A PRE-FEDERAL Election call for no more ‘sugar fix' interest rate cuts by the Reserve Bank - because the benefits were plainly not flowing on to where the economy needed it most, small business -  unfortunately appears to be playing out the way wealth advisory group Chan & Naylor predicted.

Ken Raiss of Chan & Naylor.

According to Ken Raiss, a director at Chan & Naylor, historically low interest rates may be a contributing factor towards increasing property sales - witness the flurry of activity in the Sydney market over recent months, triggered largely by investors tapping into the rate cut - however, he said, it was only a portion of Australians with home loans who would actually benefit in the short term.

Mr Raiss said the reality showed no commensurate reduction in business or credit card rates or even household rates thanks to banks holding on to most of the reductions in recent times.

"While approximately 35 percent of home owners have a mortgage and therefore may have an excuse to briefly celebrate, the flow on benefits of an interest rate cut are futile for business lending, job creation or for older Australians in particular who rely on income derived from savings," Mr Raiss said.

He said in view of July's significant 10,200 net employment reduction and the NAB's gloomy 2.2 percent economic growth and 6.7 percent unemployment 2014-15 forecast, the recent interest rate cut belies an economy that is not expected to grow in the short term, "in other words the economy is getting more unwell".

"Now that Australia's economic well-being has been laid bare, any further saccharine fuelled rate changes will do more harm than good, as it hides the real world of a sick economy" said Mr Raiss.

He believes that in the present economic environment, holding off on interest rate cuts, but combined with a good dose of sensible economic reform, may produce the 'tough medicine' required to restore the country to pre-2007 fitness.

"If you do not have a job or have reduced overtime, lower interest rates are not top of mind," he said.

"Whilst some tough tax related questions now need to be asked, we also need to focus on restoring the health to the vital organs of a functioning economy, namely employment, growth and sustainability."

According to Mr Raiss, who believes Australia has in recent years been too rigid and slow to adapt with changing circumstances, a carefully considered band of interest rate increases combined with the introduction of Federal and State Government policies that stimulate business activity could help set the framework for improved consumer confidence, sustainable employment and investment conditions.

He said a healthy and growing economy means more business profits, more tax collection, more jobs and increased living standards which would more than offset increased interest rates that are managed within the Reserve Bank Charter. This has also lately been the approach of new Federal Treasurer, Joe Hockey.

"All this leads to governments being able to fund polices, not look at reducing the pressure on the budget," Mr Raiss said.

"This country has a natural competitive advantage in its education and health systems, our natural resources and a disproportionately large middle class with disposable income.

"A future rate rise may make borrowing more expensive, but enlightened homeowners that have jobs will be happy to pay this slight impost, as will those who depend on their income and living standards from higher interest rates."

http://www.chan-naylor.com.au/

ends

AUSTRALIA'S first Federal Government supported matched funding program for the arts and creative industries, Plus1, was launched this week by Creative Partnerships Australia.

Creative Partnerships Australia now has new Federal Govt-matched funding options. Image: Stompin, Tasmania.

Through the Plus1 program, Creative Partnerships will match dollar for dollar up to $50,000 in funds raised from the private sector by artists and not for profit (NFP) arts organisations for projects that enhance or improve their capacity to raise money from the private sector.

Creative Partnerships is a national organisation that works with the arts, business and philanthropic sectors, as well as government, to support sustainable creative industries in Australia.

Creative Partnerships was established in 2013 to encourage and facilitate private sector support for the arts. Creative Partnerships is supported by the Australian Government through the Cultural Development Program of the Office for the Arts.

"The Plus1 program provides a unique opportunity for those looking to enhance their business development capabilities and diversify their funding streams," said Creative Partnerships Australia CEO Fiona Menzies.

"We're very excited about investing $2 million into supporting projects with outcomes that enable individuals and organisations in the creative industries to create a more sustainable financial future."

