Response

(Publication date)

Responses to
questions 1 - 3

(31 August 2020)(PDF338KB)

Do you currently have an art collection?

a. If so, can you advise its current valuation?

b. If so, can you advise where it is stored and/or exhibited?

Responses to
questions 4 - 6

(14 October 2020)(PDF651KB)

Responses to
questions 7 - 8

(24 December 2020)
(PDF455KB)

What arrangements, including donations, commissions, marketing expenditure or partnerships, do you have that lead to payments to research organisations or ‘think tanks’?
Please provide:

a. Names of the think tanks.

b. Payments made over the last five years.

Response

(Publication date)

Responses to questions 1 - 62

(20 April 2020)(PDF4,075KB)

For the past five years the total value in dollars and as a percentage of the total value of a fund:

a. Listed investments.

b. Unlisted investments.

c. Total investments.

For the past five years the total value in dollars and as a percentage of the total return for the fund:

a. Listed investments.

b. Unlisted investments.

c. Total investments.

Details of each individual asset currently held at a value other than available listed market prices (an unlisted asset) wholly owned by the fund or funds under your control, including:

a. The asset name and location.

b. The frequency of the revaluation of the asset.

c. The most recent valuation.

d. A copy of that valuation.

e. The methodology used for its valuation.

f. Whether the valuation was completed internally or externally.

g. The details of any external party involved in the valuation.

Details of each individual asset currently held at a value other than available listed market prices (an unlisted asset) partly owned by the fund or funds under your control, including:

a. The asset name and location.

b. The frequency of the revaluation of the asset.

c. The most recent valuation.

d. A copy of that valuation.

e. The methodology used for its valuation.

f. Whether the valuation was completed internally or externally.

Details of costs for advertising campaigns for the past five years, including:

a. The companies invited to tender for all or parts of any advertising campaign.

b. The companies awarded campaigns.

c. The total cost of each campaign.

d. The cost of the campaign’s development.

e. Broadcasting (television, radio and internet) and publishing costs.

f. Assessment reports of the efficacy of campaigns in either retaining or gaining new members.

Over the last five financial years:

a. What is the total budget for all costs associated with the fund?

b. What were the total assets under management?

c. What are the total number of employees?

d. What are the total number of contractors?

e. What are the total number of externally hired contracts, and their value?

Over the last five financial years:

a. What is the total number of member accounts?

b. What is the total increase in the number of members as a result of the fund’s default status?

c. What is the total increase in the number of members through voluntary adoption or switching?

d. What was the average member balance?

e. What was the average dollar amount deducted in insurance fees per member, across all fund products in dollar terms and as a share of a member account?

f. What was the total number of inactive accounts? (Please use the APRA definition: no contributions for two years)

Over the last five financial years:

a. What was the average dollar amount deducted for administration and asset management fees per member, across all fund products? (please do not include insurance fees)

b. What was the cost (%) of fund administration expenses as a proportion of funds under management?

c. What was the total cost of in-house administration expenses?

d. What was the cost of in-house administration expenses as a proportion of funds under management?

e. What was the total cost of any external administration expenses?

f. What was the cost of any external administration expenses as a proportion of funds under management?

g. What was the total cost of any external administration expenses to Related Parties?

h. What was the cost of any external administration expenses to Related Parties as a proportion of funds under management?

i. How many staff are employed in roles considered part of the administrative cost?

Over the last five financial years:

a. The number of rollover requests that the fund did not pay out to another fund for each year?

b. The average dollar value of a rollover for each year?

c. The value of any clawback accounts and/or funds held that is used to hold funds between financial years?

a. Does the fund maintain a reserve at least partially funded through insurance premiums, rebates from an insurance company (such as profit share arrangements) or tax benefits that have arisen from insurance?

b. The total value of that reserve?

c. The total value of tax rebates received from the ATO on insurance premiums?

In the context of building investments:

a. Have you completed assessments of the prevalence of flammable cladding across some properties?

b. Have you completed assessments of the prevalence of flammable cladding across all properties?

c. Have you taken any remediation to reduce your exposure to risk to identify flammable cladding, and if so, what?

d. Have you taken any remediation to reduce your exposure to risk to remove flammable cladding, and if so, what?

e. Do you hold any properties where insurance has been refused or are uninsured due to defective building construction such as cladding?

Governance:

a. How many trustee board members did the fund have?

b. What was the total salary of all trustee board members?

c. What was the average salary of all trustee board members?

d. Are there any performance-based assessments that determine trustee board remuneration, and if so what are they?

e. What was the salary of the trustee board chair?

f. What was the average length of service of all trustee board members?

g. What is the length of service of the longest serving trustee board member?

h. Are trustee board members asked whether they have conflicts of interest at each meeting, and if not, why not?

i. What is the conflict of interest policy for trustee board members?

j. Does your fund have a policy on gender diversity and/or balance for listed companies?

k. Does your board have gender balance?

In the context of the ACCC’s legal action and question for competition in monopoly infrastructure entities:

a. What are the implications for infrastructure investment returns if the ACCC is successful in its legal action?

b. Have you analysed your infrastructure investment portfolio to examine the risk of ACCC action to reduce anti-competitive monopoly of oligopoly pricing?

c. If so, can you provide details of the likely impact, and what is the project impact on revenue and income?

In dollar terms, for each of your superannuation products, can you please provide annual data for the past five financial years on average, for a member with a balance of $6,000, $50,000 and $150,000?

a. Investment fees

b. Administration fees

c. Indirect costs

d. Any other cost to a member which is incurred or foregone by way of a lesser return pre-unit price (but not included in the indirect cost ratio) including any other costs, charges, fees, direct or indirect benefits including any benefit by way of rebate, set-off, commission, in-kind, tax credit/offset retained, interest (or interest rebate) retained by any party involved in the management, custody, review, compliance, administration, servicing, asset consulting, valuation, operation and maintenance, financing, auditing, brokerage, execution, settlement, or otherwise of the assets in the fund, or their underlying assets.

e. An aggregate total of all fees mentioned above.

As a percentage of the value of the member account, for each of your superannuation products, can you please provide annual data for the past five financial years on average, for a member with a balance of $6,000, $50,000 and $150,000?

a. Investment fees

b. Administration fees

c. Indirect costs

d. Any other cost to a member which is incurred or foregone by way of a lesser return pre-unit price (but not included in the indirect cost ratio) including any other costs, charges, fees, direct or indirect benefits including any benefit by way of rebate, set-off, commission, in-kind, tax credit/offset retained, interest (or interest rebate) retained by any party involved in the management, custody, review, compliance, administration, servicing, asset consulting, valuation, operation and maintenance, financing, auditing, brokerage, execution, settlement, or otherwise of the assets in the fund, or their underlying assets.

e. An aggregate total of all fees mentioned above.

For the past five years:

a. What was the total cost of all advertising and/or marketing?

b. What was the total cost of all advertising and/or marketing per member?

c. What was the total cost of all advertising per new (FY19) member?

d. What was the total cost of all television advertising and/or marketing?

e. What was the total cost of all radio advertising and/or marketing?

f. What was the total cost of all print advertising and/or marketing?

g. What was the total cost of all online advertising and/or marketing?

h. How many in-house staff are employed in advertising and marketing roles?

i. How much was spent on engaging external advertising and marketing consultants?

j. Do you advertise and/or directly financial contribute to the New Daily?

Can you provide details if you have purchased the following over the past decade:

a. Google advertisements

b. Google search terms.

How will the overall fund performance be affected if:

a. The income return of unlisted assets declines?

b. The fund can no longer purchase unlisted assets onshore?

c. The fund can no longer purchase unlisted assets offshore?

Valuation methodologies:

a. Have you compared your valuation methodologies and assumptions for unlisted assets with other superannuation funds, and if so, what are the differences?

b. Are you confident that your valuation methodologies and assumptions for unlisted assets reflect their value to the fund, and how often are they reviewed?

c. How do you compare your valuations to listed investments, including, but not limited to, whether there is a cross check to stock prices for similar assets?

d. Have you ever calculated whether there would be a difference between valuations if unlisted assets were listed?

a. How many unlisted assets do you hold in the fund?

b. What value share are unlisted assets of the fund’s:

i. total value?
ii. total property value?

Discount rates:

a. For unlisted assets, do you use a consistent discount rate for income across all unlisted assets, or an asset-specific discount rate?

b. What is the discount rate you apply to the income from unlisted assets, and has it changed over the past decade, and if so, when and why?

Over the past decade:

a. Have you ever devalued an unlisted asset?

b. Have you ever devalued an unlisted asset by more than $10 million?

c. Have you ever devalued an unlisted asset by more than $50 million?

d. Have you ever devalued an unlisted asset by more than $100 million?

e. Please advise the companies and/or individual valuers that have valued your unlisted assets

For each year of the past decade:

a. How many fund members do you have?

b. How many financial planners do you have in total numbers, and as a member to financial planner ratio?

c. How many financial advisers do you have in total numbers, and as a member to financial planner ratio?

For each year of the past decade:

a. How much is charged for financial planning annually to fund members, and what is the average per fund member?

b. How much is charged for financial planning annually to funds, and what is the average per fund member?

c. How much is charged for financial advice annually to fund members, and what is the average per fund member?

d. How much is charged for financial advice annually to funds, and what is the average per fund member?

For each year of the past decade:

a. What is the cost of general advice annually, and what is the average per fund member?

b. What are the aggregate value of bonuses provided for general advice, and what is the average per adviser?

For each year of the past decade:

a. What is the cost of scaled advice annually, and what is the average per fund member?

b. What are the aggregate value of bonuses provided for scaled advice, and what is the average per adviser?

For each year of the past decade:

a. What is the cost of comprehensive advice annually, and what is the average per fund member?

b. What are the aggregate value of bonuses provided for comprehensive advice, and what is the average per adviser?

For each year of the past decade:

a. What is the cost of intra-fund advice annually, and what is the average per fund member?

b. What are the aggregate value of bonuses provided for intra-fund advice, and what is the average per adviser?

Over the past five years:

a. How many employees have been cautioned for misconduct?

b. How many employees have had a penalty (such as, but not limited to, loss of bonus) for misconduct?

c. How many employees have been terminated for misconduct?

d. How many employees have been cautioned for misconduct, as a share of all employees over that timeframe?

e. How many employees have had a penalty (such as, but not limited to, loss of bonus) for misconduct, as a share of all employees over that timeframe?

f. How many employees have been terminated for misconduct, as a share of all employees over that timeframe?

Responses to
questions 63 - 76

(1 May 2020)(PDF108KB)

Listed companies holding infrastructure assets have had write downs of around 40 per cent:

a. How does this compare to your write down of unlisted assets?

b. If there is a difference, why is there a difference?

Have you had any liquidity issues in honouring your obligations to members as a result of the:

a. recent decline in the share market?

b. permission by the Federal government to allow members to remove up to $10,000 per financial year if they lose their job?

Liquidity management:

a. What is your fund’s process for complying with APRA’s prudential framework which requires trustees to have a liquidity management plan?

b. How is the plan being reported to the trustee directors?

c. Who is responsible for the day-to-day liquidity management for the fund?

Since 12 March 2020, has your fund provided any liquidity to:

a. REST?

b. Hostplus?

c. any other superannuation fund?

If so, for each fund, can you provide details of the amount, the date and the terms?

Responses to
questions 77 - 90

(7 July 2020)
(PDF257KB)

Since 12 March 2020, has your fund loaned any cash to:

a. REST?

b. Hostplus?

c. any other superannuation fund?

If so, for each fund, can you provide details of the amount, the date and the terms?

Regarding any investments you have with IFM Investors, please provide the following:

a. The capital invested each year for the past five years.

b. The accumulated valuation of investments for the past five years.

c. The dividends received from those investments for the past five years.

Regarding any investments you have with ME Bank, please provide the following:

a. The capital invested each year for the past five years.

b. The accumulated valuation of investments for the past five years.

c. The dividends received from those investments for the past five years.

If you are an investor in ME Bank, have you individually (or in collaboration with other funds), ever commissioned reports into its valuation in the past decade?

a. And if so, how many reports and in what year?

b. Were any commissioned to be completed by the UK-based group, LEK?

c. And please provide copies.

According to reports in the Australian Financial Review superannuation fund, Hostplus, redefined the definition of ‘illiquid assets’ (‘Hostplus warned of liquidity “perfect storm”’, Australian Financial Review, 18 May 2020). Therefore, can you please advise:

a. How you define ‘illiquid assets’ within your fund, including details of holdings and timeframes?

b. How you define ‘liquid assets’ within your fund, including details of holdings and timeframes?

c. How long each of these definitions have been used?

d. What prompted any switch to these definitions?

e. What the prior definitions were before any switch?

Have you completed a skills audit in the past five years of the following:

a. Your board of directors?

b. Your investment committee?

c. And if not, why not?

d. And if so, presently what gaps are identified?

Prior to appointment, have employees fulfilling fiduciary roles had their investment performance track record assessed before fees?

a. And if not, why not?

b. And if not prior to appointment, have they following appointment?

c. And if so, on what timeframe?

Do you currently have an art collection?

a. If so, can you advise its current valuation?

b. If so, can you advise where it is stored and/or exhibited?

Do you engage proxy advisers?

a. What are the terms of engagement for proxy advisers?

b. To what extent are they empowered to act on behalf of the entity?

c. Does their advice get provided to the board?

d. How often is advice submitted to the board?

e. Is their advice formally adopted by the board?

f. Are their positions publicly stated?

g. How does the board assess these positions concurrent with their duties as trustees and the sole purpose test?

Are you currently, or have you previously been, a member or subscriber of the ACTU Members Connect Program?

a. If so, what is the timeframe of your membership?

b. What has been the annual fee year-on-year?

c. How have you assessed its value to your members?

Please provide the titles of all externally commissioned reports over the past five years that have reviewed any of the following:

a. Performance of funds.

b. Investment strategies for funds.

c. Conflicts of interest for funds.

Responses to
questions 91 - 95

15 September 2020
(PDF238KB)

For each fund where more than 30 per cent of capital is managed by another entity, please complete the below table including:

a. The name of the fund.

b. The allocation of capital as a percentage of the total capital held by the fund.

c. The allocation of capital of the total capital held by the fund.

d. The entity managing the capital.

e. Whether you are a shareholder in that entity.

