Financial Market Exchange For The ASX Limited And The AMP Limited

The ASX Limited

Describe about the Financial Market Exchange for The ASX Limited and the AMP Limited.

The ASX is the leading financial market exchange at all over the world, which offers the full services like listings, trading, clearing, and resolution for the various ranges of the classes of assets. ASX is the leader all over the world, which puts up the capital and it is the first major market of the finance, which open every day. The ASX Limited has rated in the top five exchanges all over the world. It takes in the market capitalization of about $1.5 trillion. It is the political program, which leads to the world resource, finance, and technology companies. The ASX Limited has the involvement rate of about the $47 trillion in the derivatives market is the biggest in the Asia and all over the world.

The net of the ASX and the data center has the connection with the leading financial hubs. The success of the ASX Australian Liquidity center, which is depending in Sydney are depending on the speed, reliability, state-of-the-art technology and the variety of the user community. The ASX Limited does the operation in the environment of the world class regulatory and meets the global standard, which is highest. The clearinghouse of the ASX Limited is the safe and secure place in all over the world and the well capitalized in the globe. It helps to bear out the stability of the financial market in the Australia. The ASX Limited has the experience about 150 years for the exchange and experiences the team about 530 people, which has the highest skills. They focuses on the customer and place them at the centre of everything, they do and has the 6.7 million shareowners and the participants about the 180 and the listed companies about 2200 and issuers. The ASX Limited helps the company to create the wealth regarding the future and manages the investments as well as the operational risk

It is the big brand, which developed the role of the company as the holding company of the group and has the market with the several ranges of having the market services activities, which is associated with the common commitment and provides the Australia, the infrastructure of the capital market. The ASX group was establish with the amalgamation of the Australian Stock Exchange and the Sydney Future Exchange during the month of the July 2006 and now it is coming in the top 10 listed exchange group all over the world. It is the exchange group which is vertically integrated and perform the activities in the primary and the secondary market and also provide services like raising, allocation, and hedging of capital flows, trading and the uncovering of the price; transferring risk to the central counterparty and the liquidation of the securities for both the equities as well as the market of the fixed income. As the operator of the securities industry, it facilitates the clearinghouse as well as the system of the payments. It also understands the compliance of its operating regulations and provides the standards of the corporate governance in the listed companies of the Australia. It also provides training to the retail investors. The substructure of the customer, whether it is domestic or international of the ASX is varied. It involves issuers, which are from the various listed securities and the financial products, investments, and the trading bank, shop manager , hedge funds, the advisors of the commodity trading, brokers and proprietary traders; market data vendors; and retail investors. It is the wholly owned subsidiary of the ASX compliance and provides the ongoing monitoring and with the principles of the ASX, it enforces the compliance. The operation of the ASX reinforces by the market supervision and regulates the role, which has undertaken by the Australian securities and the Investments Commission in all the venues of the trading and the facilities of the clearing as well as the settlement with the help of the Reserve Bank of Australia with the stability of the financial system. It also handles the compliance of the listed public company (ASX Group, 2016).

Corporate social responsibility

The fabric of the ASX is of the risk management monitors the environment, social, and governance risks, which are the part of the Board. The ASX focus on the sustainability of the business, which is for long-term. 

The objective of the ASX is to make and retain the team, which is highly motivated and are professionals, who have the best experience and the human capital policies and the program of the ASX and its periodic report are obtain and seen by the Remuneration Committee. The executive committee sees the programs of the talent and the leadership, management of the performance and the process of the reward, the consequences of the successive planning, and the progress of the diversity strategy and the staff alignment and the engagement results. 

The voluntary turnover of the ASX for the fiscal year 2016 is 12 percent and the lost time, frequency rate is less than the 0.1. 

The management and the board review the place of values and the behavior, which disclose the brand and the culture of the ASX. The annual survey measures and its solutions, staff alignment, engagement, and the commitment towards the values of the ASX are monitor at the level of the board. The staff engagement and the alignment have risen in the financial year 2016. The top quartile is the alignment and the top second quartile is the date of the ASX’s group

The fellowship supports that working environment, which is diversified and inclusive, where the opportunities have given which is equal to all the employees. It also provides the preparation and the benefits to each of the employees. Its business priority is the gender equality and is dedicated to support the each of the participation, whether it comes from the male or female in the daily workforce. It also supports the marriage equality. 

The company has made the good progress for the diversity of the gender target. The target achieved is about 40 percent, which is over all. The current target is 40 percent, which is at the tier of senior management and to be continues in the financial year 2017. 

