Tag: Motley Fool

Exchange traded funds (ETFs) can be a fantastic way to balance out your portfolio. This is because they provide investors with exposure to groups of shares that you wouldn’t ordinarily have access to.

With that in mind, I have picked out two ETFs that are popular with investors right now. Here’s what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF to look at is the BetaShares Global Cybersecurity ETF. As its name implies, this popular ETF gives investors exposure to the leading companies in the global cybersecurity sector. 

This could be a great place for investors to have exposure to right now. With cyber-attacks rising materially and becoming even more sophisticated each year, demand for cybersecurity servicesis expected to continue increasing in the coming years.

This bodes well for the companies you’ll be owning through this fund. This includes the likes of Accenture, Cisco, Cloudflare, Crowdstrike, Okta, and Splunk.

In respect to CrowdStrike, it delivers incident response and forensic analysis services that are designed to help businesses understand whether or not a breach has occurred. Its platformthen allows users to respond and recover from a breach with speed and precision to remediate the threat.

As for Cloudflare, it is an US based web infrastructure and website security company. Its global cloud platform delivers a range of network services to businesses of all sizes around the world, making them more secure while enhancing the performance and reliability of their critical internet properties.

Finally, Okta provides businesses with workforce identity solutions. This ensures that access to information is given only to those that are meant to have it.

Betashares Nasdaq 100 ETF (ASX: NDQ)

Another ETF to consider is the Betashares Nasdaq 100 ETF. Thisincredibly popular ETF gives investors exposure to 100 of the biggest and brightest (non-financial) companies on the famous Nasdaq stock exchange.

We This means you’ll be buying a slice of companies at the forefront of the new economy. This includes Amazon, Apple, Facebook,Microsoft, Netflix, Nvidia, and Tesla.

These companies have collectively been outperforming the Australian share market by some distance over the last five years.

And thanks to their positive long term outlooks, experts appear to believe they are well-placed to potentially continue this outperformance over the next five.

The post 2 ETFs for ASX investors in June appeared first on The Motley Fool Australia.

More reading

• BetMakers and Zip were among the most traded ASX shares last week
• 2 good ETFs that might be buys
• 3 reasons the iShares S&P 500 ETF (ASX:IVV) could be a buy today
• Here’s why this ETF could be a top option for ASX investors
• 2 impressive ASX shares that could be buys in June 2021

James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended BETA CYBER ETF UNITS and BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS and BETANASDAQ ETF UNITS. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3x1EnTQ

The S&P/ASX 200 Index (ASX: XJO) was out of form on Wednesday and dropped lower. The benchmark index ended the day with 0.3% decline to 7,270.2 points.

Four ASX shares that didn’t let that hold them back are listed below. Here’s why they are storming higher:

Brickworks Limited (ASX: BKW)

The Brickworks share price jumped 11% to $23.40. Investors were buying the company’s shares after it provided a positive update on its joint venture Industrial Property Trust. According to the release, Brickworks now expects to deliver record earnings from its property portfolio for FY 2021. It is expecting its property earnings before interest and tax to be in the range of $240 million to $260 million, up from $129 million a year earlier.

Ecofibre Ltd (ASX: EOF)

The Ecofibre share price rocketed 23% higher to $1.07. This was despite there being no news out of the cannabis and hemp company on Wednesday. However, earlier this week, the company released a sales update which revealed that its core Ananda Professional business recorded its highest revenues since September 2020. It noted that as the world enters a post-COVID environment, it is beginning to see many of its pharmacy partners return to normal operations.

Frontier Digital Ventures Ltd (ASX: FDV)

The Frontier Digital Ventures share price stormed 4% higher to $1.28. This morning the emerging markets-focused online marketplace company announced that it has entered into a sale agreement to acquire the remaining 49% interest in InfoCasas. This consolidates its position in South America with three wholly owned businesses across six key countries.