Please provide details of the following reduction to remuneration packages since 11 March 2020:

a. Board members.

b. The chief executive.

c. Executive management

Since 1 January 2020, for each fund, please outline:

a. The date and value at the highest valuation of the fund?

b. The date and value at the lowest valuation of the fund?

c. The number of business days between the highest and lowest valuation for the fund?

d. The nominal value between the highest and lowest valuation for the fund?

e. The percentage value between the highest and lowest valuation for the fund?

f. The number of business days between the date of the ASX’s lowest valuation, and the lowest day for the valuation of the fund?

g. The number of business days between the date of the ASX’s lowest valuation, and the lowest valuation of unlisted assets in the fund?

h. What volume of switching of investments occurred between funds between the highest and lowest valuations?

i. What volume of switching between funds occurred in that time by trustees of the fund that are also members of the fund, between the highest and lowest valuations?

j. What volume of switching between funds occurred in that time by executives of the fund that are also members of the fund, between the highest and lowest valuations?

k. What volume of switching between funds occurred in that time by other employees of the fund that are also members of the fund, between the highest and lowest valuations?

l. What integrity measures were taken to prohibit trustees, executives and employees switching between funds from taking advantage of arbitrage of any gap between the lowest valuation date of the ASX and any revaluation of the fund?

Responses to questions 96 - 100

(9 October 2020)(PDF88KB)

On financial advisers providing non-intrafund advice (i.e. comprehensive advice - beyond the scope of intrafund advice) within the fund over the past five financial years:

a. How many do you employ (or are you paying for through outsourced arrangements)?

b. What is the revenue generated from these non-intrafund advisers?

c. How many financial advisers within the fund also provide intrafund advice?

d. If you have non-intrafund financial advisers within the fund also providing intrafund advice, how is their remuneration determined from different sources?

e. Is there any cross-subsidisation for non-intrafund financial advisers within the fund from activities funded through intrafund advice?

f. Is there any cross-subsidisation for financial advisers from intrafund advice to non-intrafund financial advisers within the fund?

g. What is the total budgeted cost and actuals for financial advisers?

h. What is the remuneration level/range for the financial advisers employed to provide non-intrafund advice to your members?

i. What is the aggregated cost of their remuneration?

ii. What is the aggregated cost for their employment?

iii. What is the aggregated cost for their on-costs, including but not limited to, superannuation, leave, training support and office space?

iv. What is the aggregated cost for marketing their services?

v. What is the aggregated cost for administrative support services?

vi. What is the aggregated cost for professional insurance and indemnity?

vii. What is the aggregated cost for compliance oversight?

viii. What is the aggregated cost for legal oversight?

ix. What is the aggregated cost for other regulatory oversight?

x. What is the aggregated cost for the unit, including overheads, that provides financial advice within the fund?

On financial advisers providing intrafund advice (i.e. strictly limited to advice on your super fund for the member only - not spouse) within your fund over the last five financial years:

a. How many do you employ (or are you paying for through outsourced arrangements)?

b. What is the remuneration level/range for the financial advisers employed to provide intrafund advice to your members?

i. What is the aggregated cost of their remuneration?

ii. What is the aggregated cost for their employment?

iii. What is the aggregated cost for their on-costs, including but not limited to, superannuation, leave, training support and office space?

iv. What is the aggregated cost for marketing their services?

v. What is the aggregated cost for administrative support services?

vi. What is the aggregated cost for professional insurance and indemnity?

vii. What is the aggregated cost for compliance oversight?

viii. What is the aggregated cost for legal oversight?

ix. What is the aggregated cost for other regulatory oversight?

x. What is the aggregated cost for the unit, including overheads, that provides intrafund advice?

c. What is the revenue that intrafund advisers have generated?

d. How many financial advisers providing intrafund advice also provide it within the fund?

e. If you have financial advisers providing intrafund advice also providing it within the fund, how is their remuneration determined from different sources?

f. Is there any cross-subsidisation for financial advisers providing intrafund advice from revenue funded through activities within the fund?

g. What is the total budgeted cost and actuals for the intrafund advice unit?

h. What is the revenue generated from these financial advisers?

i. Within your fund, is there any cross-subsidisation for intrafund advice services?

Do you allow members to use their funds to pay for:

a. Financial advice?

b. Internal financial advisers?

c. External financial advisers?

Please advise the total remuneration package of your:

a. company secretary, and

b. Chief Executive Officer, including:

i. total remuneration

ii. base salary

iii. annual bonuses

iv. deferred bonuses

v. equity or other options

vi. additional compensation not covered in the above.

Responses to
questions 101 - 119

(2 December 2020)
(PDF143KB)

For each year of the past decade, please advise the:

a. annual remuneration of the average worker who contributes to your fund

b. average annual superannuation contribution from an employee to your fund

c. multiple your CEO is remunerated compared to the annual remuneration of the average worker who contributes to your fund.

For each of the following categories, please provide the percentages of employees that are women, men, or who identify otherwise:

a. all employees

b. non-executive employees

c. executive employees

d. senior executive employees.

Do you have a target for the employment of:

a. women as a share of:

i. all employees?

ii. executive employees?

iii. senior executive employees?

b. people who are gender non-binary as a share of:

i. all employees?

ii. executive employees?

iii. senior executive employees?

Greenhouse gas emissions

a. Does your fund have an internal target for your own greenhouse gas emissions footprint by:

i. 2030?

ii. 2035?

iii. 2040?

iv. 2045?

v. 2050?

b. Does your fund have a target for reducing greenhouse gas emissions from investments by:

i. 2030?

ii. 2035?

iii. 2040?

iv. 2045?

v. 2050?

c. Does your fund intend to divest from investments if they do not reach their greenhouse gas emissions reduction targets by:

i. 2030?

ii. 2035?

iii. 2040?

iv. 2045?

v. 2050?

The New Daily

a. Have you ever completed a cost benefit analysis of The New Daily to your fund?

i. If so, when did you complete this cost benefit analysis?

ii. Please provide a copy of the cost benefit analysis.

b. Have you ever completed a cost benefit analysis of The New Daily to your members?

i. If so, when did you complete your cost benefit analysis of the New Daily to your members?

ii. Please provide a copy of the cost benefit analysis.

Financial advisers remuneration

a. Are your financial advisers paid:

i. a base salary?

ii. non-salaried remuneration, including bonuses?

b. Are your financial advisers, who are only remunerated with a base salary, eligible to provide:

i. personal advice?

ii. general advice?

Valuations

a. What data is provided to valuation teams to assess the value of unlisted assets?

b. When the fund provides data to valuation teams to assess the value of unlisted assets, does this include internal modelling of asset valuations?

c. What assumptions are provided to valuation teams when assessing the value of unlisted assets?

d. When valuation teams assess the value of unlisted assets, do they solely take account of past performance?

e. When valuation teams assess the value of unlisted assets, what weighting do they take on the projected value of the market for such unlisted assets to inform their valuations?

f. For the past decade can you please complete the below table for each unlisted asset valued under your valuation policy.

Over the past decade, how many non-disclosure agreements have you agreed to in relation to:

a. human resources issues?

b. sexual harassment issues?

Do you use an internal clearing house to receive the superannuation payments from employers, or their payroll representatives, before they are allocated to an individual member’s account and/or fund?

If so:

a. What is the name of the clearing house?

b. Why do you use a clearing house?

c. How much does it cost annually to use the clearing house?

d. How much does it cost annually to each member to use the clearing house?

e. What happens to interest accrued from funds held in the clearing house?

f. What happens to non-interest income and/or capital gains accrued from funds held in the clearing house?

Do you use an external clearing house to receive the superannuation payments from employers, or their payroll representatives, before they are allocated to an individual member’s account and/or fund?

If so:

a. What is the name of the clearing house?

b. Who owns the clearing house?

c. Why do you use an external clearing house?

d. How much does it cost annually to use the external clearing house?

e. How much does it cost annually to each member to use the external clearing house?

f. What happens to non-interest income and/or capital gains accrued from funds held in the external clearing house?

If you use an internal clearing house please outline when money is received into the clearing house:

a. On average, how long does it stay in the clearing house before it:

i. is allocated to a member’s account and/or fund?

ii. is allocated to purchase units for a member’s account and/or fund?

iii. appears in a member’s account and/or fund statement and/or online record?

b. What is the longest time that it has stayed in the clearing house before it:

i. is allocated to a member’s account and/or fund?

ii. is allocated to purchase units for a member’s account and/or fund?

iii. appears in a member’s account and/or fund statement and/or online record?

c. What is the shortest time that it has stayed in the clearing house before it:

i. is allocated to a member’s account and/or fund?

ii. is allocated to purchase units for a member’s account and/or fund?

iii. appears in a member’s account and/or fund statement and/or online record?

d. For interest accrued from holding funds in the clearing house for the member, is it then subsequently allocated to:

i. the individual member’s account and/or fund?

ii. a different account and/or fund? If so, what is its name?

e. For non-interest income and/or capital gains accrued from holding funds in the clearing house for the member, is it then subsequently allocated to:

i. the individual member’s account and/or fund?

ii. a different account and/or fund? If so, what is its name?

If you use an external clearing house please outline when money is received into the clearing house:

a. On average, how long does it stay in the clearing house before it:

i. is allocated to a member’s account and/or fund?

ii. is allocated to purchase units for a member’s account and/or fund?

iii. appears in a member’s account and/or fund statement and/or online record?

b. What is the longest time that it has stayed in the clearing house before it:

i. is allocated to a member’s account and/or fund?

ii. is allocated to purchase units for a member’s account and/or fund?

iii. appears in a member’s account and/or fund statement and/or online record?

c. What is the shortest time that it has stayed in the clearing house before it:

i. is allocated to a member’s account and/or fund?

ii. is allocated to purchase units for a member’s account and/or fund?

iii. appears in a member’s account and/or fund statement and/or online record?

d. For interest accrued from holding funds in the clearing house for the member, is it then subsequently allocated to:

i. the individual member’s account and/or fund?

ii. a different account and/or fund? If so, what is its name?

e. For non-interest income and/or capital gains accrued from holding funds in the clearing house for the member, is it then subsequently allocated to:

i. the individual member’s account and/or fund?

ii. a different account and/or fund? If so, what is its name?

In reference to the original publication of the article ‘CEOs push to reopen faster’ in the Australian Financial Review on 20 October 2020 which states:

Meanwhile, restaurateur Chris Lucas, pub owner and former AFL player Paul Dimattina and CSL chairman Brian McNamee all spoke of repercussions from elements of the labour movement for criticising the state government over the failures which led to the crisis and the subsequent slow pace of reopening the economy. Union-aligned industry superannuation fund managers have pressured Dr McNamee to stop his outspoken criticisms of the state government lockdown, even though he has repeatedly said he is speaking in a personal capacity and not for the company.

In the context of confronting, bullying or intimidatory workplace cultures, please advise:

a. has the Chair of your fund been in contact through any medium with Dr McNamee or his office since 5 August 2020, and if so please advise the name of the person who made contact and the nature of any communications.

b. have board members of your fund been in contact through any medium with Dr McNamee or his office since 5 August 2020, and if so please advise the name(s) of the person(s) who made contact and the nature of any communications.

c. has the CEO of your fund been in contact through any medium with Dr McNamee or his office since 5 August 2020, and if so please advise the name of the person who made contact and the nature of any communications.

d. have senior executives of your fund been in contact through any medium with Dr McNamee or his office since 5 August, and if so please advise the name(s) of the person(s) who made contact and the nature of any communications.

In dollar terms, how much advertising space did your fund book (directly or indirectly through a broker or agent) in the second half of 2020 that was unused on:

a. radio?

b. television?

c. print?

Responses to questions 121 - 134

(9 April 2021)
(PDF103KB)

In minutes, how much advertising space did your fund book (directly or indirectly through a broker or agent) in the second half of 2020 that was unused on:

a. radio?

b. television?

c. print?

What is your current policy on whether your funds are permitted to invest in:

a. residential property?

b. Build-to-Rent housing?

c. social housing?

Have you ever:

a. completed internal research that includes retirement outcomes for fund members who own their home in retirement, compared to those who do not?

b. commissioned external research that includes retirement outcomes for fund members who own their home in retirement, compared to those who do not?

For the last five financial years, please complete the table for investments across all your funds in all forms of residential property:

a. in nominal value

b. as a share of your total portfolio

c. the average return on investment.

For the last five financial years, please complete the table for investments across all your funds in Build-to-Rent property:

a. in nominal value

b. as a share of your total portfolio

c. the average return on investment.

IN130QW

For the last five financial years, please complete the table for investments across all your funds in social housing property:

a. in nominal value

b. as a share of your total portfolio

c. the average return on investment.

Please outline your policy on:

a. Fund members using their superannuation fund for a deposit to buy their first home.

b. Retirees using their superannuation to:

i. renovate their home

ii. pay rent.

Within your fund, what percentage of retirees in each of the last five financial years used their superannuation to:

a. renovate their home?

b. clear their remaining mortgage?

Insurance premiums

a. Have you ever deducted insurance premiums from fund members for insurance policies that they are not covered by?

b. Have you ever completed an audit to identify if insurance premiums have been deducted from fund members for insurance policies that they are not covered by?

Material distributed to members

a. Have you ever distributed materials to members that state and/or suggest that:

i. members have coverage under insurance policies that they do not have?

ii. members are required to keep a minimum balance in their superannuation fund?

iii. their employer may be unwilling to contribute to another superannuation fund?

iv. members require a statement of any kind from their employer to move away from your fund?

b. Have you ever completed an audit of materials distributed to members that state and/or suggest that members have coverage under insurance policies that they do not have?

c. Have you ever completed an audit to establish whether you have distributed materials to members that state and/or suggest that:

i. they are required to keep a minimum balance in their superannuation fund?

ii. their employer may be unwilling to contribute to another superannuation fund?

iii. they require a statement of any kind from their employer to move away from your fund?

Please provide as separated data, what the base salary and bonuses were, or are set to be, paid in the 2019/2020 and 2020/21 financial year for your:

a. Chief Executive Officer or equivalent?

b. Chief Investment Officer or equivalent?

Responses to questions 136 - 142

(12 August 2021)
(PDF85KB)

Property investments

a. Do you have any current investments in the National Housing Finance and Investment Corporation? If so, what is the size of your investments?

b. Please provide information on the rental income for any residential property investments held for each year for the last five financial years.

Subscriptions to The New Daily

a. Has your fund ever considered subscribing your members to The New Daily through an opt-out model? If so:

i. Was this proposed initially internally, or externally?

ii. Who proposed it?

iii. Who approved it?

iv. What was the approval process?

v. What legal advice was sought?

vi. On what date did it proceed, or is it proposed to proceed?

b. Have the following groups ever enquired or requested your fund to subscribe your members to The New Daily:

i. Industry Super Holdings?

ii. The New Daily?

What arrangements, including donations, commissions, marketing expenditure or partnerships, do you have that lead to payments to research organisations or ‘think tanks’?

Please provide:

a. Names of the think tanks.

b. Payments made over the last five years.

According to the Australian Financial Review (IFM’s Tandem leaves workers in the lurch, 7 July 2021), IFM Investors have invested in a business that has left them wholly owning a subsidiary, Tandem Networks, that avoids them paying out the full entitlements of subcontractor. Therefore, if you are an owner of IFM Investors:

a. Do you think it is acceptable that an investment made by your investment vehicle dishonours contractual arrangements with subcontractors?

b. What inquiries have been made to ensure that subcontractors are being paid?

c. What steps do you expect IFM Investors to go through should they not honour entitlements to subcontractors?

d. Would you divest from IFM Investors should they not honour entitlements to subcontractors?

At the House Economics superannuation hearing on 8 July 2021 representatives of Australian Super and CBUS outlined they were not aware that IFM Investors (a company wholly owned by industry funds) had paid a bonus of $12m, and were asked whether they had asked questions about the bonus and the bonus structures within IFM Investors.

According to the Australian Financial Review (IFM Investors gives $12.7m bonus to UK Director, 14 February 2020) a bonus of $12.7 million bonus was paid.
According to the Sydney Morning Herald (A lot of bling: Industry shocked at $36 million bonus allegation, 22 March 2019) bonus structures existed to allow for bonuses of up to $36m to be paid.

Therefore, if you are an owner of IFM Investors, please advise:

a. What inquiries have been made, or will be made, about bonuses of that size with IFM Investors?

b. What information you have sought, or will seek, from IFM investors about bonus structures within IFM Investors?

Response

(Publication date)

Please provide the details of any fund member briefings where it was possible to ask fund managers, executives or directors questions over the past five years.

Responses to
questions  1 -62

(14 April 2020)(PDF2,901KB)

For the past five years the total value in dollars and as a percentage of the total value of a fund:

a. Listed investments.

b. Unlisted investments.

c. Total investments.

For the past five years the total value in dollars and as a percentage of the total return for the fund:

a. Listed investments.

b. Unlisted investments.

c. Total investments.

Details of each individual asset currently held at a value other than available listed market prices (an unlisted asset) wholly owned by the fund or funds under your control, including:

a. The asset name and location.

b. The frequency of the revaluation of the asset.

c. The most recent valuation.

d. A copy of that valuation.

e. The methodology used for its valuation.

f. Whether the valuation was completed internally or externally.

g. The details of any external party involved in the valuation.

Details of each individual asset currently held at a value other than available listed market prices (an unlisted asset) partly owned by the fund or funds under your control, including:

a. The asset name and location.

b. The frequency of the revaluation of the asset.

c. The most recent valuation.

d. A copy of that valuation.

e. The methodology used for its valuation.

f. Whether the valuation was completed internally or externally.

Details of costs for advertising campaigns for the past five years, including:

a. The companies invited to tender for all or parts of any advertising campaign.

b. The companies awarded campaigns.

c. The total cost of each campaign.

d. The cost of the campaign’s development.

e. Broadcasting (television, radio and internet) and publishing costs.

f. Assessment reports of the efficacy of campaigns in either retaining or gaining new members.

Over the last five financial years:

a. What is the total budget for all costs associated with the fund?

b. What were the total assets under management?

c. What are the total number of employees?

d. What are the total number of contractors?

e. What are the total number of externally hired contracts, and their value?

Over the last five financial years:

a. What is the total number of member accounts?

b. What is the total increase in the number of members as a result of the fund’s default status?

c. What is the total increase in the number of members through voluntary adoption or switching?

d. What was the average member balance?

e. What was the average dollar amount deducted in insurance fees per member, across all fund products in dollar terms and as a share of a member account?

f. What was the total number of inactive accounts? (Please use the APRA definition: no contributions for two years)

Over the last five financial years:

a. What was the average dollar amount deducted for administration and asset management fees per member, across all fund products? (please do not include insurance fees)

b. What was the cost (%) of fund administration expenses as a proportion of funds under management?

c. What was the total cost of in-house administration expenses?

d. What was the cost of in-house administration expenses as a proportion of funds under management?

e. What was the total cost of any external administration expenses?

f. What was the cost of any external administration expenses as a proportion of funds under management?

g. What was the total cost of any external administration expenses to Related Parties?

h. What was the cost of any external administration expenses to Related Parties as a proportion of funds under management?

i. How many staff are employed in roles considered part of the administrative cost?

Over the last five financial years:

a. The number of rollover requests that the fund did not pay out to another fund for each year?

b. The average dollar value of a rollover for each year?

c. The value of any clawback accounts and/or funds held that is used to hold funds between financial years?

a. Does the fund maintain a reserve at least partially funded through insurance premiums, rebates from an insurance company (such as profit share arrangements) or tax benefits that have arisen from insurance?

b. The total value of that reserve?

c. The total value of tax rebates received from the ATO on insurance premiums?

In the context of building investments:

a. Have you completed assessments of the prevalence of flammable cladding across some properties?

b. Have you completed assessments of the prevalence of flammable cladding across all properties?

c. Have you taken any remediation to reduce your exposure to risk to identify flammable cladding, and if so, what?

d. Have you taken any remediation to reduce your exposure to risk to remove flammable cladding, and if so, what?

e. Do you hold any properties where insurance has been refused or are uninsured due to defective building construction such as cladding?

Governance:

a. How many trustee board members did the fund have?

b. What was the total salary of all trustee board members?

c. What was the average salary of all trustee board members?

d. Are there any performance-based assessments that determine trustee board remuneration, and if so what are they?

e. What was the salary of the trustee board chair?

f. What was the average length of service of all trustee board members?

g. What is the length of service of the longest serving trustee board member?

h. Are trustee board members asked whether they have conflicts of interest at each meeting, and if not, why not?

i. What is the conflict of interest policy for trustee board members?

j. Does your fund have a policy on gender diversity and/or balance for listed companies?

k. Does your board have gender balance?

In the context of the ACCC’s legal action and question for competition in monopoly infrastructure entities:

a. What are the implications for infrastructure investment returns if the ACCC is successful in its legal action?

b. Have you analysed your infrastructure investment portfolio to examine the risk of ACCC action to reduce anti-competitive monopoly of oligopoly pricing?

c. If so, can you provide details of the likely impact, and what is the project impact on revenue and income?

In dollar terms, for each of your superannuation products, can you please provide annual data for the past five financial years on average, for a member with a balance of $6,000, $50,000 and $150,000?

a. Investment fees

b. Administration fees

c. Indirect costs

d. Any other cost to a member which is incurred or foregone by way of a lesser return pre-unit price (but not included in the indirect cost ratio) including any other costs, charges, fees, direct or indirect benefits including any benefit by way of rebate, set-off, commission, in-kind, tax credit/offset retained, interest (or interest rebate) retained by any party involved in the management, custody, review, compliance, administration, servicing, asset consulting, valuation, operation and maintenance, financing, auditing, brokerage, execution, settlement, or otherwise of the assets in the fund, or their underlying assets.

e. An aggregate total of all fees mentioned above.

As a percentage of the value of the member account, for each of your superannuation products, can you please provide annual data for the past five financial years on average, for a member with a balance of $6,000, $50,000 and $150,000?

a. Investment fees

b. Administration fees

c. Indirect costs

d. Any other cost to a member which is incurred or foregone by way of a lesser return pre-unit price (but not included in the indirect cost ratio) including any other costs, charges, fees, direct or indirect benefits including any benefit by way of rebate, set-off, commission, in-kind, tax credit/offset retained, interest (or interest rebate) retained by any party involved in the management, custody, review, compliance, administration, servicing, asset consulting, valuation, operation and maintenance, financing, auditing, brokerage, execution, settlement, or otherwise of the assets in the fund, or their underlying assets.

e. An aggregate total of all fees mentioned above.

Attachment

(14 April 2020)(PDF15,002KB)

For the past five years:

a. What was the total cost of all advertising and/or marketing?

b. What was the total cost of all advertising and/or marketing per member?

c. What was the total cost of all advertising per new (FY19) member?

d. What was the total cost of all television advertising and/or marketing?

e. What was the total cost of all radio advertising and/or marketing?

f. What was the total cost of all print advertising and/or marketing?

g. What was the total cost of all online advertising and/or marketing?

h. How many in-house staff are employed in advertising and marketing roles?

i. How much was spent on engaging external advertising and marketing consultants?

j. Do you advertise and/or directly financial contribute to the New Daily?

Can you provide details if you have purchased the following over the past decade:

a. Google advertisements

b. Google search terms.

How will the overall fund performance be affected if:

a. The income return of unlisted assets declines?

b. The fund can no longer purchase unlisted assets onshore?

c. The fund can no longer purchase unlisted assets offshore?

Valuation methodologies:

a. Have you compared your valuation methodologies and assumptions for unlisted assets with other superannuation funds, and if so, what are the differences?

b. Are you confident that your valuation methodologies and assumptions for unlisted assets reflect their value to the fund, and how often are they reviewed?

c. How do you compare your valuations to listed investments, including, but not limited to, whether there is a cross check to stock prices for similar assets?

d. Have you ever calculated whether there would be a difference between valuations if unlisted assets were listed?

a. How many unlisted assets do you hold in the fund?

b. What value share are unlisted assets of the fund’s:

i. total value?
ii. total property value?

Discount rates:

a. For unlisted assets, do you use a consistent discount rate for income across all unlisted assets, or an asset-specific discount rate?

b. What is the discount rate you apply to the income from unlisted assets, and has it changed over the past decade, and if so, when and why?

Over the past decade:

a. Have you ever devalued an unlisted asset?

b. Have you ever devalued an unlisted asset by more than $10 million?

c. Have you ever devalued an unlisted asset by more than $50 million?

d. Have you ever devalued an unlisted asset by more than $100 million?

e. Please advise the companies and/or individual valuers that have valued your unlisted assets

For each year of the past decade:

a. How many fund members do you have?

b. How many financial planners do you have in total numbers, and as a member to financial planner ratio?

c. How many financial advisers do you have in total numbers, and as a member to financial planner ratio?

For each year of the past decade:

a. How much is charged for financial planning annually to fund members, and what is the average per fund member?

b. How much is charged for financial planning annually to funds, and what is the average per fund member?

c. How much is charged for financial advice annually to fund members, and what is the average per fund member?

d. How much is charged for financial advice annually to funds, and what is the average per fund member?

For each year of the past decade:

a. What is the cost of general advice annually, and what is the average per fund member?

b. What are the aggregate value of bonuses provided for general advice, and what is the average per adviser?

For each year of the past decade:

a. What is the cost of scaled advice annually, and what is the average per fund member?

b. What are the aggregate value of bonuses provided for scaled advice, and what is the average per adviser?

For each year of the past decade:

a. What is the cost of comprehensive advice annually, and what is the average per fund member?

b. What are the aggregate value of bonuses provided for comprehensive advice, and what is the average per adviser?

For each year of the past decade:

a. What is the cost of intra-fund advice annually, and what is the average per fund member?

b. What are the aggregate value of bonuses provided for intra-fund advice, and what is the average per adviser?

Over the past five years:

a. How many employees have been cautioned for misconduct?

b. How many employees have had a penalty (such as, but not limited to, loss of bonus) for misconduct?

c. How many employees have been terminated for misconduct?

d. How many employees have been cautioned for misconduct, as a share of all employees over that timeframe?

e. How many employees have had a penalty (such as, but not limited to, loss of bonus) for misconduct, as a share of all employees over that timeframe?

f. How many employees have been terminated for misconduct, as a share of all employees over that timeframe?

Responses to
questions 63 - 76

(27 May 2020)(PDF325KB)

Listed companies holding infrastructure assets have had write downs of around 40 per cent:

a. How does this compare to your write down of unlisted assets?

b. If there is a difference, why is there a difference?

Have you had any liquidity issues in honouring your obligations to members as a result of the:

a. recent decline in the share market?

b. permission by the Federal government to allow members to remove up to $10,000 per financial year if they lose their job?

Liquidity management:

a. What is your fund’s process for complying with APRA’s prudential framework which requires trustees to have a liquidity management plan?

b. How is the plan being reported to the trustee directors?

c. Who is responsible for the day-to-day liquidity management for the fund?

Since 12 March 2020, has your fund provided any liquidity to:

a. REST?

b. Hostplus?

c. any other superannuation fund?

If so, for each fund, can you provide details of the amount, the date and the terms?

Responses to
questions 77 - 90

(14 August 2020)
(PDF168KB)

Since 12 March 2020, has your fund loaned any cash to:

a. REST?

b. Hostplus?

c. any other superannuation fund?

If so, for each fund, can you provide details of the amount, the date and the terms?

If you are an investor in ME Bank, have you individually (or in collaboration with other funds), ever commissioned reports into its valuation in the past decade?

a. And if so, how many reports and in what year?

b. Were any commissioned to be completed by the UK-based group, LEK?

c. And please provide copies.

According to reports in the Australian Financial Review superannuation fund, Hostplus, redefined the definition of ‘illiquid assets’ (‘Hostplus warned of liquidity “perfect storm”’, Australian Financial Review, 18 May 2020). Therefore, can you please advise:

a. How you define ‘illiquid assets’ within your fund, including details of holdings and timeframes?

b. How you define ‘liquid assets’ within your fund, including details of holdings and timeframes?

c. How long each of these definitions have been used?

d. What prompted any switch to these definitions?

e. What the prior definitions were before any switch?

Have you completed a skills audit in the past five years of the following:

a. Your board of directors?

b. Your investment committee?

c. And if not, why not?

d. And if so, presently what gaps are identified?

Prior to appointment, have employees fulfilling fiduciary roles had their investment performance track record assessed before fees?

a. And if not, why not?

b. And if not prior to appointment, have they following appointment?

c. And if so, on what timeframe?

Do you currently have an art collection?

a. If so, can you advise its current valuation?

b. If so, can you advise where it is stored and/or exhibited?

Do you engage proxy advisers?

a. What are the terms of engagement for proxy advisers?

b. To what extent are they empowered to act on behalf of the entity?

c. Does their advice get provided to the board?

d. How often is advice submitted to the board?

e. Is their advice formally adopted by the board?

f. Are their positions publicly stated?

g. How does the board assess these positions concurrent with their duties as trustees and the sole purpose test?

Are you currently, or have you previously been, a member or subscriber of the ACTU Members Connect Program?

a. If so, what is the timeframe of your membership?

b. What has been the annual fee year-on-year?

c. How have you assessed its value to your members?

