SUPERANNUATION – AUSTRALIA

Cbus workers charged over CFMEU leak

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Original article by Ewin Hannan, Nick McKenzie, Richard Baker
The Australian Financial Review – Page: 5 : 1-Dec-15

Former Cbus employees Maria Butera and Lisa Zanatta have been charged with giving misleading evidence to the Royal Commission into Trade Union Governance and Corruption. They allegedly leaked details of the superannuation fund’s members to Brian Parker, the New South Wales secretary of the Construction, Forestry, Mining & Energy Union. Parker may also be charged.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, LIS-CON HOLDINGS PTY LTD, MELBOURNE MAGISTRATES’ COURT, AUSTRALIAN FEDERAL POLICE, AUSTRALIA. ROYAL COMMISSION INTO TRADE UNION GOVERNANCE AND CORRUPTION

Diversify call to super funds

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 17 : 19-Oct-15

Australian superannuation funds are forecast to have some $US2.5trn ($A3.4trn) worth of assets under management by 2020, compared with $A2bn at the end of March 2015. Itay Tuchman of Citigroup says the strong growth in assets under management in coming years will require super funds to further expand the range of international asset classes in which they invest. Meanwhile, Tuchman says Westpac’s move to increase its mortgage interest rates will strengthen the case for a further reduction in the cash rate.

CORPORATES
CITIGROUP PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA, JP MORGAN AUSTRALIA LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIANSUPER PTY LTD, IFM INVESTORS PTY LTD, INDIANA TOLL ROAD CONCESSION COMPANY, CANADA PENSION PLAN INVESTMENT BOARD

Big banks grab third of $30b in super fees

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Original article by Jacob Greber
The Australian Financial Review – Page: 4 : 12-Oct-15

Research undertaken by Rainmaker on behalf of Industry Super Australia shows that Australia’s four major banks received about 33 per cent of the $A30bn paid in superannuation fees in 2014-15. Retail super funds and not-for-profit super funds accounted for about 50 per cent and 25 per cent of fees respectively. ISA CEO David Whiteley has expressed concern about the level of transparency in the super industry.

CORPORATES
INDUSTRY SUPER AUSTRALIA PTY LTD, RAINMAKER INFORMATION SERVICES PTY LTD, AMP LIMITED – ASX AMP, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Satisfaction with retail superannuation funds catching up to industry funds

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 30-Sep-15

A Roy Morgan Single Source survey has found that 59.6 per cent of Australians aged 14+ who are members of an industry superannuation fund were satisfied with their fund’s financial performance in the six months to August 2015. This compares with a 58.9 per cent satisfaction rating for members of retail super funds. However, retail funds have a higher satisfaction rating among people whose super balance exceeds $A700,000 (81.1 per cent compared with 77.6 per cent). Retail funds also have a marginally higher level of satisfaction than industry funds among fund members whose super balance is less than $A5,000 (48.9 per cent compared with 44.4 per cent).

CORPORATES
ROY MORGAN RESEARCH LIMITED

Morrison: GST hike could ease worker tax burden

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 5 : 30-Sep-15

Treasurer Scott Morrison has indicated that the Australian Government will ensure that there is no overall increase in the tax burden. He has told Sky News that income tax cuts would be implemented to offset any increase in other taxes, such as the GST. The corporate tax rate and superannuation tax breaks are also likely to be on the agenda when Prime Minister Malcolm Turnbull and key government ministers meet with business, union and community organisation leaders on 1 October 2015.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, SKY NEWS, BUSINESS COUNCIL OF AUSTRALIA, ACTU, AUSTRALIAN COUNCIL OF SOCIAL SERVICE, COUNCIL ON THE AGEING, THE AUSTRALIAN INDUSTRY GROUP, KPMG AUSTRALIA PTY LTD, AUSTRALIAN BROADCASTING CORPORATION, AUSTRALIAN LABOR PARTY

Retiring CIO: new board rules will be good for super funds

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Original article by Sally Rose
The Australian Financial Review – Page: 19 : 21-Sep-15

Sunsuper will appoint Michael Traill and Andrew Fraser as independent directors. However, CEO Scott Hartley opposes the Australian Government’s proposal to require one-third of super fund’s boards – including the chairman – to be independent. In contrast, outgoing chief investment officer David Hartley favours the push for greater independence of directors. He notes that industry super funds with equal representation by employers and employees have tended deliver good returns.

