VOLUME 26 - ISSUE 5
JUNE 2012
CUSTODIANS
HEAD TO HEAD AUSTRALIA’S LEADING SUPERANNUATION MAGAZINE WWW.SUPERREVIEW.COM.AU
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Feature
Stronger Super jigsaw
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still a puzzle DROPPING THE BALL Regulators need coaching after Trio Capital debacle
HERON RATINGS The best-rated Eligible Rollover Funds
Consolidation is increasing competition among big custodians for key mandates
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2 SuperReview MAY 2012 www.superreview.com.au
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Ausfund top ERF six years straight BY MIKE TAYLOR
Eligible Rollover Funds Australia’s Unclaimed Super Fund (AUSfund) Eligible Rollover Funds SuperTrace Australian ERF AMP ERF Table 1: Number of ERF Members
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Number of ERF Members
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www.superreview.com.au JUNE 2012 SuperReview 3
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Total ERF Assets
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4 SuperReview JUNE 2012 www.superreview.com.au
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Table 2: Total ERF Assets
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1(:6 ASFA questions Stronger Members’ interest Super costs trumps merger BY MIKE TAYLOR
The SuperStream initiatives contained in the Government’s Stronger Super legislation could cost in the order of $10 per year per superannuation account, according to the Association of Superannuation Funds of Australia (ASFA). In a submission to the Parliamentary Joint Committee reviewing the Stronger Super legislation, ASFA has expressed concern at the size of a levy to be imposed on superannuation funds to finance the Australian Taxation Office’s (ATO’s) implementation of the Stronger Super changes and the manner in which the money will be spent. “The levy for APRA (Australian Prudential Regulation Authority)-regulated superannuation funds in 2011-12 totalled $46.8 million. “If the Bill is passed the total levy likely to be proposed for 2012-13 (including the new money for the ATO) could be four times that,” the submission said. The ASFA submission said superannuation funds “are deeply concerned about how such an increased levy will impact on members’ accounts”. “The feedback ASFA has received is that the impact will be more like $10 a year per affected account, rather than the $4 an account mentioned in the Explanatory Memorandum,” it said. “The reason for this is that there are some millions of accounts in Eligible Rollover Funds, exempt public
sector accounts, self-managed superannuation funds and accounts subject to the member benefit protection due to low balance.” The ASFA submission also raised the question of whether ATO expenditures of the order proposed were justified on cost benefit grounds. “Any additional costs to funds need to be considered in the context of possible future efficiency savings,” the submission said. “The latest fund expense figures provided to ASFA by Rice Warner indicate that in 2010-11 the total cost to APRAregulated funds for processing contributions was $230 million, with a further $145 million for benefit processing. “A 50 per cent reduction in both (which could be on the optimistic side) gives a $190 million or so a year figure for cost savings to funds,” it said. “The median cost per active member of contribution processing for active members (about a third of total member accounts) was $16. The APRA levy in regard to SuperStream ATO expenses proposed in 2012-13 would be around $12 per active account. Over all accounts, the figures are contribution processing costs of around $5 an account and an APRA levy of $4 for ATO costs. “The cost benefit ratio of the ATO expenditure and required fund expenditure on the face of it would be unlikely to pass any usual private or public sector benchmarks,” the ASFA submission said.
Industry funds collect more in March Industry funds collected more contributions than public sector funds this quarter, although both took the lion’s share over corporate funds, according to the Australian Prudential Regulation Authority’s Quarterly Superannuation Performance to the end of March 2012. Industry funds received 32.6 per cent of total funds during the March quarter, accounting for $6.6 billion. Public sector funds took 32.1 per cent, or SUPER REVIEW iPad®edition
$6.5 billion, while corporate funds collected $872 million amounting to 4.3 per cent. The total estimated assets of industry funds increased by 7.3 per cent or $17.9 billion to $264.5 billion, public sector assets by 6.3 per cent and retail funds’ assets by 5.2 per cent. Employers contributed $16.9 billion and members $3.1 billion towards the total contributions to funds with at least $50 million in assets over the March quarter. Spouse,
government and other contributions totalled $137 million. March brought more outward rollovers than inward rollovers, with negative net rollovers for industry funds sitting at $17 million, $342 million for corporate funds, $698 million for public sector and $839 million for retail funds. The combined rate of return for the quarter was 5.4 per cent, with funds’ returns varying by a maximum of 0.2 per cent.
