Finance for Telix Pharmaceuticals Limited - myassignmenthelp.com

Question: Discuss about theFinance for Telix Pharmaceuticals Limited. Answer: Common bank, ANZ and Westpac to pump up term deposit rates to 3% According to article, the biggest banks of Australia has introduced the hike in lucrative term deposit interest rate. As per mozo data, rate cut by Reserve bank of Australia is short lived. The article was published on 3rd August, 2016. Official cash rate were reduced by Reserve bank of Australia to 1.5% that had the likelihood of hitting term deposit rate and saving accounts. However, the movement of commercial banks of Australia were against the apex bank that hiked the rates attached to term deposit account as they were incapable of passing the cutting of rate onto customers of home loan. Three major banks were involved in tacking actions against the apex bank. The rate of term deposits of Westpac was increased to one year tem to 3% as against 0.55% in previous period. Two year tem increased to 3.1% and three year term to 3.2% respectively (mozo.com.au 2017). While other major bank that is ANZ bank has further increased the rate in term deposits. Advance notice were provided to cu stomers about increase in term deposit rates to 3% by 0.06% and two year term deposits rate of 3.2% by 0.75%. (mozo.com.au 2017) This particular trend has been followed by another major bank that is Commonwealth bank by reducing the mortgage rate at lowest level and an increase in term deposit rates. This was the effort on part of banks to favor saving from people and they will be provided with opportunity to earn higher deposit rates on their saving. All these commercial banks have increased the term deposit interest rate for meeting the needs of saver. There are other financial institutions operating in Australia who are well known for providing savers with competitive term deposit rates in market such as gateway credit Union and U bank. Major Australian commercial banks increasing their term deposit rates would be challenged by other players. Main intention of commercial banks is mainly to reduce the mortgage rates to new low level and providing competitive term deposit rates to customers increasing their saving. Telix pharmaceutical launches Limited launches Underwritten Initial public offering This particular article was published on 23rd October, 2017 and is related to issuing of initial public offering by an Australian biopharmaceutical company (Limit, 2017). Telix pharmaceutical limited is a biopharmaceutical company that helps in development of therapeutic and domestic products based on molecularly targeted radiation and targeted radiopharmaceuticals. Telix raised an initial public offering of $ 50 million. Issuing of offerings is underwritten by lead managers by issuing 77 million shares at 0.65 per share. The existing shareholders of company has strongly supported the initial public offering by company. Shareholders of organization involved domestic institutional investors and industry partners such as Alium capital management, Viburnum funds, Monash investors and CVC. International and institutional investor base will be strengthened by this particular offer of Telix. Fidelty international is another shareholder of Telix that has corner stone in Initial public offer ing. Upon completion of the IPO by Telix, 10% of issued capital of company will be issued to such shareholder base (Limited, 2017). The chief executive officer of organization that is Behrenbruch has been appointed as executive director. It is commented by the director of organization that Telix is uniquely positioned for global leadership and has portfolio of highly promising clinical programs such as brain cancer and renal prostate in a fast growing field of molecularly targeted radiation. The development programs of company is underpinned by acquiring excellent patient data, having a meaningful partnership with some thought leaders in team and team of highly experienced clinical development. Financing generated by the initial public offering will enable company to reach several major commercial and development milestones. Managed funds less loved from investors The article is published by Sydney Morning Herald that was published on 21st July, 2015 (Collett, 2015). Investors in Australia held shares indirectly through unlisted managed funds. Over the past few years, there has been decline in managed funds. As per the article, the main reason attributable to decline in managed funds is disenchantment of investors with the performance of Australian share fund managers. A report on ownership of investment is release by Australian securities exchange every couple of years. Such reports take into account of direct shareholding of self-managed super funds, however they do not account for shares held through super funds. It is certainly not possible for investors to perform beyond the market in case of passive investments. Investors make investment in such shares that has the tendency of outperforming market by actively managing the share funds. If better return is promised to investors, then they are willing to pay higher amount of fees, however it is hard to generate better return because of exiting uncertainties in market scenarios. For the year 30th June, 2015, an excess return of 1.4% points is generated by median performing Australian share managers. An average annual return of 10.6% is produced by typical Australian share fund. This is indicative of the fact that shares have outperformed the market by 1.2% (Collett, 2015). If an investor look at this figures, it would be perceived by them that they should make such effort as it offers good return. However, the investment management fees is not taken into account. Exclusion of fees amount for measuring actual return generated by shares is enough because depending upon way funds are accessed by business, fees payable varies. The performance of funds varies and changes when the amount of fees paid is adjusted in actual return generated of median performance manager. Sinc e there exist lack of consistency, ascertaining good manager becomes tricky. From the analysis of this article, it can be inferred that investors have preference for passive investing at fraction of fees and there is likelihood of disenchantment from actively managed funds. References list: Collett, J. (2015).Managed funds feel less love from investors.The Sydney Morning Herald. Retrieved 28 October 2017, from https://www.smh.com.au/money/super-and-funds/managed-funds-feel-less-love-from-investors-20150716-gidnc9.html Limited, T. (2017).Telix Pharmaceuticals Limited Launches $50 Million Underwritten Initial Public Offering (ASX: TLX).GlobeNewswire News Room. Retrieved 28 October 2017, from https://globenewswire.com/news-release/2017/10/23/1151843/0/en/Telix-Pharmaceuticals-Limited-Launches-50-Million-Underwritten-Initial-Public-Offering-ASX-TLX.html Mozo.com.au. (2017). Retrieved 28 October 2017, from https://mozo.com.au/term-deposits/articles/anz-commbank-and-westpac-pump-up-term-deposit-rates-to-over-3