investing. But before you do that, you must complete all the Know Your Customer or KYC documentation processes, in addition to other formalities, including submission of cheques and forms. Also, always try to choose long-term SIP plans so that you can reap maximum benefits. Don’t forget to diversify your investments to get optimal returns.

    Choose the Best Mutual Funds

    In India, there are currently over 5,500 different types of mutual funds available. Mutual funds that come under the equity scheme alone are over 300 in number. There are other types of schemes including gold and debt schemes. So, while choosing a scheme to invest can be hard, here are a few things you must keep in mind before investing.

    • Objective of Investment

    Ensure that all your investments are objective-oriented. These objectives could range from buying a house to marriage to simpler things like buying a car or funding your children’s education. Based on your objectives you must then decide whether to invest in a short-term or a long-term scheme. For example, planning your retirement is a long-term goal; therefore, you must invest in a long-term scheme.

    • The Fund House

    The second thing you should know is who your fund manager is. Your fund manager is usually a fund house that helps you manage your mutual fund investments. So, you must have adequate knowledge about them as they are the ones who take different investment decisions on your behalf.

    • Expense Ratio and Load

    The expense ratio and loads are small costs you must pay for making investments in SIP online. However, they tend to have a huge impact on your returns, especially for long-term investments. You can know more about them by reading the scheme documents or fund fact sheets.

    • Experience of the Fund Manager

    Your fund manager is the one who manages all your investments. So, besides knowing about your fund house, you should conduct thorough research on your fund manager. A good fund manager can help you get better returns for your investment. Hence, it is important that you choose a fund manager with expertise in handling diverse types of mutual fund investment schemes.

    Investing in SIP online has its own advantages. So, before making an investment, ensure that you are investing in a fund that has performing well in the past. These funds can be either equity funds, liquid funds, debt funds or tax-saving funds. Also, ensure you choose the right manager for your fund, and more importantly, ensure you choose the right funds for your investments, so you can reap higher benefits from them.

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  • Sony’s days in the smartphone Industry are Ending

    Sony’s days in the smartphone Industry are Ending

    Sony has never been able to obtain success in the smartphone industry the way it once controlled the mp3 market, the video game console market, and the television market. Trying to differentiate itself, this year’s Xperia 1 flagship, unveiled at MWC in February, features a 6.5-inch 4K AMOLED display with a 21:9 aspect ratio. Despite what would appear to be a great screen for watching streaming video on, the pricing is sure to turn some away.

    For the second time in six years, a particular hedge fund is building up a stake in Sony hoping to influence its business decisions. Those familiar with the plans say that Third Point LLC, run by Daniel Loeb, is looking to implement its own turnaround strategy for Sony. Loeb’s fund reportedly has $14.5 billion in assets and is believed to be raising money ($500 million to $1 billion) for a fund dedicated to the purchase of more Sony shares.

    The parts of Sony that Third Point wants to take a hard look at include the semiconductor and insurance businesses and the movie studio, which some believe that Amazon and Netflix could be interested in. And while the report from Reuters doesn’t mention the mobile phone business, it most likely would be a division that Loeb would prefer to see Sony jettison. Last month, the company folded its mobile unit into the same business segment that includes its TV, camera and audio products. And a report published in March stated that by next year Sony will cut the head count in its smartphone division in half.

    Jefferies analyst Atul Goyal told clients in a note sent out last week that Sony needs to exit the mobile phone business. Sony will no doubt want to gauge the reception to the Xperia 1 before it decides whether or not to stop producing smartphones. But if Third Point LLC builds a big enough stake in Sony, the decision whether to cut its losses in the smartphone industry might be taken out of the company’s own hands.

  • SIA among 5 airlines told to compensate passengers for delays

    SIA among 5 airlines told to compensate passengers for delays

    Singapore Airlines (SIA) is among five international airlines that fly into Europe that have been told to pay passengers for delays they may have experienced.