Types of projects eligible for the Plus1 program include the appointment of a development coordinator, purchase of a customer relationship management system or training in new business development skills such as presentation skills or proposal writing.

Any Australian artist or NFP organisation from the arts and creative industries with an eligible project can apply for matched funding through the Plus1 program.

"Once a project has been approved by Creative Partnerships for the Plus1 program, applicants raise funds for the project from the private sector," Ms Menzies said.

"These funds can come from crowdfunding or philanthropy, a benefit night or a business investor. Once the target amount is raised and verified Creative Partnerships will match those project funds raised, dollar for dollar, up to $50,000."

The Plus1 matched funding program also provides some unique benefits and opportunities to those private sector supporters of the arts and creative industries interested in supporting approved projects.

"Plus1 creates a unique opportunity for donors to invest in the long term sustainability of the Australian artists and organisations whose work they may already be supporting," Ms Menzies said.

"The fact that it's a matched funding program also means that donors and supporters can double the dollar value of their donation simply by investing in a Plus1 project."

Matched funds from Creative Partnerships will be distributed to successful applicants on a first come, first served basis. The Plus1 program has been opened for project eligibility applications from Monday, September 23.

Email: This email address is being protected from spambots. You need JavaScript enabled to view it. This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

www.creativepartnershipsaustralia.org.au

ends

AXA Investment Managers (AXA IM) are not only reacting to a public demand for environmental, social and governance (ESG) considerations as drivers for investment decisions, they are increasingly pro-active in its promotion. As a result, AXA IM has recently developed a system which measures a country's sovereign debt creditworthiness, based on these principles.

Investment managers are increasingly prioritising environmental, social and governance issues as part of their decision-making.

An evaluation of investment trends by AXA IM has revealed the biggest drivers of ESG in the near future will be what is known as 'impact investing' along with board diversity strategies. These areas will fuel increasing demand for ESG factors across broader ranges of asset classes including sovereign debt, according to AXA IM.

Paris-based Matt Christensen, the global head of Responsible Investment for AXA IM, made these observations while in Australia, this week, addressing the Australian Superannuation Investment Conference on the future of ESG.

"ESG has been firmly on the investment agenda for the past decade and is one of the fastest growing global investment trends," Mr Christensen said.

"We feel it's time to forecast the next 10 years to ensure we have the right tools in place to support demand for ‘ESG 2020'."

Impact investing -- which describes investments in funds and businesses that generate social and environmental benefit -- is starting to catch the attention of sizeable funds both globally and in Australia, he said.

Mr Christensen said AXA IM believes this is only set to increase with the impact investing market predicted to grow to US$500 billion by 2019, covering about one percent of global assets.

Matt Christensen heads up AXA IM's Responsible Investment division.

"Broadly speaking, impact investing is defined as investments in businesses and/or funds that generate social and/or environmental benefit in addition to financial return -- it can be viewed as a complement to the limits of traditional philanthropy and government programs.

"The market is still young but its growth has resulted in initiatives that enhance its credibility such as the setting up of standards such as IRIS (Impact Reporting and Investment Standards) or labels such as GIIRS (Global Impact Investing Rating System)," Mr Christensen said.

He said AXA IM recently developed its strategy in applying ESG metrics to assess countries' creditworthiness, risks and opportunities in sovereign debt portfolios.

"Until a few years ago it was rare for investors to consider ESG factors for asset classes beyond equity and corporate fixed income," Mr Christensen said.

"We're seeing increasing interest in ESG analysis being applied to asset classes such as sovereign debt. This attention to ESG has only been amplified by the Euro zone crisis, which brought the evaluation of sovereign issuers' creditworthiness to the fore.

"We are already using this ESG country framework in our core RI (responsible investment) funds but we also see an opportunity to expand this to mainstream funds over the coming years," Mr Christensen said.

Another trend AXA IM predicts will grow rapidly in coming years is board diversity. Despite some of the largest European and Australian corporations being truly international enterprises, the impacts of globalisation remain to be fully seen at the board level.

