Documents Part Four - IFM Investors to LUCRF Super

Questions on notice and questions in writing

 

IFM Investors

Industry Super Australia

Industry Super Holdings

Intrust Super

IOOF

ISPT

Legalsuper

LUCRF Super

 


 

Industry Super Holdings

No. Member Question Hansard page
and Hearing date
or Written Questions

Response

(Publication date)

ISH01QW Wilson Please provide a copy of your Constitution. Written

Responses to Questions 1 - 3

(31 August 2020)(PDF338KB)

ISH02QW Wilson Please provide details, including the event name, organising entity, ticket price and attendee(s) for the past decade of the tickets purchased for events and/or fundraisers for political parties or related entities, individual MPs and individual candidates for political office or the associated fundraising entities of political parties, individual MPs and individual candidates for political office. Written
ISH03QW Wilson

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?

Written  
ISH04QON Wilson How many shares are there in ISH? Hansard p. 13
10 September 2020

Responses to Questions 4 - 6

(14 October 2020)(PDF651KB)

ISH05QON Wilson On that point: my understanding is that you had about $68.759 million in cash in your 2019 accounts. Is that correct? Hansard p. 22
10 September 2020
 
ISH06QON Wilson CHAIR: … Of the $1.07 billion, which is the valuation of the assets that are held by ISH, could you break down what share of that $1.07 billion is IFS, what percentage is IFM, what percentage is ISA and what percentage is The New Daily?


Mr Wong: We'll take that on notice, but, as we mentioned before, the funding arrangements within ISH Group are confidential. We provide disclosures in accordance with the law, but we'll take that on notice.
Hansard p. 22
10 September 2020
 

 

Intrust Super

No. Member Question Hansard page
and Hearing date
or Written Questions

Response

(Publication date)

IN01QW Wilson 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. Written

Responses to Questions 1 - 62

(20 April 2020)(PDF4,075KB)

IN02QW Wilson Details of all ASIC fines and infringement notices incurred over the past five years. Written
IN03QW Wilson The name and company of your auditor for the past five years. Written
IN04QW Wilson

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.

Written
IN05QW Wilson

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.

Written
IN06QW Wilson A copy of your asset valuation policy (covering amongst other things independence of valuation, managing conflicts of interest, frequency of valuation, publication of latest valuation timings to members etc). Written
IN07QW Wilson

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.

Written
IN08QW 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.

Written
IN09QW Wilson Details of arrangements for the temporary or permanent use for corporate venue hire (including corporate boxes), including additional non-hire costs such as catering, at sporting venues over the past five years. Written
IN10QW Wilson Details of sponsorship or sponsorship-like arrangements, marketing or marketing-like or in-kind arrangements for the past five years. Written
IN11QW Wilson

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.

Written
IN12QW Wilson

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?

Written
IN13QW Wilson

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)

Written
IN14QW Wilson Please provide the one, five, and ten year net return after fees, costs, and taxes for the primary default MySuper balanced product. Written
IN15QW Wilson

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?

Written
IN16QW Wilson What is the total number of statutory fines over the past five years? Written
IN17QW Wilson

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?

Written
IN18QW Wilson

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?

Written
IN19QW Wilson The number of trusts or investment vehicles the fund controls in each of the low tax regions, including but not limited to Andorra, the Bahamas, Belize, Bermuda, the British Virgin Islands, the Cayman Islands, the Channel Islands, the Cook Islands, Hong Kong, the Isle of Man, Mauritius, Lichtenstein, Luxembourg, Monaco, Panama, St Kitts and Nevis? Or tax efficient arrangements such as a ‘double Dutch sandwich’? Written
IN20QW Wilson a. The number of accounts that have been transferred to the ATO as a result of ‘Protecting your Super’ legislation?

b. The value of the money that will be paid to the ATO as a result of the ‘Protecting your Super’ legislation?

c. The number of accounts that has been transferred into an eligible rollover fund in the 2019 financial year?

d. The value of the money that has been transferred into an eligible rollover fund in the 2019 financial year?
Written
IN21QW Wilson Have you ever made a donation and/or subscription fee to the ACTU Member Connect and/or ACTU Superannuation Partnerships program, and if so, to what value over the past five years? Written
IN22QW Wilson Does the fund pay any external consultants for any advocacy and communication services, and if so can you please name them and the costs incurred over the past five years? Written
IN23QW Wilson 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?
Written
IN24QW Wilson

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?

Written
IN25QW Wilson a. What external parties manage your investments, if any?

b. What are the fee structures per member from external management?
Written
IN26QW Wilson

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?

Written
IN27QW Wilson

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?

Written
IN28QW Wilson

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.

Written
IN29QW Wilson

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.

Written
IN30QW Wilson To the extent that any of the fees and costs listed in the previous two questions are paid to a related entity or associate of the trustee, or any of their respective related entities or associates, please set out the function performed or service provided by that person, and the amount (total quantum) paid to that entity or person at a whole-of-fund level. Written
IN31QW Wilson

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?

Written
IN32QW Wilson 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)?
Written
IN33QW Wilson

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

a. Google advertisements

b. Google search terms.

Written
IN34QW Wilson a. Do you use Google Ad Words, or any Google provided or supported service to advertise any of your funds or your brand in any way whatsoever?

b. Please list what terms you have used in Google Ad Words in the last five years to generate an impression on particular search queries.
Written
IN35QW Wilson What percentage of the return on investment from your unlisted assets can be attributed to revaluations due to falling interest rates, and capital asset pricing model market yields used as the discount rate in discounted cash flow based valuations? Written
IN36QW Wilson

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?

Written
IN37QW Wilson How have you structured the fund to address the writing back of the increased investment capitalised future returns? Written
IN38QW Wilson What are the projected changes in income in light of the writing back of the increased investment capitalised future returns? Written
IN39QW Wilson

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?

Written
IN40QW Wilson What is the current annual average return for your unlisted assets? Written
IN41QW Wilson Given the size of your large joint investments, why are they not listed for liquidity, valuation and public disclosure purposes? Written
IN42QW Wilson

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?

Written
IN43QW Wilson

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?

Written
IN44QW Wilson Of the unlisted assets, how many have outperformed the average return on investments in superannuation over the past five years? Written
IN45QW Wilson Have you completed any analysis about your capacity to continue to provide returns to fund members at the current, or past rate, into the future based on the valuations of your unlisted assets? Written
IN46QW Wilson

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

Written
IN47QW Wilson

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?

Written
IN48QW Wilson

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?

Written
IN49QW Wilson

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?

Written
IN50QW Wilson

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?

Written
IN51QW Wilson

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?

Written
IN52QW Wilson

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?

Written
IN53QW Wilson How many employees does the fund have? Written
IN54QW Wilson How do you define employee misconduct? Written
IN55QW Wilson

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?

Written
IN56QW Wilson Do you support current Corporations Law provisions for the disclosure of corporate remuneration? Written
IN57QW Wilson Of the twenty highest remunerated employees over the past decade, please provide the number whose total remuneration in a financial year (including all forms of remuneration, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets. Written
IN58QW Wilson Of the twenty highest incentive bonuses paid over the past decade, please provide the number that fall within these brackets. Written
IN59QW Wilson Of the twenty highest performance bonuses paid over the past decade, please provide the number that fall within these brackets. Written
IN60QW Wilson Of the twenty highest severance packages over the past decade, please provide the number whose total package (including all forms of accumulated severance package, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets. Written
IN61QW Wilson Of the twenty highest termination payments over the past decade, please provide the number whose total package (including all forms of accumulated termination package, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets. Written
IN62QW Wilson Of the twenty highest redundancy payments over the past decade, please provide the number whose total package (including all forms of accumulated redundancy package, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets. Written
IN63QW Wilson Can you please advise what arrangements you have provided to defer the payment of rent for tenancies for assets owned by your fund as a result of keeping SMEs operational during the COVID-19 pandemic? And to what dollar value has that reduced revenue to your fund since 1 February 2020? Written

Responses to Questions 63-76

(1 May 2020)(PDF108KB)

IN64QW Wilson Can you please advise what arrangements you have provided to defer the payment of rent for tenancies for assets controlled by your fund as a result of keeping SMEs operational during the COVID-19 pandemic? And to what dollar value has that reduced revenue to your fund since 1 February 2020? Written  
IN65QW Wilson Can you please advise what arrangements you have provided to adjust the payment of rent for tenancies for assets owned by your fund as a result of keeping SMEs operational during the COVID-19 pandemic? And to what dollar value has that reduced revenue to your fund since 1 February 2020? Written  
IN66QW Wilson Can you please advise what arrangements you have provided to adjust the payment of rent for tenancies for assets controlled by your fund as a result of keeping SMEs operational during the COVID-19 pandemic? And to what dollar value has that reduced revenue to your fund since 1 February 2020? Written  
IN67QW Wilson On 1 January 2020 what was your percentage share and nominal value of your listed and unlisted assets? Written  
IN68QW Wilson On 1 January 2020 did your fund have liquidity issues resulting from honouring obligations to members? Written  
IN69QW Wilson What write down, if any, has been made to the value of unlisted assets? Written  
IN70QW Wilson

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?