CORPORATES
SUNSUPER PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, SOCIAL VENTURES AUSTRALIA LIMITED, QUEENSLAND. TREASURY, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, FINANCIAL SERVICES COUNCIL, AUSTRALIAN CONSUMERS’ ASSOCIATION, QSUPER LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIANSUPER PTY LTD, KPMG AUSTRALIA PTY LTD, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, TELSTRA SUPERANNUATION SCHEME

Super fund CEO ‘knew’ about leak

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Original article by Ewin Hannan
The Australian Financial Review – Page: 1 & 6 : 8-Sep-15

Cbus CEO David Atkin has been accused of being likely involved in the leaking of confidential information to the construction industry union. Jeremy Stoljar, counsel assisting the Royal Commission into Trade Union Governance & Corruption, also stated in a submission to royal commissioner Dyson Heydon that the relationship of Cbus with the Construction, Forestry, Mining & Energy Union was problematic and characterised by "serious cultural problems."

CORPORATES
CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIA. ROYAL COMMISSION INTO TRADE UNION GOVERNANCE AND CORRUPTION, LIS-CON HOLDINGS PTY LTD

Calls to limit $21b super fees ‘gouge’

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Original article by Joanna Mather
The Australian Financial Review – Page: 7 : 28-Aug-15

National Seniors Australia has called for rules to force superannuation managers to cut back on fees, which amounted to $A21 billion a year. If funds did not voluntarily moderate fees, the regulator might have to step in, CEO Michael O’Neill said. Grattan Institute CEO John Daley told the National Reform Summit there was insufficient competition in the super industry to drive down fees. He has proposed a plan to save $A5 billion in fees which involves a tender process and a series of no-frills super products.

CORPORATES
NATIONAL SENIORS AUSTRALIA LIMITED, GRATTAN INSTITUTE, SUPERRATINGS PTY LTD, KPMG, AUSTRALIAN LABOR PARTY

New front opens in activists’ war

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Original article by
The Australian Financial Review – Page: 2 : 24-Aug-15

HESTA’s decision to sell its stake in Transfield Services is a sign of things to come. Australian-listed companies must be prepared to be challenged by environmental and social activists. Divestment campaigns are no longer limited to tobacco, gambling or weapons. Environmental and social issues are now also scrutinised by activists. For investors, this is a worrying development.

CORPORATES
TRANSFIELD SERVICES LIMITED – ASX TSE, HEALTH EMPLOYEES’ SUPERANNUATION TRUST AUSTRALIA LIMITED, ALLAN GRAY AUSTRALIA PTY LTD, WILSON SECURITY SERVICES, AUSTRALIAN NURSING FEDERATION, HEALTH SERVICES UNION OF AUSTRALIA, UNITED VOICE

Transfield dumped in human rights protest

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Original article by Sally Rose
The Australian Financial Review – Page: 3 : 19-Aug-15

Superannuation fund HESTA has sold its three per cent stake in Transfield Services because of concerns about risks associated with the group’s management of the offshore detention centres on Manus Island and Nauru. HESTA manages super savings of doctors, nurses, and other workers in the healthcare and community services sectors. Many of its members are concerned about reports of mismanagement in offshore detention centres.

CORPORATES
HEALTH EMPLOYEES’ SUPERANNUATION TRUST AUSTRALIA LIMITED, TRANSFIELD SERVICES LIMITED – ASX TSE, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED