Response

(Publication date) 

Responses to questions 63 to 90

(6 July 2020)
(PDF1,830KB)

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

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

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

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

a. recent decline in the share market?

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

Liquidity management:

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

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

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

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

a. REST?

b. Hostplus?

c. any other superannuation fund?

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

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?

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.

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.

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

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

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

c. And please provide copies.

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

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

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

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

d. What prompted any switch to these definitions?

e. What the prior definitions were before any switch?

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

a. Your board of directors?

b. Your investment committee?

c. And if not, why not?

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

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

a. And if not, why not?

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

c. And if so, on what timeframe?

Do you currently have an art collection?

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

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

 Do you engage proxy advisers?

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

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

c. Does their advice get provided to the board?

d. How often is advice submitted to the board?

e. Is their advice formally adopted by the board?

f. Are their positions publicly stated?

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

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

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

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

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

Response

(Publication date)

I understand the chair has written in similar terms to ASIC. Can I ask the representatives of ASIC: has the chair referred to you any questions of conflict of interest by retail funds?

(3 July 2020)(PDF40KB)

Response

(Publication date)

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

Responses to Questions 1-76

(25 May 2020)(PDF3,177KB)

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

a. Listed investments.

b. Unlisted investments.

c. Total investments.

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

a. Listed investments.

b. Unlisted investments.

c. Total investments.

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

a. The asset name and location.

b. The frequency of the revaluation of the asset.

c. The most recent valuation.

d. A copy of that valuation.

e. The methodology used for its valuation.

f. Whether the valuation was completed internally or externally.

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

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

a. The asset name and location.

b. The frequency of the revaluation of the asset.

c. The most recent valuation.

d. A copy of that valuation.

e. The methodology used for its valuation.

f. Whether the valuation was completed internally or externally.

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

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

b. The companies awarded campaigns.

c. The total cost of each campaign.

d. The cost of the campaign’s development.

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

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

Over the last five financial years:

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

b. What were the total assets under management?

c. What are the total number of employees?

d. What are the total number of contractors?

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

Over the last five financial years:

a. What is the total number of member accounts?

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

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

d. What was the average member balance?

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

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

Over the last five financial years:

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

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

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

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

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

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

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

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

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

Over the last five financial years:

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

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

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

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

b. The total value of that reserve?

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

In the context of building investments:

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

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

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

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

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

Governance:

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

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

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

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

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

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

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

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

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

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

k. Does your board have gender balance?

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

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

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

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

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

a. Investment fees

b. Administration fees

c. Indirect costs

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

e. An aggregate total of all fees mentioned above.

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

a. Investment fees

b. Administration fees

c. Indirect costs

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

e. An aggregate total of all fees mentioned above.

For the past five years:

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

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

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

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

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

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

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

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

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

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

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

a. Google advertisements

b. Google search terms.

How will the overall fund performance be affected if:

a. The income return of unlisted assets declines?

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

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

Valuation methodologies:

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

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

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

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

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

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

i. total value?
ii. total property value?

Discount rates:

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

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

Over the past decade:

a. Have you ever devalued an unlisted asset?

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

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

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

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

For each year of the past decade:

a. How many fund members do you have?

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

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

For each year of the past decade:

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

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

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

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

For each year of the past decade:

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

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

For each year of the past decade:

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

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

For each year of the past decade:

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

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

For each year of the past decade:

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

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

Over the past five years:

a. How many employees have been cautioned for misconduct?

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

c. How many employees have been terminated for misconduct?

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

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

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

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

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

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

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

a. recent decline in the share market?

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

Liquidity management:

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

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

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

Response

(Publication date)

Responses to Questions 1-61

(22 May 2020)(PDF328KB)

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

a. Listed investments

b. Unlisted investments

c. Total investments.

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

a. Listed investments

b. Unlisted investments

c. Total investments.

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

a. The asset name and location.

b. The frequency of the revaluation of the asset.

c. The most recent valuation.

d. A copy of that valuation.

e. The methodology used for its valuation.

f. Whether the valuation was completed internally or externally.

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

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

a. The asset name and location.

b. The frequency of the revaluation of the asset.

c. The most recent valuation.

d. A copy of that valuation.

e. The methodology used for its valuation.

f. Whether the valuation was completed internally or externally.

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

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

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

b. The companies awarded campaigns.

c. The total cost of each campaign.

d. The cost of the campaign’s development.

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

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

Over the last five financial years:

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

b. What were the total assets under management?

c. What are the total number of employees?

d. What are the total number of contractors?

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

Over the last five financial years:

a. What is the total number of member accounts?

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

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

d. What was the average member balance?

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

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

Over the last five financial years:

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

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

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

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

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

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

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

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

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

Over the last five financial years:

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

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

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

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

b. The total value of that reserve?

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

In the context of building investments:

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

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

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

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

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

Governance:

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

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

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

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

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

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

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

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

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

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

k. Does your board have gender balance?

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

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

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

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

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

a. Investment fees

b. Administration fees

c. Indirect costs

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

e. An aggregate total of all fees mentioned above.

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

a. Investment fees

b. Administration fees

c. Indirect costs

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

e. An aggregate total of all fees mentioned above.

For the past five years:

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

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

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

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

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

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

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

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

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

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

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

a. Google?

b. Facebook?

c. Twitter?

d. Instagram?

e. A non-Google search engine?

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

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

a. Google advertisements

b. Google search terms.

How will the overall fund performance be affected if:

a. The income return of unlisted assets declines?

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

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

Valuation methodologies:

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

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

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

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

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

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

i. total value?
ii. total property value?

Discount rates:

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

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

Over the past decade:

a. Have you ever devalued an unlisted asset?

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

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

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

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

For each year of the past decade:

a. How many 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?

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?

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?

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?

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?

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?

Over the past five years:

a. How many employees have been cautioned for misconduct?

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

c. How many employees have been terminated for misconduct?

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

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

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

Responses to questions 62 - 71

(17 June 2020)
(PDF35KB)

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

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

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

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

a. recent decline in the share market?

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

Liquidity management:

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

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

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

Response

(Publication date)

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

Responses to Questions 1-62

(14 May 2020)(PDF974KB)

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

a. Listed investments.

b. Unlisted investments.

c. Total investments.

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

a. Listed investments.

b. Unlisted investments.

c. Total investments.

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

a. The asset name and location.

b. The frequency of the revaluation of the asset.

c. The most recent valuation.

d. A copy of that valuation.

e. The methodology used for its valuation.

f. Whether the valuation was completed internally or externally.

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

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

a. The asset name and location.

b. The frequency of the revaluation of the asset.

c. The most recent valuation.

d. A copy of that valuation.

e. The methodology used for its valuation.

f. Whether the valuation was completed internally or externally.

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

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

b. The companies awarded campaigns.

c. The total cost of each campaign.

d. The cost of the campaign’s development.

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

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

Over the last five financial years:

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

b. What were the total assets under management?

c. What are the total number of employees?

d. What are the total number of contractors?

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

Over the last five financial years:

a. What is the total number of member accounts?

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

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

d. What was the average member balance?

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

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

Over the last five financial years:

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

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

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

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

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

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

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

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

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

Over the last five financial years:

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

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

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

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

b. The total value of that reserve?

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

In the context of building investments:

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

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

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

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

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

Governance:

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

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

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

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

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

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

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

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

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

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

k. Does your board have gender balance?

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

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

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

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

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

a. Investment fees

b. Administration fees

c. Indirect costs

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

e. An aggregate total of all fees mentioned above.

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

a. Investment fees

b. Administration fees

c. Indirect costs

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

e. An aggregate total of all fees mentioned above.

For the past five years:

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

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

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

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

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

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

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

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

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

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

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

a. Google advertisements

b. Google search terms.

How will the overall fund performance be affected if:

a. The income return of unlisted assets declines?

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

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

Valuation methodologies:

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

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

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

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

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

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

i. total value?
ii. total property value?

Discount rates:

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

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

Over the past decade:

a. Have you ever devalued an unlisted asset?

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

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

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

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

For each year of the past decade:

a. How many fund members do you have?

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

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

For each year of the past decade:

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

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

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

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

For each year of the past decade:

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

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

For each year of the past decade:

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

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

For each year of the past decade:

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

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

For each year of the past decade:

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

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

Over the past five years:

a. How many employees have been cautioned for misconduct?

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

c. How many employees have been terminated for misconduct?

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

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

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

Responses to Questions 63 - 76

(27 May 2020)
(PDF974KB)

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

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

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

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

a. recent decline in the share market?

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

Liquidity management:

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

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

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

Response

(Publication date)

Please provide the details of the governance structure of ME Bank, including:

a. The Executive management and their committees.

b. The Board and their committees.

c. The frequency of Board meetings.

Responses to Questions 1- 11

(14 May 2020)
(PDF534KB)

Please provide details of:

a. the shareholdings of ME Bank, including shareholders and percentage shareholdings on 1 January 2020.

b. any change to industry funds shareholdings of ME Bank, including shareholders and percentage shareholdings since 1 January 2020.

Please provide details of any capital provided by ME Bank to CBUS since 12 March 2020 through:

a. loans.

b. debt facilities.

c. the temporary or permanent reallocation of shares.

d. the temporary or permanent sale of shares.

Please provide details of any capital provided by ME Bank to REST since 12 March 2020 through:

a. loans.

b. debt facilities.

c. the temporary or permanent reallocation of shares.

d. the temporary or permanent sale of shares.

Please provide details of any capital provided by ME Bank to Hostplus since 12 March 2020 through:

a. loans.

b. debt facilities.

c. the temporary or permanent reallocation of shares.

d. the temporary or permanent sale of shares.

In the context of the decision by ME Bank to confiscate customers savings from accounts to pay down the principal of a mortgage, please provide the following details:

a. The legal terms and conditions that ME Bank can make such a decision.

b. The date that it was proposed to the Executive.

c. The date that the decision was made by the Executive.

d. The committee that proposed the decision to the Board.

e. A copy of their submission proposing it to the Board.

f. The date that it was proposed to the Board.

g. The date that the decision was approved by the Board.

h. The date that the decision was communicated to staff within ME Bank.

i. A copy of their notification to staff within ME Bank.

j. The decision making process made by ME Bank to justify such a decision at a bank level.

k. The decision making process made by ME Bank to justify such a decision at an individual mortgage level.

l. Whether any assessment was made across ME Bank of the volume of savings that would be confiscated, customers affected and the reduction in the debt held by ME Bank.

m. The decision making process of calculating the dollar value for each customer.

n. The assessment made of the financial capacity of the customer prior to the confiscation of their savings.

o. The assessment of the employment status and income of the customer prior to the confiscation of their savings.

p. A copy of the notification provided to mortgage holders of the confiscation of their savings.

q. The timeframe for notification provided to mortgage holders of the confiscation of their savings.

r. The flexibility for redraw confiscated savings to affected mortgage holders.

In the context of the decision by ME Bank to confiscate customers savings from offset accounts to pay down the principal of a mortgage, please provide the following details:

a. The legal terms and conditions that ME Bank can make such a decision.

b. The date that it was proposed to the Executive.

c. The date that the decision was made by the Executive.

d. The committee that proposed the decision to the Board.

e. A copy of their submission proposing it to the Board.

f. The date that it was proposed to the Board.

g. The date that the decision was approved by the Board.

h. The date that the decision was communicated to staff within ME Bank.

i. A copy of their notification to staff within ME Bank.

j. The decision making process made by ME Bank to justify such a decision at a bank level.

k. The decision making process made by ME Bank to justify such a decision at an individual mortgage level.

l. Whether any assessment was made across ME Bank of the volume of savings that would be confiscated, customers affected and the reduction in the debt held by ME Bank.

m. The decision making process of calculating the dollar value for each customer.

n. The assessment made of the financial capacity of the customer prior to the confiscation of their savings.

o. The assessment of the employment status and income of the customer prior to the confiscation of their savings.

p. A copy of the notification provided to mortgage holders of the confiscation of their savings.

q. The timeframe for notification provided to mortgage holders of the confiscation of their savings.

r. The flexibility for redraw confiscated savings to affected mortgage holders.

Since 1 January 2020, how many mortgage holders have had savings from their accounts taken and paid against the principal of their mortgage products?

a. Individuals and mortgage products?

b. In dollar value?

Responses to questions 12 -23

(5 June 2020)
(PDF534KB)

In the contracting of Mr Tony Beck:

a. What are the terms of his contract?

b. What are the services he is hired to provide?

c. What is the financial value of his current contract?

d. What is the length of the terms of his current contract?

e. What is the date of commencement of his current contract?

f. For how many years has he been contracted prior to his current contract?

Please provide in a table for each year since ME Bank’s formation:

a. ME Bank’s valuation.

b. Dividends paid to shareholders.

c. Capital provided from shareholders.

In the context of the decision by ME Bank to reduce the redraw facilities of customers, please provide the following details:

a. The legal terms and conditions that ME Bank can make such a decision.

b. The date it was proposed to the Executive.

c. The date that the decision was made by the Executive.

d. The committee that proposed the decision to the Board.

e. The date of the formation of the committee that proposed the decision to the Board.

f. The paper provided by management to the committee.

g. The paper provided by the committee to the Board.

h. The date that it was proposed to the Board.

i. The date that the decision was approved by the Board.

j. The date that the decision was communicated to staff within ME Bank.

k. A copy of their notification to staff within ME Bank.

l. The decision making process made by ME Bank to justify such a decision at a bank level.

m. The decision making process made by ME Bank to justify such a decision at an individual redraw facility level.

n. Whether any assessment was made across ME Bank of the value of redraw facilities that would be reduced.

o. The average dollar value for each customer.

p. The assessment made of the financial capacity of the customers impacted prior to the reduction in redraw facilities.

q. The assessment of the employment status and income of the customer prior to the reduction of their redraw facilities.

r. A copy of the notification provided to customers who had their redraw facilities reduced.

s. The date of the notification’s distribution.

t. The date and time of the decision made to allow customers to be able to reverse ME Bank’s decision.

u. The date and time of ME Bank’s receipt of notification that it would be required to appear before the House of Representatives Standing Committee on Economics.

v. The number of customers who have nominated to reverse the decision of ME Bank.

w. The value of the options exercised by customers who have nominated to reverse the decision of ME Bank.

x. The date ME Bank informed ASIC of its intent to reduce the redraw facility of its customers.

y. A copy of the notification to ASIC of ME Bank’s intent to reduce the redraw facility of its customers.

z. The date ME Bank informed ASIC of its decision to reduce the redraw facility of its customers.

aa. A copy of the notification to ASIC of ME Bank’s decision to reduce the redraw facility of its customers.

bb. The date ME Bank informed APRA of its intent to reduce the redraw facility of its customers.

cc. A copy of the notification to APRA of ME Bank’s intent to reduce the redraw facility of its customers.

dd. The date ME Bank informed APRA of its decision to reduce the redraw facility of its customers.

ee. A copy of the notification to APRA of ME Bank’s decision to reduce the redraw facility of its customers.

Hansard p. 21

14 May 2020

Hansard p. 25

14 May 2020

Hansard p. 31

14 May 2020

Hansard p. 21

14 May 2020

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.

Responses to Questions 27- 33

(16 June 2020)
(PDF630KB)

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?

ME31QW

Do you currently have an art collection?

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

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

Do you engage proxy advisers?

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

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

c. Does their advice get provided to the Board?

d. How often is advice submitted to the Board?

e. Is their advice formally adopted by the Board?

f. Are their positions publicly stated?

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

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

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

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

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

Responses to questions 34 - 42

(24 June 2020)
(PDF255KB)

In an article from 14 November 2014, ‘Review sparks questions about ME Bank sale’, Australian Financial Review:

a. Mr McPhee is quoted as saying ‘no one has given me that indication at all’ regarding the potential sale of ME Bank. Can he clarify whether that statement remains true today?
b. Reference is made to HESTA’s holding of ME Bank at $151 million (reflecting 15.9 per cent of ME Bank), which could be crudely calculated as putting the valuation of ME Bank at $950 million.

i. Does ME Bank agree with that valuation at that time, and if not, what was the valuation at that time?
ii. What is the valuation today?

c. Reference is made to ME Bank having 312,000 customers at around 4 per cent of industry super fund members. What are those numbers for 30 June 2019?

Response

(Publication date)

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

Responses to Questions 1-62

(8 May 2020)(PDF1,054KB)

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

a. Listed investments.

b. Unlisted investments.

c. Total investments.

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

a. Listed investments.

b. Unlisted investments.

c. Total investments.

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

a. The asset name and location.

b. The frequency of the revaluation of the asset.

c. The most recent valuation.

d. A copy of that valuation.

e. The methodology used for its valuation.

f. Whether the valuation was completed internally or externally.

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

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

a. The asset name and location.

b. The frequency of the revaluation of the asset.

c. The most recent valuation.

d. A copy of that valuation.

e. The methodology used for its valuation.

f. Whether the valuation was completed internally or externally.

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

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

b. The companies awarded campaigns.

c. The total cost of each campaign.

d. The cost of the campaign’s development.

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

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

Over the last five financial years:

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

b. What were the total assets under management?

c. What are the total number of employees?

d. What are the total number of contractors?

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

Over the last five financial years:

a. What is the total number of member accounts?

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

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

d. What was the average member balance?

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

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

Over the last five financial years:

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

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

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

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

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

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

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

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

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

Over the last five financial years:

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

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

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

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

b. The total value of that reserve?

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

In the context of building investments:

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

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

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

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

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

Governance:

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

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

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

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

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

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

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

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

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

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

k. Does your board have gender balance?

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

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

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

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

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

a. Investment fees

b. Administration fees

c. Indirect costs

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

e. An aggregate total of all fees mentioned above.

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

a. Investment fees

b. Administration fees

c. Indirect costs

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

e. An aggregate total of all fees mentioned above.

For the past five years:

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

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

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

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

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

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

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

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

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

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

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

a. Google advertisements

b. Google search terms.

How will the overall fund performance be affected if:

a. The income return of unlisted assets declines?

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

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

Valuation methodologies:

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

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

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

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

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

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

i. total value?
ii. total property value?

Discount rates:

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

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

Over the past decade:

a. Have you ever devalued an unlisted asset?

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

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

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

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

For each year of the past decade:

a. How many fund members do you have?

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

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

For each year of the past decade:

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

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

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

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

For each year of the past decade:

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

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

For each year of the past decade:

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

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

For each year of the past decade:

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

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

For each year of the past decade:

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

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

Over the past five years:

a. How many employees have been cautioned for misconduct?

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

c. How many employees have been terminated for misconduct?

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

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

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

Responses to questions 63 - 76

(16 June 2020)
(PDF227KB)

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

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

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

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

a. recent decline in the share market?

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

Liquidity management:

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

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

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

Response

(Publication date)

Over the last five financial years:

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

b. What were the total assets under management?

c. What are the total number of employees?

d. What are the total number of contractors?

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

Responses to Questions 1-50

(4 May 2020)
(PDF1,475KB)

Over the last five financial years:

a. What is the total number of member accounts?

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

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

d. What was the average member balance?

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

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

Over the last five financial years:

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

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

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

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

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

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

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

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

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

Over the last five financial years:

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

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

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

In the context of building investments:

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

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

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

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

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

Governance:

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

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

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

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

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

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

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

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

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

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

k. Does your board have gender balance?

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

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

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

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

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

a. Investment fees

b. Administration fees

c. Indirect costs

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

e. An aggregate total of all fees mentioned above.

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

a. Investment fees

b. Administration fees

c. Indirect costs

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

e. An aggregate total of all fees mentioned above.

For the past five years:

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

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

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

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

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

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

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

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

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

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

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

a. Google?

b. Facebook?

c. Twitter?

d. Instagram?

e. A non-Google search engine?

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

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

a. Google advertisements

b. Google search terms.

How will the overall fund performance be affected if:

a. The income return of unlisted assets declines?

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

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

Valuation methodologies:

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

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

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

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

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

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

i. total value?
ii. total property value?

Discount rates:

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

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

Over the past decade:

a. Have you ever devalued an unlisted asset?

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

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

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

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

For each year of the past decade:

a. How many 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?

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?

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?

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?

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?

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?

Over the past five years:

a. How many employees have been cautioned for misconduct?