Please provide the titles of all externally commissioned reports over the past five years that have reviewed any of the following:

a. Performance of funds.

b. Investment strategies for funds.

c. Conflicts of interest for funds.

Responses to
questions 91 - 95

(14 August 2020)
(PDF144KB)

For each fund where more than 30 per cent of capital is managed by another entity, please complete the below table including:

a. The name of the fund.

b. The allocation of capital as a percentage of the total capital held by the fund.

c. The allocation of capital of the total capital held by the fund.

d. The entity managing the capital.

e. Whether you are a shareholder in that entity.

Please provide details of the following reduction to remuneration packages since 11 March 2020:

a. Board members.

b. The chief executive.

c. Executive management.

Since 1 January 2020, for each fund, please outline:

a. The date and value at the highest valuation of the fund?

b. The date and value at the lowest valuation of the fund?

c. The number of business days between the highest and lowest valuation for the fund?

d. The nominal value between the highest and lowest valuation for the fund?

e. The percentage value between the highest and lowest valuation for the fund?

f. The number of business days between the date of the ASX’s lowest valuation, and the lowest day for the valuation of the fund?

g. The number of business days between the date of the ASX’s lowest valuation, and the lowest valuation of unlisted assets in the fund?

h. What volume of switching of investments occurred between funds between the highest and lowest valuations?

i. What volume of switching between funds occurred in that time by trustees of the fund that are also members of the fund, between the highest and lowest valuations?

j. What volume of switching between funds occurred in that time by executives of the fund that are also members of the fund, between the highest and lowest valuations?

k. What volume of switching between funds occurred in that time by other employees of the fund that are also members of the fund, between the highest and lowest valuations?

l. What integrity measures were taken to prohibit trustees, executives and employees switching between funds from taking advantage of arbitrage of any gap between the lowest valuation date of the ASX and any revaluation of the fund?

Responses to
questions 96 - 100

(2 October 2020)
(PDF131KB)

On financial advisers providing non-intrafund advice (i.e. comprehensive advice - beyond the scope of intrafund advice) within the fund over the past five financial years:

a. How many do you employ (or are you paying for through outsourced arrangements)?

b. What is the revenue generated from these non-intrafund advisers?

c. How many financial advisers within the fund also provide intrafund advice?

d. If you have non-intrafund financial advisers within the fund also providing intrafund advice, how is their remuneration determined from different sources?

e. Is there any cross-subsidisation for non-intrafund financial advisers within the fund from activities funded through intrafund advice?

f. Is there any cross-subsidisation for financial advisers from intrafund advice to non-intrafund financial advisers within the fund?

g. What is the total budgeted cost and actuals for financial advisers?

h. What is the remuneration level/range for the financial advisers employed to provide non-intrafund advice to your members?

i. What is the aggregated cost of their remuneration?

ii. What is the aggregated cost for their employment?

iii. What is the aggregated cost for their on-costs, including but not limited to, superannuation, leave, training support and office space?

iv. What is the aggregated cost for marketing their services?

v. What is the aggregated cost for administrative support services?

vi. What is the aggregated cost for professional insurance and indemnity?

vii. What is the aggregated cost for compliance oversight?

viii. What is the aggregated cost for legal oversight?

ix. What is the aggregated cost for other regulatory oversight?

x. What is the aggregated cost for the unit, including overheads, that provides financial advice within the fund?

On financial advisers providing intrafund advice (i.e. strictly limited to advice on your super fund for the member only - not spouse) within your fund over the last five financial years:

a. How many do you employ (or are you paying for through outsourced arrangements)?

Do you allow members to use their funds to pay for:

a. Financial advice?

b. Internal financial advisers?

c. External financial advisers?

Please advise the total remuneration package of your:

a. company secretary, and

b. Chief Executive Officer, including:

i. total remuneration

ii. base salary

iii. annual bonuses

iv. deferred bonuses

v. equity or other options

vi. additional compensation not covered in the above.

Responses to
questions 101 - 120

(14 December 2020)
(PDF768KB)

For each year of the past decade, please advise the:

a. annual remuneration of the average worker who contributes to your fund

b. average annual superannuation contribution from an employee to your fund

c. multiple your CEO is remunerated compared to the annual remuneration of the average worker who contributes to your fund.

In the context of marketing and advertising campaigns:

a. How many is your fund currently running individually, or in collaboration with others?

b. How many have run, or are currently running since the beginning of calendar year 2020?

c. What is the actual cost for each campaign (including development, production, broadcasting, and distribution) to 30 June 2020?

d. What is the actual cost for each campaign (including development, production, broadcasting, and distribution) budgeted?

e. What is the budgeted cost for each campaign (including development, production, broadcasting, and distribution) from 1 July 2020 – 31 December 2020?

f. What is the budgeted cost for any existing or proposed campaigns (including development, production, broadcasting, and distribution) for the period 1 January 2021 – 30 June 2021?

g. What is the budgeted cost for any existing or proposed campaigns (including development, production, broadcasting, and distribution) for the period 1 July 2021 – 31 December 2021?

For each of the following categories, please provide the percentages of employees that are women, men, or who identify otherwise:

a. all employees

b. non-executive employees

c. executive employees

d. senior executive employees.

Do you have a target for the employment of:

a. women as a share of:

i. all employees?

ii. executive employees?

iii. senior executive employees?

b. people who are gender non-binary as a share of:

i. all employees?

ii. executive employees?

iii. senior executive employees?

Since the introduction of Superstream, which has standardised the transfer of funds, has there been:

a. A reduction in the cost to the fund for transferring funds, and if so, by how much?

b. A reduction in the fees charged to members reflecting any saving, and if so, by how much?

Greenhouse gas emissions

a. Does your fund have an internal target for your own greenhouse gas emissions footprint by:

i. 2030?

ii. 2035?

iii. 2040?

iv. 2045?

v. 2050?

b. Does your fund have a target for reducing greenhouse gas emissions from investments by:

i. 2030?

ii. 2035?

iii. 2040?

iv. 2045?

v. 2050?

c. Does your fund intend to divest from investments if they do not reach their greenhouse gas emissions reduction targets by:

i. 2030?

ii. 2035?

iii. 2040?

iv. 2045?

v. 2050?

The New Daily

a. Have you ever completed a cost benefit analysis of The New Daily to your fund?

i. If so, when did you complete this cost benefit analysis?

ii. Please provide a copy of the cost benefit analysis.

b. Have you ever completed a cost benefit analysis of The New Daily to your members?

i. If so, when did you complete your cost benefit analysis of the New Daily to your members?

ii. Please provide a copy of the cost benefit analysis.

Financial advisers remuneration

a. Are your financial advisers paid:

i. a base salary?

ii. non-salaried remuneration, including bonuses?

b. Are your financial advisers, who are only remunerated with a base salary, eligible to provide:

i. personal advice?

ii. general advice?

Have any technology innovations within the fund reduced the cost of operating the fund over the past decade?

If so, please outline:

a. the technological innovations

b. the cost saving

c. the cost saving passed through to fees charged to members.

Valuations

a. What data is provided to valuation teams to assess the value of unlisted assets?

b. When the fund provides data to valuation teams to assess the value of unlisted assets, does this include internal modelling of asset valuations?

c. What assumptions are provided to valuation teams when assessing the value of unlisted assets?

d. When valuation teams assess the value of unlisted assets, do they solely take account of past performance?

e. When valuation teams assess the value of unlisted assets, what weighting do they take on the projected value of the market for such unlisted assets to inform their valuations?

f. For the past decade can you please complete the below table for each unlisted asset valued under your valuation policy.

Over the past decade, how many non-disclosure agreements have you agreed to in relation to:

a. human resources issues?

b. sexual harassment issues?

Do you use an internal clearing house to receive the superannuation payments from employers, or their payroll representatives, before they are allocated to an individual member’s account and/or fund?

If so:

a. What is the name of the clearing house?

b. Why do you use a clearing house?

c. How much does it cost annually to use the clearing house?

d. How much does it cost annually to each member to use the clearing house?

e. What happens to interest accrued from funds held in the clearing house?

f. What happens to non-interest income and/or capital gains accrued from funds held in the clearing house?

Do you use an external clearing house to receive the superannuation payments from employers, or their payroll representatives, before they are allocated to an individual member’s account and/or fund?

If so:

a. What is the name of the clearing house?

b. Who owns the clearing house?

c. Why do you use an external clearing house?

d. How much does it cost annually to use the external clearing house?

e. How much does it cost annually to each member to use the external clearing house?

f. What happens to non-interest income and/or capital gains accrued from funds held in the external clearing house?

If you use an internal clearing house please outline when money is received into the clearing house:

a. On average, how long does it stay in the clearing house before it:

i. is allocated to a member’s account and/or fund?

ii. is allocated to purchase units for a member’s account and/or fund?

iii. appears in a member’s account and/or fund statement and/or online record?

b. What is the longest time that it has stayed in the clearing house before it:

i. is allocated to a member’s account and/or fund?

ii. is allocated to purchase units for a member’s account and/or fund?

iii. appears in a member’s account and/or fund statement and/or online record?

c. What is the shortest time that it has stayed in the clearing house before it:

i. is allocated to a member’s account and/or fund?

ii. is allocated to purchase units for a member’s account and/or fund?

iii. appears in a member’s account and/or fund statement and/or online record?

d. For interest accrued from holding funds in the clearing house for the member, is it then subsequently allocated to:

i. the individual member’s account and/or fund?

ii. a different account and/or fund? If so, what is its name?

e. For non-interest income and/or capital gains accrued from holding funds in the clearing house for the member, is it then subsequently allocated to:

i. the individual member’s account and/or fund?

ii. a different account and/or fund? If so, what is its name?

If you use an external clearing house please outline when money is received into the clearing house:

a. On average, how long does it stay in the clearing house before it:

i. is allocated to a member’s account and/or fund?

ii. is allocated to purchase units for a member’s account and/or fund?

iii. appears in a member’s account and/or fund statement and/or online record?

b. What is the longest time that it has stayed in the clearing house before it:

i. is allocated to a member’s account and/or fund?

ii. is allocated to purchase units for a member’s account and/or fund?

iii. appears in a member’s account and/or fund statement and/or online record?

c. What is the shortest time that it has stayed in the clearing house before it:

i. is allocated to a member’s account and/or fund?

ii. is allocated to purchase units for a member’s account and/or fund?

iii. appears in a member’s account and/or fund statement and/or online record?

d. For interest accrued from holding funds in the clearing house for the member, is it then subsequently allocated to:

i. the individual member’s account and/or fund?

ii. a different account and/or fund? If so, what is its name?

e. For non-interest income and/or capital gains accrued from holding funds in the clearing house for the member, is it then subsequently allocated to:

i. the individual member’s account and/or fund?

ii. a different account and/or fund? If so, what is its name?

In reference to the original publication of the article “CEOs push Andrews to reopen faster” in the Australian Financial Review on 20 October 2020 (see attachment) which states:

Meanwhile, restaurateur Chris Lucas, pub owner and former AFL player Paul Dimattina and CSL chairman Brian McNamee all spoke of repercussions from elements of the labour movement for criticising the state government over the failures which led to the crisis and the subsequent slow pace of reopening the economy. Union-aligned industry superannuation fund managers have pressured Dr McNamee to stop his outspoken criticisms of the state government lockdown, even though he has repeatedly said he is speaking in a personal capacity and not for the company.

In the context of confronting, bullying or intimidatory workplace cultures, please advise:

(a) has the Chair of your fund been in contact through any medium with Dr McNamee or his office since 5 August 2020, and if so please advise the name of the person who made contact and the nature of any communications.

(b) have board members of your fund been in contact through any medium with Dr McNamee or his office since 5 August 2020, and if so please advise the name(s) of the person(s) who made contact and the nature of any communications.

(c) has the CEO of your fund been in contact through any medium with Dr McNamee or his office since 5 August 2020, and if so please advise the name of the person who made contact and the nature of any communications.

(d) have senior executives of your fund been in contact through any medium with Dr McNamee or his office since 5 August, and if so please advise the name(s) of the person(s) who made contact and the nature of any communications

Responses to
questions 121 - 134

(23 April 2021)
(PDF320KB)

Please outline your policy on:

a. Fund members using their superannuation fund for a deposit to buy their first home.

b. Retirees using their superannuation to:

i. renovate their home

ii. pay rent. 

Material distributed to members

a. Have you ever distributed materials to members that state and/or suggest that:

i. members have coverage under insurance policies that they do not have?

ii. members are required to keep a minimum balance in their superannuation fund?

iii. their employer may be unwilling to contribute to another superannuation fund?

iv. members require a statement of any kind from their employer to move away from your fund?

b. Have you ever completed an audit of materials distributed to members that state and/or suggest that members have coverage under insurance policies that they do not have?

c. Have you ever completed an audit to establish whether you have distributed materials to members that state and/or suggest that:

i. they are required to keep a minimum balance in their superannuation fund?

ii. their employer may be unwilling to contribute to another superannuation fund?

iii. they require a statement of any kind from their employer to move away from your fund?

Subscriptions to The New Daily

a. Has your fund ever considered subscribing your members to The New Daily through an opt-out model? If so:

i. Was this proposed initially internally, or externally?

ii. Who proposed it?

iii. Who approved it?

iv. What was the approval process?

v. What legal advice was sought?

vi. On what date did it proceed, or is it proposed to proceed?

b. Have the following groups ever enquired or requested your fund to subscribe your members to The New Daily:

i. Industry Super Holdings?

ii. The New Daily?

At the House Economics superannuation hearing on 8 July 2021 representatives of Australian Super and CBUS outlined they were not aware that IFM Investors (a company wholly owned by industry funds) had paid a bonus of $12m, and were asked whether they had asked questions about the bonus and the bonus structures within IFM Investors.

According to the Australian Financial Review (IFM Investors gives $12.7m bonus to UK Director, 14 February 2020) a bonus of $12.7 million bonus was paid.
According to the Sydney Morning Herald (A lot of bling: Industry shocked at $36 million bonus allegation, 22 March 2019) bonus structures existed to allow for bonuses of up to $36m to be paid.

Therefore, if you are an owner of IFM Investors, please advise:

a. What inquiries have been made, or will be made, about bonuses of that size with IFM Investors?

b. What information you have sought, or will seek, from IFM investors about bonus structures within IFM Investors?

Response

(Publications date)

Response

(Publications date)

Please provide the details of any fund member briefings where it was possible to ask fund managers, executives or directors questions over the past five years.

For the past five years the total value in dollars and as a percentage of the total value of a fund:

a. Listed investments.

b. Unlisted investments.

c. Total investments.