Written  
IN71QW Wilson

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?

Written  
IN72QW Wilson What has been the current reduction of the value of your fund, and the unlisted and listed components since 1 January 2020? Written  
IN73QW Wilson How many members have requested the early release of their superannuation since 12 March 2020, and to what value?

Please also provide monthly updates on the first of the month for the remainder of 2020 to the secretariat.
Written 19 May 2020
(PDF42KB)
IN74QW Wilson How many members have had approved the early release of their superannuation since 12 March 2020, and to what value?

Please also provide monthly updates on the first of the month for the remainder of 2020 to the secretariat.
Written 19 May 2020
(PDF65KB)
IN75QW Wilson If some members have required the early release of their superannuation since 12 March 2020 and not been approved, please provide details of the grounds on which they have not been approved. Written 19 May 2020
(PDF49KB)
IN76QW Wilson

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?

Written  
IN77QW Wilson

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?

Written

Responses to
questions 77 - 90

(7 July 2020)
(PDF257KB)

IN78QW Wilson

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?

Written  
IN79QW Wilson

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.

Written  
IN80QW Wilson

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.

Written  
IN81QW Wilson

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.

Written  
IN82QW Wilson

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?

Written  
IN83QW Wilson

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?

Written  
IN84QW Wilson

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?

Written  
IN85QW Wilson Please provide data to complete this table for your unlisted asset holdings based on their geographic spread. Written  
IN86QW Wilson Please provide a copy of your Constitution. Written  
IN87QW Wilson Please provide details, including the event name, organising entity, ticket price and attendee(s) for the past decade of the tickets purchased for events and/or fundraisers for political parties or related entities, individual MPs and individual candidates for political office or the associated fundraising entities of political parties, individual MPs and individual candidates for political office. Written  
IN88QW Wilson

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?

Written  
IN89QW Wilson

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?

Written  
IN90QW Wilson

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?

Written  
IN91QW Wilson

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.

Written

Responses to
questions 91 - 95

15 September 2020
(PDF238KB)

IN92QW Wilson

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.

Written  
IN93QW Wilson If you do have capital managed by another entity that you are also a shareholder in, please identify how you manage conflicts of interest. Written  
IN94QW Wilson

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

a. Board members.

b. The chief executive.

c. Executive management

Written  
IN95QW Bandt Is the fund considering divestment from pure play fossil fuel producers in order to mitigate climate-related financial risks and to increase the cost of capital for those producers?

If not, how has the fund arrived at the conclusion that this approach would not be in members' best interests?
Written  
IN96QW Wilson

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?

Written

Responses to questions 96 - 100

(9 October 2020)(PDF88KB)

IN97QW Wilson

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?

Written  
IN98QW Wilson

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?

Written  
IN99QW Wilson

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

a. Financial advice?

b. Internal financial advisers?

c. External financial advisers?

Written  
IN100QW Wilson Do you allow external financial advisers access to online facilities to charge for external financial advisers consented by members using their funds?
Written  
IN120QW Wilson

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.

Written (27 October 2020)
(PDF63KB)

 

LUCRF Super

No. Member Question Hansard page
and Hearing date
or Written Questions

Response

(Publication date)

LUC01QW Wilson

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.

Written

Responses to
questions 1-62

(14 April 2020)(PDF2,901KB)

LUC02QW Wilson Details of all ASIC fines and infringement notices incurred over the past five years. Written
LUC03QW Wilson The name and company of your auditor for the past five years. Written
LUC04QW Wilson

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.

Written
LUC05QW Wilson

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.

Written
LUC06QW Wilson A copy of your asset valuation policy (covering amongst other things independence of valuation, managing conflicts of interest, frequency of valuation, publication of latest valuation timings to members etc). Written
LUC07QW Wilson

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.

Written
LUC08QW 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.

Written
LUC09QW Wilson Details of arrangements for the temporary or permanent use for corporate venue hire (including corporate boxes), including additional non-hire costs such as catering, at sporting venues over the past five years. Written
LUC10QW Wilson Details of sponsorship or sponsorship-like arrangements, marketing or marketing-like or in-kind arrangements for the past five years. Written
LUC11QW Wilson

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.

Written
LUC12QW Wilson

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?

Written
LUC13QW Wilson

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)

Written
LUC14QW Wilson Please provide the one, five, and ten year net return after fees, costs, and taxes for the primary default MySuper balanced product. Written
LUC15QW Wilson

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?

Written
LUC16QW Wilson What is the total number of statutory fines over the past five years? Written
LUC17QW Wilson

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?

Written
LUC18QW Wilson

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?

Written
LUC19QW Wilson The number of trusts or investment vehicles the fund controls in each of the low tax regions, including but not limited to Andorra, the Bahamas, Belize, Bermuda, the British Virgin Islands, the Cayman Islands, the Channel Islands, the Cook Islands, Hong Kong, the Isle of Man, Mauritius, Lichtenstein, Luxembourg, Monaco, Panama, St Kitts and Nevis? Or tax efficient arrangements such as a ‘double Dutch sandwich’? Written
LUC20QW Wilson a. The number of accounts that have been transferred to the ATO as a result of ‘Protecting your Super’ legislation?

b. The value of the money that will be paid to the ATO as a result of the ‘Protecting your Super’ legislation?

c. The number of accounts that has been transferred into an eligible rollover fund in the 2019 financial year?

d. The value of the money that has been transferred into an eligible rollover fund in the 2019 financial year?
Written
LUC21QW Wilson Have you ever made a donation and/or subscription fee to the ACTU Member Connect and/or ACTU Superannuation Partnerships program, and if so, to what value over the past five years? Written
LUC22QW Wilson Does the fund pay any external consultants for any advocacy and communication services, and if so can you please name them and the costs incurred over the past five years? Written
LUC23QW Wilson 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?
Written
LUC24QW Wilson

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?

Written
LUC25QW Wilson a. What external parties manage your investments, if any?

b. What are the fee structures per member from external management?
Written
LUC26QW Wilson

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?

Written
LUC27QW Wilson

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?

Written
LUC28QW Wilson

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.

Written
LUC29QW Wilson

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.

Written
LUC30QW Wilson To the extent that any of the fees and costs listed in the previous two questions are paid to a related entity or associate of the trustee, or any of their respective related entities or associates, please set out the function performed or service provided by that person, and the amount (total quantum) paid to that entity or person at a whole-of-fund level. Written

Attachment

(14 April 2020)(PDF15,002KB)

LUC31QW Wilson

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?

Written
LUC32QW Wilson 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)?
Written
LUC33QW Wilson

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

a. Google advertisements

b. Google search terms.

Written
LUC34QW Wilson a. Do you use Google Ad Words, or any Google provided or supported service to advertise any of your funds or your brand in any way whatsoever?

b. Please list what terms you have used in Google Ad Words in the last five years to generate an impression on particular search queries.
Written
LUC35QW Wilson What percentage of the return on investment from your unlisted assets can be attributed to revaluations due to falling interest rates, and capital asset pricing model market yields used as the discount rate in discounted cash flow based valuations? Written
LUC36QW Wilson

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?

Written
LUC39QW Wilson

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?

Written
LUC40QW Wilson What is the current annual average return for your unlisted assets? Written
LUC41QW Wilson Given the size of your large joint investments, why are they not listed for liquidity, valuation and public disclosure purposes? Written
LUC42QW Wilson

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?

Written
LUC43QW Wilson

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?

Written
LUC44QW Wilson Of the unlisted assets, how many have outperformed the average return on investments in superannuation over the past five years? Written
LUC45QW Wilson Have you completed any analysis about your capacity to continue to provide returns to fund members at the current, or past rate, into the future based on the valuations of your unlisted assets? Written
LUC46QW Wilson

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

Written
LUC47QW Wilson

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?

Written
LUC48QW Wilson

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?

Written
LUC49QW Wilson

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?

Written
LUC50QW Wilson

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?

Written
LUC51QW Wilson

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?

Written
LUC52QW Wilson

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?

Written
LUC53QW Wilson How many employees does the fund have? Written
LUC54QW Wilson How do you define employee misconduct? Written
LUC55QW Wilson

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?