Ramsay Health Care Limited (ASX: RHC)

The Ramsay share price climbed 2% to $63.49. Investors were buying the private hospital operator’s shares following the release of a positive broker note out of Citi. According to the note, the broker has upgraded the company’s shares to a buy rating with an increased price target of $76.00. It believes Ramsay is well-placed for growth once the healthcare sector returns to normal. And while it suspects that it may need to raise capital, this is priced into its valuation.

The post Why Brickworks, Ecofibre, Frontier Digital, & Ramsay are storming higher appeared first on The Motley Fool Australia.

More reading

• Why brokers give the Ramsay Health (ASX:RHC) share price a thumbs up
• Brickworks (ASX:BKW) share price jumps 8% on record property earnings
• When the music stops… the investment bankers stop getting paid!
• Brokers name 3 ASX shares to buy now
• Why the Ramsay Health Care (ASX:RHC) share price tumbled lower today

James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Frontier Digital Ventures Ltd. The Motley Fool Australia owns shares of and has recommended Brickworks. The Motley Fool Australia has recommended Frontier Digital Ventures Ltd and Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3zgsbjZ

There are signs of life coming back to the Credit Clear Ltd (ASX: CCR) share price, which has bounced more than 25% in the last three trading sessions.

At the time of writing, the Credit Clear share price is up 12% to 61 cents after the company released an investor presentation this morning.

What did Credit Clear announce?

Credit Clear specialises in receivables management solutions. Today’s presentation highlighted that the company’s top-line revenue was “resilient” with “momentum building as COVID-19 related debt collection restrictions ease”. With that in mind, the company advised it has shifted its focus to converting clients to its digital platform to achieve an expansion in gross margins.

Within today’s update, the company reported a 2,410% increase in the conversion of traditional clients to the digital platform. This 4-digit increase is based on the revenue of converted clients from the third quarter of FY20 to the third quarter of FY21.

The third quarter FY21 saw digital services revenue account for 37% of the company’s revenue, with digital gross profit margins of 96%.

The update also highlighted the company’s strong pipeline of opportunities across its target verticals including insurance, water and utilities, automotive, banks and education.

Additionally, the presentation pointed out that a big milestone was made by the company back in April after it signed its first major insurance client, Suncorp Group Ltd (ASX: SUN).

The pipeline of opportunities hinted a number of potential contracts including “late-stage discussions with tier 1 insurance clients”, “progress with other major water and utilities companies”, “advanced discussions with two major automotive brands’ finance arms” and a a big four bank committing to a pilot program.

How the Credit Clear share price has performed since its IPO

Credit Clear listed on the ASX on 27 October at an initial public offering price of 35 cents. Its shares closed at 46 cents on its first day of listing.

Just three days later, on 30 October, its shares briefly hit $1.20, or a 245% return for those that managed to participate in the IPO.

From there, the Credit Clear share price slowly drifted lower, hitting a 9-month low of 46.5 cents on 4 June, or going full circle back to debut prices.

On a more encouraging note, its shares have lifted more than 25% in the last three days to 61 cents at the time of writing.

The post Why the Credit Clear (ASX:CCR) share price is up 12% today appeared first on The Motley Fool Australia.

More reading

• The Island Pharma (ASX:ILA) share price lifts on key US patent milestone

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3w8eF03

Shares in Sovereign Metals Limited (ASX: SVM) have held onto gains they saw in early trade after the company announced its flagship rutile deposit is among the world’s largest. At the time of writing, the Sovereign Metals share price is trading 77 cents, 13.97% higher than yesterday’s close.

Let’s take a look at what may be driving the Sovereign Metals share price today.

Today’s news from Sovereign Metals

Today, the mineral exploration company released the maiden resource estimate for its Kasiya rutile deposit – located in Malawi.

The site’s assay results include 644 metric tonnes at 1.01% rutile, including a high-grade component of 137 metric tonnes at 1.41% rutile.

According to Sovereign Metals, this makes Kasiya the second largest rutile resource in the world behind Iluka Resources Limited‘s (ASX: ILU) Sierra Rutile.