For the past five years the total value in dollars and as a percentage of the total return for the fund:

a. Listed investments.

b. Unlisted investments.

c. Total investments.

Details of each individual asset currently held at a value other than available listed market prices (an unlisted asset) wholly owned by the fund or funds under your control, including:

a. The asset name and location.

b. The frequency of the revaluation of the asset.

c. The most recent valuation.

d. A copy of that valuation.

e. The methodology used for its valuation.

f. Whether the valuation was completed internally or externally.

g. The details of any external party involved in the valuation.

Details of each individual asset currently held at a value other than available listed market prices (an unlisted asset) partly owned by the fund or funds under your control, including:

a. The asset name and location.

b. The frequency of the revaluation of the asset.

c. The most recent valuation.

d. A copy of that valuation.

e. The methodology used for its valuation.

f. Whether the valuation was completed internally or externally.

Details of costs for advertising campaigns for the past five years, including:

a. The companies invited to tender for all or parts of any advertising campaign.

b. The companies awarded campaigns.

c. The total cost of each campaign.

d. The cost of the campaign’s development.

e. Broadcasting (television, radio and internet) and publishing costs.

f. Assessment reports of the efficacy of campaigns in either retaining or gaining new members.

Over the last five financial years:

a. What is the total budget for all costs associated with the fund?

b. What were the total assets under management?

c. What are the total number of employees?

d. What are the total number of contractors?

e. What are the total number of externally hired contracts, and their value?

Over the last five financial years:

a. What is the total number of member accounts?

b. What is the total increase in the number of members as a result of the fund’s default status?

c. What is the total increase in the number of members through voluntary adoption or switching?

d. What was the average member balance?

e. What was the average dollar amount deducted in insurance fees per member, across all fund products in dollar terms and as a share of a member account?

f. What was the total number of inactive accounts? (Please use the APRA definition: no contributions for two years)

Over the last five financial years:

a. What was the average dollar amount deducted for administration and asset management fees per member, across all fund products? (please do not include insurance fees)

b. What was the cost (%) of fund administration expenses as a proportion of funds under management?

c. What was the total cost of in-house administration expenses?

d. What was the cost of in-house administration expenses as a proportion of funds under management?

e. What was the total cost of any external administration expenses?

f. What was the cost of any external administration expenses as a proportion of funds under management?

g. What was the total cost of any external administration expenses to Related Parties?

h. What was the cost of any external administration expenses to Related Parties as a proportion of funds under management?

i. How many staff are employed in roles considered part of the administrative cost?

Over the last five financial years:

a. The number of rollover requests that the fund did not pay out to another fund for each year?

b. The average dollar value of a rollover for each year?

c. The value of any clawback accounts and/or funds held that is used to hold funds between financial years?

a. How many staff are employed for the purpose of policy research or analysis?

b. How much was spent on engaging external policy and data analysis consultants?

c. How much was spent on membership of industry advocacy organisations that provide policy and data analysis service to member funds?

In the context of building investments:

a. Have you completed assessments of the prevalence of flammable cladding across some properties?

b. Have you completed assessments of the prevalence of flammable cladding across all properties?

c. Have you taken any remediation to reduce your exposure to risk to identify flammable cladding, and if so, what?

d. Have you taken any remediation to reduce your exposure to risk to remove flammable cladding, and if so, what?

e. Do you hold any properties where insurance has been refused or are uninsured due to defective building construction such as cladding?

Governance:

a. How many trustee board members did the fund have?

b. What was the total salary of all trustee board members?

c. What was the average salary of all trustee board members?

d. Are there any performance-based assessments that determine trustee board remuneration, and if so what are they?

e. What was the salary of the trustee board chair?

f. What was the average length of service of all trustee board members?

g. What is the length of service of the longest serving trustee board member?

h. Are trustee board members asked whether they have conflicts of interest at each meeting, and if not, why not?

i. What is the conflict of interest policy for trustee board members?

j. Does your fund have a policy on gender diversity and/or balance for listed companies?

k. Does your board have gender balance?

In the context of the ACCC’s legal action and question for competition in monopoly infrastructure entities:

a. What are the implications for infrastructure investment returns if the ACCC is successful in its legal action?

b. Have you analysed your infrastructure investment portfolio to examine the risk of ACCC action to reduce anti-competitive monopoly of oligopoly pricing?

c. If so, can you provide details of the likely impact, and what is the project impact on revenue and income?

In dollar terms, for each of your superannuation products, can you please provide annual data for the past five financial years on average, for a member with a balance of $6,000, $50,000 and $150,000?

a. Investment fees

b. Administration fees

c. Indirect costs

d. Any other cost to a member which is incurred or foregone by way of a lesser return pre-unit price (but not included in the indirect cost ratio) including any other costs, charges, fees, direct or indirect benefits including any benefit by way of rebate, set-off, commission, in-kind, tax credit/offset retained, interest (or interest rebate) retained by any party involved in the management, custody, review, compliance, administration, servicing, asset consulting, valuation, operation and maintenance, financing, auditing, brokerage, execution, settlement, or otherwise of the assets in the fund, or their underlying assets.

e. An aggregate total of all fees mentioned above.

As a percentage of the value of the member account, for each of your superannuation products, can you please provide annual data for the past five financial years on average, for a member with a balance of $6,000, $50,000 and $150,000?

a. Investment fees

b. Administration fees

c. Indirect costs

d. Any other cost to a member which is incurred or foregone by way of a lesser return pre-unit price (but not included in the indirect cost ratio) including any other costs, charges, fees, direct or indirect benefits including any benefit by way of rebate, set-off, commission, in-kind, tax credit/offset retained, interest (or interest rebate) retained by any party involved in the management, custody, review, compliance, administration, servicing, asset consulting, valuation, operation and maintenance, financing, auditing, brokerage, execution, settlement, or otherwise of the assets in the fund, or their underlying assets.

e. An aggregate total of all fees mentioned above.

For the past five years:

a. What was the total cost of all advertising and/or marketing?

b. What was the total cost of all advertising and/or marketing per member?

c. What was the total cost of all advertising per new (FY19) member?

d. What was the total cost of all television advertising and/or marketing?

e. What was the total cost of all radio advertising and/or marketing?

f. What was the total cost of all print advertising and/or marketing?

g. What was the total cost of all online advertising and/or marketing?

h. How many in-house staff are employed in advertising and marketing roles?

i. How much was spent on engaging external advertising and marketing consultants?

j. Do you advertise and/or directly financial contribute to the New Daily?

How much money have you spent on advertising on the following platforms in the past decade:

a. Google?

b. Facebook?

c. Twitter?

d. Instagram?

e. A non-Google search engine?

f. Any social media platform that is not mentioned in (b) – (d)?

Can you provide details if you have purchased the following over the past decade:

a. Google advertisements

b. Google search terms.

How will the overall fund performance be affected if:

a. The income return of unlisted assets declines?

b. The fund can no longer purchase unlisted assets onshore?

c. The fund can no longer purchase unlisted assets offshore?

Valuation methodologies:

a. Have you compared your valuation methodologies and assumptions for unlisted assets with other superannuation funds, and if so, what are the differences?

b. Are you confident that your valuation methodologies and assumptions for unlisted assets reflect their value to the fund, and how often are they reviewed?

c. How do you compare your valuations to listed investments, including, but not limited to, whether there is a cross check to stock prices for similar assets?

d. Have you ever calculated whether there would be a difference between valuations if unlisted assets were listed?

a. How many unlisted assets do you hold in the fund?

b. What value share are unlisted assets of the fund’s:

i. total value?
ii. total property value?

Discount rates:

a. For unlisted assets, do you use a consistent discount rate for income across all unlisted assets, or an asset-specific discount rate?

b. What is the discount rate you apply to the income from unlisted assets, and has it changed over the past decade, and if so, when and why?

Over the past decade:

a. Have you ever devalued an unlisted asset?

b. Have you ever devalued an unlisted asset by more than $10 million?

c. Have you ever devalued an unlisted asset by more than $50 million?

d. Have you ever devalued an unlisted asset by more than $100 million?

e. Please advise the companies and/or individual valuers that have valued your unlisted assets.

For each year of the past decade:

a. How many fund members do you have?

b. How many financial planners do you have in total numbers, and as a member to financial planner ratio?

c. How many financial advisers do you have in total numbers, and as a member to financial planner ratio?

For each year of the past decade:

a. How much is charged for financial planning annually to fund members, and what is the average per fund member?

b. How much is charged for financial planning annually to funds, and what is the average per fund member?

c. How much is charged for financial advice annually to fund members, and what is the average per fund member?

d. How much is charged for financial advice annually to funds, and what is the average per fund member?

For each year of the past decade:

a. What is the cost of general advice annually, and what is the average per fund member?

b. What are the aggregate value of bonuses provided for general advice, and what is the average per adviser?

For each year of the past decade:

a. What is the cost of scaled advice annually, and what is the average per fund member?

b. What are the aggregate value of bonuses provided for scaled advice, and what is the average per adviser?

For each year of the past decade:

a. What is the cost of comprehensive advice annually, and what is the average per fund member?

b. What are the aggregate value of bonuses provided for comprehensive advice, and what is the average per adviser?

For each year of the past decade:

a. What is the cost of intra-fund advice annually, and what is the average per fund member?

b. What are the aggregate value of bonuses provided for intra-fund advice, and what is the average per adviser?

Over the past five years:

a. How many employees have been cautioned for misconduct?

b. How many employees have had a penalty (such as, but not limited to, loss of bonus) for misconduct?

c. How many employees have been terminated for misconduct?

d. How many employees have been cautioned for misconduct, as a share of all employees over that timeframe?

e. How many employees have had a penalty (such as, but not limited to, loss of bonus) for misconduct, as a share of all employees over that timeframe?

f. How many employees have been terminated for misconduct, as a share of all employees over that timeframe?

Responses to questions 63 - 76

(26 May 2020)
(PDF167KB)

Listed companies holding infrastructure assets have had write downs of around 40 per cent:

a. How does this compare to your write down of unlisted assets?

b. If there is a difference, why is there a difference?

Have you had any liquidity issues in honouring your obligations to members as a result of the:

a. recent decline in the share market?

b. permission by the Federal government to allow members to remove up to $10,000 per financial year if they lose their job?

Liquidity management:

a. What is your fund’s process for complying with APRA’s prudential framework which requires trustees to have a liquidity management plan?

b. How is the plan being reported to the trustee directors?

c. Who is responsible for the day-to-day liquidity management for the fund?

Since 12 March 2020, has your fund provided any liquidity to:

a. REST?
b. Hostplus?
c. any other superannuation fund?

If so, for each fund, can you provide details of the amount, the date and the terms?

Responses to questions 77 - 90

(23 June 2020)
(PDF416KB)

Since 12 March 2020, has your fund loaned any cash to:

a. REST?
b. Hostplus?
c. any other superannuation fund?

If so, for each fund, can you provide details of the amount, the date and the terms?

Regarding any investments you have with IFM Investors, please provide the following:

a. The capital invested each year for the past five years.

b. The accumulated valuation of investments for the past five years.

c. The dividends received from those investments for the past five years.

Regarding any investments you have with ME Bank, please provide the following:

a. The capital invested each year for the past five years.

b. The accumulated valuation of investments for the past five years.

c. The dividends received from those investments for the past five years.

If you are an investor in ME Bank, have you individually (or in collaboration with other funds), ever commissioned reports into its valuation in the past decade?

a. And if so, how many reports and in what year?

b. Were any commissioned to be completed by the UK-based group, LEK?

c. And please provide copies.

According to reports in the Australian Financial Review superannuation fund, Hostplus, redefined the definition of ‘illiquid assets’ (‘Hostplus warned of liquidity “perfect storm”’, Australian Financial Review, 18 May 2020). Therefore, can you please advise:

a. How you define ‘illiquid assets’ within your fund, including details of holdings and timeframes?

b. How you define ‘liquid assets’ within your fund, including details of holdings and timeframes?

c. How long each of these definitions have been used?

d. What prompted any switch to these definitions?

e. What the prior definitions were before any switch?

Have you completed a skills audit in the past five years of the following:

a. Your board of directors?

b. Your investment committee?

c. And if not, why not?

d. And if so, presently what gaps are identified?

Prior to appointment, have employees fulfilling fiduciary roles had their investment performance track record assessed before fees?

a. And if not, why not?

b. And if not prior to appointment, have they following appointment?

c. And if so, on what timeframe?

Please provide the titles of all externally commissioned reports over the past five years that have reviewed any of the following:

a. Performance of funds.

b. Investment strategies for funds.

c. Conflicts of interest for funds.

Responses to questions 91 - 95

(14 August 2020)
(PDF94KB)

For each fund where more than 30 per cent of capital is managed by another entity, please complete the below table including:

a. The name of the fund.

b. The allocation of capital as a percentage of the total capital held by the fund.

c. The allocation of capital of the total capital held by the fund.

d. The entity managing the capital.

e. Whether you are a shareholder in that entity.

Please provide details of the following reduction to remuneration packages since 11 March 2020:

a. Board members.

b. The chief executive.

c. Executive management.

Since 1 January 2020, for each fund, please outline:

a. The date and value at the highest valuation of the fund?

b. The date and value at the lowest valuation of the fund?

c. The number of business days between the highest and lowest valuation for the fund?

d. The nominal value between the highest and lowest valuation for the fund?

e. The percentage value between the highest and lowest valuation for the fund?

f. The number of business days between the date of the ASX’s lowest valuation, and the lowest day for the valuation of the fund?

g. The number of business days between the date of the ASX’s lowest valuation, and the lowest valuation of unlisted assets in the fund?

h. What volume of switching of investments occurred between funds between the highest and lowest valuations?

i. What volume of switching between funds occurred in that time by trustees of the fund that are also members of the fund, between the highest and lowest valuations?

j. What volume of switching between funds occurred in that time by executives of the fund that are also members of the fund, between the highest and lowest valuations?

k. What volume of switching between funds occurred in that time by other employees of the fund that are also members of the fund, between the highest and lowest valuations?

l. What integrity measures were taken to prohibit trustees, executives and employees switching between funds from taking advantage of arbitrage of any gap between the lowest valuation date of the ASX and any revaluation of the fund?

