Super Review (May 2012)

VOLUME 26 - ISSUE 4

MAY 2012

ROUNDTABLE

STRONGER SUPER AUSTRALIA’S LEADING SUPERANNUATION MAGAZINE WWW.SUPERREVIEW.COM.AU

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Auto-consolidation is just one of the hurdles in the Government’s brave new world. p20

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Planning and super set to grow closer GO TO PAGE 12 >

A TARNISHED LEGACY The Government’s super tinkering is a world away from the Hawke/ Keating grandeur p10 >

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METLIFE SURVEY Industry votes on default fund regime p18 >

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1(:6 APRA opens door for MySuper cost-benefit analysis

BY MIKE TAYLOR

Superannuation funds will have an opportunity to define both the costs and benefits of the Federal Government’s move to the new MySuper regime under arrangements outlined by the Australian Prudential Regulation Authority (APRA).

APRA has released a discussion paper on the proposed arrangements for the authorisation of MySuper products and made clear that the costs and benefits of the process were part and parcel of

the consultation arrangements.

It said that respondents were open to provide an assessment of the impact of the proposed changes, and specifically, any marginal compliance costs that APRA-regulated entities are likely to face.

“Given that APRA’s proposed requirements may impose some compliance costs, respondents may also indicate whether there are any other relevant regulations that should be improved or removed to reduce compliance

costs,” the discussion paper said.

Commenting on the release of the discussion paper, APRA deputy chairman Ross Jones said the proposed authorisation requirements had been carefully aligned with the legislative requirements.

He said the regulator was encouraging Registrable Superannuation Entities (RSEs) considering offering a MySuper product to use the draft application form and instructions in discussions with their board on their plans.

Ross Jones

High earners’ contributions tax an administrative nightmare

BY CHRIS KENNEDY

The Government’s plan to increase the concessional contributions tax to 30 per cent for workers earning over $300,000 will create an administrative nightmare for super funds attempting to work out how much tax to deduct from each individual member, according to Minter Ellison partner Maged Girgis.

The increased tax will affect around 128,000 people or 1.2 per cent of the total of people making contributions, according to Girgis.

Because it’s a singular cut-off rather than a scaled tax, someone making $299,000 would be far better off than someone making $301,000, he said.

He compared the tax increase to the superannuation surcharge introduced on super by the Liberal party in 1997 that was eventually abandoned because the administrative costs outweighed the benefits.

Super funds are essentially taxed on their overall income (including investment returns and contributions) minus deductions such as insurance premiums and legal fees. The remaining taxable income is taxed at 15 per cent, and funds can deduct a flat 15 per cent from their entire member base.

But he said under the proposed changes funds will need to pay 30 per cent tax on contributions for a portion of their member base – requiring funds to “unscramble the egg” to work out how much each member is earning.

This would require a lot of legwork and a lot of communication between each fund and the

Returns should drive default fund selection: ISN

BY TIM STEWART

Australian Taxation Office, Girgis said.

The other option would be for the Government to implement it as a new tax, similar to the 1997 surcharge. This method would mean the liability of the new tax sits with the individual rather than the fund, but is payable by the fund while that money sits with the fund. But if the member moves to a new fund, so does the liability, and if the money is paid out the liability moves to the individual, Girgis said.

With the time delay between contributions payments and tax returns, this could create a time lag of up to two years for self-employed people – in which time the member could move funds, retire or pass away, he said.

There are additional complications, he said.

“What if it’s a defined benefit fund? What if it’s an underfunded defined benefit fund? What if it’s a Commonwealth scheme where no contributions are ever made? What if it’s a parliamentary scheme or a state scheme that’s not subject to tax?” he asked.

The primary criteria for the selection of default funds under modern awards should be long-term net returns, according to the Industry Super Network (ISN).

In a submission to the Productivity Commission, the ISN called for a “competitive, open and transparent approach” to the selection of default funds, and proposed a role for Fair Work Australia in the process.

Members of FWA should be joined by “a panel of recognised superannuation experts to assist in such deliberations”, said the ISN. “Each application from an eligible fund should be considered in the context of the relevant award and the industry it serves,” said the ISN. “FWA should consider the views of the representatives of those who pay (employers) and those who receive superannuation payments (employees) and the ability of the fund to provide relevant members and employer services to potential members covered by the relevant award, including the appropriateness of the insurance offering for that demographic,” said the ISN. The ISN also recommended that a typical modern award should have a minimum of two and a maximum of six default funds, since doing so “will ensure that employers are not overloaded by choice and that employees are protected by having more than one option to rely on”.

Funds that ‘flip’ their members into higher priced MySuper products should not be eligible to be named as a default fund in a modern award, added the ISN.

www.superreview.com.au MAY 2012 SuperReview 3

1(:6 Government extends CGT rollover relief

BY TIM STEWART

The Government has heeded calls from the industry to provide capital gains tax (CGT) rollover relief for merging superannuation funds, effective from 1 July 2012 to 1 July 2017.

The mandatory transfer of default members’ balances to a MySuper product in another complying fund will also be eligible for the tax relief, as of 1 July 2013 to 1 July 2017.

A Financial Services Council (FSC) statement said the existing tax laws required losses during the global financial crisis to be crystallised when two funds chose to merge.

“Trustees could not – in accordance with their legislative duty to act in the best interest of members – go ahead with a merger under those circumstances,” said the FSC. Association of Superannuation Funds of Australia (ASFA) chief executive Pauline Vamos also welcomed the change, which comes after intense lobbying by ASFA. “Super funds are currently carrying deferred tax assets equivalent to between 1 and 3 per cent of member account balances,” Vamos said.

“Without the CGT rollover relief, the fund member would bear the brunt of the outcome, as efficiency gains from a merger would not be realised,” she said.

MLC and NAB Wealth Group executive Steve Tucker also welcomed the announcement.

BY BELA MOORE

Pauline Vamos “The extension of this relief for merging superannuation funds will result in a better outcome for members’ retirement benefits,” Tucker said.

Self-managed superannuation funds will be excluded from the tax loss relief “because the MySuper requirements do not apply to them”, according to the Government.

MySuper legislation does not address corporate adviser concerns The MySuper legislation does not address the services provided by corporate superannuation advisers, according to Corporate Superannuation Specialist Alliance (CSSA) president Douglas Latto.

The Future of Financial Advice reforms (FOFA) intra-fund fee needs to be transparent and allow corporate superannuation advisers to charge for the services they offer under theMySuper legislation, said Latto.

He said the intra-fund fee introduced by FOFA is set by a third party rather than negotiated by the company, its super members and the advisers who deliver the service. He said MySuper legislation has been drafted so that fees are included within the intra-fund fee.

“That fee will be set by the fund itself, and we have no idea

what that level’s going to be yet because nobody has told us what that fee is yet, so we believe we may not be able to be rewarded fairly for the services that we’re offering,” he said.

Latto said the draft MySuper legislation did not allow services to be tailored specifically to companies or members.

“The MySuper legislation, as proposed, does not allow tailoring at the workplace level. It has a one-size-fits-all approach, with the inability to customise benefits, such as insurance cover, or charge different fees for each workplace. In addition, the setting of this standard fee is by the trustee through the intra-fund advice fee and does not involve the employer, employee or the adviser,” he said.

Latto said CSSA submissions to the Parliamentary Joint Com-

4 SuperReview MAY 2012 www.superreview.com.au

Assessing fund manager failures vital

Douglas Latto mittee and Senate Economics Committee had been met with a recommendation to the Treasury to re-open negotiations to try to find a solution.

Poorly performing investments can be as revealing as successes for assessing fund manager skill, according to Towers Watson Australia head of investment research Hugh Dougherty.

Assessing investment skill required a comprehensive understanding of the fund manager’s investment philosophy, process, and execution of process, Dougherty said.

“It is important to recognise that mistakes are an inevitable consequence of taking risk where uncertainty exists, and the identification of these mistakes in a portfolio, in the context of broader understanding of an investment manager, can be very helpful in determining the presence of genuine skill,” Dougherty said.

He said it was possible for a genuinely skilled manager to generate poor returns for an extended period of time due to their patience, a key characteristic of great investors according to Dougherty. He said skilled managers understood that building long-term wealth required resisting the temptation to follow the excitement that builds around out-performing investments.

“Effective investors are equipped with the strength of personality to resist hyperbole and often invest in less popular areas. They do not conform to popular market strategy, and build teams of colleagues who will challenge their ideas and investment philosophies,” he said.

He said detailed examination of investments within a portfolio and inconsistencies with processes and investments that contradict processes are all indicators of fund manager skill.

“Getting inside the minds and hearts of managers requires an understanding of the investment drivers and key issues for reaching investment decisions on selected investments,” Dougherty said.

He said finding investment skill represented a material cost to most firms, but the benefits of choosing a skilled fund manager were worth the effort.

1(:6 Website disclosure in next Stronger Super tranche

BY TIM STEWART

The next tranche of Stronger Super will see the launch of the product ‘dashboard’, which will include a requirement to disclose portfolio holdings, according to Treasury principal adviser Jonathan Rollings.

The tranche will also include director and executive remuneration, along with new data collection powers for APRA. Speaking at the Association of Superannuation Funds of Australia (ASFA) Compliance Summit in Sydney, Rollings said the soon-to-be announced features were a legacy of the Cooper Review, and have the in-principle support of the Government.

“The product disclosure dashboard is intended to be a simple representation of key aspects of products offered by super funds. Those key aspects being investment

return targets, a measure of investment risk, a measure on liquidity, and another metric around average fees paid by members in relation to that product,” said Rollings.

Australian Securities and Investment Commission (ASIC) senior executive leader Ged Fitzpatrick said ASIC anticipated the product dashboard would “provide

forward-looking information in relation to matters such as risks, fees and fund objectives”.

Superannuation funds will also be required to list the details of their portfolio holdings on their websites – something that is already required in international jurisdictions such as the US, Fitzpatrick said.

“We’re aware of the work by ASFA and the Financial Services Council to develop industry guidance ahead of any Stronger Super reforms on this issue. We’re keen to take a pragmatic view,” Fitzpatrick said.

“ASIC encourage issuers to make relevant and complete disclosures. It plays an important role in investors’ decisions to invest, remain invested or to exit the product,” he added ASIC will also be adding information about upcoming Stronger Super changes to the MoneySmart website for the benefit of consumers, Fitzpatrick added.

MySuper flexibility makes

SCT takes trustees to task on member correspondence tailored offerings unnecessary

BY BENJAMIN LEVY

Trustees must be “fiduciaries first and marketers second” when they compose letters to their members, says Superannuation Complaints Tribunal (SCT) chair Jocelyn Furlan.

Speaking at the Association of Superannuation Funds of Australia Compliance Summit in Sydney, Furlan cited a recent SCT determination in which a super fund had engaged in misleading correspondence.

The complainant received a letter that promised “Better insurance, lower premiums” in bold at the top of the correspondence. It went on to promise better insurance coverage and lower premiums “for most members”.

The fund in question had increased its total and permanent disability (TPD) coverage and introduced bulk, opt-out salary continuance coverage for members as of 1 July 2011.

The complainant saw her TPD premium increase from $25 to $40 a month, in addition to her new salary continuance premium of $34 a month – taking her total premium from $25 to $74. “[The complainant] said that when the fund wrote to her they were well aware that they were more than

doubling the premiums payable, and should have included this information in the letter to her. Instead, she said, it chose to omit this information and actively mislead her,” said Furlan.

Furlan said the trustee’s claims that “most people” would pay less premiums was “perhaps misleading”.

“Because the fund was introducing salary continuance coverage for the first time, it must have been increasing premiums – for all members – in relation to the salary continuance component,” said Furlan.

Because the details of the letter did in fact contain the correct premiums for the complainant, the SCT did not find in her favour.

However, Furlan added: “We’re getting a lot of complaints about this and I think some of them are actually about poor practice.

“I would encourage trustees to think about what 12 per cent [superannuation guarantee] might mean in terms of your fiduciary obligations and the fact that the average account balance is rising all the time, and what that means about the quality of communication you have with them,” she said.

6 SuperReview MAY 2012 www.superreview.com.au

Treasury has told super funds that the insurance and fee flexibility included in MySuper makes it unnecessary to offer separate tailored MySuper offerings for large employers.

In an address to the Association of Super Funds of Australia super compliance summit, audience members were told that while super funds were allowed to create and tailor additional MySuper products for large employers, the flexibility in the original MySuper product made it unnecessary.

Flexibility with insurance arrangements and administration fees at the workplace level may lead super funds to think they can tailor different products for large employers, but given the flexibility in the original offering they may want to ask if that was really needed, according to principal adviser for the superannuation, financial systems division of Treasury, Jonathan Rollings.

Super funds can instead create one MySuper product and white-label it to reflect different workplaces, he said.

A large employer must have at least 500 employers, Rollings said.

“You can replace the default insurance schemes in the MySuper product with different schemes in different workplaces, and the legislation also allows for different administration fees to apply to different workplaces, to reflect any administrative efficiencies that may be accruing,” he said.

Rollings also emphasised that MySuper is not a separate financial product for the purposes of the Corporations Act, and therefore there is no need for super funds to have separate accounts for members during the transition phase.

“It should be able to operate akin to a current default investment option, and can sit within a member’s single account as an investment option,” Rollings said.

Treasury will await any feedback about the issue, he added.

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A tarnished legacy?

The superannuation tinkering contained in the Federal Budget makes it a poor legacy for a Government sharing the same heritage as the Hawke/Keating originators of the Superannuation Guarantee.

I

f there has been a common theme to research conducted in the financial services industry over the past decade, it is that government tinkering with the superannuation policy settings only serves to undermine investor confidence in superannuation.

Putting aside issues of investor confidence, the Government’s Budget night changes have also served to increase the workload on both superannuation funds and administrators as they seek to accommodate the new, differential taxation approach.

This extra burden on funds and administrators comes on top of that already being carried as the industry attempts to cope which the changes flowing from the Government’s Stronger Super agenda, not least the requirements around MySuper, SuperStream and initiatives such as auto-consolidation.

As the roundtable published in this edition of Super Review makes clear, the challenges being confronted by almost all the superannuation stakeholders and service providers are considerable and will require a good deal of time and effort to bed down.

What is disturbing about the changes announced in the Federal Budget is that it is hard to accept that they are not an almost totally politically expedient exercise – a part of the Government’s efforts to fulfill its undertaking to return the Budget to

surplus in the 2012-13 Budget year.

Just how politically expedient this exercise has proved to be is underlined by the fact that the Government’s critics have claimed that it lacks legitimacy, based on the ultimate size of the forecast surplus and the manner in which it is being achieved.

Indeed, it is hard to argue with those who maintain that the inherent costs of tinkering with super are such that they will ultimately outweigh the economic benefits the Government believes will be achieved from returning the Budget to a technical surplus.

In again fiddling with the superannuation settings in the 2012-13 Budget, the Gillard Government has again made the mistake of ignoring the consistent findings of intergenerational reports by seeking to pursue narrow political objectives and by treating the industry as a revenue milch cow.

While every intergenerational report produced by the Federal Treasury has pointed to the danger of retirement incomes shortfalls and the consequent adverse impacts on Budgets in the out-years, the Treasurer has looked to meet shorter-term, highly political imperatives.

Further, the Government’s actions in the 2012-13 Budget need to be viewed against the background of its earlier tinkering with superannuation, particularly around co-contributions, concessional contribution caps and its half-

hearted attempt to remedy the excessively punitive regime around excess contributions.

Looked at harshly, the current Labor Government has left itself open to being accused of having tarnished the fine legacy left by the Hawke and Keating Governments which oversaw the introduction of award superannuation and then the implementation of the superannuation guarantee.

Some might, in fact, argue that the Treasurer Wayne Swan and the Minister for Financial Services, Bill Shorten, might have been well served in reviewing the original objectives of the superannuation guarantee and the manner in which their Labor predecessors envisaged relieving pressure on Australia’s future social welfare system.

The bottom line, however, is that the superannuation industry must now hunker down to ensure that administrative systems can cope with the new complexity generated by the Budget changes, at the same time as making sure things are ready with respect to the major changes from the Stronger Super initiatives.

Assuming Australian political events adhere to the traditional calendar, then this ought to have been the penultimate Gillard/Swan Budget before the next Federal Election. If so, it does not represent a glowing legacy in terms of its contribution to sound superannuation policy.

– Mike Taylor

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Planning and

super

set to

grow closer

12 SuperReview MAY 2012 www.superreview.com.au

Financial planning was already an integral part of the superannuation equation but, as Damon Taylor writes, the Government’s FOFA and Stronger Super initiatives have created an even closer relationship.

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www.superreview.com.au MAY 2012 SuperReview 13

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“For better or worse, interest and engagement in superannuation only really kicks in at 45 to 50.”

