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Super Review is Australia's leading information resource for the superannuation and institutional funds management professional.
Citation preview
AUSTRALIA’S LEADING SUPERANNUATION MAGAZINE
WWW.SUPERREVIEW.COM.AU
VOLUME 26 - ISSUE 4
MAY 2012
Find us on
ROUNDTABLE
STRONGER SUPER Auto-consolidation is just one of the hurdles in the Government’s brave new world. p20
Planning and super set to grow closer
METLIFE SURVEYIndustry votes on default
fund regime p18 >
A TARNISHED LEGACYThe Government’s super tinkering
is a world away from the Hawke/
Keating grandeur p10 >
Feature
GO TO PAGE 12 >
2 SuperReview MAY 2012 www.superreview.com.au
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APRA opens door for MySuper cost-benefit analysisBY MIKE TAYLOR
Superannuation funds will have an opportunity to define both the costs and benefits of the Federal Govern-ment’s move to the new MySuper regime under arrangements outlined by the Australian Prudential Regula-tion Authority (APRA).
APRA has released a discussion paper on the proposed arrange-ments for the authorisation of MySuper products and made clear that the costs and benefits of the process were part and parcel of
the consultation arrangements.It said that respondents were
open to provide an assessment of the impact of the proposed changes, and specifically, any marginal compliance costs that APRA-regulated entities are likely to face.
“Given that APRA’s proposed requirements may impose some compliance costs, respondents may also indicate whether there are any other relevant regula-tions that should be improved or removed to reduce compliance
costs,” the discussion paper said.Commenting on the release
of the discussion paper, APRA deputy chairman Ross Jones said the proposed authorisation requirements had been care-fully aligned with the legislative requirements.
He said the regulator was encouraging Registrable Superan-nuation Entities (RSEs) consid-ering offering a MySuper product to use the draft application form and instructions in discussions with their board on their plans.
www.superreview.com.au MAY 2012 SuperReview 3
High earners’ contributions tax an administrative nightmareBY CHRIS KENNEDY
The Government’s plan to increase the
concessional contributions tax to 30 per cent
for workers earning over $300,000 will create
an administrative nightmare for super funds
attempting to work out how much tax to deduct
from each individual member, according to
Minter Ellison partner Maged Girgis.
The increased tax will affect around 128,000
people or 1.2 per cent of the total of people
making contributions, according to Girgis.
Because it’s a singular cut-off rather than a scaled
tax, someone making $299,000 would be far better
off than someone making $301,000, he said.
He compared the tax increase to the
superannuation surcharge introduced on super
by the Liberal party in 1997 that was eventually
abandoned because the administrative costs
outweighed the benefits.
Super funds are essentially taxed on their
overall income (including investment returns
and contributions) minus deductions such
as insurance premiums and legal fees. The
remaining taxable income is taxed at 15 per cent,
and funds can deduct a flat 15 per cent from their
entire member base.
But he said under the proposed changes
funds will need to pay 30 per cent tax on
contributions for a portion of their member
base – requiring funds to “unscramble the egg”
to work out how much each member is earning.
This would require a lot of legwork and a lot
of communication between each fund and the
Australian Taxation Office, Girgis said.
The other option would be for the Government
to implement it as a new tax, similar to the 1997
surcharge. This method would mean the liability
of the new tax sits with the individual rather
than the fund, but is payable by the fund while
that money sits with the fund. But if the member
moves to a new fund, so does the liability, and if
the money is paid out the liability moves to the
individual, Girgis said.
With the time delay between contributions
payments and tax returns, this could create a time
lag of up to two years for self-employed people
– in which time the member could move funds,
retire or pass away, he said.
There are additional complications, he said.
“What if it’s a defined benefit fund? What if it’s an
underfunded defined benefit fund? What if it’s a
Commonwealth scheme where no contributions
are ever made? What if it’s a parliamentary
scheme or a state scheme that’s not subject to
tax?” he asked.
Returns should drive default fund selection: ISNBY TIM STEWART
The primary criteria for the selection of default funds under modern awards should be long-term net returns, according to the Industry Super Network (ISN).
In a submission to the Productivity Commission, the ISN called for a “competitive, open and transparent ap-proach” to the selection of default funds, and proposed a role for Fair Work Australia in the process.
Members of FWA should be joined by “a panel of recognised superannuation experts to assist in such deliberations”, said the ISN.
“Each application from an eligible fund should be considered in the context of the relevant award and the industry it serves,” said the ISN.
“FWA should consider the views of the representatives of those who pay (employers) and those who receive superannuation payments (employees) and the ability of the fund to provide relevant members and employer services to potential members covered by the relevant award, including the appropriateness of the insurance offering for that demographic,” said the ISN.
The ISN also recommended that a typical modern award should have a minimum of two and a maximum of six default funds, since doing so “will ensure that employers are not overloaded by choice and that em-ployees are protected by having more than one option to rely on”.
Funds that ‘flip’ their members into higher priced MySuper products should not be eligible to be named as a default fund in a modern award, added the ISN.
Ross Jones
Government extends CGT rollover reliefBY TIM STEWART
The Government has heeded calls from the industry to
provide capital gains tax (CGT) rollover relief for merging
superannuation funds, effective from 1 July 2012 to 1 July 2017.
The mandatory transfer of default members’ balances to
a MySuper product in another complying fund will also be
eligible for the tax relief, as of 1 July 2013 to 1 July 2017.
A Financial Services Council (FSC) statement said the
existing tax laws required losses during the global financial
crisis to be crystallised when two funds chose to merge.
“Trustees could not – in accordance with their legislative
duty to act in the best interest of members – go ahead with a
merger under those circumstances,” said the FSC.
Association of Superannuation Funds of Australia (ASFA)
chief executive Pauline Vamos also welcomed the change,
which comes after intense lobbying by ASFA.
“Super funds are currently carrying deferred tax assets
equivalent to between 1 and 3 per cent of member account
balances,” Vamos said.
“Without the CGT rollover relief, the fund member would
bear the brunt of the outcome, as efficiency gains from a
merger would not be realised,” she said.
MLC and NAB Wealth Group executive Steve Tucker also
welcomed the announcement.
“The extension of this relief for merging superannuation
funds will result in a better outcome for members’
retirement benefits,” Tucker said.
Self-managed superannuation funds will be excluded
from the tax loss relief “because the MySuper require-
ments do not apply to them”, according to the Government.
4 SuperReview MAY 2012 www.superreview.com.au
Assessing fund manager failures vitalBY BELA MOORE
Poorly performing investments can be
as revealing as successes for assessing
fund manager skill, according to Towers
Watson Australia head of investment
research Hugh Dougherty.
Assessing investment skill required
a comprehensive understanding of the
fund manager’s investment philosophy,
process, and execution of process,
Dougherty said.
“It is important to recognise that
mistakes are an inevitable consequence
of taking risk where uncertainty exists,
and the identification of these mistakes
in a portfolio, in the context of broader
understanding of an investment
manager, can be very helpful in
determining the presence of genuine
skill,” Dougherty said.
He said it was possible for a genuinely
skilled manager to generate poor returns
for an extended period of time due to their
patience, a key characteristic of great
investors according to Dougherty. He said
skilled managers understood that building
long-term wealth required resisting
the temptation to follow the excitement
that builds around out-performing
investments.
“Effective investors are equipped
with the strength of personality to resist
hyperbole and often invest in less popular
areas. They do not conform to popular
market strategy, and build teams of
colleagues who will challenge their ideas
and investment philosophies,” he said.
He said detailed examination of
investments within a portfolio and
inconsistencies with processes and
investments that contradict processes are
all indicators of fund manager skill.
“Getting inside the minds and hearts of
managers requires an understanding of
the investment drivers and key issues for
reaching investment decisions on selected
investments,” Dougherty said.
He said finding investment skill
represented a material cost to most firms,
but the benefits of choosing a skilled fund
manager were worth the effort.
MySuper legislation does not address corporate adviser concernsThe MySuper legislation does not address the services provided by corporate superannuation advisers, according to Corporate Superannuation Specialist Alli-ance (CSSA) president Douglas Latto.
The Future of Financial Advice reforms (FOFA) intra-fund fee needs to be transparent and allow corporate superannuation advisers to charge for the serv-ices they offer under theMySu-per legislation, said Latto.
He said the intra-fund fee introduced by FOFA is set by a third party rather than negoti-ated by the company, its super members and the advisers who deliver the service. He said MySuper legislation has been drafted so that fees are included within the intra-fund fee.
“That fee will be set by the fund itself, and we have no idea
what that level’s going to be yet because nobody has told us what that fee is yet, so we believe we may not be able to be rewarded fairly for the services that we’re offering,” he said.
Latto said the draft MySuper legislation did not allow services to be tailored specifically to com-panies or members.
“The MySuper legislation, as proposed, does not allow tailor-ing at the workplace level. It has a one-size-fits-all approach, with the inability to customise ben-efits, such as insurance cover, or charge different fees for each workplace. In addition, the set-ting of this standard fee is by the trustee through the intra-fund advice fee and does not involve the employer, employee or the adviser,” he said.
Latto said CSSA submissions to the Parliamentary Joint Com-
mittee and Senate Economics Committee had been met with a recommendation to the Treasury to re-open negotiations to try to find a solution.
Douglas Latto
Pauline Vamos
Website disclosure in next Stronger Super trancheBY TIM STEWART
The next tranche of Stronger Super will see the launch of
the product ‘dashboard’, which will include a requirement
to disclose portfolio holdings, according to Treasury
principal adviser Jonathan Rollings.
The tranche will also include director and executive
remuneration, along with new data collection powers
for APRA.
Speaking at the Association of Superannuation Funds
of Australia (ASFA) Compliance Summit in Sydney,
Rollings said the soon-to-be announced features were
a legacy of the Cooper Review, and have the in-principle
support of the Government.
“The product disclosure dashboard is intended to be a
simple representation of key aspects of products offered
by super funds. Those key aspects being investment
return targets, a measure of investment risk, a measure
on liquidity, and another metric around average fees paid
by members in relation to that product,” said Rollings.
Australian Securities and Investment Commission
(ASIC) senior executive leader Ged Fitzpatrick said
ASIC anticipated the product dashboard would “provide
forward-looking information in relation to matters such as
risks, fees and fund objectives”.
Superannuation funds will also be required to list
the details of their portfolio holdings on their websites
– something that is already required in international
jurisdictions such as the US, Fitzpatrick said.
“We’re aware of the work by ASFA and the Financial
Services Council to develop industry guidance ahead of
any Stronger Super reforms on this issue. We’re keen to
take a pragmatic view,” Fitzpatrick said.
“ASIC encourage issuers to make relevant and
complete disclosures. It plays an important role in
investors’ decisions to invest, remain invested or to exit
the product,” he added
ASIC will also be adding information about upcoming
Stronger Super changes to the MoneySmart website for
the benefi t of consumers, Fitzpatrick added.
MySuper fl exibility makes
tailored offerings unnecessaryBY BENJAMIN LEVY
Treasury has told super funds that the
insurance and fee fl exibility included in
MySuper makes it unnecessary to offer
separate tailored MySuper offerings for
large employers.
In an address to the Association
of Super Funds of Australia super
compliance summit, audience members
were told that while super funds were
allowed to create and tailor additional
MySuper products for large employers,
the fl exibility in the original MySuper
product made it unnecessary.
Flexibility with insurance
arrangements and administration fees
at the workplace level may lead super
funds to think they can tailor different
products for large employers, but given
the fl exibility in the original offering
they may want to ask if that was really
needed, according to principal
adviser for the superannuation,
fi nancial systems division
of Treasury, Jonathan
Rollings.
Super funds can instead
create one MySuper
product and white-label
it to refl ect different
workplaces, he said.
A large employer
must have at least 500
employers, Rollings said.
“You can replace the default insurance
schemes in the MySuper product
with different schemes in different
workplaces, and the legislation also
allows for different administration fees to
apply to different workplaces, to refl ect
any administrative effi ciencies that may
be accruing,” he said.
Rollings also emphasised that
MySuper is not a separate fi nancial
product for the purposes of the
Corporations Act, and therefore there is
no need for super funds to have separate
accounts for members during the
transition phase.
“It should be able to operate akin to a
current default investment option, and
can sit within a member’s single account
as an investment option,” Rollings said.
Treasury will await any feedback
about the issue, he added.
SCT takes trustees to task on member correspondenceTrustees must be “fiduciaries first and marketers second” when they compose letters to their members, says Superannuation Complaints Tribunal (SCT) chair Jocelyn Furlan.
Speaking at the Association of Superannuation Funds of Australia Compliance Summit in Sydney, Fur-lan cited a recent SCT determination in which a super fund had engaged in misleading correspondence.
The complainant received a letter that promised “Better insurance, lower premiums” in bold at the top of the correspondence. It went on to promise better insurance cover-age and lower premiums “for most members”.
The fund in question had in-creased its total and permanent disability (TPD) coverage and intro-duced bulk, opt-out salary continu-ance coverage for members as of 1 July 2011.
The complainant saw her TPD premium increase from $25 to $40 a month, in addition to her new salary continuance premium of $34 a month – taking her total premium from $25 to $74.
“[The complainant] said that when the fund wrote to her they were well aware that they were more than
doubling the premiums payable, and should have included this informa-tion in the letter to her. Instead, she said, it chose to omit this informa-tion and actively mislead her,” said Furlan.
Furlan said the trustee’s claims that “most people” would pay less premiums was “perhaps misleading”.
“Because the fund was introduc-ing salary continuance coverage for the first time, it must have been increasing premiums – for all mem-bers – in relation to the salary con-tinuance component,” said Furlan.
Because the details of the letter did in fact contain the correct pre-miums for the complainant, the SCT did not find in her favour.
However, Furlan added: “We’re getting a lot of complaints about this and I think some of them are actu-ally about poor practice.
“I would encourage trustees to think about what 12 per cent [superannuation guarantee] might mean in terms of your fiduciary obligations and the fact that the average account balance is rising all the time, and what that means about the quality of communica-tion you have with them,” she said.
6 SuperReview MAY 2012 www.superreview.com.au
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A tarnished legacy?
If there has been a common theme to
research conducted in the fi nancial services
industry over the past decade, it is that
government tinkering with the superannua-
tion policy settings only serves to undermine
investor confi dence in superannuation.
Putting aside issues of investor confidence,
the Government’s Budget night changes have
also served to increase the workload on both
superannuation funds and administrators as
they seek to accommodate the new, differential
taxation approach.
This extra burden on funds and administra-
tors comes on top of that already being carried as
the industry attempts to cope which the changes
fl owing from the Government’s Stronger Super
agenda, not least the requirements around
MySuper, SuperStream and initiatives such as
auto-consolidation.
As the roundtable published in this edition of
Super Review makes clear, the challenges being
confronted by almost all the superannuation
stakeholders and service providers are consider-
able and will require a good deal of time and effort
to bed down.
What is disturbing about the changes announced
in the Federal Budget is that it is hard to accept
that they are not an almost totally politically expe-
dient exercise – a part of the Government’s efforts
to fulfi ll its undertaking to return the Budget to
surplus in the 2012-13 Budget year.
Just how politically expedient this exercise has
proved to be is underlined by the fact that the
Government’s critics have claimed that it lacks
legitimacy, based on the ultimate size of the
forecast surplus and the manner in which it is
being achieved.
Indeed, it is hard to argue with those who
maintain that the inherent costs of tinkering with
super are such that they will ultimately outweigh
the economic benefits the Government believes
will be achieved from returning the Budget to a
technical surplus.
In again fi ddling with the superannuation
settings in the 2012-13 Budget, the Gillard Govern-
ment has again made the mistake of ignoring the
consistent fi ndings of intergenerational reports by
seeking to pursue narrow political objectives and
by treating the industry as a revenue milch cow.
While every intergenerational report produced by
the Federal Treasury has pointed to the danger of
retirement incomes shortfalls and the consequent
adverse impacts on Budgets in the out-years, the
Treasurer has looked to meet shorter-term, highly
political imperatives.