Responses to questions 96 - 100

(2 October 2020)
(PDF112KB)

On financial advisers providing non-intrafund advice (i.e. comprehensive advice - beyond the scope of intrafund advice) within the fund over the past five financial years:

a. How many do you employ (or are you paying for through outsourced arrangements)?

b. What is the revenue generated from these non-intrafund advisers?

c. How many financial advisers within the fund also provide intrafund advice?

d. If you have non-intrafund financial advisers within the fund also providing intrafund advice, how is their remuneration determined from different sources?

e. Is there any cross-subsidisation for non-intrafund financial advisers within the fund from activities funded through intrafund advice?

f. Is there any cross-subsidisation for financial advisers from intrafund advice to non-intrafund financial advisers within the fund?

g. What is the total budgeted cost and actuals for financial advisers?

h. What is the remuneration level/range for the financial advisers employed to provide non-intrafund advice to your members?

i. What is the aggregated cost of their remuneration?

ii. What is the aggregated cost for their employment?

iii. What is the aggregated cost for their on-costs, including but not limited to, superannuation, leave, training support and office space?

iv. What is the aggregated cost for marketing their services?

v. What is the aggregated cost for administrative support services?

vi. What is the aggregated cost for professional insurance and indemnity?

vii. What is the aggregated cost for compliance oversight?

viii. What is the aggregated cost for legal oversight?

ix. What is the aggregated cost for other regulatory oversight?

x. What is the aggregated cost for the unit, including overheads, that provides financial advice within the fund?

On financial advisers providing intrafund advice (i.e. strictly limited to advice on your super fund for the member only - not spouse) within your fund over the last five financial years:

a. How many do you employ (or are you paying for through outsourced arrangements)?

b. What is the remuneration level/range for the financial advisers employed to provide intrafund advice to your members?

i. What is the aggregated cost of their remuneration?

ii. What is the aggregated cost for their employment?

iii. What is the aggregated cost for their on-costs, including but not limited to, superannuation, leave, training support and office space?

iv. What is the aggregated cost for marketing their services?

v. What is the aggregated cost for administrative support services?

vi. What is the aggregated cost for professional insurance and indemnity?

vii. What is the aggregated cost for compliance oversight?

viii. What is the aggregated cost for legal oversight?

ix. What is the aggregated cost for other regulatory oversight?

x. What is the aggregated cost for the unit, including overheads, that provides intrafund advice?

c. What is the revenue that intrafund advisers have generated?

d. How many financial advisers providing intrafund advice also provide it within the fund?

e. If you have financial advisers providing intrafund advice also providing it within the fund, how is their remuneration determined from different sources?

f. Is there any cross-subsidisation for financial advisers providing intrafund advice from revenue funded through activities within the fund?

g. What is the total budgeted cost and actuals for the intrafund advice unit?

h. What is the revenue generated from these financial advisers?

i. Within your fund, is there any cross-subsidisation for intrafund advice services?

Do you allow members to use their funds to pay for:

a. Financial advice?

b. Internal financial advisers?

c. External financial advisers?

Please advise the total remuneration package of your:

a. company secretary, and

b. Chief Executive Officer, including:

i. total remuneration

ii. base salary

iii. annual bonuses

iv. deferred bonuses

v. equity or other options

vi. additional compensation not covered in the above.

Responses to
questions 101 - 119

(25 November 2020)
(PDF287KB)

For each year of the past decade, please advise the:

a. annual remuneration of the average worker who contributes to your fund

b. average annual superannuation contribution from an employee to your fund

c. multiple your CEO is remunerated compared to the annual remuneration of the average worker who contributes to your fund.

In the context of marketing and advertising campaigns:

a. How many is your fund currently running individually, or in collaboration with others?

b. How many have run, or are currently running since the beginning of calendar year 2020?

c. What is the actual cost for each campaign (including development, production, broadcasting, and distribution) to 30 June 2020?

d. What is the actual cost for each campaign (including development, production, broadcasting, and distribution) budgeted?

e. What is the budgeted cost for each campaign (including development, production, broadcasting, and distribution) from 1 July 2020 – 31 December 2020?

f. What is the budgeted cost for any existing or proposed campaigns (including development, production, broadcasting, and distribution) for the period 1 January 2021 – 30 June 2021?

g. What is the budgeted cost for any existing or proposed campaigns (including development, production, broadcasting, and distribution) for the period 1 July 2021 – 31 December 2021?

For each of the following categories, please provide the percentages of employees that are women, men, or who identify otherwise:

a. all employees

b. non-executive employees

c. executive employees

d. senior executive employees.

Do you have a target for the employment of:

a. women as a share of:

i. all employees?

ii. executive employees?

iii. senior executive employees?

b. people who are gender non-binary as a share of:

i. all employees?

ii. executive employees?

iii. senior executive employees?

Since the introduction of Superstream, which has standardised the transfer of funds, has there been:

a. A reduction in the cost to the fund for transferring funds, and if so, by how much?

b. A reduction in the fees charged to members reflecting any saving, and if so, by how much?

Greenhouse gas emissions

a. Does your fund have an internal target for your own greenhouse gas emissions footprint by:

i. 2030?

ii. 2035?

iii. 2040?

iv. 2045?

v. 2050?

b. Does your fund have a target for reducing greenhouse gas emissions from investments by:

i. 2030?

ii. 2035?

iii. 2040?

iv. 2045?

v. 2050?

c. Does your fund intend to divest from investments if they do not reach their greenhouse gas emissions reduction targets by:

i. 2030?

ii. 2035?

iii. 2040?

iv. 2045?

v. 2050?

The New Daily

a. Have you ever completed a cost benefit analysis of The New Daily to your fund?

i. If so, when did you complete this cost benefit analysis?

ii. Please provide a copy of the cost benefit analysis.

b. Have you ever completed a cost benefit analysis of The New Daily to your members?

i. If so, when did you complete your cost benefit analysis of the New Daily to your members?

ii. Please provide a copy of the cost benefit analysis.

Financial advisers remuneration

a. Are your financial advisers paid:

i. a base salary?

ii. non-salaried remuneration, including bonuses?

b. Are your financial advisers, who are only remunerated with a base salary, eligible to provide:

i. personal advice?

ii. general advice?

Have any technology innovations within the fund reduced the cost of operating the fund over the past decade?

If so, please outline:

a. the technological innovations

b. the cost saving

c. the cost saving passed through to fees charged to members.

Valuations

a. What data is provided to valuation teams to assess the value of unlisted assets?

b. When the fund provides data to valuation teams to assess the value of unlisted assets, does this include internal modelling of asset valuations?

c. What assumptions are provided to valuation teams when assessing the value of unlisted assets?

d. When valuation teams assess the value of unlisted assets, do they solely take account of past performance?

e. When valuation teams assess the value of unlisted assets, what weighting do they take on the projected value of the market for such unlisted assets to inform their valuations?

f. For the past decade can you please complete the below table for each unlisted asset valued under your valuation policy.

In the Financial Services Royal Commission documentation an ‘Audit and Risk Management Committee’ paper was compiled for CBUS (‘Review of payments made to sponsoring organisations’—Exhibit 5.368).

Please advise how many times, over the last decade, such a paper, or equivalent, has been prepared for:

a. your Board?

b. a Board subcommittee?

c. executive management?

Over the past decade, how many non-disclosure agreements have you agreed to in relation to:

a. human resources issues?

b. sexual harassment issues?

Do you use an internal clearing house to receive the superannuation payments from employers, or their payroll representatives, before they are allocated to an individual member’s account and/or fund?

If so:

a. What is the name of the clearing house?

b. Why do you use a clearing house?

c. How much does it cost annually to use the clearing house?

d. How much does it cost annually to each member to use the clearing house?

e. What happens to interest accrued from funds held in the clearing house?

f. What happens to non-interest income and/or capital gains accrued from funds held in the clearing house?

Do you use an external clearing house to receive the superannuation payments from employers, or their payroll representatives, before they are allocated to an individual member’s account and/or fund?

If so:

a. What is the name of the clearing house?

b. Who owns the clearing house?

c. Why do you use an external clearing house?

d. How much does it cost annually to use the external clearing house?

e. How much does it cost annually to each member to use the external clearing house?

f. What happens to non-interest income and/or capital gains accrued from funds held in the external clearing house?

If you use an internal clearing house please outline when money is received into the clearing house:

a. On average, how long does it stay in the clearing house before it:

i. is allocated to a member’s account and/or fund?

ii. is allocated to purchase units for a member’s account and/or fund?

iii. appears in a member’s account and/or fund statement and/or online record?

b. What is the longest time that it has stayed in the clearing house before it:

i. is allocated to a member’s account and/or fund?

ii. is allocated to purchase units for a member’s account and/or fund?

iii. appears in a member’s account and/or fund statement and/or online record?

c. What is the shortest time that it has stayed in the clearing house before it:

i. is allocated to a member’s account and/or fund?

ii. is allocated to purchase units for a member’s account and/or fund?

iii. appears in a member’s account and/or fund statement and/or online record?

d. For interest accrued from holding funds in the clearing house for the member, is it then subsequently allocated to:

i. the individual member’s account and/or fund?

ii. a different account and/or fund? If so, what is its name?

e. For non-interest income and/or capital gains accrued from holding funds in the clearing house for the member, is it then subsequently allocated to:

i. the individual member’s account and/or fund?

ii. a different account and/or fund? If so, what is its name?

If you use an external clearing house please outline when money is received into the clearing house:

a. On average, how long does it stay in the clearing house before it:

i. is allocated to a member’s account and/or fund?

ii. is allocated to purchase units for a member’s account and/or fund?

iii. appears in a member’s account and/or fund statement and/or online record?

b. What is the longest time that it has stayed in the clearing house before it:

i. is allocated to a member’s account and/or fund?

ii. is allocated to purchase units for a member’s account and/or fund?

iii. appears in a member’s account and/or fund statement and/or online record?

c. What is the shortest time that it has stayed in the clearing house before it:

i. is allocated to a member’s account and/or fund?

ii. is allocated to purchase units for a member’s account and/or fund?

iii. appears in a member’s account and/or fund statement and/or online record?

d. For interest accrued from holding funds in the clearing house for the member, is it then subsequently allocated to:

i. the individual member’s account and/or fund?

ii. a different account and/or fund? If so, what is its name?

e. For non-interest income and/or capital gains accrued from holding funds in the clearing house for the member, is it then subsequently allocated to:

i. the individual member’s account and/or fund?

ii. a different account and/or fund? If so, what is its name?

In reference to the original publication of the article ‘CEOs push to reopen faster’ in the Australian Financial Review on 20 October 2020 which states:

Meanwhile, restaurateur Chris Lucas, pub owner and former AFL player Paul Dimattina and CSL chairman Brian McNamee all spoke of repercussions from elements of the labour movement for criticising the state government over the failures which led to the crisis and the subsequent slow pace of reopening the economy. Union-aligned industry superannuation fund managers have pressured Dr McNamee to stop his outspoken criticisms of the state government lockdown, even though he has repeatedly said he is speaking in a personal capacity and not for the company.

In the context of confronting, bullying or intimidatory workplace cultures, please advise:

a. has the Chair of your fund been in contact through any medium with Dr McNamee or his office since 5 August 2020, and if so please advise the name of the person who made contact and the nature of any communications.

b. have board members of your fund been in contact through any medium with Dr McNamee or his office since 5 August 2020, and if so please advise the name(s) of the person(s) who made contact and the nature of any communications.

c. has the CEO of your fund been in contact through any medium with Dr McNamee or his office since 5 August 2020, and if so please advise the name of the person who made contact and the nature of any communications.

d. have senior executives of your fund been in contact through any medium with Dr McNamee or his office since 5 August, and if so please advise the name(s) of the person(s) who made contact and the nature of any communications.

In dollar terms, how much advertising space did your fund book (directly or indirectly through a broker or agent) in the second half of 2020 that was unused on:

a. radio?

b. television?

c. print?

Responses to
questions 121 - 134

(9 April 2021)
(PDF7,023KB)

In minutes, how much advertising space did your fund book (directly or indirectly through a broker or agent) in the second half of 2020 that was unused on:

a. radio?

b. television?

c. print?

What is your current policy on whether your funds are permitted to invest in:

a. residential property?

b. Build-to-Rent housing?

c. social housing?

Have you ever:

a. completed internal research that includes retirement outcomes for fund members who own their home in retirement, compared to those who do not?

b. commissioned external research that includes retirement outcomes for fund members who own their home in retirement, compared to those who do not?

For the last five financial years, please complete the table for investments across all your funds in all forms of residential property:

a. in nominal value

b. as a share of your total portfolio

c. the average return on investment.

For the last five financial years, please complete the table for investments across all your funds in Build-to-Rent property:

a. in nominal value

b. as a share of your total portfolio

c. the average return on investment.

For the last five financial years, please complete the table for investments across all your funds in social housing property:

a. in nominal value

b. as a share of your total portfolio

c. the average return on investment.

Please outline your policy on:

a. Fund members using their superannuation fund for a deposit to buy their first home.

b. Retirees using their superannuation to:

i. renovate their home

ii. pay rent.

Within your fund, what percentage of retirees in each of the last five financial years used their superannuation to:

a. renovate their home?

b. clear their remaining mortgage?

Insurance premiums

a. Have you ever deducted insurance premiums from fund members for insurance policies that they are not covered by?

b. Have you ever completed an audit to identify if insurance premiums have been deducted from fund members for insurance policies that they are not covered by?

Material distributed to members

a. Have you ever distributed materials to members that state and/or suggest that:

i. members have coverage under insurance policies that they do not have?

ii. members are required to keep a minimum balance in their superannuation fund?

iii. their employer may be unwilling to contribute to another superannuation fund?

iv. members require a statement of any kind from their employer to move away from your fund?

b. Have you ever completed an audit of materials distributed to members that state and/or suggest that members have coverage under insurance policies that they do not have?

c. Have you ever completed an audit to establish whether you have distributed materials to members that state and/or suggest that:

i. they are required to keep a minimum balance in their superannuation fund?

ii. their employer may be unwilling to contribute to another superannuation fund?

iii. they require a statement of any kind from their employer to move away from your fund?

Please provide as separated data, what the base salary and bonuses were, or are set to be, paid in the 2019/2020 and 2020/21 financial year for your:

a. Chief Executive Officer or equivalent?

b. Chief Investment Officer or equivalent?

Responses to
questions 136 - 142

(5 August 2021)
(PDF79KB)

Property investments

a. Do you have any current investments in the National Housing Finance and Investment Corporation? If so, what is the size of your investments?

b. Please provide information on the rental income for any residential property investments held for each year for the last five financial years.

Subscriptions to The New Daily

a. Has your fund ever considered subscribing your members to The New Daily through an opt-out model? If so:

i. Was this proposed initially internally, or externally?

ii. Who proposed it?

iii. Who approved it?

iv. What was the approval process?

v. What legal advice was sought?

vi. On what date did it proceed, or is it proposed to proceed?

b. Have the following groups ever enquired or requested your fund to subscribe your members to The New Daily:

i. Industry Super Holdings?

ii. The New Daily?