Super Review iPad® edition now available FREE from the App StoreSM. iPad is a trademark of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.
BY BELA MOORE
The best interest of members is still driving Asset Super (Asset) decision-making and not a need to align with CareSuper (Care) in the lead-up to their merger, said Asset chief executive John Paul. The merger date has been set for 26 October 2012, but Paul said while the super fund wasn’t John Paul entering into any longterm contracts, any necessary decision-making would be driven by a concern for the individual fund and its members. “But we won’t merge until we meet the successor fund deed requirement which is that we have to have a legal sign-off to say that members of Asset in the main are either equal in the benefit that they will get going into the merger or that they will have better benefits,” he said. However, Paul said he was supportive of the alliance which would bring benefits of economies of scale, internal resourcing, and more choice for members. Both funds are currently working on unifying fund services and transitioning. Earlier in the year, CommInsure won an internal tender process to appoint a single insurance provider, edging out Asset’s current insurer MLC. Paul said the new insurance arrangement could deliver more flexibility and comprehensive cover options for Asset members. Both funds employ National Asset Servicing for custodian services and Australian Administration Services (AAS) for administration, although Paul said AAS still had to transfer members into the same bucket on the AAS platform, as Care’s administration is carried out from Melbourne and Asset’s from Sydney. Paul said Asset also had to notify its advice provider – Money Solutions – of its intention to switch to Care’s provider, IFFP, after the trustees have signed off on the merger. He said they wouldn’t have everything done by 26 October, particularly Asset’s tax returns which will be finalised later in the year, but they are working now to “cross the t’s and dot the i’s”. Nevertheless, he said if asset consultant Mercer advised them of an underperforming fund manager, they would not automatically choose a Care-aligned manager as a replacement. “Obviously with a merger you try as best you can to harmonise things. That’s not always possible, and certainly we’re running the fund as we should be – as a stand-alone Asset fund at the present time, but we’re keeping an eye on things,” he said.
www.superreview.com.au JUNE 2012 SuperReview 5
1(:6 SuperStream levy must be transparent: FSC BY TIM STEWART
The expenditure of the $467 million SuperStream levy announced in the Federal Budget must be open and transparent, according to the Financial Services Council (FSC). The $467 million levy will take place over seven years, with $121.5 million due to be levied in the 2012-13 financial year. In a submission to the Parliamentary Joint Committee, the FSC confirmed its support for the two key measures in the SuperStream reforms:
the consolidation of multiple superannuation accounts; and the standardisation of processes and transactions. While the FSC accepted the need for the levy, it argued that the Australian Taxation Office, as the principal expender of monies, should be required to table a detailed breakdown of the costs for the two policy measures. “There is not yet any discourse of how monies will be allocated between expenditure versus ongoing costs,” said the submission. There should be regular reporting to the
SuperStream Advisory Council on expenditure, and the levy should be applied in a manner consistent with APRA’s existing rules on levying superannuation funds, the FSC said. In addition to the levy, the FSC said its members would incur capital costs of around $250 million related to the implementation of SuperStream. “We believe this to be a conservative figure. It does not include costs related to member communications and product administration, and is based on a survey of efficient superannuation entities with high technology costs,” the submission said.