"AXA IM believes the rapid rise of emerging economies will continue to springboard diversity at the forefront of the corporate governance agenda, both now and in the future," Mr Christensen said.

"Up to the present time, diversity has largely been focused on gender balance as research points a link between gender diversity at a board level and a company's financial performance. However we believe, and research now shows, that other aspects such as nationality can also increasingly be seen as a means to bring a broader range of views and experiences to bear within the leadership of companies across the globe.

"We recently analysed board diversity among the largest 50 European companies by market cap. The results suggest companies need to bolster senior management boards by shaping their composition in a way that better improves their readiness for success in emerging markets - I imagine this would have a similar outcome among ASX listed companies," he said.

A responsible investor since 2001, he said, AXA IM's goal is to integrate ESG factors across the spectrum of its A$703 billion multi-asset investment capabilities. Over the next 10 years the firm plans to further expand its global RI research capabilities.

Sydney-based director of AXA Investment Managers in Australia and New Zealand, Craig Hurt said, "Through the ongoing expansion of our global RI research and initiatives, we aim to offer Australian institutional investors - and their individual members and investors - a wider opportunity to invest in strategies incorporating ESG principles."

He said AXA IM has the ambition to become a leader in responsible investment and in 2001 it created a department dedicated to RI research, today composed of 10 experts under Matt Christensen's responsibility.

Its strategy, called RI Inside, "aims to integrate ESG factors to each of its expertises and the team implemented in 2007 the RI Search tool, allowing AXA IM fund managers to integrate ESG criteria in their investment processes.

In parallel, AXA IM continues to promote pure RI innovative products and mandates, with assets totalling more than 3 billion euros by the end of 2011.

AXA IM has signed the Principles for Responsible Investment and is a member of Eurosif. Today AXA IM is one of the largest European-based asset managers with A$703 billion in assets under management as of end-2012.

www.axa-im.com.au

ends

CAMBRIDGE Mercantile Group, a specialist in corporate foreign exchange and global payments, has expanded operations into the Asia-Pacific (APAC) territory through new regional headquarters in Sydney. It is a natural shift, according to Cambridge Mercantile, as the Australian currency develops into one of the most traded in the world.

Australian dollars are now in the top five traded currencies in the world.

A catalyst for the move is that the Australian dollar (AUD) has in recent years become one of the world's top five traded currencies, a reflection of the country's strong economy.

Establishing headquarters in Sydney affords Cambridge access to a new demographic and better services Australian domestic clients.

Timothy Connors is the new managing director of the Asia-Pacific region, having joined Cambridge from Western Union Business Solutions (WUBS), where he served as director of sales for corporate and enterprise accounts. In his new role at Cambridge, Mr Connors oversees all aspects of operations, critical customer relationships and sales functions.

"I'm excited to lead the team and be at the forefront in developing trusted and lasting relationships with customers in the APAC region," said Mr Connors. "The remarkable growth experienced in APAC financial markets is certain to continue and we expect these markets to play an important role in the world economy.

"I'm keen to work with our existing clients and build new relationships to offer our complete range of global payments and FX solutions to meet the growing demands of this region."

Cambridge Mercantile Group CEO Bernard Heitner said, "The launch of our APAC headquarters marks another significant milestone for Cambridge this year. As we celebrate our 20th anniversary at Cambridge, we continue to forge ahead with delivering the best-in-class FX and global payment solutions to our clients.

Since its inception in 1992, Cambridge Mercantile Group has grown to become a leading provider of global payments and currency risk management solutions. With more than 14,000 clients worldwide, Cambridge is among the largest bank-independent providers of hedging and risk management products, powered by technologies widely regarded as industry leading.

With offices strategically located across the globe, including North America, Europe and Australia, Cambridge facilitates the secure movement of more than $20 billion dollars annually.

www.cambridgefx.com

ends