– Anthony Rodwell-Ball

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“But, at the other end of the spectrum, we also have quite sophisticated investors who have significant balances ...”

– Paul Watson

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“What we should instead be measuring is whether members are getting better financial outcomes as a result.”

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,QGXVWU\ YRWHV RQ WKH GHIDXOW IXQG UHJLPH The latest Metlife Super Review survey has revealed strong support for some fundamental changes to the default funds under modern awards regime.

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The Productivity Commission is reviewing default funds under modern awards.

Do you believe the implementation of MySuper should be delayed until the PC tables its report?

NO 36.0%

18 SuperReview MAY 2012 www.superreview.com.au

Super fund stress test needed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

The Productivity Commission has indicated it will consider recommending that all MySuper funds should be eligible as default funds. Do you approve of this move?

YES 61.1%

RI WKH $XVWUDOLDQ 3UXGHQWLDO 5HJXODWLRQ $XWKRULW\ $35$

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NO 38.0%

Under the default funds under modern awards regime, the industrial judiciary in the form of Fair Work Australia plays a crucial role. Do you believe the industrial judiciary should be involved in superannuation?

NO 42.0%

YES 58.0%

YES 54.0%

IN CONJUNCTION WITH

The Australian Prudential Authority delivers a range of data on superannuation fund performance.

Thinking about your fund, do you find that data useful?

NO 14.2%

YES 84.1%

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Industry split on super fund numbers -XVW ZHHNV DKHDG RI WKH *RYHUQPHQW Ã&#x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Ã&#x20AC; UPDWLYH ZKLOH SHU FHQW LQGLFDWHG WKH\ ZHUH RSSRVHG 7KH VDPH TXHVWLRQ DVNHG LQ SUHYLRXV \HDUV HOLFLWHG D PXFK PRUH GHFLVLYH UHVXOW LQ IDYRXU RI IXUWKHU IXQG PHUJHUV DQG DPDOJDPDWLRQV

A number of specialist ratings houses such as SuperRatings and Chant West produce monthly data on superannuation fund performance. Do you find this data useful?

NO 22.2%

Which fund performance do you find most timely and useful?

SuperRatings 50.0%

YES 77.0%

APRA 34.1%

Chant West 4.0% Do you believe there should be fewer but larger superannuation funds in Australia?

Do you believe superannuation funds should be required to undergo annual stress-testing to ensure they have adequate levels of liquidity?

NO 47.6%

YES 49.2%

NO 9.6%

YES 87.3%

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www.superreview.com.au MAY 2012 SuperReview 19

SPONSORED BY

Stronger Super Review Roundtable

Super

Left to right: Gavin Lai, Anthony Rodwell-Ball, Russell Mason 20 SuperReview MAY 2012 www.superreview.com.au

SPONSORED BY

The challenges confronting the superannuation industry in implementing the Governmentâ&#x20AC;&#x2122;s Stronger Super agenda, including auto-consolidation are considerable. A Super Review roundtable identified the hurdles and how the key parties are approaching them.

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Sean Williamson

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PRESENT Mike Taylor CHAIR

Russell Mason

PARTNER, DELOITTE

Anthony Rodwell-Ball CEO, NGS SUPER

Tim Buskens CIO, AAS

Margaret Stewart POLICY DIRECTOR, ASFA

Peter Beck

CEO, PILLAR ADMINISTRATION SENIOR PRODUCT MANAGER, TAL HEAD OF CUSTOMER SOLUTIONS, TAL

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www.superreview.com.au MAY 2012 SuperReview 21

SPONSORED BY

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Margaret Stewart and Sean Williamson

“Why protect those members under $1,000? I am for consolidation because I think it will be auto-consolidation.”

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22 SuperReview MAY 2012 www.superreview.com.au

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What sort of transition time is needed?

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“We can’t assume someone with $5,000 or $500,000 in an inactive account is engaged or unengaged. We have got this multitude, millions of members out there, and one size won’t fit all.”

Russell Mason

– Russell Mason

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24 SuperReview MAY 2012 www.superreview.com.au

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$332,170(176

Libby Roy heads Multiport AMP has appointed Libby Roy to the role of Multiport managing director following the announcement that current Multiport managing director and founder John Mcllroy would be departing in June this year.

Roy, former general manager of ipac financial planning, has been transitioning into her new role in an interim capacity since mid-April.