Written
LUC56QW Wilson Do you support current Corporations Law provisions for the disclosure of corporate remuneration? Written
LUC57QW Wilson Of the twenty highest remunerated employees over the past decade, please provide the number whose total remuneration in a financial year (including all forms of remuneration, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets. Written
LUC58QW Wilson Of the twenty highest incentive bonuses paid over the past decade, please provide the number that fall within these brackets. Written
LUC59QW Wilson Of the twenty highest performance bonuses paid over the past decade, please provide the number that fall within these brackets. Written
LUC60QW Wilson Of the twenty highest severance packages over the past decade, please provide the number whose total package (including all forms of accumulated severance package, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets. Written
LUC61QW Wilson Of the twenty highest termination payments over the past decade, please provide the number whose total package (including all forms of accumulated termination package, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets. Written
LUC62QW Wilson Of the twenty highest redundancy payments over the past decade, please provide the number whose total package (including all forms of accumulated redundancy package, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets. Written
LUC63QW Wilson Can you please advise what arrangements you have provided to defer the payment of rent for tenancies for assets owned by your fund as a result of keeping SMEs operational during the COVID-19 pandemic? And to what dollar value has that reduced revenue to your fund since 1 February 2020? Written

Responses to
questions 63-76

(27 May 2020)(PDF325KB)

LUC64QW Wilson Can you please advise what arrangements you have provided to defer the payment of rent for tenancies for assets controlled by your fund as a result of keeping SMEs operational during the COVID-19 pandemic? And to what dollar value has that reduced revenue to your fund since 1 February 2020? Written  
LUC65QW Wilson Can you please advise what arrangements you have provided to adjust the payment of rent for tenancies for assets owned by your fund as a result of keeping SMEs operational during the COVID-19 pandemic? And to what dollar value has that reduced revenue to your fund since 1 February 2020? Written  
LUC66QW Wilson Can you please advise what arrangements you have provided to adjust the payment of rent for tenancies for assets controlled by your fund as a result of keeping SMEs operational during the COVID-19 pandemic? And to what dollar value has that reduced revenue to your fund since 1 February 2020? Written  
LUC67QW Wilson On 1 January 2020 what was your percentage share and nominal value of your listed and unlisted assets? Written  
LUC68QW Wilson On 1 January 2020 did your fund have liquidity issues resulting from honouring obligations to members? Written  
LUC69QW Wilson What write down, if any, has been made to the value of unlisted assets? Written  
LUC70QW Wilson

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?

Written  
LUC71QW Wilson

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?

Written  
LUC72QW Wilson What has been the current reduction of the value of your fund, and the unlisted and listed components since 1 January 2020? Written  
LUC73QW Wilson How many members have requested the early release of their superannuation since 12 March 2020, and to what value? Written  
LUC74QW Wilson How many members have had approved the early release of their superannuation since 12 March 2020, and to what value? Written  
LUC75QW Wilson If some members have required the early release of their superannuation since 12 March 2020 and not been approved, please provide details of the grounds on which they have not been approved. Written  
LUC76QW Wilson

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?

Written  
LUC77QW Wilson

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?

Written

Responses to
questions 77 - 90

(14 August 2020)
(PDF168KB)

 

LUC78QW Wilson

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?

Written  
LUC81QW Wilson

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.

Written  
LUC82QW Wilson

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?

Written  
LUC83QW Wilson

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?

Written  
LUC84QW Wilson

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?

Written  
LUC85QW Wilson Please provide data to complete this table for your unlisted asset holdings based on their geographic spread. Written  
LUC86QW Wilson Please provide a copy of your Constitution. Written  
LUC87QW Wilson Please provide details, including the event name, organising entity, ticket price and attendee(s) for the past decade of the tickets purchased for events and/or fundraisers for political parties or related entities, individual MPs and individual candidates for political office or the associated fundraising entities of political parties, individual MPs and individual candidates for political office. Written  
LUC88QW Wilson

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?

Written  
LUC89QW Wilson

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?

Written  
LUC90QW Wilson

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?

Written  
LUC91QW Wilson

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.

Written

Responses to
questions 91 - 95

(14 August 2020)
(PDF144KB)

LUC92QW Wilson

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.

Written  
LUC93QW Wilson If you do have capital managed by another entity that you are also a shareholder in, please identify how you manage conflicts of interest. Written  
LUC94QW Wilson

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

a. Board members.

b. The chief executive.

c. Executive management.

Written  
LUC95QW Bandt Is the fund considering divestment from pure play fossil fuel producers in order to mitigate climate-related financial risks and to increase the cost of capital for those producers?

If not, how has the fund arrived at the conclusion that this approach would not be in members' best interests?
Written  
LUC96QW Wilson

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?

Written

Responses to
questions 96 - 100

(2 October 2020)
(PDF131KB)

LUC97QW Wilson

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?

Written  
LUC98QW Wilson

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)?

Written  
LUC99QW Wilson

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

a. Financial advice?

b. Internal financial advisers?

c. External financial advisers?

Written  
LUC100QW Wilson Do you allow external financial advisers access to online facilities to charge for external financial advisers consented by members using their funds? Written  

 

ISPT

No. Member Question Hansard page
and Hearing date
or Written Questions

Response

(Publications date)

ISPT01QON Wilson CHAIR: … On notice, could you outline to us the valuers that you have used over the past decade for your valuations so that we can establish who is valuing the assets and therefore the basis for the integrity of the system. Hansard pp. 2-3
10 September 2020
(8 October 2020)
(PDF103KB)
ISPT02QON Wilson CHAIR: On notice, can you provide us with the average reduction in the valuations of assets in the different classes of retail, commercial, industrial and the other sectors you've outlined—education and logistics—to give us a sense of how much you are downgrading them in light of the COVID crisis. Hansard pp. 3-4
10 September 2020
(8 October 2020)
(PDF118KB)
ISPT03QON Hammond Ms HAMMOND: … On notice, how many times have you reported breaches in the last five years? And, quickly, in your opinion does ASIC take a light-touch or a heavy-touch approach? Once you've got your licence, does ASIC ever follow up with you on queries when you submit annual reports?

Mr Grant: I think it's generally on an exception basis. I'm sure that when we lodge details, if we were to make a disclosure of a breach, they would follow up accordingly. In relation to that question on notice about breaches, I can say that about five or six years ago we recorded one breach. There was a minor unit [inaudible]. In the last five or so years that's the only issue I'm aware of that we've actually needed to report through to ASIC in accordance with our licence.
Hansard p. 7
10 September 2020
(8 October 2020)
(PDF121KB)
ISPT04QON Falinski Mr FALINSKI: How many tenants in your investment are government departments or government agencies?

Mr Browning: Probably about 30 per cent. I can take that on notice, but there's a reasonable proportion in the office portfolio.

Mr FALINSKI: So how many tenants would you have in total, and is that by value or by number?

Mr Browning: By number.

Mr FALINSKI: By number, okay. Could I please get a breakdown of that by value and by number? How many tenants would you have, just as a ballpark figure?

Mr Browning: A couple of thousand.

Mr FALINSKI: So about 600 of your tenants are government departments and agencies?

Mr Browning: No, it wouldn't be that many, but in the commercial portfolio there would be a higher proportion because they occupy, let's say, 20,000 square metres—Prime Minister and Cabinet, our other buildings; the state government in Victoria has got 50,000 square metres. I'm happy to provide that on notice, if that helps.

Mr FALINSKI: Thank you very much.
Hansard p. 9
10 September 2020
(8 October 2020)
(PDF123KB)

 

Legalsuper

No. Member Question Hansard page
and Hearing date
or Written Questions

Response

(Publications date)

LEG01QW Wilson

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.

Written (PDF66KB)
LEG02QW Wilson Details of all ASIC fines and infringement notices incurred over the past five years Written (PDF59KB)
LEG03QW Wilson The name and company of your auditor for the past five years. Written (PDF60KB)
LEG04QW Wilson

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.

Written (PDF65KB)
LEG05QW Wilson

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.

Written (PDF65KB)
LEG06QW Wilson A copy of your asset valuation policy (covering amongst other things independence of valuation, managing conflicts of interest, frequency of valuation, publication of latest valuation timings to members etc). Written (PDF63KB)
LEG07QW Wilson

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.

Written (PDF63KB)
LEG08QW 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.

Written (PDF63KB)
LEG09QW Wilson Details of arrangements for the temporary or permanent use for corporate venue hire (including corporate boxes), including additional non-hire costs such as catering, at sporting venues over the past five years. Written (PDF59KB)
LEG10QW Wilson Details of sponsorship or sponsorship-like arrangements, marketing or marketing-like or in-kind arrangements for the past five years. Written (PDF64KB)
LEG11QW Wilson

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.

Written (PDF63KB)
LEG12QW Wilson

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?

Written (PDF70KB)
LEG13QW Wilson

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)

Written (PDF70KB)
LEG14QW Wilson Please provide the one, five, and ten year net return after fees, costs, and taxes for the primary default MySuper balanced product. Written (PDF63KB)
LEG15QW Wilson

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?

