A Glimpse at 5 Financial Stocks – GMA, PTM, NWL, CCP, PPT

Financial Stocks

The financial services industry in Australia helps people in managing their wealth and financial security.

Major Industry Segments

Over the last decade, the industry experienced a significant change, on the back of extensive regulatory reform and technological advancements in the industry. It is increasingly necessary to build foundational financial skills across all the segments of the industry in areas that can help in meeting the growing standards of the financial services industry across the country.

Let us discuss five ASX listed stocks from the financial sector with recent market updates.

Genworth Mortgage Insurance Australia Limited (ASX: GMA) 

Genworth Mortgage Insurance Australia Limited is a leading provider of lenders mortgage insurance (LMI) in the Australian residential mortgage lending market.

Leadership Transition Update

On 30 October 2019, GMA announced that Ms Georgette Nicholas would retire as CEO and MD, and as a member of the Board of Directors, effective 31 December 2019. The company has asked Mr Duncan West, who is current serving as a Non-Executive Director of GMA, to take the role of acting CEO from 1 January 2020 until the permanent appointment for the position. Ms Nicholas would provide her services until the end of March 2020, aimed towards ensuring a smooth hand over and orderly transition.

Meanwhile, the company is conducting an executive search in Australia and globally.

Genworth Renews CBA Contract

On the same day, the company made another significant announcement, unveiling the renew of a Supply and Service Contract with Commonwealth Bank of Australia (ASX: CBA) for the provision of LMI, with effect from 1 January 2020, for a minimum specified percentage of new high LVR residential mortgage loans. The three-year contract would run through to 31 December 2022.

Stock Performance

On 29 November 2019, the stock of GMA last traded at $3.670, down by 1.078 per cent from its previous close. The company has ~412.51 million shares outstanding and a market cap of $1.53 billion. The stock has generated positive returns of 60.11 per cent in the last six months, while its YTD return stands at 96.77 per cent.

Platinum Asset Management Limited (ASX: PTM)

Platinum Asset Management Limited is an Australia based investment manager, focusing on one asset class – international shares or the portfolios of listed companies from across the globe.

Results of 2019 Annual General Meeting

On 20 November 2019, the company declared results of the 2019 Annual General Meeting. Below are the resolutions that were passed during the AGM.

  • Resolution 2A – Re-election of Ms Anne Loveridge as a Director
  • Resolution 2B – Re-election of Mr Kerr Neilson as a Director
  • Resolution 2C – Re-election of Ms Elizabeth Norman as a Director
  • Resolution 3 – Adoption of the Remuneration Report

October Funds Under Management

Funds Under Management (FUM) at the end of the October 2019 were reported at $24,595.93 against $24,612.68 at end-September 2019. PTM reported around $252 million in net outflows during the concerned month, which includes a net outflow of around $212 million from the Platinum Trust Funds.

The company’s financial performance for FY2019 can be viewed here.

Stock Performance

On 29 November 2019, the stock of PTM closed at a price of $4.280, down 0.233% from its previous close. The company has ~586.68 million outstanding shares and a market cap of $2.52 billion. The stock has generated negative returns of 9.68 per cent in the last six months, while its YTD return stands at -11.00 per cent.

Netwealth Group Limited (ASX: NWL)

Netwealth Group Limited is a financial services company, listed on the Australian Stock Exchange on 20 November 2017. The company offers financial services including a superannuation master fund, separately managed accounts, superannuation administration services and investor directed portfolio services.

Results of 2019 Annual General Meeting

On 12 November 2019, the company updated the market with results of the 2019 Annual General Meeting. Following resolutions were cleared by the shareholders during the AGM:

  • Resolution 1 – Adoption of the Remuneration Report
  • Resolution 2 – Re-election of David Lewis as a Director
  • Resolution 3 – Election of Sally Freeman as a Director
  • Resolution 4 – Joint Managing Director Long Term Incentive Award

September Quarterly Business Update

On 10 October 2019, the company released the September 2019 quarterly update, unveiling

  • Funds Under Management (FUM) increased by 12.6 per cent to $4.4 billion at 30 September 2019, while Funds Under Administration (FUA) went up by 8.5 per cent to $25.3 billion.
  • FUA net inflows increased by 39.6 per cent against PCP.
  • NWL was included in the S&P ASX200 index, effective from 23 September 2019.

Stock Performance

On 29 November 2019, the stock of NWL closed the day’s trade in the red zone at $8.470, depicting a decline of 3.311 per cent from its previous close. The company has ~237.69 million outstanding shares and a market cap of $2.08 billion. The stock has generated a negative return of 9.41 per cent in the last six months, while its YTD return stands at +15.26 per cent.

Credit Corp Group Limited (ASX: CCP)

Credit Corp Group Limited is the largest provider of financial services in the credit-impaired customer segment. Its principal activities are related to debt purchase and collection in addition to credit management services.

On 25 November 2019, the company announced a change in one of its director’s interest in CCP. The number of securities held by Donald Evan McLay after the change stood at 74,903 (Direct), 20,412 Nagarit Super Fund (indirect), 1,081,6039 Torres Industries Pty Ltd (indirect).

Results of Annual General Meeting

On 4 November 2019, the company declared results of the Annual General Meeting, during which following resolutions were passed.

  • Re-election of Ms Trudy Vonhoff as a Director
  • Re-election of Mr John Nesbitt as a Director
  • Adoption of Remuneration Report

The company’s financial performance for FY 2019 can be viewed here. 

Stock Performance

On 29 November 2019, the stock of CCP traded lower and settled at $33.070, a decline of 0.181 per cent from its previous close. The company has ~54.92 million outstanding shares and a market cap of $1.82 billion. The stock has generated positive returns of 32.31 per cent in the last six months, while its YTD return stands at 76.69 per cent.

Perpetual Limited (ASX: PPT) 

Perpetual Limited is an Australian stock exchange listed, financial services company, which has been assisting Australians since 1886. The company has three business segments -Perpetual Investments, Perpetual Corporate Trust, and Perpetual Private. 

The company recently unveiled that its voting power in Costa Group Holdings Limited went up from 7.58 per cent to 10.21 per cent, effective from 27 November 2019. On 22 November 2019, the company announced change in its substantial holding in Link Administration Holdings Limited, with effect from 20 November 2019. The company presently has a 7.69 per cent voting power or 40,993,663 person’s votes against the previously held voting power of 6.39 per cent or 34,066,931 person’s votes.

Investor Presentation

In its investor presentation released to the market on 27 November 2019, PPL focused on group overview & strategy, along with several other business aspects.

  • For Perpetual Investments, the company reported $26.1 billion in funds under management
  • For Perpetual Private, funds under advice stood at $14.9 billion
  • For Perpetual Corporate Trust, funds under administration were noted at $779 billion.

The company’s FY 2019 financial performance can be viewed here.

Stock Performance

On 29 November 2019, the stock of PPT last traded at $39.730, down by 0.476 per cent from its previous close. The company has ~46.86 million outstanding shares and a market cap of $1.87 billion. The stock has generated a negative return of 5.04 per cent in the last six months, while its YTD return stands positive at 27.66 per cent.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

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