The diversity illusion: Omega and LGS invest Perpetual in global bond fund
BY BELA MOORE
A focus on achieving better super fund member outcomes requires trustees to abandon the “illusion of diversity”, according to Perpetual head of diversities Michael Blayney and senior portfolio adviser Sandi Orleow. Orleow said that while funds believe they are diversified, often with the knowledge that up to 50 portfolio managers are working to achieve diversification, traditional balanced funds are diversified across asset classes with one allocation decision which skews the level of real diversity. She said the superannuation industry was full of agents whose purpose and function was to achieve good member outcomes, and that increased market volatility meant traditional portfolio construction did not answer questions of mitigating risk while achieving good returns. Blayney said the problem with old-style balanced funds is that they all broadly follow the 70/30 investment strategy with 70 per cent invested in equities. “They kind of all looked similar so that blending four of them you got back to the same thing as where you started because they all look so similar,” he said. He said surveys and peer group risk drive super funds to herd together and follow the pack, whether it be with balanced funds or default super options. Blayney said the strength in new approaches was that they were markedly different to the norm. Orleow said the beauty was the fact no one was constructing new balanced fund portfolios the same, lending them to diversity. Blayney said the trustee now had more onus to ensure good outcomes for members, because members of traditional retail funds often received advice about their decision, while many super members just defaulted into the easiest option. They agreed that as more Australians moved into the 55-plus age bracket, the industry needed to think about alternative approaches that focus on achieving an objective of Consumer Price Index-plus, and to marry the funds’ objectives with those of the members. 6 SuperReview JUNE 2012 www.superreview.com.au
Senior Omega investment executives Mathew McCrum and Andrew Gruskin will lead the investment team for a new fund seeded by Local Government Super with $170 million. The Sustainable Global Bond Fund was co-developed by Omega Global Investments and LGS over nine months and is an Australian first among a handful of global competitors, according to McCrum. He said the fund targets countries with sound governance and environmental standards and integrates with Omega’s risk-controlled approach to fixed income investing. “Our aim is to choose global government bonds derived from financially robust and politically stable nations, but which also pass meaningful ESG filters,” he said. LGS chief investment officer Craig Turnbull said the partnership would lead to innovative approaches that allow LGS to continue to invest responsibly. He said investment and operational risk minimisation had become an important part of effective asset allocation. “We are looking to develop innovative strategies that manage or mitigate our ESG exposure, and to capitalise on investment opportunities across all asset classes to achieve solid returns for our members,” he said.
Mathew McCrum Turnbull said the fund was an example of the super fund’s principles in action. LGS have $3.3 billion invested in responsible investment strategies across a number of asset classes. The $6 billion super fund is a signatory to the United Nations Principles of Responsible Investment and a host of environmental industry groups. McCrum said the fund builds upon Omega’s existing health rating filters. Based on Omega’s track record, he was optimistic they would produce a high quality, diversified bond portfolio that delivered an above benchmark sustainability dividend.
1(:6 ASFA digs in on AUSTRAC funding BY MIKE TAYLOR
The Association of Superannuation Funds of Australia (ASFA) is continuing its strong opposition to the need for superannuation funds to finance the activities of the Australian Transaction Reports and Analysis Centre (AUSTRAC). ASFA’s continuing objections have been made clear in its response to a cost-recovery impact statement issued by AUSTRAC. In that response, ASFA has also urged clarity that the earnings measures utilised with respect to calculating cost recovery are “the
trustee’s earnings, not the earnings of the trust”. “We recommend that this position be made clear in the Ministerial Determination for the 2012-13 regulatory period or by way of a separate formal statement by AUSTRAC,” the ASFA response said. However, it used its response to repeat what it described as “our strong opposition to the Government’s policy to recover AUSTRAC’s regulatory costs from reporting entities”. “We do not intend to restate the reasons behind ASFA’s position again in this submission,” the ASFA document said. “However, we feel
it is appropriate to again draw your attention to these prior submissions which contain, in detail, the reasons behind our objections to the AUSTRAC
UBS, FNZ commit to long-term alliance BY BELA MOORE
levy, and to advise that ASFA will be taking up the matter of the AUSTRAC levy as well as other industry levies directly with government.”
Understanding critical to attorney powers BY BENJAMIN LEVY
UBS and FNZ have announced a strategic alliance designed to expand their ‘direct-tomember investment solution’ and appeal to super funds’ intent on stemming the flow of funds under management (FUM) to selfmanaged super funds (SMSF). Australian Super signed on in November last year, and according to head of UBS Platform Solutions Group Scott Webster, the success of the project has led to the announcement of an alliance between FNZ and UBS to further develop the program. UBS has invested in the development of the FNZ platform for approximately two years, creating a SMSF-like product that gives members direct control over individual investments and real-time trading of any of the top 300 stocks on the ASX. FNZ is the platform and the registry behind the platform, while UBS is effectively the executing broker. “One of the key motivations for a superannuation fund to wish to deploy to their members the type of direct-to-member investment solution that UBS and FNZ is able to offer, is to stem the number of members that are leaving the large superannuation funds to set up their own self-managed super funds,” said Webster.
10 SuperReview JUNE 2012 www.superreview.com.au
He said the platform allows SMSF-like functionality at a fraction of the cost for members, reducing what could be approximately $3,000 in fees and compliance costs to $200 per member. Webster said he estimates Australian equities, term deposits and cash make up 65 per cent of SMSF assets, which are covered under the arrangement with Australian Super. He said there was a range of opportunities for future client-driven development, including expanding product choice and functionality to include transition to pension, adviser access, exchange-traded funds and unlisted assets. “We’re going to continue to invest and coinvest with FNZ to improve the functionality and the flexibility of what we’re able to offer to superannuation funds,” said Webster.
Advisers must consider that when they appoint an attorney as a super fund trustee, the proscriptions restricting the attorney’s power won’t apply when he steps into his role as a trustee, according to Hill Legal principal Chris Hill. This can be a critical factor when clients don’t entirely trust their attorney or are very proscriptive with the powers of attorney, he said. Once appointed, the attorney performs his duties as the trustee, not as the member’s attorney. Any restriction on an attorney doesn’t apply to the trustee role, Hill said. Clients might limit the powers their attorney has to business affairs, assets, or transactions, but if the attorney has trustee power one cannot control his discretion, Hill said. It was an important rule of common law, he added. Hill emphasised that it was important to follow the mechanical processes when making a trustee appointment. For example, corporate trustees must be appointed as directors, he said. The trustee appointment, or removal, must comply strictly with the process of the super fund deed, Hill said. “It’s very important that you drill down into the deed to look at the mechanical provisions for how a person becomes a trustee, and, if there is a power of attorney or legal representative, how they would step into the shoes of a trustee,” he said. Minutes of the meeting and consensus may have to be filed, and relevant declarations made, Hill added.
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Professional Associations Superannuation Limited (PASL) (ABN 14 056 917 303 AFSL 222590 RSE L0000352) is the Trustee of Professional Associations Superannuation Fund (PASF) ABN 78 984 178 687 RSE R1000429). RecruitmentSuper, Accountants Super, Australian Enterprise Super and SMARTpension are divisions of PASF. *SuperRatings Fund Crediting Rate Survey June 2010 and June 2011 - Balanced (60-76% Growth Assets). Past performance is not necessarily indicative of future performance. Performance relates to the default Growth option as at 30 June 2011 (2010 and 2011 financial years).
1(:6 Deloitte points to value of social media
AMIST stick with Asset Servicing
BY BENJAMIN LEVY
BY BELA MOORE
Super funds can save hundreds of thousands of dollars in administration if they push to engage members through social media, according to Deloitte partner and senior leader in online practice Katherine Milesi. Speaking at a Deloitte breakfast in Melbourne, Milesi said super funds thinking about engaging customers through online means could save vast amounts of money, as well as boost productivity and encourage more innovation. In a case study of a super fund using social media, Milesi said the super fund was shaving nearly $500,000 off the costs of updating client information by using a client self-service platform. Half of those savings just came from giving the client the ability to change their details online, she said. Only 10 per cent of their clients were on that portal, she said.
AMIST Super will continue to look to NAB Asset Servicing for custodial services after the provider was reappointed following an independent review. NAB has provided custodial services to the $1 billion industry fund since 2003, and will begin a new three-year contract on 1 June 2012. Michael Block conducted an independent review of AMIST’s custodial arrangements to determine the reappointment of NAB after a thorough review of their current partnership and alternative options. “NAB’s understanding of our industry, the strength of NAB’s balance sheet and the consistent service levels they have provided over a period were key aspects of our decision,� AMIST Super chief
Cost savings would become substantial as clients migrate to online portals, she said. Super funds could also provide online information to associated advisers without the need for reams of paper production – boosting productivity, Milesi said. Super funds should also consider crowd-sourcing to encourage innovation and reďŹ ne ideas, she said. “It’s not just in our own organisations that we need to have these ideas and test them and adjust them, we can actually bring people in,â€? she said. Super funds should prioritise the needs of their members if they can’t serve everyone’s all the time, she added.
executive, James Thomas said. General manager of sales, client relationships and FMS at NAB Brian Keogh said, “Our strong relationship, highlighted by our understanding of the Fund’s requirements were deemed important ingredients.� Keogh said NAB Asset Servicing provided AMIST with a “one-stopshop�, citing unit pricing services and a competitive fee offering as factors in the reappointment. The reappointment follows a stack of new clients for NAB Asset Servicing, which totalled nine new clients in nine months. It was also successfully reappointed to provide custodial services to MTAA Super fund in February, although it lost the QSuper mandate in March 2012.
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(',725,$/ A matter for grave APRA-hension
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Our politicans and regulators need to finally accept the failures associated with the Trio Capital saga.
ustralia has good reason to be proud of the manner in which its “twin peaks” regulatory system stood the test of the global financial crisis, but it is now clear that the collapse of Trio Capital has pointed to some worrying deficiencies in that system where superannuation regulation is concerned. Because, in fact, where superannuation is concerned, Australia has a “triple peaks” regulatory system involving the Australian Prudential Regulation Authority (APRA), the Australian Securities and Investments Commission (ASIC) and the Australian Taxation Office (ATO). It is well known that APRA carries most responsibility for the Superannuation Industry Supervision Act (SIS Act), while ASIC looks after a range of downstream advice and governance issues, and the ATO is responsible for administering self-managed superannuation funds (SMSFs). For the most part the system works well, but it clearly failed where Trio Capital was concerned, and both our politicians and our regulators need to accept the reality of that failure and address the root causes. It is simply not good enough for APRA deputy chairman Ross Jones to seek to distance his organisation from its failings by suggesting that APRA was responsible for regulating Trio but not responsible for the hedge funds Trio ultimately invested in. As the Parliamentary Joint Committee which reviewed the Trio collapse revealed, the performance of both APRA and ASIC left a great deal to be desired in circumstances where, ultimately, it was an industry whistle-blower who acted as the trigger for regulatory action.
It was subsequently revealed during last month’s Senate Estimates Committee processes that the ATO knew only too well about one of the central figures in the Trio collapse, US lawyer Jack Flader, but had not passed that intelligence through to either ASIC or APRA in the context of the Trio/Astarra investments. The failure of the ATO to pass through this information came despite Treasury telling the Senate Estimates Committee that well-established protocols existed for the sharing of information and intelligence between the three regulatory agencies. Some time ago, the former ASIC chairman Tony D’Aloisio likened the role of the financial services regulator to that of a policeman arriving at the scene of a car crash and cleaning up the wreckage. On the face of it, APRA appears to have adopted a similar approach with respect to how it handled Trio Capital and, indeed, some of the shortcomings which led to the losses incurred by MTAA Super. Simply put, APRA was observing some irregular behaviour within Trio but was still asking for explanations well after most of the money had disappeared into offshore investments, never to be seen again. Such an approach may tick all the boxes in terms of regulating the activities of the well-disciplined and reputable organisations which represent the vast bulk of the Australian superannuation industry, but it clearly proved ineffective when seeking to identify and act against what amounted to blatant fraud. Few of the investors who were burned by the Trio collapse and received no compensation understand or respect the explanation provided by Jones, and the Government should consider this fact when reviewing
the tenure of those running APRA. Will APRA act any differently under the increased powers provided to it by the Government’s Future of Financial Advice and Stronger Super changes? Only if those at the highest echelons of the organisation choose to utilise those powers. Indeed, it is entirely arguable that both ASIC and APRA had the ability to interpret their governing legislation and consequent regulations in a manner which would have seen them acting more proactively than was the case with Trio or, indeed, Storm Financial. They simply chose a different and much less interventionist approach. In many respects ASIC and APRA could learn a great deal from the well-practiced graduated approach adopted by the ATO – one in which it initially seeks to work through issues with particular companies, but ultimately moves swiftly and punitively when problems are identified. The regulators need to focus less on the machinery of what they do and more on consumer and investor expectations. Prompt action by the financial services regulators can help minimise the taint created by bad apples. Readers will be pleased to note that Super Review goes digital this month with the release of the Super Review iPad app. We look forward to bringing you this new service which includes audio, video and a range of other enhancements to the reader experience. Thanks to our principal sponsor CommInsure, the App is free to download from the Appstore. – Mike Taylor
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www.superreview.com.au JUNE 2012 SuperReview 15
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IFM DEB B T INVESTMEN NTS
WE BELIEVE AN INVESTMENT IN DEBT CAN
BE A REAL ASSET. As a world leading investment manager that invests over $35 billion* globally on behalf of many super funds, Industry Funds Management has built a successful track record of investing across the risk spectrum in the debt investment asset class. We are well recognised for our superior credit skills and significant expertise in non-vanilla, unrated and less liquid instruments DQG LQIUDVWUXFWXUH UHODWHG GHEW LQYHVWPHQWV ,)0 LV RIWHQ D ´Ă&#x20AC;UVW FDOOÂľ IRU LQVWLWXWLRQDO LQYHVWRUV On average DV ZH SURYLGH VWURQJ DFFHVV WR GHDO Ă RZ ZKLOH KHOSLQJ IXQG YLWDO QDWLRQ EXLOGLQJ SURMHFWV like Western Australiaâ&#x20AC;&#x2122;s 1600km natural gas pipeline from Dampier to Bunbury through our Alternative Fixed Income Fund. The Fundâ&#x20AC;&#x2122;s impressive average return of 7.78% p.a. for the past . . 12 years reinforces that investing in debt can be a positive investment for your super fund. For 12 years. Before tax. After fees. 7R Ă&#x20AC;QG RXW PRUH DERXW ,)0¡V 'HEW ,QYHVWPHQWV FRQWDFW (GG\ 6FKLSSHU RQ IFM Alternative Fixed Income Fund or visit our website www.ifm.net.au
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The IFM Alternative Fixed Income Fund is not available to retail investors and does not have a PDS. Investment can only be made by eligible superannuation funds and institutional investors. The 7.78% return shown does not represent the return to retail investors. It indicates the average return on capital invested by superannuation funds from commencement to 31 December DIWHU IHHV DQG EHIRUH WD[ DQG LQFOXGHV WKH PRQHWDU\ EHQHĂ&#x20AC;W RI IUDQNLQJ FUHGLWV 3DVW SHUIRUPDQFH LV QRW UHOLDEOH LQGLFDWRU RI IXWXUH SHUIRUPDQFH &RQVLGHU D VXSHU IXQG¡V 3'6 DQG \RXU REMHFWLYHV Ă&#x20AC;QDQFLDO VLWXDWLRQ DQG QHHGV ZKLFK DUH QRW DFFRXQWHG IRU LQ WKLV LQIRUPDWLRQ EHIRUH PDNLQJ DQ LQYHVWPHQW GHFLVLRQ )RU PRUH LQIRUPDWLRQ YLVLW ZZZ LIP QHW DX ,QGXVWU\ )XQGV Management Pty Ltd ABN 67 107 247 727 AFSL 284 404 *as at 30 April 2012
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20 SuperReview JUNE 2012 www.superreview.com.au
“From our clients’ perspective, in this environment their focus is survival and growth.” – Siva Sivakumaran
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scrum Damon Taylor reports that as consolidation continues to occur within the Australian superannuation funds sector, competition has increased among the big custodians for key mandates.
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26 SuperReview JUNE 2012 www.superreview.com.au
Ian Martin
“We spend between 20 and 25 per cent of our operating expense budget on technology and this, again, supports our operating model going forward.” – Ian Martin PRGHO JRLQJ IRUZDUG µ 6R DV VHUYLFH SURYLGHUV WR DQ LQGXVWU\ WKDW FRQWLQXHV WR IHHO SUHVVXUH ² ERWK UHJXODWRU\ DQG FRPSHWLWLYH ² LW VHHPV FOHDU WKDW IRFXV UHPDLQV YLWDO IRU FXVWRGLDQV &RUH FXVWRG\ PXVW EH H[HFXWHG ZHOO DQG \HW FXVWRGLDQV PXVW SD\ HTXDO DWWHQWLRQ WR YDOXH DGGLQJ VHUYLFHV IRU WKDW SRLQW RI GLIIHUHQWLDWLRQ 6R IRU 3DXO .KRXU\ FKLHI RSHUDWLRQV RIÀ FHU $XVWUDOLD IRU 6WDWH 6WUHHW FXVWRGLDQV PXVW ORRN WR WKH IXWXUH ´7KHUH·V JRLQJ WR EH D QXPEHU RI ELOOLRQ IXQGV LQ $XVWUDOLD DQG WKH\·UH JRLQJ WR KDYH D EUHDGWK RI LQYHVWPHQW DQG OHYHOV RI VRSKLVWLFDWLRQ WKDW ZH KDYHQ·W UHDOO\ WKRXJKW DERXW \HW µ KH VDLG ´7KRVH IXQGV KDYH JRW WR EH H[WUHPHO\ FRQÀ GHQW WKDW WKHLU
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TAL boosts senior team TAL Limited has announced the appointments of Kent Griffin and John Hoyle to its senior executive team. As a former partner and the head of actuarial and financial services risk management advisory at Ernst & Young, Griffin has assumed the role of TAL chief financial officer. He previously spent nine years at AXA, which included tenure as the regional CFO for AXA Asia. As well as his new role at TAL, Griffin is also convener of the risk management practice committee at the Institute of Actuaries. Griffin has considerable expertise in driving change in life insurance companies, said TAL managing director Jim Minto. Taking on the TAL Direct chief executive position, Hoyle was most recently CEO of Chartis Direct, serving for five years. He held senior sales and marketing roles at AXA Sun Life, IMS Health and Barclays and has market experience in the UK, China, Taiwan, Hong Kong, India and the Middle East. “John’s expertise in running direct insurance businesses and direct marketing functions will be of huge importance in helping shape TAL’s direct insurance customer agenda over the coming years,” said Minto.
John Hoyle
Kent Griffin
Deverall goes to Charter Hall board Former Perpetual Limited chief executive David Deverall has been appointed a non-executive director with Charter Hall Limited and Charter Hall Funds Management. He is the founder and current managing director of corporate consulting firm Deverall Advisory and previously served as the managing director and chief executive officer of Perpetual for eight years. At that time he was also the chairman of the Financial Services Council. Commenting on the appointment, Charter Hall chairman Kerry Roxburgh said Deverall’s significant experience in financial services, funds management and strategy were essential to his new role.
A promotion for Samway
David Deverall
MANDATES
Hyperion Asset Management has announced that Tim Samway will succeed Dr Emmanuel Pohl as managing director. After founding the company 16 years ago, Pohl is stepping down from his role to set up a new private equity business at Hyperion, as well as focus on Hyperion Flagship Investments and individually managed accounts. Samway is currently Hyperion’s institutional business
director and has been with the company since its inception. Hyperion stated that in his new role, he would ensure the continuity of the firm’s strategy, investment process and team.
Multiport adds to technical team In an effort to boost its consultancy services for trustees, advisers and accountants, Multiport has appointed Marjon Muizer as a technical services consultant. Multiport technical services director Philip LaGreca said Muizer’s appointment was consistent with the demand for Multiport’s services amid the growth of the self-managed superannuation fund sector. Muizer previously worked at PKF Chartered Accountants and was also a manager in superannuation for Dixon Advisory and Superannuation Services. “Marjon’s background working with accountants is essential in understanding advisers’ and accountants’ needs,” LaGreca said. LaGreca added that Marjon’s background working with accountants would be essential in facilitating the needs of Multiport’s adviser and accountant base, which has grown significantly over the past six years.
Received by
Type of mandate
Issued by
Amount
PacWealth Capital
Custody
NASFUND (PNG)
$1.1 billion
NAB Asset Servicing
Custodial services
JCP Investment Partners
n/a
MetLife
Insurance
Nationwide Superannuation Fund
n/a
Sigma Funds Management
Custody
undisclosed
$100 million
AAS
Administration
Nationwide Superannuation Fund
n/a
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Vintage Sherry incumbent, Bill Shorten. It probably says something about Sherry that his final moments chairing a Senate Estimates Committee went something like this: CHAIR (Senator Sherry): Even before APRA, ISC. I am doing some work in the super financial services space, so I am sure we will bump into each other, hopefully not in a regulatory disciplinary sense. APRA deputy chairman, Ross Jones: Senator, you are about the only person who has ever made our statistics team’s eyes light up by saying that you read their publications in bed at night. CHAIR: I do. And I keep reading them. I will continue to do so. Thanks very much. The committee stands adjourned.
ROLLOVER wishes Senator Nick Sherry a fond farewell as the Tasmanian Labor Senator and former junior minister departs the Federal Parliament for what will undoubtedly be a more enjoyable period in his life. Sherry had, of course, played a significant role in the development of superannuation both as the chair of a key parliamentary committee, then later as an opposition frontbencher, and later as Minister for Financial Services and Superannuation and then as Assistant Treasurer. Rollover believes that Sherry’s deep knowledge of superannuation was never really reflected in his ministerial postings. Certainly, he has a considerably deeper understanding than the current ministerial
Pollies want more crackers ROLLOVER notes the minor furore which was created by suggestions that some politicians, senior public servants and members of the judiciary would be side-stepping the Government’s Budget decision to remove the superannuation tax concessions applying to those earning over $300,000 a year. He particularly noted the status of those parliamentarians with long years of service which preceded the changes to the Parliamentary superannuation regime introduced by the Howard Government under pressure from former Labor Opposition leader Mark Latham. However Rollover believes that in circumstances where the polls suggest that many long-serving Labor backbenchers have only an outside chance of being returned to office, they need all the tax breaks they can get. Losing your seat in a predicted landslide may not hurt so much if you walk away with a solid super balance.
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APRA research? Well, it’s academic KNOWING how happy superannuation funds are to dig deep and pay their financial services levy to the Australian Prudential Regulation Authority (APRA), Rollover thought the fund chief executives would be delighted to know how at least a part of that money is being spent. This matter was pursued during Senate Estimates by Tasmanian Liberal Senator David Bushby, who asked APRA’s deputy chairman Ross Jones about the regulator’s research department, its staff members and its workload. Mr Jones: We have a research department within APRA. At the moment, it is four staff mem-
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bers from APRA. We also have a collaborative arrangement with at least one university. The researchers develop the papers and put those papers out as APRA working papers. They will also put them to conferences and publications and so on. It is like a fairly standard academic process. Senator BUSHBY: Are they funded in those circumstances? Do you pay for people to do them? Mr Jones: They are usually our staff. There are four of them. Senator BUSHBY: Who would actually decide what areas you would conduct that research in? Mr Jones: It often depends upon the researchers that we are
able to attract and their research interests. Some of them will be PhD students or some of them will be post-PhD, so it is often linked into their areas of particular expertise and interest. Senator BUSHBY: So it is not driven by the need for information or data collection from APRA’s perspective in terms of doing its job? Mr Jones: It is to some extent, certainly. What we would also try to do is align what our research needs might be. But often researchers have a very specific academic interest as well. Often it is linked into their backgrounds in the first place. Your levy at work.
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