Further, the Government’s actions in the
2012-13 Budget need to be viewed against the
background of its earlier tinkering with superan-
nuation, particularly around co-contributions,
concessional contribution caps and its half-
hearted attempt to remedy the excessively punitive
regime around excess contributions.
Looked at harshly, the current Labor Govern-
ment has left itself open to being accused of
having tarnished the fi ne legacy left by the Hawke
and Keating Governments which oversaw the
introduction of award superannuation and then the
implementation of the superannuation guarantee.
Some might, in fact, argue that the Treasurer
Wayne Swan and the Minister for Financial Serv-
ices, Bill Shorten, might have been well served in
reviewing the original objectives of the superan-
nuation guarantee and the manner in which their
Labor predecessors envisaged relieving pressure
on Australia’s future social welfare system.
The bottom line, however, is that the superan-
nuation industry must now hunker down to ensure
that administrative systems can cope with the new
complexity generated by the Budget changes, at
the same time as making sure things are ready
with respect to the major changes from the
Stronger Super initiatives.
Assuming Australian political events adhere to
the traditional calendar, then this ought to have
been the penultimate Gillard/Swan Budget before
the next Federal Election. If so, it does not repre-
sent a glowing legacy in terms of its contribution
to sound superannuation policy.
– Mike Taylor
10 SuperReview MAY 2012 www.superreview.com.au
The superannuation tinkering contained in the Federal Budget makes it a poor legacy for a Government sharing the same heritage as the Hawke/Keating originators of the Superannuation Guarantee.
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Planning and super set to grow closer
12 SuperReview MAY 2012 www.superreview.com.au
T
Financial planning was already an integral part of the superannuation equa-tion but, as Damon Taylor writes, the Government’s FOFA and Stronger Super initiatives have created an even closer relationship.
www.superreview.com.au MAY 2012 SuperReview 13
continued on page 14 >
> continued from page 13
continued on page 16 >
“For better or worse, interest and engagement in superannuation only really kicks in at 45 to 50.”
– Anthony Rodwell-Ball
To subscribe
14 SuperReview MAY 2012 www.superreview.com.au
> continued from page 14
“But, at the other end of the spectrum, we also have quite sophisticated inves-tors who have sig-nificant balances ...”
– Paul Watson
16 SuperReview MAY 2012 www.superreview.com.au
Damian Hill
SR
www.superreview.com.au MAY 2012 SuperReview 17
“What we should instead be measuring is whether members are getting better financial outcomes as a result.”
– Damian Hill
18 SuperReview MAY 2012 www.superreview.com.au
The latest Metlife Super Review survey has revealed strong support for some fundamental changes to the default funds under modern awards regime.
D Super fund stress test needed
58.0%
YES38.0%
NO
The Productivity
Commission has
indicated it will consider
recommending that all
MySuper funds should
be eligible as default
funds. Do you approve of
this move?
61.1%
YES36.0%
NO
The Productivity
Commission is
reviewing default funds
under modern awards.
Do you believe the
implementation of
MySuper should be
delayed until the PC
tables its report?
54.0%
YES42.0%
NO
Under the default funds
under modern awards
regime, the industrial
judiciary in the form of Fair
Work Australia plays a
crucial role. Do you believe
the industrial judiciary
should be involved in
superannuation?
www.superreview.com.au MAY 2012 SuperReview 19
Survey respondents find APRA data useful
Industry split on super fund numbers Insurers must make
claims handling a priority
84.1%
YES14.2%
NO
The Australian Prudential
Authority delivers a range
of data on superannuation
fund performance.
Thinking about your fund,
do you find that data
useful?
77.0%
YES22.2%
NO
A number of specialist
ratings houses such as
SuperRatings and Chant
West produce monthly
data on superannuation
fund performance. Do you
find this data useful?
34.1%
APRA
4.0%
Chant West
50.0%
SuperRatings
Which fund performance
do you find most timely
and useful?
49.2%
YES47.6%
NO
Do you believe there
should be fewer but larger
superannuation funds in
Australia?
87.3%
YES9.6%
NO
Do you believe
superannuation funds
should be required to
undergo annual
stress-testing to ensure
they have adequate levels
of liquidity?