Sovereign Metals says the project’s mineralisation occurs in a large, coherent deposit. A lot of the deposit’s high-grade material exists just 5 metres from the surface.

The maiden resource estimate only covered 43% of the project’s ~114 square kilometre rutile footprint.

Thus, the company is expecting future resource growth.

What’s next?

A scoping study is currently examining the extent of the rutile deposit.

The study will focus on environmental, social, and governance measures and sustainability, and will be completed late this year.

Sovereign Metals is also undergoing an “aggressive” drilling program to allow for future resource upgrades and extensions at the deposit.

The company expects Kasiya’s resource growth could make it the largest rutile deposit in the world.

Rutile’s environmental benefits

Natural rutile is the purest form of titanium dioxide and the preferred feedstock for titanium pigment and metal. Titanium pigment can be found in paints, coatings, and plastics.

Rutile’s scarcity has seen the titanium industry develop carbon intensive substitutes.

Therefore, the company believes one tonne of natural rutile can save 2.8 tonnes of carbon emissions from being created.

Commentary from management

Sovereign Metal’s managing director Dr Julian Stephens commented on the findings, saying:

It is a remarkable result to achieve the maiden JORC mineral resource estimate of this scale, grade and global significance in under 18 months since discovery.

We believe this maiden resource is just the beginning and expect to upgrade and expand the resource over the coming quarters.

Sovereign Metals share price snapshot

2021 has been a good year so far on the ASX for the Sovereign Metals.

Currently, the Sovereign Metals share price is 109% higher than it was at the start of the year. It has gained 307% since this time last year.

The company has a market capitalisation of around $321 million, with approximately 414 million shares outstanding.

The post Here’s why the Sovereign Metals (ASX:SVM) share price is up 14% appeared first on The Motley Fool Australia.

More reading

• ASX 200 Weekly Wrap: ASX whipsaws in volatile week
• Top brokers name 3 ASX shares to sell next week
• These were the worst performers on the ASX 200 last week
• ASX 200 jumps, Qantas flies, Nufarm rises
• Why Flight Centre, Iluka, Nuix, & Oil Search shares are tumbling lower

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3iyyb1T

In late afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down 0.1% to 7,284.6 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are tumbling lower:

Altium Limited (ASX: ALU)

The Altium share price is down 7.5% to $34.27. Investors appear to be taking profit after an incredible gain earlier this week. Even after today’s decline, the electronic design software company’s shares are up 26% since the start of the week. This has been driven by a rejected takeover approach from US software giant Autodesk.

Appen Ltd (ASX: APX)

The Appen share price has fallen 3.5% to $12.86. This also appears to have been driven by profit taking. Prior to today, this artificial intelligence data services company’s shares were up 15% since this time last month. Improving investor sentiment in the tech sector and optimism over its new operating model have helped drive its shares higher.

National Storage REIT (ASX: NSR)

The National Storage share price is down 2% to $2.04. This follows news that National Storage has raised gross proceeds of approximately $260 million via an accelerated non-renounceable entitlement offer. The storage giant raised the funds at a 4% discount of $2.00 per new share. It is now aiming to raise a further $65 million from retail investors. These funds will be used to support its growth strategy.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price is down 2% to $42.63. Today’s decline appears to have been driven by a broker note out of Credit Suisse. According to the note, the broker has downgraded the retail giant’s shares to an underperform rating with a $37.98 price target. This follows its review of the company’s Endeavour demerger plans.

The post Why Altium, Appen, National Storage, & Woolworths are tumbling lower appeared first on The Motley Fool Australia.

More reading

• 3 growing ASX tech shares for growth investors
• National Storage (ASX:NSR) share price returns on equity raising efforts
• This surprising ASX tech share refuses to dive: analyst
• Takeovers, credit cards and an AAA credit rating confirmation. Motley Fool CIO Scott Phillips on Nine’s Late News
• Why the National Storage (ASX:NSR) share price is frozen

James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Altium and Appen Ltd. The Motley Fool Australia owns shares of and has recommended Altium, Appen Ltd, and Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3znLfNw

China is considering imposing price controls to tame the raging coal market as it grapples with a looming energy crisis.