Written (PDF69KB)
LEG16QW Wilson What is the total number of statutory fines over the past five years? Written (PDF59KB)
LEG17QW Wilson

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?

Written (PDF63KB)
LEG18QW Wilson 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?
Written (PDF63KB)
LEG19QW Wilson The number of trusts or investment vehicles the fund controls in each of the low tax regions, including but not limited to Andorra, the Bahamas, Belize, Bermuda, the British Virgin Islands, the Cayman Islands, the Channel Islands, the Cook Islands, Hong Kong, the Isle of Man, Mauritius, Lichtenstein, Luxembourg, Monaco, Panama, St Kitts and Nevis? Or tax efficient arrangements such as a ‘double Dutch sandwich’? Written (PDF60KB)
LEG20QW Wilson a. The number of accounts that have been transferred to the ATO as a result of ‘Protecting your Super’ legislation?

b. The value of the money that will be paid to the ATO as a result of the ‘Protecting your Super’ legislation?

c. The number of accounts that has been transferred into an eligible rollover fund in the 2019 financial year?

d. The value of the money that has been transferred into an eligible rollover fund in the 2019 financial year?
Written (PDF62KB)
LEG21QW Wilson Have you ever made a donation and/or subscription fee to the ACTU Member Connect and/or ACTU Superannuation Partnerships program, and if so, to what value over the past five years? Written (PDF59KB)
LEG22QW Wilson Does the fund pay any external consultants for any advocacy and communication services, and if so can you please name them and the costs incurred over the past five years? Written (PDF64KB)
LEG23QW Wilson

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?

Written (PDF65KB)
LEG24QW Wilson

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?

Written (PDF74KB)
LEG25QW Wilson a. What external parties manage your investments, if any?

b. What are the fee structures per member from external management?
Written (PDF79KB)
LEG26QW Wilson

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?

Written (PDF74KB)
LEG27QW Wilson

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?

Written (PDF63KB)
LEG28QW Wilson

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.

Written (PDF70KB)
LEG29QW Wilson

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.

Written (PDF69KB)
LEG30QW Wilson To the extent that any of the fees and costs listed in the previous two questions are paid to a related entity or associate of the trustee, or any of their respective related entities or associates, please set out the function performed or service provided by that person, and the amount (total quantum) paid to that entity or person at a whole-of-fund level. Written (PDF59KB)
LEG31QW Wilson

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?

Written (PDF63KB)
LEG32QW Wilson

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)?

Written (PDF63KB)
LEG33QW Wilson

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

a. Google advertisements

b. Google search terms.

Written (PDF59KB)
LEG34QW Wilson a. Do you use Google Ad Words, or any Google provided or supported service to advertise any of your funds or your brand in any way whatsoever?

b. Please list what terms you have used in Google Ad Words in the last five years to generate an impression on particular search queries.
Written (PDF60KB)
LEG35QW Wilson What percentage of the return on investment from your unlisted assets can be attributed to revaluations due to falling interest rates, and capital asset pricing model market yields used as the discount rate in discounted cash flow based valuations? Written (PDF62KB)
LEG36QW Wilson

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?

Written (PDF65KB)
LEG37QW Wilson How have you structured the fund to address the writing back of the increased investment capitalised future returns? Written (PDF59KB)
LEG38QW Wilson What are the projected changes in income in light of the writing back of the increased investment capitalised future returns? Written (PDF659B)
LEG39QW Wilson

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?

Written (PDF63KB)
LEG40QW Wilson What is the current annual average return for your unlisted assets? Written (PDF62KB)
LEG41QW Wilson Given the size of your large joint investments, why are they not listed for liquidity, valuation and public disclosure purposes? Written (PDF69KB)
LEG42QW Wilson

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?

Written (PDF63KB)
LEG43QW Wilson

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?

Written  (PDF63KB)
LEG44QW Wilson Of the unlisted assets, how many have outperformed the average return on investments in superannuation over the past five years? Written (PDF63KB)
LEG45QW Wilson Have you completed any analysis about your capacity to continue to provide returns to fund members at the current, or past rate, into the future based on the valuations of your unlisted assets? Written (PDF68KB)
LEG46QW Wilson

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.

Written (PDF62KB)
LEG47QW Wilson

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?

Written (PDF63KB)
LEG48QW Wilson

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?

Written (PDF63KB)
LEG49QW Wilson

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?

Written (PDF63KB)
LEG50QW Wilson

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?

Written (PDF63KB)
LEG51QW Wilson

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?

Written (PDF63KB)
LEG52QW Wilson

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?

Written (PDF63KB)
LEG53QW Wilson How many employees does the fund have? Written (PDF59KB)
LEG54QW Wilson How do you define employee misconduct? Written (PDF60KB)
LEG55QW Wilson

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?

Written (PDF62KB)
LEG56QW Wilson Do you support current Corporations Law provisions for the disclosure of corporate remuneration? Written (PDF60KB)
LEG57QW Wilson Of the twenty highest remunerated employees over the past decade, please provide the number whose total remuneration in a financial year (including all forms of remuneration, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets. Written (PDF67KB)
LEG58QW Wilson Of the twenty highest incentive bonuses paid over the past decade, please provide the number that fall within these brackets. Written (PDF67KB)
LEG59QW Wilson Of the twenty highest performance bonuses paid over the past decade, please provide the number that fall within these brackets. Written (PDF67KB)
LEG60QW Wilson Of the twenty highest severance packages over the past decade, please provide the number whose total package (including all forms of accumulated severance package, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets. Written (PDF68KB)
LEG61QW Wilson Of the twenty highest termination payments over the past decade, please provide the number whose total package (including all forms of accumulated termination package, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets. Written (PDF68KB)
LEG62QW Wilson Of the twenty highest redundancy payments over the past decade, please provide the number whose total package (including all forms of accumulated redundancy package, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets. Written (PDF67KB)
LEG63QW Wilson Can you please advise what arrangements you have provided to defer the payment of rent for tenancies for assets owned by your fund as a result of keeping SMEs operational during the COVID-19 pandemic? And to what dollar value has that reduced revenue to your fund since 1 February 2020?    Written

Responses to questions 63 - 76

(26 May 2020)
(PDF167KB)

LEG64QW Wilson Can you please advise what arrangements you have provided to defer the payment of rent for tenancies for assets controlled by your fund as a result of keeping SMEs operational during the COVID-19 pandemic? And to what dollar value has that reduced revenue to your fund since 1 February 2020? Written  
LEG65QW Wilson Can you please advise what arrangements you have provided to adjust the payment of rent for tenancies for assets owned by your fund as a result of keeping SMEs operational during the COVID-19 pandemic? And to what dollar value has that reduced revenue to your fund since 1 February 2020? Written  
LEG66QW Wilson Can you please advise what arrangements you have provided to adjust the payment of rent for tenancies for assets controlled by your fund as a result of keeping SMEs operational during the COVID-19 pandemic? And to what dollar value has that reduced revenue to your fund since 1 February 2020? Written  
LEG67QW Wilson On 1 January 2020 what was your percentage share and nominal value of your listed and unlisted assets? Written  
LEG68QW Wilson On 1 January 2020 did your fund have liquidity issues resulting from honouring obligations to members? Written  
LEG69QW Wilson What write down, if any, has been made to the value of unlisted assets? Written  
LEG70QW Wilson

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?

Written  
LEG71QW Wilson

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?

Written  
LEG72QW Wilson What has been the current reduction of the value of your fund, and the unlisted and listed components since 1 January 2020? Written  
LEG73QW Wilson How many members have requested the early release of their superannuation since 12 March 2020, and to what value? Written  
LEG74QW Wilson How many members have had approved the early release of their superannuation since 12 March 2020, and to what value? Written  
LEG75QW Wilson If some members have required the early release of their superannuation since 12 March 2020 and not been approved, please provide details of the grounds on which they have not been approved. Written  
LEG76QW Wilson

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?

Written  
LEG77QW Wilson

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?

Written

Responses to questions 77 - 90

(23 June 2020)
(PDF416KB)

LEG78QW Wilson

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?

Written  
LEG79QW Wilson

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.

Written  
LEG80QW Wilson

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.

Written  
LEG81QW Wilson

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.

Written  
LEG82QW Wilson

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?

Written  
LEG83QW Wilson

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?

Written  
LEG84QW Wilson

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?

Written  
LEG85QW Wilson Please provide data to complete the provided table for your unlisted asset holdings based on their geographic spread. Written  
LEG86QW Wilson Please provide a copy of your Constitution. Written  
LEG87QW Wilson Please provide details, including the event name, organising entity, ticket price and attendee(s) for the past decade of the tickets purchased for events and/or fundraisers for political parties or related entities, individual MPs and individual candidates for political office or the associated fundraising entities of political parties, individual MPs and individual candidates for political office. Written  
LEG88QW Wilson 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?
Written  
LEG89QW Wilson 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?
Written  
LEG90QW Wilson 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?
Written  
LEG91QW Wilson

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.

Written

Responses to questions 91 - 95

(14 August 2020)
(PDF94KB)

LEG92QW Wilson

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.

Written  
LEG93QW Wilson If you do have capital managed by another entity that you are also a shareholder in, please identify how you manage conflicts of interest. Written  
LEG94QW Wilson

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

a. Board members.

b. The chief executive.

c. Executive management.

Written  
LEG95QW Bandt Is the fund considering divestment from pure play fossil fuel producers in order to mitigate climate-related financial risks and to increase the cost of capital for those producers?

If not, how has the fund arrived at the conclusion that this approach would not be in members' best interests?
Written  
LEG96QW Wilson

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?

Written

Responses to questions 96 - 100

(2 October 2020)
(PDF112KB)

LEG97QW Wilson

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?

Written  
LEG98QW Wilson

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?

Written  
LEG99QW Wilson

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

a. Financial advice?

b. Internal financial advisers?

c. External financial advisers?

Written  
LEG100QW Wilson Do you allow external financial advisers access to online facilities to charge for external financial advisers consented by members using their funds? Written  
LEG101QW Wilson 

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.

Written

Responses to
questions 101 - 119

(25 November 2020)
(PDF287KB)

LEG102QW Wilson 

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.

Written  
LEG103QW Wilson

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?

Written  
LEG104QW Wilson

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.

Written  
LEG105QW Wilson 

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?

Written  
LEG106QW Wilson 

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?

Written  
LEG107QW Wilson 

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?

Written  
LEG108QW Wilson 

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.

Written  
LEG109QW Wilson 

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?

Written  
LEG110QW Wilson 

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.

Written  
LEG111QW Wilson 

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.

Written  
LEG112QW Wilson 

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?

Written  
LEG113QW Wilson 

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

a. human resources issues?

b. sexual harassment issues?

Written  
LEG114QW Wilson 

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?

Written  
LEG115QW Wilson 

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?

Written  
LEG116QW Wilson 

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?

Written  
LEG117QW Wilson 

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?

Written  
LEG118QW Wilson  During the first half of 2020 there were significant market movements because of the economic response to the COVID-19 pandemic. Please complete the following table outlining the total payouts and losses in foreign exchange hedging.
Written  
LEG119QW Wilson  Assuming a young Australian whose birthday was 1 July 1989, got their first job on 1 July 2005, opened a default superannuation account on 1 July 2005, made the average contribution of a person in that age bracket, using the default product offer made at that time and made no additional contributions, received the average growth, paid all fees, insurances and deductibles, please complete the following table.
Written  
LEG120QW Wilson

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.

Written (2 November 2020)
(PDF139KB)


IFM Investors

Q No. Member Question Hansard page
and Hearing date
or Written Questions

Response

(Publication date)

IFM1QW Wilson

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.

Written Responses to Questions 1-15(PDF10,296KB)
IFM2QW Wilson

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.

Written  
IFM3QW Wilson The details of the date and location of your annual general meeting for the past five years, and whether fund members were invited to attend. Written  
IFM4QW Wilson The details of any fund member briefings where it was possible to ask fund managers, executives or directors questions over the past five years. Written  
IFM5QW Wilson

A copy of your annual report for the past five years.

Written  
IFM6QW Wilson

A copy of your company structure.

Written  
IFM7QW Wilson The name and company of your auditor for the past five years. Written  
IFM8QW Wilson  A copy of your asset valuation policy (covering amongst other things independence of valuation, managing conflicts of interest, frequency of valuation, publication of latest valuation timings to members etc). Written   
IFM9QW  Wilson

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.

Written  
IFM10QW Wilson

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.

Written   
IFM11QW Wilson Details of arrangements for the temporary or permanent use for corporate venue hire (including corporate boxes), including additional non-hire costs such as catering, at sporting venues over the past five years. Written   
IFM12QW Wilson Details of sponsorship or sponsorship-like arrangements, marketing or marketing-like or in-kind arrangements for the past five years. Written   
IFM13QW Wilson Whether any commissions are paid to employees of IFM investors. Written  
IFM14QW Wilson

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.

Written  
IFM15QW Wilson

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.

Written  
IFM16QON

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

(PDF92KB)
IFM17QON Wilson

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

(PDF94KB)
IFM18QON Mulino

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

(PDF120KB)
IFM19QON Wilson

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

(PDF79KB)
IFM20QON Wilson

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

(PDF84KB)
IFM21QW Wilson Self-managed super funds

a. You have previously advised that you do not manage funds for individuals, can you please advise whether you manage funds for SMSFs?

b. Have you allowed individuals and/or SMSFs to co-invest alongside your investments?

c. Do you allow individuals and/or SMSFs to co-invest alongside your investments?
Written

Responses to Questions 21-51

(PDF164KB)

IFM22QW Wilson Have individuals either directly or indirectly through private or closely held funds, used fund management advice or services provided by IFM or entities associated with IFM? Written
IFM23QW Wilson You have previously advised that you do not manage funds for individuals, please advise whether you manage funds for:

a. family trusts

b. trusts

c. trade unions, and if so which trade unions?

d. registered organisations, and if so which registered organisations?
Written  
IFM24QW Wilson Do you manage money for any related parties that are not superannuation funds? If so, which organisations or entities? Written  
IFM25QW Wilson Please advise the number of trusts or investment vehicles IFM controls in each of the low tax regions, including Andorra, the Bahamas, Belize, Bermuda, the British Virgin Islands, the Cayman Islands, the Channel Islands, the Cook Islands, Hong Kong, the Isle of Man, Mauritius, Lichtenstein, Luxembourg, Monaco, Panama, St Kitts and Nevis. Written  
IFM26QW Wilson

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.

Written  
IFM27QW Wilson Have you ever made a donation and/or subscription fee to the ACTU Member Connect and/or ACTU Superannuation Partnerships program, and if so, to what value over the past five years? Written  
IFM28QW Wilson a. What external parties manage your investments, if any?

b. What are the fee structures per member from external management?
Written  
IFM29QW Wilson Does the fund pay any external consultants for any advocacy and communication services, and if so can you please name them and the costs incurred over the past five years? Written  
IFM30QW Wilson 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, and was this data shared with any other organisations, including ISH?

c. How much was spent on membership of industry advocacy organisations that provide policy and data analysis service to member funds?
Written  
IFM31QW Wilson AusFund

a. Do you own AusFund?

b. What revenue has IFM received from AusFund over the past five years?

c. Has IFM received fees for services provided to AusFund over the past five years?

d. What is the total valuation of funds AusFund currently holds?
Written  
IFM32QW Wilson 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?
Written  
IFM33QW Wilson What percentage of the return on investment from your unlisted assets can be attributed to revaluations due to falling interest rates, and capital asset pricing model market yields used as the discount rate in discounted cash flow based valuations? Written  
IFM34QW Wilson 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?
Written  
IFM35QW Wilson What are the projected changes in income in light of the writing back of the increased investment capitalized future returns? Written  
IFM36QW Wilson 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. What role has APRA had in your valuation methods?

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

d. 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?

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

f. Has APRA been involved in stress testing your methodology in this regard?
Written  
IFM37QW Wilson What is the current annual average return for your unlisted assets? Written  
IFM38QW Wilson Given the size of your large joint investments, why are they not listed for purposes of liquidity, valuation and public disclosure? Written  
IFM39QW Wilson

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?

Written   
IFM40QW Wilson 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?
Written  
IFM41QW Wilson Of the unlisted assets, how many have outperformed the average return on investments in superannuation over the past five years? Written  
IFM42QW Wilson Have you completed any analysis about your capacity to continue to provide returns to fund members at the current, or past rate, into the future based on the valuations of your unlisted assets? Written  
IFM43QW Wilson 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.
Written  
IFM44QW Wilson 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?
Written  
IFM45QW Wilson Do you support remuneration disclosure laws in Corporations Law? Written  
IFM46QW Wilson Of the twenty highest remunerated employees over the past decade, please provide the number whose total remuneration in a financial year (including all forms of remuneration, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets. Written  
IFM47QW Wilson Of the twenty highest incentive bonuses paid over the past decade, please provide the number that fall within these brackets. Written  
IFM48QW Wilson Of the twenty highest performance bonuses paid over the past decade, please provide the number that fall within these brackets. Written  
IFM49QW Wilson Of the twenty highest severance packages over the past decade, please provide the number whose total package (including all forms of accumulated severance package, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets. Written  
IFM50QW Wilson Of the twenty highest termination payments over the past decade, please provide the number whose total package (including all forms of accumulated termination package, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets. Written  
IFM51QW Wilson Of the twenty highest redundancy payments over the past decade, please provide the number whose total package (including all forms of accumulated redundancy package, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets. Written  
IFM52QW Wilson

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?