IN CONJUNCTION WITH
20 SuperReview MAY 2012 www.superreview.com.au
Stronger Super
Super Review Roundtable
SPONSORED BY
Left to right: Gavin Lai, Anthony Rodwell-Ball, Russell Mason
www.superreview.com.au MAY 2012 SuperReview 21
Mike TaylorCHAIR
Russell MasonPARTNER, DELOITTE
Anthony Rodwell-BallCEO, NGS SUPER
Tim BuskensCIO, AAS
Margaret StewartPOLICY DIRECTOR, ASFA
Peter BeckCEO, PILLAR ADMINISTRATION
Gavin LaiSENIOR PRODUCT MANAGER, TAL
Sean WilliamsonHEAD OF CUSTOMER SOLUTIONS, TAL
PRESENT
The challenges confronting the superannuation industry in implementing the Government’s Stronger Super agenda, including auto-consolidation are considerable. A Super Review roundtable identified the hurdles and how the key parties are approaching them.
continued on page 22 >
SPONSORED BY
Q
22 SuperReview MAY 2012 www.superreview.com.au
SPONSORED BY
22 SuperReview MAY 2012 www.superreview.com.au
What sort of transition time is needed?
continued on page 24 >
> continued from page 21
“Why protect those members under $1,000? I am for consolidation because I think it will be auto-consolidation.”
– Anthony Rodwell-Ball
Margaret Stewart and Sean Williamson
Q
Q
24 SuperReview MAY 2012 www.superreview.com.au
SPONSORED BY
> continued from page 22
“We can’t assume someone with $5,000 or $500,000 in an inactive account is engaged or unen-gaged. We have got this multitude, mil-lions of members out there, and one size won’t fit all.”
– Russell Mason Russell Mason
Left to right: Gavin Lai, Anthony Rodwell-Ball, Russell Mason
www.superreview.com.au MAY 2012 SuperReview 25
SPONSORED BY
continued on page 26 >
Nanny state approach?Q
26 SuperReview MAY 2012 www.superreview.com.au
SPONSORED BY
> continued from page 25
Tim Buskens and Peter Beck
28 SuperReview MAY 2012 www.superreview.com.au
SPONSORED BY
Are the insurers communicating?
> continued from page 27
“I think there is a role for the fund, the insurer, the administrator, to work together at a fund level.”
– Sean Williamson
Q
www.superreview.com.au MAY 2012 SuperReview 29
SPONSORED BY
TAL Life Limited ABN 70 050 109 450 AFSL 237 848, www.tal.com.au
Member communicationsMike Taylor
continued on page 30 >
Q
30 SuperReview MAY 2012 www.superreview.com.au
SPONSORED BY
SR
Gavin Lai
> continued from page 29
“Just because they have less than $1,000 and they aren’t engaged, it doesn’t mean that they need insurance any less ...”
– Gavin Lai
Q
AMP has appointed Libby Roy to the role of Multiport managing director following the announcement that current Multiport managing director and founder John Mcllroy would be departing in June this year.
Roy, former general manager of ipac financial planning, has been transitioning into her new role in an interim capacity since mid-April.
AMP director of banking and wealth management products Rob Caprioli said Mcllroy had made a significant contribution to the development of the self-managed super fund market in Australia, with Multiport managing more than $2 billion in funds under management.
With more than 17 years experience across Australia and the United States, Roy was most recently responsible for ipac’s inhouse and equity partner network of approximately 150 financial advisers. She has also held a number of positions in financial services, including general management, marketing, product development and operations.Libby Roy
Tim Samway
MANDATES
www.superreview.com.au MAY 2012 SuperReview 31
In a move to boost its consultancy serv-ices for trustees, advisers and account-ants, Multiport has appointed Marjon Muizer as a technical services consultant.
Multiport technical services director Philip LaGreca said Muizer’s appoint-ment was consistent with the demand for Multiport’s services amid the growth of the self-managed superannuation fund sector.
Muizer previously worked at PKF Chartered Accountants and was also a manager in superannuation for Dixon Advisory and Superannuation Services.
“Marjon’s background working with accountants is essential in understanding advisers’ and accountants’ needs,” LaGreca said.
He added that Marjon’s experience working with accountants would be essential in facilitating the needs of Multiport’s adviser and accountant base, which had grown significantly over the past six years.