What arrangements, including donations, commissions, marketing expenditure or partnerships, do you have that lead to payments to research organisations or ‘think tanks’?

Please provide:

a. Names of the think tanks.

b. Payments made over the last five years.

According to the Australian Financial Review (IFM’s Tandem leaves workers in the lurch, 7 July 2021), IFM Investors have invested in a business that has left them wholly owning a subsidiary, Tandem Networks, that avoids them paying out the full entitlements of subcontractor. Therefore, if you are an owner of IFM Investors:

a. Do you think it is acceptable that an investment made by your investment vehicle dishonours contractual arrangements with subcontractors?

b. What inquiries have been made to ensure that subcontractors are being paid?

c. What steps do you expect IFM Investors to go through should they not honour entitlements to subcontractors?

d. Would you divest from IFM Investors should they not honour entitlements to subcontractors?

At the House Economics superannuation hearing on 8 July 2021 representatives of Australian Super and CBUS outlined they were not aware that IFM Investors (a company wholly owned by industry funds) had paid a bonus of $12m, and were asked whether they had asked questions about the bonus and the bonus structures within IFM Investors.

According to the Australian Financial Review (IFM Investors gives $12.7m bonus to UK Director, 14 February 2020) a bonus of $12.7 million bonus was paid. According to the Sydney Morning Herald (A lot of bling: Industry shocked at $36 million bonus allegation, 22 March 2019) bonus structures existed to allow for bonuses of up to $36m to be paid.

Therefore, if you are an owner of IFM Investors, please advise:

a. What inquiries have been made, or will be made, about bonuses of that size with IFM Investors?

b. What information you have sought, or will seek, from IFM investors about bonus structures within IFM Investors?

Response

(Publication date)

According to an article in the Australian Financial Review, IFM Executive accused of sex harassment departs (06/09/2019) [Link: https://www.afr.com/companies/infrastructure/ifm-executive-accused-of-sex-harassment-departs-20190906-p52olo], former IFM Executive Director, Frederic Michel-Verdier, is reported to have been entitled to a £20 million bonus (equivalent to roughly AUD$36 million) from funds managed on behalf of Australian superannuation fund members. Therefore can you please advise the remuneration package for Mr Michel-Verdier’s employment over the past five years, including:

- base salary

- annual bonuses

- the accumulated value of deferred bonuses unpaid

- the accumulated value of deferred bonuses paid

- any other annual, bonus or deferred remuneration information or settlements not covered in the previous four points.

Responses to
questions 1 - 15

(PDF10,296KB)

According to an article in the Australian Financial Review, Retiring Brett Himbury vows pay transparency (19/09/2019) [Link: https://www.afr.com/wealth/superannuation/retiring-brett-himbury-vows-pay-transparency-20190919-p52swb], Mr Himbury’s remuneration from funds managed on behalf of Australian superannuation policy holders has not been transparent with the organisation’s membership. Therefore can you please advise the remuneration package for Mr Himbury’s:

- base salary

- annual bonuses

- the accumulated value of deferred bonuses unpaid

- the accumulated value of deferred bonuses paid

- any other annual, bonus or deferred remuneration information or settlements not covered in the previous four points.

- reimbursements for expenses.

A copy of your annual report for the past five years.

A copy of your company structure.

Details of each individual asset currently held at a value other than available listed market prices (an unlisted asset) wholly owned, including:

a. The asset name and location.

b. The frequency of the revaluation of the asset.

c. The most recent valuation.

d. A copy of that valuation.

e. The methodology used for its valuation.

f. Whether the valuation was completed internally or externally.

g. The details of any external party involved in the valuation.

Details of each individual asset currently held at a value other than available listed market prices (an unlisted asset) partly, including:

a. The asset name and location.

b. The frequency of the revaluation of the asset.

c. The most recent valuation.

d. A copy of that valuation.

e. The methodology used for its valuation.

f. Whether the valuation was completed internally or externally.

g. The details of any external party involved in the valuation.

In the context of corporate governance, can you please provide for board directors (based or located in Australia or elsewhere) for the past five years:

- A list of the Board members and their biographies

- De-identified total remuneration for each Board director

- De-identified disaggregated remuneration for each Board Director, including:

* Base salary

* Annual bonuses

* The accumulated value of deferred bonuses unpaid

* The accumulated value of deferred bonuses paid

* Any other annual, bonus or deferred remuneration information not covered in the previous four points

* Reimbursements for expenses.

In the context of executive management, can you please provide for Executives (based or located in Australia or elsewhere) for the past five years:

- A list of the Board members and their biographies

- De-identified total remuneration for each Board director

- De-identified disaggregated remuneration for each Board Director, including:

* Base salary

* Annual bonuses

* The accumulated value of deferred bonuses unpaid

* The accumulated value of deferred bonuses paid

* Any other annual, bonus or deferred remuneration information not covered in the previous four points

* Reimbursements for expenses.

Wilson

CHAIR: What's the largest severance package that's ever been paid to somebody out of IFM? Again, in dollar figures.

Mr Himbury: I'd have to take that on notice.

Hansard p. 18

22 November 2019

CHAIR: We are talking about a remunerative benefit when the fund does well—above eight per cent. Then there is division in terms of how that allocation goes. IFM gets some, executives get some and fund managers get some, that's correct. You've said that already. What is the average that an individual would get out of the performance of that?

Mr Himbury: That's not information that we're in a position to disclose, because I think it potentially puts at risk the retention of those executives, which are—

CHAIR: I'm not asking for identified data. I'm just asking for what is the average? You can take it on notice.

Mr Himbury: I'm not sure that I'd be able to do anything further on notice, but I'm happy to take it on notice.

Hansard p.19

22 November 2019

Dr MULINO: One of the challenges with looking at the superannuation sector is its complexity, and I think one always needs to reflect that complexity in any conclusions drawn. But it would be useful—and this is probably something to put on notice—if you could think about sensible measures of how much better off member industry funds are from having had the opportunity of investing in IFM rather than if they had, for example, just gotten benchmark returns or even average retail fund returns.

Mr Himbury: I'm happy, for this committee, to expand on it and provide some further detail on notice. But the scale of performance of IFM that we have calculated in terms of the last five years is that $31 billion number. As a result of being entrusted with all of that money from people around the world, our exposure to global markets and the skill that we've added and the extra performance that we've added as a result of our insight is that $31 billion. That's now sitting in members' accounts in this country, and around the world, as a result of what our team has—

Dr MULINO: That's a significant number. It would be good to be able to drill that down, in a sense, to your average worker in an industry fund also.

Hansard p. 24

22 November 2019

CHAIR: You have a class action brought against Tandem from workers on the basis of underpayment?

Mr Himbury: There is a claim that has been put—yes.

CHAIR: How large is that claim?

Mr Himbury: I'd have to take that on notice.

Hansard p. 28

22 November 2019

CHAIR: Do you consider Tandem to be a stranded asset?

Mr Himbury: No. We consider it to be potentially a long-term positive contributor to investor returns.

CHAIR: Have the industry funds, being your members, raised concerns about either this purchase or the class action that's being brought against you?

Mr Himbury: We talk regularly with our clients who ultimately have an exposure to this. I'm not aware of them being particularly concerned about this, again, because of the diligence that we undertook thoroughly pre this particular acquisition.

CHAIR: Has it been raised with you by any union?

Mr Himbury: Not to my knowledge.

CHAIR: So there's been no unions or funds concerned, and you're a member of the ACTU—

Mr Himbury: I can take it on notice, but not to my knowledge.

Hansard pp. 28-29

22 November 2019

Responses to questions 21 - 51

(PDF164KB)

Numbers of clients by funds under management on behalf of each client:

• <$20 million
• $20 million - $50 million
• $50 million - $100 million
• $100 million - $1 billion
• >$1 billion.

a. How many unlisted assets do you hold in the fund?
           
b. What value share are unlisted assets of the fund’s:

i. total value?
ii. total property value?

Since 12 March 2020, has IFM refunded any invested capital to:

a. REST?
b. Hostplus?

If so, for each fund, can you provide details of the amount, the date and the terms?

Responses to questions 52 - 54

(24 June 2020)
(PDF123KB)

Since 12 March 2020, has IFM provided any liquidity to:

a. REST?
b. Hostplus?
c. any other superannuation fund?

If so, for each fund, can you provide details of the amount, the date and the terms?

Since 12 March 2020, has IFM loaned any cash to:

a. REST?
b. Hostplus?
c. any other superannuation fund?

If so, for each fund, can you provide details of the amount, the date and the terms?

Regarding any investments you have with ME Bank, please provide the following:

a. The capital invested each year for the past five years.

b. The accumulated valuation of investments for the past five years.

c. The dividends received from those investments for the past five years.

Responses to questions 55 - 72

(31 August 2020)
(PDF352KB)

If you are an investor in ME Bank, have you individually (or in collaboration with other funds), ever commissioned reports into its valuation in the past decade?

a. And if so, how many reports and in what year?

b. Were any commissioned to be completed by the UK-based group, LEK?

c. And please provide copies.

According to reports in the Australian Financial Review superannuation fund, Hostplus, redefined the definition of ‘illiquid assets’ (‘Hostplus warned of liquidity “perfect storm”’, Australian Financial Review, 18 May 2020). Therefore, can you please advise:

a. How you define ‘illiquid assets’, including details of holdings and timeframes?

b. How you define ‘liquid assets’, including details of holdings and timeframes?

c. How long each of these definitions have been used?

d. What prompted any switch to these definitions?

e. What the prior definitions were before any switch?

Have you completed a skills audit in the past five years of the following:

a. Your board of directors?

b. Your investment committee?

c. And if not, why not?

d. And if so, presently what gaps are identified?

Prior to appointment, have employees fulfilling fiduciary roles had their investment performance track record assessed before fees?

a. And if not, why not?

b. And if not prior to appointment, have they following appointment?

c. And if so, on what timeframe?

Please provide details of the process you apply for assessing voting at annual general meetings of listed companies, including:

a. The committee appointed to make decisions.

b. The committee membership.

c. Whether that committee reports to the board.

d. What principles guide decision making.

e. Whether there is a report to the board about decisions made.

f. Whether decisions are made based on the objectives of improving capital value, or social or environmental priorities.

In the context of your board:

a. What is the process for board appointments?

b. Is there a skills matrix completed before board appointments?

c. Are any of your shareholders entitled to appoint directors?

d. How, if at all, are shareholders represented to the board?

e. How, if at all, are shareholders represented within the company?

Do you currently have an art collection?

a. If so, can you advise its current valuation?

b. If so, can you advise where it is stored and/or exhibited?

Do you engage proxy advisers?

a. What are the terms of engagement for proxy advisers?

b. To what extent are they empowered to act on behalf of the entity?

c. Does their advice get provided to the board?

d. How often is advice submitted to the board?

e. Is their advice formally adopted by the board?

f. Are their positions publicly stated?

g. How does the board assess these positions concurrent with their duties as trustees and the sole purpose test?

Are you currently, or have you previously been, a member or subscriber of the ACTU Members Connect Program?

a. If so, what is the timeframe of your membership?

b. What has been the annual fee year-on-year?

c. How have you assessed its value to your members?

Please provide the titles of all externally commissioned reports over the past five years that have reviewed any of the following:

a. Performance of funds.

b. Investment strategies for funds.

c. Conflicts of interest for funds.

For each fund where more than 30 per cent of capital is managed by another entity, please complete the below table including:

a. The name of the fund.

b. The allocation of capital as a percentage of the total capital held by the fund.

c. The allocation of capital of the total capital held by the fund.

d. The entity managing the capital.

e. Whether you are a shareholder in that entity.

Please provide details of the following reduction to remuneration packages since 11 March 2020:

a. Board members.

b. The chief executive.

c. Executive management.

Please advise the total remuneration package of your:

a. company secretary, and

b. Chief Executive Officer, including:

i. total remuneration

ii. base salary

iii. annual bonuses

iv. deferred bonuses

v. equity or other options

vi. additional compensation not covered in the above.

Responses to questions 78 – 91, 99 and 114

(16 April 2021)
(PDF838KB)

In the context of marketing and advertising campaigns:

a. How many are IFM Investors currently running individually, or in collaboration with others?

b. How many have run, or are currently running since the beginning of calendar year 2020?

c. What is the actual cost for each campaign (including development, production, broadcasting, and distribution) to 30 June 2020?

d. What is the actual cost for each campaign (including development, production, broadcasting, and distribution) budgeted?

e. What is the budgeted cost for each campaign (including development, production, broadcasting, and distribution) from 1 July 2020 – 31 December 2020?

f. What is the budgeted cost for any existing or proposed campaigns (including development, production, broadcasting, and distribution) for the period 1 January 2021 – 30 June 2021?

g. What is the budgeted cost for any existing or proposed campaigns (including development, production, broadcasting, and distribution) for the period 1 July 2021 – 31 December 2021?

For each of the following categories, please provide the percentages of employees that are women, men, or who identify otherwise:

a. all employees

b. non-executive employees

c. executive employees

d. senior executive employees.

Do you have a target for the employment of:

a. women as a share of:

i. all employees?

ii. executive employees?

iii. senior executive employees?

b. people who are gender non-binary as a share of:

i. all employees?

ii. executive employees?

iii. senior executive employees?

Valuations

a. What data does IFM provide to valuation teams to assess the value of unlisted assets?

b. When IFM provides data to valuation teams to assess the value of unlisted assets, does this include internal modelling of asset valuations?

c. What assumptions are provided to valuation teams when assessing the value of unlisted assets?

d. When valuation teams assess the value of unlisted assets, do they solely take account of past performance?

e. When valuation teams assess the value of unlisted assets, what weighting do they take on the projected value of the market for such unlisted assets to inform their valuations?

f. For the past decade can you please complete the below table for each unlisted asset valued under your valuation policy.

In the Financial Services Royal Commission documentation an ‘Audit and Risk Management Committee’ paper was compiled for CBUS (‘Review of payments made to sponsoring organisations’ – Exhibit 5.368).

Please advise how many times, over the last decade, such a paper, or equivalent, has been prepared for:

a. your Board?

b. a Board subcommittee?

c. executive management?

Greenhouse gas emissions

a. Does IFM have an internal target for your own greenhouse gas emissions footprint by:

i. 2030?
ii. 2035?
iii. 2040?
iv. 2045?
v. 2050?

b. Does IFM have a target for reducing greenhouse gas emissions from investments by:

i. 2030?
ii. 2035?
iii. 2040?
iv. 2045?
v. 2050?

c. Does IFM intend to divest from investments if they do not reach their greenhouse gas emissions reduction targets by:

i. 2030?
ii. 2035?
iii. 2040?
iv. 2045?
v. 2050?