Written

Responses to questions 52 - 54

(24 June 2020)
(PDF123KB)

IFM53QW Wilson

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?

Written  
IFM54QW Wilson

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?

Written  
IFM55QW Wilson

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.

Written

Responses to questions 55 - 72

(31 August 2020)
(PDF352KB)

IFM56QW Wilson

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.

Written   
IFM57QW Wilson

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?

Written  
IFM58QW Wilson

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?

Written  
IFM59QW Wilson

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?

Written  
IFM60QW Wilson Please provide data to complete this table for your unlisted asset holdings based on their geographic spread. Written  
IFM61QW Wilson

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.

Written  
IFM62QW Wilson

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?

Written  
IFM63QW Wilson Please provide a copy of your Constitution. Written  
IFM64QW Wilson Please provide details, including the event name, organising entity, ticket price and attendee(s) for the past decade of the tickets purchased for events and/or fundraisers for political parties or related entities, individual MPs and individual candidates for political office or the associated fundraising entities of political parties, individual MPs and individual candidates for political office. Written  
IFM65QW Wilson

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?

Written  
IFM66QW Wilson

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?

Written  
IFM67QW Wilson

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?

Written  
IFM68QW Wilson

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.

Written  
IFM69QW Wilson

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.

Written  
IFM70QW Wilson If you do have capital managed by another entity that you are also a shareholder in, please identify how you manage conflicts of interest. Written  
IFM71QW Wilson

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

a. Board members.

b. The chief executive.

c. Executive management.

Written  
IFM72QW Bandt Is the fund considering divestment from pure play fossil fuel producers in order to mitigate climate-related financial risks and to increase the cost of capital for those producers?

If not, how has the fund arrived at the conclusion that this approach would not be in members' best interests?
Written   

 

Industry Super Australia

Q No. Member Question Hansard page
and Hearing date
or Written Questions

Response

(Publication date)

ISA1QW Wilson

Has Industry Super Australia ever completed a report or analysis on the number of people who hold multipleaccounts across different superannuation funds

If so, can you please provide a copy of that report or analysis?

Written (PDF158KB)
ISA2QON Wilson CHAIR: The question I asked was: how much money does ISA spend on research each year?

Hansard p. 4

22 November 2019

See responses to questions 16 to 26

ISA3QON Wilson CHAIR: Just quickly: have you received any legal advice related to ensuring competition within the sector and making sure you're not breaching competition law in terms of representing the whole sector and how funds operate?

Mr Dean: I'll take that question on notice.

Hansard p. 15

22 November 2019

See responses to questions 16 to 26
ISA4QW Wilson Please provide a copy of the papers and presentations delivered by Industry Super Australia staff at conferences, symposium and colloquium from 1 June to 30 December 2019 Written

See responses to questions 16 to 26

Attachment
(16 June 2020)
(PDF28,729KB)

ISA05QW
Wilson How many companies have been commissioned to develop public information campaigns on Australians accessing early release of their superannuation since 1 January 2020, and what are their names?
Written Responses to questions 5 - 15

(14 May 2020)
(PDF175KB)
ISA06QW
Wilson
How much has been spent on developing public information campaigns on Australians accessing early release of their superannuation since 1 January 2020?
Written
 
ISA07QW
Wilson
How much have you budgeted to develop public information campaigns on Australians accessing early release of their superannuation from 1 January 2020 to 30 June 2021?
Written
 
ISA08QW
Wilson
How much advertising space has been booked for information campaigns on Australians accessing early release of their superannuation from 1 January 2020 to 30 June 2021?
Written
 
ISA09QW
Wilson
How much has been spent on booking advertising space for information campaigns on Australians accessing early release of their superannuation since 1 January 2020?
Written
 
ISA10QW
Wilson
How much has been budgeted for booking advertising space for information campaigns on Australians accessing early release of their superannuation from 1 January 2020 to 30 June 2021?
Written
 
ISA11QW
Wilson
How many companies have been commissioned to complete polling on Australians accessing early release of their superannuation since 1 January 2020?
Written
 
ISA12QW
Wilson
How much has been spent to date to complete polling on Australians accessing early release of their superannuation early since 1 January 2020?
Written
 
ISA13QW
Wilson
How much has been budgeted for polling on Australians accessing early release of their superannuation from 1 January 2020 to 30 June 2021?
Written
 
ISA14QW
Wilson
What advice has been provided from Industry Super Australia to its members about providing assistance between members to address liquidity issues since 1 January 2020? Please provide a copy of any advice.
Written
 
ISA15QW
Wilson

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?

Written
 
ISA16QW Wilson What is the annual revenue of Industry Super Australia over the past five years? Written

Responses to questions 2 - 4
and 16 - 26

(16 June 2020)
(PDF175KB)

ISA17QW Wilson What is the contribution of IFM Investors to Industry Super Australia over the past five years? Written  
ISA18QW Wilson

How many people are employed by Industry Super Australia in the following roles:

a. Research?

b. Marketing?

c. Communications?

Written  
ISA19QW Wilson

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.

Written  
ISA20QW Wilson Please provide details, including the event name, organising entity, ticket price and attendee(s) for the past decade of the tickets purchased for events and/or fundraisers for political parties, individual MPs and individual candidates for political office or the associated fundraising entities of political parties, individual MPs and individual candidates for political office. Written  
ISA21QW Wilson Please provide details of the names and salaries of the Executive of Industry Super Australia, including Mr Bernie Dean. Written  
ISA22QW Wilson

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?

Written  
ISA23QON Wilson Do you accept that increasing the policy of superannuation comes at the expense of increasing wages?

For clarity, then, where does it come from?

Hansard p. 2

14 May 2020

 
ISA24QON Wilson Who is ISA's default fund?

Hansard p. 5

14 May 2020

 
ISA25QON Leigh Do you have any figures on the share of account holders who'll fall below the $6,000 threshold for life insurance as a result of this change?

Hansard p. 6

14 May 2020

 
ISA26QON Wilson In the 2018-19 year, according to AEC records, ISA made a contribution of $1,600 to the Labor Party. Can you provide clarification on that?

Hansard p. 13

14 May 2020

 
 

IOOF

Q No. Member Question Hansard page
and Hearing date
or Written Questions

Response 

(Publication date)

IOOF1QW Wilson The details of the date and location of your annual general meeting for the past five years, and whether fund members were invited to attend. Written (PDF118KB)

IOOF2QW

Wilson The details of any fund member briefings where it was possible to ask fund managers, executives or directors questions over the past five years. Written (PDF109KB)

Attachment (PDF109KB)

IOOF3QW Wilson Details of all ASIC fines and infringement notices incurred over the past five years. Written (PDF97KB)

Attachment (PDF88KB)

IOOF4QW

Wilson

The name and company of your auditor for the past five years. Written (PDF116KB)
IOOF9QW 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.

Written (PDF85KB)
IOOF10QW Wilson Details of arrangements for the temporary or permanent use for corporate venue hire (including corporate boxes), including additional non-hire costs such as catering, at sporting venues over the past five years Written (PDF100KB)
IOOF11QW Wilson

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.

Written (PDF109KB)
IOOF12QON Wilson

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)

IOOF13QON Falinski

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

(PDF140KB)
IOOF14QON Mulino Could you provide on notice what you might call an org chart or a structure of all the interactions before and after those changes? It would be useful to see, in that sense, how things have changed.

Hansard p. 31

21 November 2019

(PDF103KB)

Attachment
(PDF72KB)

IOOF15QON Mulino

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

(PDF98KB)
IOOF16QON Falinski

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

(PDF95KB)
IOOF17QON Falinski Given your broad array of investments in the Australian economy, do you think there is any negative outcome from the sorts of activities that litigation funders are undertaking in the Australian economy at the moment? It is probably best for you to take that on notice, I suspect.

Hansard p. 35

21 November 2019

(PDF82KB)
IOOF18QON Leigh

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)

IOOF19QON Leigh

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

 
(PDF217KB)
IOOF20QON Leigh Following the commencement of the MySuper regime on 1 January 2014, trustees had until 30 June 2017 to ensure that all accrued default amounts were transferred to a new simplified MySuper offering. How long did it take IOOF to transition members? I know that some funds took full advantage of that three-year transition period. Others moved swiftly.

Hansard p. 36

21 November 2019

(PDF104KB)
IOOF21QON Wilson You said there had been simplification over a six-year time frame. Could we get clarity. Dr Leigh asked for information from the date the royal commission report was handed down until today. But you said if you go back six years there was simplification. Could we get some clarity around the trend over that six-year time frame as well as the time frame that the deputy chair asked?