ASX has honored by an Employer of the Choice for the Gender Equality citation for the workplace of the Gender Equality Agency. The Employer Choice Award has recognized the dedication of the ASX towards the equal participation of both men and women in the workforce. 
Ethics and integrity

The codification of the conduct of the ASX and the Anti-Bribery and the Corruption and the Whistle bowler Protection Policies encourage the decision-making whichever is right for all the directors and the employees of the ASX Limited. The employees of the ASX has certified and they entirely understand the policies of the company

ASX People

The ASX Limited is depending on the constitution, which provides service and does not conclude the resources, which is physical or natural and is not included in the manufacture or transport of the products.  The risk management framework of the ASX has monitored, accessed, and managed the risks of the surroundings. The approaches for the management of the risk implies the measurement of the activities and its impact; consumption of the material is minimized; the consumables are recycled and re-used; and supports the awareness of the environmental issues. 

The participants of the ASX for the patterns of the ESG have the following external assessment: 

Carbon Disclosure Project

The transparency is providing to the emission of the ASX as well as to the usage of waste and the urine. 

FTSE4Good Index Series

The transparency is providing to the emission of the ASX as well as to the usage of waste and the urine. 

ASX helps its employee, hence that the employees will be the active supporter and give some contribution to the community program outside the workplace. This calls for the volunteering leave, which provides the payment. The community program of the ASX will allow the employees for supporting the causes and the selections of the charities from the board list of the partners of the charity. The employee contribution is match with the charity partners by the ASX and donates the $153,104 to the 59 charities in the financial year 2016. 

This Foundation supports the charities like Australia-based children and the medical research with the supporter of the events organized which helps to raise funds with the participation of the financial market and other industries. The finances were raise about $1.6 million and provide to the 59 charities in the financial year 2016 (ASX Ltd, 2016).

The AMP was form with the simple thought that every person should be able to control and manage his or her life. To carry out this idea, the AMP Limited has the dedication about 160 years and makes it possible. At present, the AMP Limited has grown and the decades are also changed, but the one thing is still the same that is helping the people to manage and control their life of their own. The AMP Limited is the leading company with having specialization of the wealth management in the Australia and the New Zealand. The company serves the customer by:

. Both could be quite good at giving financial advice;

Culture

For the individuals there is superannuation, income from the retreat and the other products for the investments;

For the business there is services for the retirement fund;

for the self management of the super funds there is administration, banking, and the investment services;

Life policy, income protection, and the disability;

selection of the banking products;

Share investment, fixed interest, property, infrastructure, multi-manager, and the multi-assets funds. 

The products and the services of the AMP Limited

In the Australian market, the company leads in:

• Financial advice
• Retail superannuation
• Life insurance of the individuals

In the market of the New Zealand, the company leads in:

• Corporate superannuation
• Retail funds and the superannuation
• It is biggest provider of the Kiwi Saver Scheme and the life insurance in the New Zealand.

• In Australia, AMP Limited has the biggest network for the financial advice and in New Zealand, it has the employed financial advisors about more than 4400.
• The company manages the assets for the customers about the $215 billion and even more than that.
• The AMP Limited has the shareholders about the eight-lakh twenty thousands.
• AMP Limited has the employees about more than 5400 across the world, which helps and supports the financial advisors, customers, and the shareholders.
• The largest property manager in the Australia is the AMP capital, in which it manages the real estate assets about more than the $18 billion.

AMP provides the products and the services with the supporter of the biggest network of the financial advice in the Australia and the New Zealand. The troupe has also maintained the relationship with the external financial advisors. The network of the financial advice of the AMP Limited involves the financial planning of the AMP, Charter Financial Planning, Hillross IPAC, and SMSF advice, Spicers, Advice First, and the AMP 360. The company creating the financial security for the customers. The clientele of the wholesale superannuation of the AMP Limited provides the services like the superannuation and the insurance to the various companies, which is more than the 50000 and to the 500000 members in the Australia. The AMP Limited with the supporter of the financial advisors network does the distribution of these products. AMP bank is the financial bank, which supplies the residential mortgage, accepts deposits, and the transaction accounts and the products of the SMSF to the customers around 100000. These services are provides with the assistance of the mortgage brokers and the financial advisors of the AMP Limited and with the help of the internet and the phone banking 

The leading provider of the superannuation products is the AMP Limited. They help the customers to own their life and provide them the best schemes to achieve their goals. The AMP Limited provides the various products to the client such as the personal risk insurance products for the financial security of the customers. The personal risk insurance products involve life insurance, total and the permanent disability cover, income protection and the trauma cover, which is maintain for the individual or the group superannuation fund. The governance of the self-managed super fund of the AMP Limited supports the individuals and make the design so easy, that the individual will be able to understand and make the own decision regarding the investment about the superannuation. They facilitate the customers by the compliance, audit, tax returns, and update the daily paperwork in the order. The distribution of the merchandise and the services has done by the network of the self-employed financial advisors and with the help of their relationship with the independent financial advisors. The advisers of the AMP Limited using the technology, which leads to the market like the flagship platform North, which have the variety of the investment options with the capital of the award-winning and the products, which have the income guarantee. 