    The UK Civil Aviation Authority (CAA) said in its press release on Wednesday (Feb 22) that American Airlines, Etihad Airways, Emirates, SIA and Turkish Airlines will have to obey European laws or be taken to court. They all face enforcement action after a CAA review found them to be breaching consumer law, it added.

    These airlines had told the UK Civil Aviation Authority (CAA) that they did not pay compensation to passengers who had experienced a delay on the first leg of a flight that caused them to miss a connecting flight and, as a result, arrive at their final destination more than three hours late, the press release said.

    CAA added that SIA currently places compensation claims for these delays “on hold”.

    Under European Union (EU) law, airlines may have to provide compensation if passengers arrive at their destinations late. These rules, however, only apply to certain flights to, from or within the EU and only if the airline was at fault, such as if it was through poor aircraft maintenance or flight crew being available, the UK CAA website said.

    Compensation ranges from 250 euros (S$372.70) for delays of more than three hours for short-haul flights to 600 euros for delays of more than four hours for long-haul flights, it added.

    Mr Richard Moriarty, director of Consumers and Markets at the CAA, said: “Airlines’ first responsibility should be looking after their passengers, not finding ways in which they can prevent passengers upholding their rights.

    “So it’s disappointing to see a small number of airlines continuing to let a number of their passengers down by refusing to pay them the compensation they are entitled to,” he said.

    In response to queries, SIA said it has been in contact with the UK’s CAA on the issue “for some time”.

    “There is a lack of clarity in the law which is currently the subject of ongoing litigation before the Court of Appeal,” a spokesperson for the airline said, adding that SIA will continue to work with the CAA to resolve differences with respect to the application of the regulation to missed connections.

  • SoftBank to establish tech investment fund

    SoftBank to establish tech investment fund

    SoftBank Group has announced plans to establish the SoftBank Vision Fund to make investments in the technology sector globally.

    The fund will be managed in the United Kingdom by a subsidiary of SoftBank and will deploy capital from SoftBank and investment partners. The fund will aim to be one of the world’s largest of its kind.

    SoftBank expects to invest at least $25 billion over the next five years. The company has concluded a non-binding memorandum of understanding (MoU) with the Public Investment Fund of the Kingdom of Saudi Arabia (PIF).

    Under the MoU, PIF will consider investing in the fund and becoming the lead investment partner, with the potential investment size of up to $45 billion over the next five years.

    In addition, a few large global investors are in active dialogue to join SoftBank and PIF to participate in this investment fund. The overall potential size of the fund can go up to $100 billion.

    SoftBank will use its operational expertise and network of portfolio companies in order to add value to the fund’s investments.

    Deputy Crown Prince Mohammed Bin Salman, chairman of PIF, said the PIF is focused on achieving attractive long-term financial returns from its investments at home and abroad, as well as supporting the Kingdom’s Vision 2030 strategy to develop a diversified economy.

    “With the establishment of the SoftBank Vision Fund, we will be able to step up investments in technology companies globally,” said Masayoshi Son, chairman and CEO of SoftBank Group.

    “Over the next decade, the SoftBank Vision Fund will be the biggest investor in the technology sector,” said Son. “We will further accelerate the Information Revolution by contributing to its development.”

    SoftBank Group’s head of strategic finance Rajeev Misra is leading the Fund. SoftBank has engaged former Deutsche banker Nizar Al-Bassam and ex-Goldman partner Dalinc Ariburnu for the project. PIF also had its own team of experts engaged.

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  • New Silkroutes Group in Joint Venture to Offer Private Equity Funds in Asia Pacific

    New Silkroutes Group in Joint Venture to Offer Private Equity Funds in Asia Pacific

    New Silkroutes Group (“NSG” or “the Group”) has formed a joint venture with three parties, including the Singapore subsidiary of China’s Nanshan Group, to develop private equity funds that will focus on healthcare and infrastructure in the Asia Pacific region, including Japan and Australia.