Hansard p. 36

21 November 2019

(PDF216KB)
IOOF22QW Leigh Have you prepared or commissioned any reports focussed on benchmarking the performance of underlying assets to which members are exposed (net of all fees and costs) against relevant asset class returns? Written (PDF88KB)
IOOF23QW Leigh Could you please indicate how you supervise the indirect costs associated with vertically integrated retail funds, including what the costs are for (brokerage etcetera) and how you ensure they are not eroding members’ accounts? Written (PDF129KB)
IOOF25QW Leigh

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.

Written (PDF125KB)
IOOF26QW Leigh

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.

Written (PDF201KB)
IOOF27QW Mulino

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?

Written

(PDF123KB)

Attachment
(PDF86KB)

IOOF28QW Mulino What evidence does IOOF have to suggest that the long-term gap between retail fund returns and industry fund returns can be attributed to a lower proportion of retail funds being invested in unlisted assets compared with industry funds? Written

(PDF160KB)

Attachment 1
(PDF96KB)

Attachment 2
(PDF149KB)

IOOF29QW Wilson

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?

Written

Responses to questions 29 - 78

(4 June 2020)
(PDF330KB)

IOOF30QW Wilson

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)

Written  
IOOF31QW Wilson Please provide the one, five, and ten year net return after fees, costs, and taxes for the primary default MySuper balanced product. Written  
IOOF32QW Wilson

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?

Written  
IOOF33QW Wilson What is the total number of statutory fines over the past five years? Written   
IOOF34QW Wilson

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?

Written  
IOOF35QW Wilson 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?
Written  
IOOF36QW Wilson The number of trusts or investment vehicles the fund controls in each of the low tax regions, including Andorra, the Bahamas, Belize, Bermuda, the British Virgin Islands, the Cayman Islands, the Channel Islands, the Cook Islands, Hong Kong, the Isle of Man, Mauritius, Lichtenstein, Luxembourg, Monaco, Panama, St Kitts and Nevis? Written  
IOOF37QW Wilson a. The number of accounts that have been transferred to the ATO as a result of ‘Protecting your Super’ legislation?

b. The value of the money that will be paid to the ATO as a result of the ‘Protecting your Super’ legislation?

c. The number of accounts that has been transferred into an eligible rollover fund in the 2019 financial year?

d. The value of the money that has been transferred into an eligible rollover fund in the 2019 financial year?
Written  
IOOF38QW Wilson Have you ever made a donation and/or subscription fee to the ACTU Member Connect and/or ACTU Superannuation Partnerships program, and if so, to what value over the past five years? Written  
IOOF39QW Wilson Does the fund pay any external consultants for any advocacy and communication services, and if so can you please name them and the costs incurred over the past five years? Written  
IOOF40QW Wilson 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?
Written  
IOOF41QW Wilson

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?

Written  
IOOF42QW Wilson a. What external parties manage your investments, if any?

b. What are the fee structures per member from external management?
Written  
IOOF43QW Wilson

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?

Written  
IOOF44QW Wilson

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?

Written  
IOOF47QW Wilson To the extent that any of the fees and costs listed in the previous two questions are paid to a related entity or associate of the trustee, or any of their respective related entities or associates, please set out the function performed or service provided by that person, and the amount (total quantum) paid to that entity or person at a whole-of-fund level. Written  
IOOF48QW Wilson

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?

Written  
IOOF49QW Wilson

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)?

Written  
IOOF50QW Wilson

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

a. Google advertisements

b. Google search terms.

Written  
IOOF51QW Wilson a. Do you use Google Ad Words, or any Google provided or supported service to advertise any of your funds or your brand in any way whatsoever?

b. Please list what terms you have used in Google Ad Words in the last five years to generate an impression on particular search queries.
Written  
IOOF52QW Wilson What percentage of the return on investment from your unlisted assets can be attributed to revaluations due to falling interest rates, and capital asset pricing model market yields used as the discount rate in discounted cash flow based valuations? Written  
IOOF53QW Wilson

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?

Written  
IOOF56QW Wilson

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?

Written  
IOOF57QW Wilson What is the current annual average return for your unlisted assets? Written  
IOOF58QW Wilson Given the size of your large joint investments, why are they not listed for liquidity, valuation and public disclosure purposes? Written  
IOOF59QW Wilson

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?

Written  
IOOF60QW Wilson

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?

Written  
IOOF61QW Wilson Of the unlisted assets, how many have outperformed the average return on investments in superannuation over the past five years? Written  
IOOF62QW Wilson Have you completed any analysis about your capacity to continue to provide returns to fund members at the current, or past rate, into the future based on the valuations of your unlisted assets? Written  
IOOF63QW Wilson

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.

Written  
IOOF64QW Wilson For each year of the past decade:
a. How many superannuation customers do you have?
b. How many financial planners do you have in total numbers, and as a superannuation customer to financial planner ratio?
c. How many financial advisers do you have in total numbers, and as a superannuation customer to financial planner ratio?
Written  
IOOF65QW Wilson

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 superannuation customer?

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

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

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

Written  
IOOF66QW Wilson

For each year of the past decade:

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

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

Written  
IOOF67QW Wilson

For each year of the past decade:

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

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

Written  
IOOF68QW Wilson

For each year of the past decade:

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

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

Written  
IOOF69QW Wilson

For each year of the past decade:

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

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

Written  
IOOF70QW Wilson How many employees does the fund have? Written  
IOOF71QW Wilson How do you define employee misconduct? Written  
IOOF72QW Wilson

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?

Written  
IOOF73QW Wilson Of the twenty highest remunerated employees over the past decade, please provide the number whose total remuneration in a financial year (including all forms of remuneration, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets. Written  
IOOF74QW Wilson Of the twenty highest incentive bonuses paid over the past decade, please provide the number that fall within these brackets. Written  
IOOF75QW Wilson Of the twenty highest performance bonuses paid over the past decade, please provide the number that fall within these brackets. Written  
IOOF76QW Wilson Of the twenty highest severance packages over the past decade, please provide the number whose total package (including all forms of accumulated severance package, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets. Written  
IOOF77QW Wilson Of the twenty highest termination payments over the past decade, please provide the number whose total package (including all forms of accumulated termination package, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets. Written  
IOOF78QW Wilson Of the twenty highest redundancy payments over the past decade, please provide the number whose total package (including all forms of accumulated redundancy package, including but not limited to, base salary, regularized and deferred bonuses and incentives including, but not limited to, shares) falls within these brackets. Written  
IOOF79QW Wilson On 1 January 2020 what was your percentage share and nominal value of your listed and unlisted assets? Written

Responses to questions 79 - 88

(4 June 2020)
(PDF152KB)

IOOF80QW Wilson On 1 January 2020 did your fund have liquidity issues resulting from honouring obligations to members? Written  
IOOF81QW Wilson What write down, if any, has been made to the value of unlisted assets? Written  
IOOF82QW Wilson

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?

Written  
IOOF83QW Wilson

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?

Written  
IOOF84QW Wilson What has been the current reduction of the value of your fund, and the unlisted and listed components since 1 January 2020? Written  
IOOF85QW Wilson How many members, affected by COVID-19, have requested the early release of their superannuation since 12 March 2020, and to what value? Written  
IOOF86QW Wilson How many members, affected by COVID-19, have had approved the early release of their superannuation since 12 March 2020, and to what value? Written  
IOOF87QW Wilson If some members, affected by COVID-19, have required the early release of their superannuation since 12 March 2020 and not been approved, please provide details of the grounds on which they have not been approved. Written  
IOOF88QW Wilson

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?

Written  
IOOF89QW Wilson

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?

Written

Responses to questions 89 - 102

(29 July 2020)
(PDF219KB)

IOOF90QW Wilson

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?

Written  
IOOF91QW Wilson

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.

Written  
IOOF92QW Wilson

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.

Written  
IOOF93QW Wilson

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.

Written  
IOOF94QW Wilson

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?

Written  
IOOF95QW Wilson

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?

Written  
IOOF96QW Wilson

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?

Written  
IOOF97QW Wilson Please provide data to complete this table for your unlisted asset holdings based on their geographic spread. Written  
IOOF98QW Wilson Please provide a copy of your Constitution. Written

Attachment

(29 July 2020)
(PDF1,706KB)

IOOF99QW Wilson Please provide details, including the event name, organising entity, ticket price and attendee(s) for the past decade of the tickets purchased for events and/or fundraisers for political parties or related entities, individual MPs and individual candidates for political office or the associated fundraising entities of political parties, individual MPs and individual candidates for political office. Written  
IOOF100QW Wilson

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?

Written  
IOOF101QW Wilson

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?

Written  
IOOF102QW Wilson

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?