The team of the AMP customer solution has focused on the demands of the customers, understands, makes the solutions, and offered so that the customers will meet their needs and that offers take to the market. The customer solution plays the vital role in the outgrowth of the strategies of the enterprise, and planning, and target of the enterprise. The customer solution manages the brand, segment of the customer, marketing strategy, activities of the sales, digital solution, design, and the innovating functions, and embraces the new ventures of the AMP Limited. 

The AMP capital delivers the best results for the investment to the clients and provides the contemporary solution for the fixed income, equities, real land, infrastructure, and the portfolios of the multi-assets. The AMP capital shares the heritage along with the AMP across 160 years. The biggest investment managers in the region of the Asia Pacific are the AMP capital. The AMP capital has grow internationally in the market of Australia and the New Zealand and now also started the operation in the Bahrain, China, Hong Kong, India, Japan, Luxembourg, the United Kingdom, and the United States. The AMP Capital coordinates with the network of the global investment partners, and delivers the insights with the advantage (AMP Ltd, 2016).

• AMP Life Limited
• AMP Superannuation Limited
• AMP Capital Funds Management Limited
• AMP Bank Limited
• IPAC asset Management Limited
• The National Mutual Life Association of Australasia Limited
• NMMT Limited
• NM Superannuation Proprietary Limited.

• AMP Capital investors Limited
• AMP Capital Funds Management Limited
• AMP Mutual Funds Management Limited
• IPAC asset management Limited.

value of AUD	47.78
market capitalization	9.25B
shares outstanding	193.6M
EPS	2.2
yield	4.15%
price movements	1.38%

value of AUD	5.37
market capitalization	15853M
shares outstanding	2.96B
public float	2.96B
EPS	$0.34
yield	5.21%
price movements	0.19%

ASX Limited

Income statements

For the year 2016

	$m
Revenue
listings and issuers services	194.3
trading services	183.8
equity-post-trade services	102
derivatives and OTC market	266.2
interest income	146.3
dividend income	13.1
share of net profit of equity accounted investments	0.9
other	1.7
	908.3
expenses
staff	-101.1
occupancy	-14.1
equipment	-28.4
administration	-29.6
finance costs	-86.3
depreciation and the amortization	-42.7
	-302.2
profit before income& tax	606.1
income tax expenses	-179.9
net profit for the period attributable to owners of the company	426.2
other comprehensive income
items that may be reclassified to profit or loss
change in the fair value of available-for-sale financial assets	-0.5
change in the fair value of available for sale investments	15.8
change in the fair value for cash flow hedges	-1
other comprehensive income for the period, net of tax	14.3
total comprehensive income for the period attributable to owners of the company	440.5
Earnings per share
Basic earnings per share(cents per share)	220.4
diluted earnings per share(cents per share)	220.4

Balance sheet

For the year ended June 2016

	$m
current assets
cash and funds on deposits	3276.4
available-for-sale financial assets	3796.4
receivables	469.1
prepayments	12.6
total current assets	7554.5
Non-current assets
available for sale investments	358.2
equity accounted investments	66.6
intangibles assets-goodwill	2317.6
intangibles assets-software	103.1
property, plant & equipments	51.6
total non-current assets	2897.1
total assets	10451.6
current liabilities
amounts owning to participants	5888.2
payables	437.8
current tax liabilities	9.9
provisions	14.5
revenue received in advance	16.4
other liabilities
total current liabilities	6366.8
non-current liabilities
amounts owing to participants	2000
net deferred tax liabilities	51.6
provisions	9
revenue received in advance	0.1
total non-current liabilities	260.7
total liabilities	6627.5
net assets	3824.1
equity
issued capital	3027.2
retained earnings	576.9
restricted capital reserve	71.5
asset revaluation reserve	139.7
equity compensation reserve	8.8
total equity	3824.1

Cash flow

As on June 2016

	$m
cash flows from operating activities
receipts from customers	801.2
payments to suppliers & employees	-252.3
	548.9
interest received	148
interest paid	-85.6
dividends received	13.1
income taxes paid	-182
net cash flows from operating activities	442.4
cash flows from investing activities
increase/decrease in participants margins and commitments	2146.4
payments for available-for-sale investments	-24.4
payments for equity accounted investments
payments for other non-current assets	-48.4
net cash inflows from investing activities	2073.6
cash flows from financing activities
dividends paid	-375.6
net cash outflow from financing activities	-375.6
net increases/decrease in cash and cash equivalents	2140.4
decrease/increase in the fair value of cash and cash equivalents	-2.2
increase in cash and cash equivalents due to the changes in the foreign exchange rate	55.6
cash and cash equivalents at the beginning of the financial report	4879
cash and cash equivalents at the end of the financial period	7072.8
cash and cash equivalents consists of:
ASX Group funds	984.6
participants margins and commitments	6088.2
total cash and cash equivalents	7072.8

(ASX Ltd, 2016).