MLC names analystMLC Investment Management has appointed Greg Michel as senior
research analyst.Reporting to MLC head of fixed
income Stuart Piper, Michel has approximately 29 years experience managing fixed income portfolios.
His most recent position was as head of fixed income at ING Investment Management, where he was respon-sible for a team of eight professionals and the management of approximately $14 billion in cash and fixed income assets.
MLC appointmentMLC Investment Management has also appointed Chris Clayton as head of asset management.
With over 15 years experience in sales and distribution, Clayton was most recently chief executive of Acadian Asset Management, a Colonial First State venture.
National Australia Bank stated that Clayton has a deep understanding of the retail distribution aspects of the investment management sector and is well positioned to step into his new role.
Hyperion Asset Management has announced that Tim Samway will succeed Dr Emmanuel Pohl as managing director.
After founding the company 16 years ago, Pohl is stepping down from his role to set up a new private equity business at Hyperion, as well as focus on Hyperion Flagship Investments and the individually managed accounts.
Samway is currently Hyperion’s institutional business director and has been with the company since its inception. Hyperion stated that in his new role Samway would ensure the continuity of the firm’s strategy, investment process and team.
His previous experience included senior management and board experience at Hyperion Wilson HTM, Burrows and Deloitte.
Libby Roy heads Multiport
Key Multiport appointment
Samway leads Hyperion
Received by Type of mandate Issued by Amount
Tuvalu Trust Fund Custody AMP Multi-Asset Fund $55 million
Aubrey Capital Management Custody Skandia Investment Group $30 million
Capital International Custody MLC Horizons n/a
BNP Paribas Custodian services AvSuper n/a
32 SuperReview MAY 2012 www.superreview.com.au
Comrades-in-Armani
Frequent fl yers bonus points bingo
Woodward’s 2-wood break no Bollywood
ROLLOVER notes that his erstwhile colleague Gerard Noonan has completed his two-
year term as president of the Australian Institute of Superannuation Trustees and will be
succeeded by Cate Woods.
Noonan, a former editor of the Australian Financial Review and stalwart of the union
representing journalists and jugglers – the Media, Entertainment and Arts Alliance –
ascended to the presidency of the Australian Institute of Superannuation Trustees (AIST)
via his long-standing involvement with the trustee board of what was once the Journal-
ists’ Union Superannuation Trust, which later became Media Super.
Noonan brought a particular flavour to his presidency of AIST, and Rollover particularly
noted his propensity to address assembled delegates at the Conference of Major Super-
annuation Funds as “comrades”.
It was reminiscent of former Labor Prime Minister Gough Whitlam, who despite his
background in the Sydney legal fraternity and the city’s well-heeled eastern suburbs also
frequently greeted his friends as “comrade”.
For his part, Rollover holds to the view that it is comrades who mount the barricades
and that anyone pulling down a Fairfax editor’s salary, or a Sydney barrister’s retainer,
should probably look to alter their vocabulary.
TIMES continue to be challenging in funds management land, and
Rollover has noted the number of senior executive types currently facing
uncertain futures and those who might be thought of as currently between
engagements.
Since the beginning of 2012, Rollover has noted the departure of Tyndall’s
Craig Hobart and Zurich’s Matt Drennan amongst others, and he hears tell
that the gates have been opened to the ‘departure terminals’ at a number of
other companies.
As the end of the financial year approaches, he is expecting to hear a good
deal more about imminent departures.
Then, too, there are those he expects will collect their bonuses before
charting their own destinies.
ROLLOVER wishes to send his best wishes for a speedy recovery to Pillar Administration’s Chris Woodward.
Woodward, you see, has led the Pillar team to a number of famous victo-ries in the annual Super Review Charity Golf Day but over Easter managed to break his collar bone, thus precluding his spectacular driving feats on the fairways.
Rollover has heard a number of outrageous rumours from Woodward’s colleagues about how he might have sustained the injury, but cannot be-lieve suggestions involving table dancing and an abject lack of balance.
Whatever the case might be, Rollover is prepared to wager that he can currently out-drive Woodward on the fairways.