    The new Singapore-incorporated entity, New Silkroutes Asset Management, is 30% owned by NSG’s subsidiary New Silkroutes Capital Pte Ltd, 30% by Nanshan Group Singapore, 30% by former United Overseas Bank (“UOB”) executive Terence Ong Sea Eng, and 10% by Fuji Capital Pte Ltd.

    New Silkroutes Asset Management, which is applying for the Capital Markets Services licence from the Monetary Authority of Singapore, will initially focus on the healthcare sector in the region.

    The number of people in the middle class in Asia Pacific is expected to rise to 3.2 billion by 2030 from 525 million in 2009, according to the Organisation for Economic Cooperation and Development. This increase, together with growing affluence, is expected to drive demand for better quality medical treatment and care.

    Healthcare is an area NSG recently said it would expand into. The Group announced last month it would acquire a 51% stake in Singapore-based Healthsciences International Pte Ltd (“HSI”) for S$2.17 million. HSI’s management team has experience in developing and managing hospitals and ancillary healthcare services. It also offers primary and preventive care through its three complementary integrative healthcare clinics, and runs employee healthcare benefits programmes in Southeast Asia.

    Mr Ong will head New Silkroutes Asset Management. The veteran banker retired recently from UOB after a 34-year career, during which he ran several of the lender’s key divisions. His last position at the bank was Head of Group Global Markets and Investment Management, where he drove UOB’s global treasury and asset management businesses.

    He was also Chairman of UOB Asset Management and UOB Venture Management, and a member of several of the bank’s key committees, including its management executive committee and investment committee.

    Mr Ong was previously Deputy Chairman of the board of Simex, a futures exchange that merged with the Stock Exchange of Singapore to form the Singapore Exchange. In 2010, he was conferred the Distinguished Financial Industry Certified Professional title by the Institute of Banking and Finance Singapore. In September this year, he received the Lifetime Achievement Award from Futures & Options World, a leading news and data service for the international futures and options industry.

    “The stakeholders in this joint venture have deep expertise in their respective fields. With this collaboration, I am confident we can offer investors an attractive alternative to generate a consistent stream of income,” said Mr Ong, who was instrumental in bringing Nanshan Group Singapore into New Silkroutes Asset Management.

    “Leveraging on the networks and expertise of New Silkroutes Asset Management’s stakeholders, we will be able to source promising healthcare services companies in Asia Pacific and add value to the companies we invest in,” he added.

    Nanshan Group is a privately-held company ranked among the top 500 enterprises in China. It started with an aluminium business, which subsequently listed in Shanghai, and evolved into a conglomerate with interests in textile, finance, healthcare, real estate, tourism, education and aviation.

    Within the healthcare space, Nanshan Group has invested in and built hospitals, nursing homes and related facilities in China. In Singapore, its main focus is real estate development and aluminium trading. It acquired several industrial buildings and hotels and launched its maiden condominium project in Singapore in recent years.

    Singapore-incorporated Fuji Capital provides strategic advisory and fundraising services to companies. Its major stakeholders have investments in the financial services sector in North America. These investments include licensed entities operating in gateway cities across the US.

    “As an associate company of NSG, the new joint venture will complement our wholly owned investment management arm, New Silkroutes Capital, which is also exploring investment opportunities in healthcare, among other sectors,” said Dr Goh Jin Hian, Group CEO at NSG. “Healthcare will be another engine of growth for NSG as we believe this is an area with huge potential in Asia Pacific.”

    Based in Singapore, New Silkroutes Capital offers investment management and strategic advisory services to institutions, enterprises and high-net-worth individuals looking for professionally managed investment products. It has a joint venture in New York that can develop structured products and private-label funds.

    NSG exited the SGX Watchlist in November 2014 and is morphing into an investment holding company with businesses in investment management, energy and resources, healthcare, and infocomm technology. The Group currently gets most of its revenue from oil and gas trading.