Net profit margin	46.97%
operating margin	76.21%
return on assets	4.61%
return on equity	11.24%
return on investments	10.52%
cash flow per share	0.0242
price/cash flow per share	0.2
book value per share	0.1975
tangibles book value per share	0.0725
current ratio	0.0119
payout ratio	90%

Income statement

For the June 2016

	$m
income and expenses of shareholders, policyholders,
external unit holders and non-controlling interests
life insurance premium and related revenue	1225
fee revenue	1527
other revenue	35
investments gains and losses	2961
share of profit or loss of associates accounted for using the equity method	14
life insurance claims and related expenses	-1101
operating expenses	-1804
finance costs	-116
movements in external unit holders liabilities	-313
change in policyholders liabilities
life insurance contracts	-510
investments contracts	-668
income tax(expense) credit	-247
profit for the period	963
profit attributable to shareholders of AMP Group Limited	424
profit attributable to non-controlling interests	539
profit for the period	963

Balance sheet

As on June 2016

	$m
assets
cash and cash equivalents	6367
receivables	3453
current tax assets
inventories and other assets	128
investments financial assets	110,038
investments properties	263
investments in associates accounted for using the equity method	501
property, plant & equipment	426
deferred tax assets	507
intangibles	3914
total assets of shareholders of AMP Ltd.	125597
liabilities
payables	5741
current tax liabilities	59
provisions	352
other financial liabilities	1261
borrowings	2605
subordinated debts	379
deferred tax liabilities	1779
external unit holders liabilities	12932
life insurance contract liabilities	24139
investments contract liabilities	69282
defined benefit plan liabilities	177
total liabilities of shareholders of AMP Ltd.	118706
net assets	6891
equity
contributed equity	6926
reserves	-1880
retained earnings	935
total equity	5981
non-controlling interests	910
total equity	6891

Cash flow

For the June 2016

	$m
cash flows from operating activities
receipts from customers	801.2
payments to suppliers & employees	-252.3
	548.9
interest received	148
interest paid	-85.6
dividends received	13.1
income taxes paid	-182
net cash flows from operating activities	442.4
cash flows from investing activities
increase/decrease in participants margins and commitments	2146.4
payments for available-for-sale investments	-24.4
payments for equity accounted investments
payments for other non-current assets	-48.4
net cash inflows from investing activities	2073.6
cash flows from financing activities
dividends paid	-375.6
net cash outflow from financing activities	-375.6
net increases/decrease in cash and cash equivalents	2140.4
decrease/increase in the fair value of cash and cash equivalents	-2.2
increase in cash and cash equivalents due to the changes in the foreign exchange rate	55.6
cash and cash equivalents at the beginning of the financial report	4879
cash and cash equivalents at the end of the financial period	7072.8
cash and cash equivalents consists of:
ASX Group funds	984.6
participants margins and commitments	6088.2
total cash and cash equivalents	7072.8

(AMP Ltd, 2016).

Net profit margin	7.80%
operating margin	21.80%
return on assets	0.71
return on equity	11.64
return on investments	6.93
total debts to total equity	207.5
total debt to total capital	67.48
total debts to total assets	12.65

Conclusion

It is concludes from the report that the ASX Limited and the AMP Limited both are performing well and has the good reputation in the market.

References

ASX.Ltd.(2016).the ASX Group.retrieved on 20 september 2016 from

https://www.asx.com.au/about/asx-group.htm

ASX.Ltd.(2016).corporate social responsibilities.retrieved on 20 september 2016 from 

https://www.asx.com.au/about/corporate-social-responsibility.htm

AMP.Ltd.(2016).about AMP.retrieved on 20 september 2016 from

https://www.amp.com.au/amp/about-amp

ASX.(2016).ASX Limited annual report 2016.retrieved on 20 september 2016 from https://www.asx.com.au/documents/investor-relations/asx-annual-report-2016.pdf

AMP Ltd.(2016).directors report and financial report for the half year ended 30 june 2016.retrieved on 20 september 2016 from

 file:///C:/Users/Guest/Downloads/Avis_55407.pdf

Jones.D &Company.(2016).financials.retrieved on 20 september 2016 from

https://quotes.wsj.com/AU/XASX/AMP/financials

The Financials Times Ltd.(2016).financials.retrieved on 20 september 2016 from

https://markets.ft.com/data/equities/tearsheet/financials?s=ASX:ASX