The New Daily

a. Have you ever completed a cost benefit analysis of The New Daily to IFM?

b. If so, when did you complete this cost benefit analysis?

c. Please provide a copy of the cost benefit analysis.

Over the past decade, how many non-disclosure agreements have you agreed to in relation to:

a. human resources issues?

b. sexual harassment issues?

IFM Investors made investments in Pacific Hydro between 2010 and 2020.

a. What write down was made on IFM Investors’ valuation as a result of the investment decision?

b. Please provide:

i. the names of the reports completed into that investment

ii. copies of the reports completed into that investment

iii. names of the reports completed into the internal governance by IFM Investors

iv. copies of reports completed into the internal governance by IFM Investors

v. a copy of the Project Primavera report.

c. Please advise whether the following reports were completed by an internal or external party:

i. reports into that investment

ii. reports into internal governance

iii. the Project Primavera report.

AusFund

a. Do you manage funds for AusFund?

b. Between 2018 and 2019, IFM significantly increased its share of AusFund’s funds under management by around $400 million. How does IFM Investor address the conflicts of interest with the overlap of duplicate board members on IFM Investors and AusFund?

c. Which funds participated in AusFund’s cross fund matching program since ‘Protecting Your Super’ came into effect?

d. What conflict management and disclosure process does IFM and Ausfund have in place?

e. Is any remuneration of the directors of the board of IFM Investors and/or AusFund based on increases in funds under management?

For the past five years, please detail all financial transfers from IFM Investors to:

a. Industry Super Holdings

b. The New Daily

c. Industry Fund Services

d. Industry Super Australia.

In reference to the original publication of the articl “CEOs push Andrews to reopen faster” in the Australian Financial Review on 20 October 2020 (see attachment) which states:

Meanwhile, restaurateur Chris Lucas, pub owner and former AFL player Paul Dimattina and CSL chairman Brian McNamee all spoke of repercussions from elements of the labour movement for criticising the state government over the failures which led to the crisis and the subsequent slow pace of reopening the economy. Union-aligned industry superannuation fund managers have pressured Dr McNamee to stop his outspoken criticisms of the state government lockdown, even though he has repeatedly said he is speaking in a personal capacity and not for the company.

In the context of confronting, bullying or intimidatory workplace cultures, please advise:

(a) has the Chair of IFM been in contact through any medium with Dr McNamee or his office since 5 August 2020, and if so please advise the name of the person who made contact and the nature of any communications.

(b) have board members of IFM been in contact through any medium with Dr McNamee or his office since 5 August 2020, and if so please advise the name(s) of the person(s) who made contact and the nature of any communications.

(c) has the CEO of IFM been in contact through any medium with Dr McNamee or his office since 5 August 2020, and if so please advise the name of the person who made contact and the nature of any communications.

(d) have senior executives of IFM been in contact through any medium with Dr McNamee or his office since 5 August, and if so please advise the name(s) of the person(s) who made contact and the nature of any communications.

Responses to
questions 92 - 97

(21 December 2020)
(PDF590KB)

Hansard p. 25

6 November 2020

Hansard p. 32

6 November 2020

Hansard p. 33

6 November 2020

Hansard p. 34

6 November 2020

Hansard p. 34

6 November 2020

IFM’s investment in Tandem

a. What due diligence was done before IFM invested in Tandem?

b. In late 2019, then IFM chief Brett Himbury told parliament that Tandem was not a ‘stranded asset’, but ‘potentially a long-term positive contributor to investor relations’. Was this inaccurate? If not, what changed?

Responses to
questions 131 - 132

(24 December 2021)
(PDF460KB)

In response to IFM130QW, IFM Investors advised that it participates in a ‘range of forums globally that are connected to industry associations, chambers of commerce, peak bodies, advisory bodies, and other similar organisations’ and ‘is not aware whether these organisations make payments to “think tanks”.’ However, this does not address the question of whether IFM sponsors think tanks.

Please address the original question of what arrangements (including donations, commissions, marketing expenditure or partnerships) does IFM Investors have that lead to payments to research organisations or ‘think tanks’? Provide:

a. Names of the think tanks.

b. Payments made over the last five years.

Response

(Publication date)

Has Industry Super Australia ever completed a report or analysis on the number of people who hold multiple accounts across different superannuation funds

If so, can you please provide a copy of that report or analysis?

Hansard p. 4

22 November 2019

See responses to questions 16 to 26

Hansard p. 15

22 November 2019

See responses to questions 16 to 26

Attachment
(16 June 2020)
(PDF28,729KB)

I refer to the transcript of the Senate Select Committee on COVID-19 on 28 April 2019 (page 15) that included [an exchange between Senator Patterson and Mr Robert Jeremenko, Division Head, Retirement Income Policy Division, Treasury].

I understand the position of Industry Super Australia is that the evidence of Mr Jeremenko is incorrect because he claimed that ISA was using the nominal value and not the real value in its calculations. I also understand that ISA has outlined the difference between the ASIC MoneySmart calculator and the ISA calculations is because of the applied discount rate of 2.5 per cent compared to 4 per cent, and an assumption of high return assumptions after fees and tax: 7 per cent, compared to 6.2 per cent.

I therefore ask:

a. Please provide details of all assumptions for ISA’s calculations.

b. Why has ISA chosen to apply a different discount rate to ASIC’s MoneySmart calculator, and on what basis was this different rate selected?

c. Did ISA consult with ASIC before applying this different discount rate? If not, why did ISA not consult with ASIC?

d. Why has ISA chosen to assume a higher return assumption than ASIC’s MoneySmart calculator, and on what basis was this higher return assumption selected?

e. Did ISA consult with ASIC before assuming this higher return assumption? If not, why did ISA not consult with ASIC?

f. What fees and charges were assumed to be applied to the calculations? Please outline them.

g. Did the assumed fees and charges applied to the calculations include indirect cost ratios?

h. Were a current fund’s fees and charges assumed to be applied to the calculations? And if so, which one? And did they include the indirect cost ratio?

Responses to questions 2 - 4
and 16 - 26

(16 June 2020)
(PDF175KB)

How many people are employed by Industry Super Australia in the following roles:

a. Research?

b. Marketing?

c. Communications?

According to Industry Super Australia’s evidence at the House of Representatives Economics Committee hearing on 14 May 2020, Industry Super Australia previously had different assumptions for different calculators that have now been harmonised. Therefore, can you please provide for each calculator prior to harmonisation and following harmonisation in the same format:

a. All assumptions for ISA’s calculators.

b. Clarification of whether ISA consulted with ASIC prior to each set of assumptions.

c. If they did not consult with ASIC prior to each set of assumptions, why not?

d. What fees and charges were assumed to be applied to the calculations? Please outline them.

e. Did the assumed fees and charges applied to the calculations include indirect cost ratios?

f. Were a current fund’s fees and charges assumed to be applied to the calculations? And if so, which one? And did they include the indirect cost ratio?

g. What the difference in returns would be over a 10, 20, 30, 40 and 50 year period would be for a $10,000 investment in capital and income based on each calculator.

Please clarify, does Industry Super Australia provide advice to its members on:

a. Legal standards for valuation policies?

b. Best practice valuation policies?

c. Legal standards for accounting standards to inform valuation policies?

d. Best practice for accounting standards to inform valuation policies?

Hansard p. 2

14 May 2020

Hansard p. 5

14 May 2020

Hansard p. 6

14 May 2020

Hansard p. 13

14 May 2020

Response 

(Publication date)

IOOF2QW

Attachment (PDF109KB)

Attachment (PDF88KB)

IOOF4QW

Wilson

Details of each individual asset currently held at a value other than available listed market prices (an unlisted asset) partly owned by the fund or funds under your control, including:

a. The asset name and location.

b. The frequency of the revaluation of the asset.

c. The most recent valuation.

d. A copy of that valuation.

e. The methodology used for its valuation.

f. Whether the valuation was completed internally or externally.

g. The details of any external party involved in the valuation.

Details of costs for advertising campaigns for the past five years, including:

a. The companies invited to tender for all or parts of any advertising campaign.

b. The companies awarded campaigns.

c. The total cost of each campaign.

d. The cost of the campaign’s development.

e. Broadcasting (television, radio and internet) and publishing costs.

f. Assessment reports of the efficacy of campaigns in either retaining or gaining new members.

CHAIR: So if you look over the past five years, what is the drop, in terms of confidence or the word you used?

CHAIR: Yes, reputation. What is the drop? What was the percentage?

Mr Mota: I can't give you definitive numbers. What I can say is we had been working very hard to build—

CHAIR: You take it on notice though and you can come back with that data?

Hansard p. 19

21 November 2019

(PDF96KB)

Attachment
(PDF57KB)

Mr Mota: Correct. We do ask them to consider ESG issues. We have a statement of responsible investing, and that is about making sure that they're using a long enough time horizon to consider their valuations, and the assets they buy and don't buy, but we do not prescribe in what industries whatsoever.

Mr FALINSKI: How does that interact with your sole-purpose test?

Mr Mota: This is our investments business. Our super—

Mr FALINSKI: Right. So, in your super business, you don't have that overlay?

Mr Mota: Not that I'm aware of. I'll have to take that on notice. Let me get back to you on that one.

Hansard p. 29

21 November 2019

Hansard p. 31

21 November 2019

(PDF103KB)

Attachment
(PDF72KB)

Dr MULINO: Of the 223, how much have you remediated to date?
…
Mr Mota: We started later than the larger banks, it's fair to say. I think doing that that analysis in a six-month period would be considered reasonably swift.

Dr MULINO: How many cases would constitute the $223 million?

Hansard p. 32

21 November 2019

Mr FALINSKI: Litigation funders operating in the Australian market at the moment have returns of 1,253 per cent. Are you investing in any of them?

Mr Mota: Not that I am aware of. I would need to check.
…
Mr FALINSKI: Could you take that on notice. Have they considered litigation funders? If not, why not?

Hansard pp. 33-34

21 November 2019

Hansard p. 35

21 November 2019

Dr LEIGH: Chant West—and that is a one-year return. Do you have any evidence that IOOF superannuation funds outperformed the median over a five-year period?

Mr Mota: Yes, I do. I'd have to provide you with that, but we do.

Dr LEIGH: What is that based on?

Mr Mota: I'd have to do check which survey it is. In terms of the peer group analysis, yes, they are in the first or second quartile.

Dr LEIGH: Who was your peer group in that?

Mr Mota: Again, I'd have to check. As a business, we would see the entire industry, including industry funds, as our peer group.

Hansard p. 35

21 November 2019

(PDF202KB)

Attachment 1
(PDF812KB)

Attachment 2
(PDF378KB)

Attachment 3
(PDF116KB)

Dr LEIGH: For the edification of Mr Wilson and me, would it be possible for you to provide the committee with the number of products that you offered when the royal commission report was handed down and the number of products you offer today?

Mr Mota: Yes. We will do that. I'm not sure whether there would have been much movement, but we will give you the data.

Hansard p. 36

21 November 2019

Hansard p. 36

21 November 2019

Hansard p. 36

21 November 2019

Transferring to MySuper products

a. What was the period of time you took to complete the transfer of your members’ accrued default amounts (ADAs) into MySuper products following the commencement of the MySuper regime on 1 January 2014?

b. How did that duration reflect the best interests of your members?

c. Was there anything that prevented you from transferring accounts sooner?

d. Please quantify the fee revenue lost if you had transferred members by 30 June 2014, 2015, 2016 and 2017 respectively.

Several case studies in the Royal Commission highlighted that related party contracts in vertically integrated super funds (into the wealth management arms of banks) led to conflicts where the interest of the shareholder came before the super fund members.

a. Please describe your tender process for related party contracts such as custodial services, insurance, brokerage, administration and investment management.

b. How do you determine that these contract arrangements reflect value for money for members?

c. Please describe the potential conflicts of interest with such arrangements and how you manage them?

d. How do you evaluate whether your management of conflicts of interest is working?

e. Have you prepared or commissioned any reports focussed on benchmarking the performance and cost of contracts with related-party service providers, relative to the wider market? If so, please provide these for the period covering the last five years.

What proportion of IOOF’s investments are in unlisted assets?

How does this compare with:

a. the superannuation sector as a whole

b the retail fund average, and

c. the industry fund average?

(PDF123KB)

Attachment
(PDF86KB)

(PDF160KB)

Attachment 1
(PDF96KB)

Attachment 2
(PDF149KB)

Over the last five financial years:

a. What is the total budget for all costs associated with the fund?

b. What were the total assets under management?

c. What are the total number of employees?

d. What are the total number of contractors?

e. What are the total number of externally hired contracts, and their value?

Responses to questions 29 - 78

(4 June 2020)
(PDF330KB)

Over the last five financial years:

a. What is the total number of member accounts?

b. What is the total increase in the number of members as a result of the fund’s default status?

c. What is the total increase in the number of members through voluntary adoption or switching?

d. What was the average member balance?

e. What was the average dollar amount deducted in insurance fees per member, across all fund products in dollar terms and as a share of a member account?

f. What was the total number of inactive accounts? (Please use the APRA definition: no contributions for two years)

Over the last five financial years:

a. What was the average dollar amount deducted for administration and asset management fees per member, across all fund products? (please do not include insurance fees)

b. What was the cost (%) of fund administration expenses as a proportion of funds under management?

c. What was the total cost of in-house administration expenses?

d. What was the cost of in-house administration expenses as a proportion of funds under management?

e. What was the total cost of any external administration expenses?

f. What was the cost of any external administration expenses as a proportion of funds under management?

g. What was the total cost of any external administration expenses to Related Parties?

h. What was the cost of any external administration expenses to Related Parties as a proportion of funds under management?

i. How many staff are employed in roles considered part of the administrative cost?

Over the last five financial years:

a. The number of rollover requests that the fund did not pay out to another fund for each year?

b. The average dollar value of a rollover for each year?

c. The value of any clawback accounts and/or funds held that is used to hold funds between financial years?

In the context of building investments:      

a. Have you completed assessments of the prevalence of flammable cladding across some properties?

b. Have you completed assessments of the prevalence of flammable cladding across all properties?

c. Have you taken any remediation to reduce your exposure to risk to identify flammable cladding, and if so, what?

d. Have you taken any remediation to reduce your exposure to risk to remove flammable cladding, and if so, what?

e. Do you hold any properties where insurance has been refused or are uninsured due to defective building construction such as cladding?