If you fail the first time, try and try again seems to be the motto of the Chinese Communist Party.

Never mind that authoritarian price controls have failed in the past! Chinese officials are reportedly thinking about capping the price miners can sell coal, reported Bloomberg.

Commodity price surge feeding inflation

This is in response to surging demand for electricity as power plants struggling to keep up due to the lack of cheap coal.

Not coincidently, China’s factory gate inflation surged to its highest level since 2008 in May. The producer price index increased 9% from the year before. This is higher than the 8.5% median forecast that economists surveyed by Bloomberg where expecting.

As I reported on Monday, Beijing’s embargo on Australian coal is contributing to the coal problem. Power utilities may have to ration electricity as unseasonably hot weather and a ramp up in factory production post-COVID-19 are putting a strain on supply.

China thinks it can control prices

It’s interesting that China believes capping prices can make the problem go away. If anything, higher prices stimulate supply and vice-versa.

But this isn’t stopping the Chinese government from testing the theory. The price cap is being trialled at at Yulin, a major production base in north western Shaanxi province, according to Bloomberg.

This isn’t the only idea that’s being tested. Chinese authorities are considering enforcing a limit of 900 ($181.84) yuan to 930 yuan a ton on the benchmark price at the port of Qinhuangdao. The hope is that this will influence other markets nationwide.

Coal price near record highs

The price of coal at Qinhuangdao jumped to a record high of 962 yuan a ton on May 19 before moderating to around 865 yuan. That’s still well ahead of the historical average of 547 yuan a ton.

“Under this scenario, power plants would be advised by the authorities that they can’t buy coal above that level,” said Bloomberg.

Again, it’s difficult to see how these ideas will increase the supply of coal, which is at the heart of the problem.

Same controls, different results?

The demand-supply imbalance is made worse by China’s move to close unsafe mines following a spate of fatal accidents. It’s doing this ahead of the 100th anniversary of the founding of the Communist Party next month.

No official decision has yet been made and it’s worth noting that China has unsuccessfully tried to control the commodity price before.

Market manipulation can worsen the problem

No surprises that didn’t work. What’s surprising is that the Communist Party is using the same playbook again but expecting a different outcome.

“China produces and consumes mostly its own coal and the supply chain is dominated by state-owned firms,” said Bloomberg.

“But the precedent of imposing price controls could still rattle other commodities markets that rely on imports and the private sector.”

The post China looking to impose new controls on the rocketing coal price appeared first on The Motley Fool Australia.

More reading

• Why the CSR (ASX:CSR) share price is surging today

Brendon Lau does not own shares mentioned in this article. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3v5qEtO

Motley Fool Australia Chief Investment Officer Scott Phillips joined Nine’s Late News on Tuesday night to discuss the economic news of the day, including two big share price bouncebacks — Mesoblast Limited (ASX: MSB) and WiseTech Global Ltd (ASX: WTC) — plus great news from NAB’s latest business survey, and concerns that more Australians are taking on too much mortgage debt.

The post The day’s big winners, including Mesoblast and WiseTech, plus more good economic news and borrowers taking more risk appeared first on The Motley Fool Australia.

More reading

• Why the WiseTech (ASX:WTC) share price stormed 6% higher today
• ASX 200 up 0.1%: Tech shares rise, Ansell names new CEO
• The tech shares to buy now (and the ones to avoid): analyst
• Why Flight Centre, Mesoblast, NAB, & SkyCity shares are sinking
• ASX 200 Weekly Wrap: ASX hits 7,300 points for the first time

Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended WiseTech Global. The Motley Fool Australia owns shares of and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2RzsQMs

The S&P/ASX 200 Index (ASX: XJO) has slipped today after a strong initial push into positive territory. At the time of writing, the ASX 200 is down 0.25% to 7,274.5 points.

