Tag: Mail Services

Singapore Post Limited and Prudential Asset Management (Singapore) Limited launch Asian property securities fund

Posted by | Mar 28, 2008 | |

Singapore Post Limited (“SingPost”) and Prudential Asset Management (Singapore) Limited (“PAM Singapore”) today announced that they have launched a new fund, International Opportunities Funds (“IOF”) – Asian Property Securities. The fund aims to make 1 pct payout every quarter1,2 for Class Fd Shares. The offer period starts today, 28 March 2008. The fund is exclusive to SingPost customers and is available at selected post offices. This initiative is the result of the growing partnership between SingPost which took root in November 2006. With the latest addition, the range of investment products under SingPost’s “Care for Life” portfolio has grown even more comprehensive. IOF – Asian Property Securities invests primarily in listed closed-ended Real Estate Investment Trusts (REITs) and property related securities of companies, which are incorporated, listed in or have their areas of primary activities in Asia Pacific, which includes Japan, Australia and New Zealand. The fund may also invest in depository receipts [including American Depository Receipts (ADRs) and Global Depositary Receipts (GDRs)], debt securities convertible into common shares, preference shares and warrants.

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Postcomm highlights many Royal Mail failures

Posted by | Mar 28, 2008 | |

Royal Mail is failing to invest properly, is too inefficient and is not developing sufficient new products, the industry regulator has said in a sweeping indictment of the business.
The criticisms by Postcomm are in response to a government review of the impact that competition has had on the state postal group.

The postal group recently warned unions that its pension fund trustees could be forced to liquidate the business or force through huge alterations of the pension scheme unless changes were made.

The warning over the GBP 3.4 billion pension deficit comes as Royal Mail is facing another major industrial showdown with unions over planned pension changes, just months after the end of the last national strikes, which were triggered by pay. A clash moved nearer yesterday when the pension fund trustees approved the changes, which include ending the final salary scheme to all members and raising the retirement age from 60 to 65.

Postcomm highlighted the benefits of competition, such as lower prices and greater innovation for large business customers and record levels of service quality for residential customers.

Royal Mail said that competition was now far ahead of the forecasts from the regulator when the market formally opened to competition four years ago. The business part of the market, which is the only area properly active at present, opened four years ago when Royal Mail finally agreed access terms for its infrastructure.

Royal Mail said that Postcomm’s criticisms had failed to recognised the postal group’s universal service obligation (USO) – its duty to provide a flat-rate service anywhere in the country for domestic customers.

Postcomm argued that the USO was not under discussion for the part of the review it responded to.

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UK mail volume figures continue to decline

Posted by | Mar 28, 2008 | |

According to the latest figures, this is the third consecutive year of mail volume decline in the UK and is contributing to Royal Mail’s shrinkage.

According to Royal Mail, 5.03 billion items of direct mail were sent in the UK in 2006, a decline of 2.1pct in volume on the previous year. The UK addressed mail market was worth around GBP 6.8 billion in 2006/07. Mail volumes amounted to 21.9 billion items, down 2pct on the previous year. These figures included downstream access, all regulated and non-regulated mail, but excludes door-to-door and international.

Transactional mail volume estimates range anywhere from 6bn to 10bn items per year, this volume is estimated to be declining by around 2-3pct per year. This is due largely to businesses encouraging their customers to move physical bills and statements online.

In 2006/07, mail carried via access arrangements (both operator and customer direct access) accounted for 11.8pct of total mail volumes. This is an increase from 5.6pct in 2005/06.

Royal Mail’s financial performance for the year ended 25 March 2007 was weaker than in the previous year with operating profits (before exceptional items) for Royal Mail Letters’ business falling from GBP 344m to GBP 194m, caused by increasing costs, falling mail volumes and constant revenue. For the licensed area, Royal Mail recorded operating losses of GBP 29m in 2006/07 compared with profits of GBP 168m in 2005/066.

The USO remained profitable overall though less so than the previous year (operating profit was GBP 27 million compared with GBP 54 million in 2005/06) with profits from non-licensed mail weighing over 350g continuing to offset losses on licensed mail weighing 0-350g.

Postcomm has warned Royal Mail that it’s slow reaction to competition and lack of innovative ideas for the growth in the internet and ecommerce could be damaging.

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EU's McCreevy complains to France, Germany, 6 other states over postal services

Posted by | Mar 27, 2008 | |

EU internal market commissioner Charlie McCreevy has complained to France, Germany and six other member states over lack of competition in their postal services markets, his spokesman said.

The other countries are Austria, Belgium, Finland, the Netherlands, Poland and Slovakia, the spokesman said.

‘The commissioner sent a letter to all 27 member states on postal services,’ he said, adding that McCreevy singled out eight countries for criticism.

EU countries have to implement the European Commission’s liberalisation measures by Dec 31, 2010.

The spokesman confirmed that Dutch group TNT NV has filed a formal complaint with the commission against minimum wages in the German postal industry.

The commission is concerned about the minimum wages and a VAT exemption enjoyed by German mail incumbent Deutsche Post World Net AG.

The German government last autumn decided to make minimum wages paid at Deutsche Post mandatory for the whole industry.

TNT claims that the German government is violating EU regulations that ensure free and fair competition among EU members operating across borders.

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Postcomm: Royal Mail must transform for a healthier mail market (UK)

Posted by | Mar 27, 2008 | |

Postcomm has argued that fundamental reforms are essential if Royal Mail is to have a long-term sustainable future and the needs of all users of mail are to be met.

In its first submission to the independent panel reviewing the postal services market, Postcomm has highlighted the positive impact for customers since the addressed letters market was opened fully to competition over two years ago:
* Larger customers have enjoyed lower prices and increased innovation;
* Residential mail users have experienced record levels of service quality from Royal Mail; and
* Smaller businesses and public sector customers are also now beginning to reap the benefits of choice.

During this period, there have also been significant structural changes in the mail market that are directly linked to advances in technology and the increasing use of alternative forms of communication such as email and the internet. These changes pose challenges but they also create new opportunities. Royal Mail’s performance in rising to meet these new challenges has been disappointing.

Royal Mail continues to lag significantly in terms of investment, efficiency and substantial product innovation. Their recent focus has been on forestalling new entrants to the mail market and far less on adapting to these more far-reaching structural changes. This situation is unsustainable and unless addressed will result in accelerating decline.

Postcomm believes the future health of Royal Mail, the universal service, and the addressed letters market as a whole are inextricably linked. Decisions about fundamental reform have to be taken swiftly if Royal Mail is to lead a healthier mail market and provide a strong universal service.

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