Written  
IOOF103QW Wilson

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

• Board members.

• The chief executive.

• Executive management.

Written

Responses to
questions 103 - 139

(3 September 2020)
(PDF886KB)

IOOF104QW Leigh How much money do you expect to be withdrawn from your fund as a result of the government’s early access scheme for members affected by COVID-19? Written  
IOOF105QW Leigh

Please provide a list of all investment schemes across your fund(s) that have had their redemptions frozen since January 2008, and for each:

a. What was the total value of funds frozen?

b. How many of your members were impacted by these frozen funds, and how?

c. The date on which the freeze was implemented and lifted.

d. A copy of the clause trustees relied on to enact that freeze.

Written  
IOOF106QW Leigh Are you, or any entities you control, planning to freeze any managed investment schemes associated with your fund or fund platform business? Written  
IOOF107QW Leigh

Since 1 January 2020, have you, or any entities you control:

a. suspended any successor fund transfers?

b. had any funds involved in impending merger activity frozen by investment managers?

Written  
IOOF108QW Leigh

Mortgage trusts

a. Do you, or any entities that you control, have mortgage trusts on your platform?

b. Will you need to freeze redemptions on these due to leverage?

Written  
IOOF109QW Leigh

Property trusts and assets

a. Do you, or any entities you control, have listed property trusts on your platform?

b. How have these performed in comparison to direct unlisted property assets owned by your fund between 1 January 2020 and 20 April 2020?

Written  
IOOF110QW Leigh

Do you, or any entities you control, have agribusiness schemes on your platform?
If so, what was the nominal value of these investments on:

a. 1 January 2020?

b. 20 April 2020?

Written  
IOOF111QW Leigh

Managed investment schemes

a. What policies and governance structures do you, or any entities you control, have in place to determine what managed investment schemes are added to your investment platforms? (Please also provide a copy of these policies.)

b. Do you, or any entities you control, allow financial advice dealer groups to add managed investment schemes to your platform and/or recommended product lists?

Written

Attachment

(3 September 2020)
(PDF863KB)

IOOF112QW Leigh

APRA supervision of investment governance

a. Please describe APRA’s current supervision of your investment governance.

b. When did APRA last examine your investment governance processes?

c. Has APRA asked you to stress-test particular types of managed investment schemes? If so, what types?

Written  
IOOF113QW Leigh

Can you please advise what exposure your members have to listed property trusts and the value of those asset holdings on:

a. 1 January 2020?

b. 25 April 2020?

Written  
IOOF114QW Leigh

Can you please advise what exposure your members have to listed mortgage trusts and the value of those asset holders on:

a. 1 January 2020?

b. 25 April 2020?

Written  
IOOF115QW Leigh Do you expect that actual or expected hardship redemptions as a result of the COVID-19 pandemic will reduce, delay or otherwise impact shareholder returns? If so, how and to what extent? Written  
IOOF116QW Leigh

How many sexual harassment complaints have been lodged against your company in the last five years?
For each complaint, please set out:

a. the jurisdiction

b. how the complaint was resolved, and

c. the remedies ordered or settlement amount.

Written  
IOOF117QW Leigh

In the context of understanding the value of your services to Australian superannuation members, can you please advise the remuneration package for your Chief Executive; specifically:

a. base salary

b. annual bonuses

c. the accumulated value of deferred bonuses unpaid

d. the accumulated value of deferred bonuses paid

e. any other annual, bonus or deferred remuneration information or settlements not covered in the previous four points, and

f. reimbursements for expenses.

Written  
IOOF118QW Leigh

Please provide copies of your:

a. annual report for the past five years, and

b. company structure.

Written

Attachment 1
(PDF245KB)

Attachment 2
(PDF209KB)

Attachment 3
(PDF356KB)

Attachment 4
(PDF400KB)

Attachment 5
(PDF488KB)

Attachment 6
(PDF137KB)

(3 September 2020)

IOOF119QW Leigh Please provide details of sponsorship or sponsorship-like arrangements, marketing or marketing-like or in-kind arrangements for the past five years. Written  
IOOF120QW Leigh Has your company ever made a donation (please include donations and ‘other subscriptions’) to any political party either directly or through a third party? Written  
IOOF121QW Leigh 

Does your company have a relationship with the:

a. Business Council of Australia?

b. Financial Services Council?

c. Australian Financial Markets Association?

d. Institute for Public Affairs?

If so, please provide details of any amounts paid to each group.

Written  
IOOF122QW Leigh

Are any commissions paid to employees?
If so, please provide:

a. Details of these commission arrangements.

b. The total amount of commissions paid for each of the last five years.

c. The conflicts of interest policy for managing these commission arrangements.

Written  
IOOF123QW Leigh Does your company/fund pay incentives (commissions, shelf fees, volume incentives) to win investment mandates?

If so, please provide the details.
Written  
IOOF124QW Leigh

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. A list of the Board members and their biographies.

b. De-identified total remuneration for each Board director.

c. De-identified disaggregated remuneration for each Board Director, including:

i. Base salary.

ii. Annual bonuses.

iii. The accumulated value of deferred bonuses unpaid.

iv. The accumulated value of deferred bonuses paid.

v. Any other annual, bonus or deferred remuneration information not covered in the previous four points.

vi. Reimbursements for expenses.

Written  
IOOF125QW Leigh

Self-managed super funds

a. Can you please advise whether you manage funds for SMSFs?

b. Have you allowed individuals and/or SMSFs to co-invest alongside your investments?

c. Do you allow individuals and/or SMSFs to co-invest alongside your investments?

Written  
IOOF126QW Leigh

Please advise whether you manage funds for:

a. family trusts?

b. trusts?

c. registered organisations, and if so which registered organisations?

Written  
IOOF127QW Leigh

Managing money for related parties

a. Do you manage money for any related parties, whether superannuation funds or otherwise?

b. If so, which organisations or entities?

c. In relation to these organisations or entities:

i. Are you aware whether those related parties have assessed the value of these arrangements, relative to best-practice arms-length arrangements available elsewhere, in terms of generating returns for members?

ii. Please provide your conflicts of interest policy for managing related party arrangements.

iii. Please provide your risk management approach for related party arrangements including line 1, line 2 and line 3 roles.

Written  
IOOF128QW Leigh

Please provide the number of clients by funds under management on behalf of each client, in the following ranges:

• <$20 million
• $20 million - $50 million
• $50 million - $100 million
• $100 million - $1 billion
• >$1 billion.

Written  
IOOF129QW Leigh

Please list the individual private clients under management (including family trusts) for the following ranges:

• <$20 million
• $20 million - $50 million
• $50 million - $100 million
• $100 million - $1 billion
• >$1 billion.

Written  
IOOF130QW Leigh Do you support remuneration disclosure laws in Corporations Law? Written  
IOOF131QW Leigh

If you are an investor in any banking institution, have you individually as a fund (or in collaboration with other funds), ever commissioned reports into its valuation in the past decade?

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

b. Please provide copies.

Written  
IOOF132QW Leigh

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.

Written  
IOOF133QW Leigh

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?

Written  
IOOF134QW Leigh What is the largest severance package, in dollar figures, that has ever been paid to an employee? Written  
IOOF135QW Leigh

Rent for tenancies during COVID-19

a. Can you please advise what action you, or any entities you control, have taken to defer the payment of rent for tenancies for listed and/or unlisted assets owned by your fund during the COVID-19 pandemic?

b. To what dollar value has that reduced revenue to your fund since 1 February 2020?

Written  
IOOF136QW Wilson

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.

Written  
IOOF137QW Wilson

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.

Written  
IOOF138QW Wilson If you do have capital managed by another entity that you are also a shareholder in, please identify how you manage conflicts of interest. Written  
IOOF139QW Bandt Is the fund considering divestment from pure play fossil fuel producers in order to mitigate climate-related financial risks and to increase the cost of capital for those producers?

If not, how has the fund arrived at the conclusion that this approach would not be in members' best interests?
Written  
IOOF140QW Wilson 

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?

Written

Responses to
questions 140 - 144

(29 September 2020)

(PDF186KB)

IOOF141QW Wilson

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?

Written  
IOOF142QW Wilson 

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?

Written  
IOOF143QW Wilson 

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

a. Financial advice?

b. Internal financial advisers?

c. External financial advisers?

Written  
IOOF144QW Wilson  Do you allow external financial advisers access to online facilities to charge for external financial advisers consented by members using their funds?
Written  
IOOF164QW Wilson

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.

Written (2 November 2020)
(PDF116KB)
 

Committee Secretariat contact:

Committee Secretary
Standing Committee on Economics
PO Box 6021
Parliament House
Canberra ACT 2600

Phone: (02) 6277 4587
Fax: (02) 6277 4774
economics.reps@aph.gov.au