Let’s take a look at some of the ASX 200 shares that are being the most heavily traded today:

3 ASX shares that are the ASX 200’s biggest movers today

Whitehaven Coal Ltd (ASX: WHC)

Coal miner Whitehaven is one of the most active ASX 200 shares on the markets today, with 14 million shares having traded hands so far at the time of writing. That can probably be explained by Whitehaven’s strong 5.72% jump today to $1.94 a share, which we looked at earlier. Whitehaven has also had a very strong month of performance, with the shares up close to 54% since early May. Investors can likely thank galloping coal prices for this situation.

Coda Minerals Ltd (ASX: COD)

Coda Minerals shares are also finding their way around the ASX boards today, with a hefty 23.5 million shares changing hands so far today. One look at the current Coda share price gives away the probable cause here. Coda shares are currently up a whopping 162% today to 93 cents a share. A promising ASX update this morning, which flagged a significant discovery at one of Coda’s copper mines, has seemingly gotten investors very excited over the company’s future.

Imugene Limited (ASX: IMU)

Imugene was the most traded ASX 200 share yesterday and has scored a double today, with the company topping ASX 200 trading with a substantial 52 million shares bouncing around the ASX boards. There have been no major news or announcements that might have sparked such a move. However, this company’s trading today has been volatile. Imugene shares were up close to 7% in early trading this morning, but have since given up those gains, and are now down 3.12% to 32 cents a share at the time of writing. With such volatility, it’s no real surprise to see such a large number of shares swapping hands today. Even so, Imugene shares are still up more than 19% over the past month, and 675% over the past year.

The post These 3 ASX 200 shares are the most actively traded today appeared first on The Motley Fool Australia.

More reading

• NAB (ASX:NAB) trying to combat crime loopholes with ‘Project Apollo’
• Here’s why the Whitehaven Coal (ASX:WHC) share price is on fire this week
• Why the Chalice Mining (ASX:CHN) share price is outperforming today
• Why ‘value’ and ‘growth’ share categories are meaningless
• 2 ASX 200 blue chip shares named as buys

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3zfaDF6

ASX mining shares Sandfire Resources Ltd (ASX: SFR) and Perenti Global Ltd (ASX: PRN) are having an interesting day’s trade following a market update provided by both companies. The companies come into focus after agreeing to a $650 million partnership on an African copper mine. Sandfire Resources is a mineral exploration company, focused on copper, and Perenti Global provides a range of diversified services up and down the mining value chain.

In morning trade, both Perenti and Sandfire shares were in the green, up by as much as 7.4% and 4.2%, respectively. However, at the time of writing, both companies have retreated, with Perenti shares now trading 1.47% lower for the day at 67 cents.

The Sandfire share price is, at least, still in the green, trading 2.67% higher at $7.32.

Let’s take a closer look at today’s news.

What’s impacting these ASX mining shares?

In separate statements to the ASX, both companies confirmed Sandfire Resources will partner with Perenti and award it the $648 million, 7 years and 3-month contract for open pit mining services at Sandfire’s Motheo Copper Project in Botswana.

The award of the contract is subject to the granting of the mining licence to Sandfire and then execution of the contract. The mine will begin operations sometime in 2022.

Management commentary

Sandfire managing director and CEO Karl Simich said:

By partnering with a group with deep roots and strong community and stakeholder relationships in Africa, we have a unique opportunity to work together to create a lasting, positive legacy in Botswana and deliver significant sustainability and [environmental, social, and governance] outcomes.

Perenti managing director and CEO Mark Nowell added:

Partnering with Sandfire is a great opportunity and collectively we share a strong commitment to the creation of shareholder value while demonstrating the highest standards of safety, responsibility and sustainability. We look forward to demonstrating our capabilities as we deliver on our commitments at the Motheo Project.