AMP director of banking and wealth management products Rob Caprioli said Mcllroy had made a significant contribution to the development of the self-managed super fund market in Australia, with Multiport managing more than $2 billion in funds under management.

With more than 17 years experience across Australia and the United States, Roy was most recently responsible for ipac’s inhouse and equity partner network of approximately 150 financial advisers. She has also held a number of positions in financial services, including general management, marketing, product development and operations.

Libby Roy

Key Multiport appointment In a move 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.

He added that Marjon’s experience working with accountants would be essential in facilitating the needs of Multiport’s adviser and accountant base, which had grown significantly over the past six years.

MLC names analyst MLC Investment Management has appointed Greg Michel as senior

MANDATES

research analyst.

Reporting to MLC head of fixed income Stuart Piper, Michel has approximately 29 years experience managing fixed income portfolios.

His most recent position was as head of fixed income at ING Investment Management, where he was responsible for a team of eight professionals and the management of approximately $14 billion in cash and fixed income assets.

MLC appointment MLC Investment Management has also appointed Chris Clayton as head of asset management.

With over 15 years experience in sales and distribution, Clayton was most recently chief executive of Acadian Asset Management, a Colonial First State venture.

National Australia Bank stated that Clayton has a deep understanding of the retail distribution aspects of the investment management sector and is well positioned to step into his new role.

Tim Samway

Samway leads Hyperion 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 the 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 Samway would ensure the continuity of the firm’s strategy, investment process and team.

His previous experience included senior management and board experience at Hyperion Wilson HTM, Burrows and Deloitte.

Received by

Type of mandate

Issued by

Amount

Tuvalu Trust Fund

Custody

AMP Multi-Asset Fund

$55 million

Aubrey Capital Management

Custody

Skandia Investment Group

$30 million

Capital International

Custody

MLC Horizons

n/a

BNP Paribas

Custodian services

AvSuper

n/a

www.superreview.com.au MAY 2012 SuperReview 31

52//29(5

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Comrades-in-Armani ROLLOVER notes that his erstwhile colleague Gerard Noonan has completed his twoyear term as president of the Australian Institute of Superannuation Trustees and will be succeeded by Cate Woods.

Noonan, a former editor of the Australian Financial Review and stalwart of the union representing journalists and jugglers – the Media, Entertainment and Arts Alliance – ascended to the presidency of the Australian Institute of Superannuation Trustees (AIST) via his long-standing involvement with the trustee board of what was once the Journalists’ Union Superannuation Trust, which later became Media Super.

Noonan brought a particular flavour to his presidency of AIST, and Rollover particularly noted his propensity to address assembled delegates at the Conference of Major Superannuation Funds as “comrades”.

It was reminiscent of former Labor Prime Minister Gough Whitlam, who despite his background in the Sydney legal fraternity and the city’s well-heeled eastern suburbs also frequently greeted his friends as “comrade”.

For his part, Rollover holds to the view that it is comrades who mount the barricades and that anyone pulling down a Fairfax editor’s salary, or a Sydney barrister’s retainer, should probably look to alter their vocabulary.

Woodward’s 2-wood break no Bollywood ROLLOVER wishes to send his best wishes for a speedy recovery to Pillar Administration’s Chris Woodward.

Woodward, you see, has led the Pillar team to a number of famous victories in the annual Super Review Charity Golf Day but over Easter managed to break his collar bone, thus precluding his spectacular driving feats on the fairways.

Rollover has heard a number of outrageous rumours from Woodward’s colleagues about how he might have sustained the injury, but cannot believe suggestions involving table dancing and an abject lack of balance.

Whatever the case might be, Rollover is prepared to wager that he can currently out-drive Woodward on the fairways.

Frequent flyers bonus points bingo TIMES continue to be challenging in funds management land, and Rollover has noted the number of senior executive types currently facing uncertain futures and those who might be thought of as currently between engagements.

Since the beginning of 2012, Rollover has noted the departure of Tyndall’s Craig Hobart and Zurich’s Matt Drennan amongst others, and he hears tell that the gates have been opened to the ‘departure terminals’ at a number of other companies.

As the end of the financial year approaches, he is expecting to hear a good deal more about imminent departures.

Then, too, there are those he expects will collect their bonuses before charting their own destinies.

32 SuperReview MAY 2012 www.superreview.com.au