Growing our footprint in Botswana is aligned with our 2025 strategy, to further expand into stable mining jurisdictions and pursue quality projects. The benefit of adding Motheo to the Perenti project portfolio is the opportunity to leverage our existing in-region operational presence at Zone 5 as well as partnering with Sandfire to develop Botswana’s next large-scale, highly productive, world-class copper mine.

Copper commodity price history

When the feasibility study for the Motheo project was completed, it assumed a standard price for copper of US$3.16 per pound. Currently, the reddish-gold metal is trading on the commodities market for US$4.55 per pound.

Despite the fact copper is much higher than originally forecast, the current price is down nearly 4% over the last month. According to the website Trading Economics, weak demand out of China is driving the price down. China is the largest importer of copper in the world.

Motley Fool has previously reported on copper’s price rise over the past 14 months, due in part to a growing global economy and increasing demand for green technologies, in which copper is a vital component.

Share price snapshots

Over the past 12 months, Perenti shares have decreased by around 57% while the Sandfire share price has gained around 46%. Perenti reached a 12-month low late last month while Sandfire shares hit a 52-week high earlier in the same month.

Perenti and Sandfire Resources have market capitalisations of around $472 million and $1.3 billion, respectively.

The post Sandfire (ASX:SFR) share price lifts following Perenti partnership appeared first on The Motley Fool Australia.

More reading

• Why ASX copper shares could have more market-beating gains ahead
• These 3 ASX 200 shares have dropped 50% or more in 2021 so far
• ASX copper shares have broadly outperformed the market…now what?
• Why did the Perenti (ASX:PRN) share price fall 38.5% in May?
• These were the worst performing ASX 200 shares in May

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3x8iDFX

The National Australia Bank Ltd (ASX: NAB) share price was hit earlier in the week when AUSTRAC confirmed it’s investigating the bank for potential breaches of anti-money laundering legislation.

However, media reports today have revealed that NAB is attempting to combat compliance issues with its Project Apollo.

The NAB share price is currently trading 0.7% lower at $26.58. Three of the big four banks are moving lower today – Australia and New Zealand Banking Group Ltd (ASX: ANZ) is the exception.

What is Project Apollo?

As jointly reported by The Age and The Sydney Morning Herald, NAB’s Project Apollo is the bank’s response to its potential ongoing compliance issues.

NAB has brought global consulting firm Accenture onboard and beefed up the number of staff working on the project. This follows AUSTRAC commencing a formal investigation into potential breaches.

So, what is Project Apollo exactly? According to reports, the project is an attempt at spearheading problems in identifying high-risk customers banking through ASX-listed NAB.

Financial institutions must assume the responsibility through ‘know your customer’ obligations outlined in Australia’s laws to tackle money laundering and terrorism financing.

While the full details of the project are secretive, sources say Apollo involves examining hundreds of thousands of customer profiles. The objective of the extensive review process is to delete duplicate accounts and remove high-risk customers.

Unsatisfactory checks and balances

Comments made by former NAB staff to The Age raised issues with compliance in the past. The former employees claimed it would be common to find bank accounts with falsified identification documents.

“We would come across profiles set up by government ministers, they were rated low [risk], then you realise these guys are [politically exposed persons] and should be under far more monitoring than usual.”

The sources said Australia’s second biggest bank is working with technology more than 20 years old. Analysts are allegedly sorting through bank statements manually to determine suspicious activity, the claimed.

NAB has been facing anti-money laundering and counter-terrorism compliance issues since 2017.

The NAB share price still outperformed the ASX

Despite the controversy shrouding NAB, the ASX’s benchmark index hasn’t managed to keep up. Over the past 12 months, the NAB share price has rallied 30%. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) delivered 18.5% during the same period.

The post NAB (ASX:NAB) trying to combat crime loopholes with ‘Project Apollo’ appeared first on The Motley Fool Australia.

More reading

• Why the Chalice Mining (ASX:CHN) share price is outperforming today
• Why ‘value’ and ‘growth’ share categories are meaningless
• 2 ASX 200 blue chip shares named as buys
• 2 quality ASX dividend shares rated as buys
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3isq72l