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

c. How many employees have been terminated for misconduct?

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

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

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

Responses to questions 51 - 60

(18 June 2020)
(PDF355KB)

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

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

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

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

a. recent decline in the share market?

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

Liquidity management:

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

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

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

Response

(Publication date)

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

Responses to Questions 1-62

(30 April 2020)(PDF2,448KB)

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

a. Listed investments.

b. Unlisted investments.

c. Total investments.

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

a. Listed investments.

b. Unlisted investments.

c. Total investments.

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

a. The asset name and location.

b. The frequency of the revaluation of the asset.

c. The most recent valuation.

d. A copy of that valuation.

e. The methodology used for its valuation.

f. Whether the valuation was completed internally or externally.

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

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

a. The asset name and location.

b. The frequency of the revaluation of the asset.

c. The most recent valuation.

d. A copy of that valuation.

e. The methodology used for its valuation.

f. Whether the valuation was completed internally or externally.

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

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

b. The companies awarded campaigns.

c. The total cost of each campaign.

d. The cost of the campaign’s development.

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

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

Over the last five financial years:

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

b. What were the total assets under management?

c. What are the total number of employees?

d. What are the total number of contractors?

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

Over the last five financial years:

a. What is the total number of member accounts?

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

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

d. What was the average member balance?

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

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

Over the last five financial years:

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

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

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

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

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

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

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

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

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

Over the last five financial years:

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

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

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

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

b. The total value of that reserve?

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

In the context of building investments:

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

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

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

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

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

Governance:

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

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

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

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

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

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

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

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

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

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

k. Does your board have gender balance?

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

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

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

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

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

a. Investment fees

b. Administration fees

c. Indirect costs

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

e. An aggregate total of all fees mentioned above.

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

a. Investment fees

b. Administration fees

c. Indirect costs

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

e. An aggregate total of all fees mentioned above.

For the past five years:

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

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

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

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

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

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

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

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

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

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

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

a. Google advertisements

b. Google search terms.

How will the overall fund performance be affected if:

a. The income return of unlisted assets declines?

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

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

Valuation methodologies:

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

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

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

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

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

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

i. total value?
ii. total property value?

Discount rates:

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

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

Over the past decade:

a. Have you ever devalued an unlisted asset?

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

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

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

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

For each year of the past decade:

a. How many fund members do you have?

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

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

For each year of the past decade:

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

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

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

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

For each year of the past decade:

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

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

For each year of the past decade:

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

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

For each year of the past decade:

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

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

For each year of the past decade:

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

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

Over the past five years:

a. How many employees have been cautioned for misconduct?

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

c. How many employees have been terminated for misconduct?

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

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

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

Responses to questions 63 - 76

(11 June 2020)
(PDF139KB)

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

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

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

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

a. recent decline in the share market?

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

Liquidity management:

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

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

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

Response

(Publication date)

Over the last five financial years:

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

b. What were the total assets under management?

c. What are the total number of employees?

d. What are the total number of contractors?

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

Responses to Questions 1-50

(23 April 2020)
(PDF1,396KB)

Over the last five financial years:

a. What is the total number of member accounts?

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

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

d. What was the average member balance?

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

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

Over the last five financial years:

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

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

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

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

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

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

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

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

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

Over the last five financial years:

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

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

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

In the context of building investments:

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

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

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

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

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

Governance:

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

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

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

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

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

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

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

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

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

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

k. Does your board have gender balance?

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

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

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

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

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

a. Investment fees

b. Administration fees

c. Indirect costs

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

e. An aggregate total of all fees mentioned above.

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

a. Investment fees

b. Administration fees

c. Indirect costs

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

e. An aggregate total of all fees mentioned above.

For the past five years:

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

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

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

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

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

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

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

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

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

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

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

a. Google?

b. Facebook?

c. Twitter?

d. Instagram?

e. A non-Google search engine?

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

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

a. Google advertisements

b. Google search terms.

How will the overall fund performance be affected if:

a. The income return of unlisted assets declines?

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

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

Valuation methodologies:

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

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

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

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

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

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

i. total value?
ii. total property value?

Discount rates:

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

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

Over the past decade:

a. Have you ever devalued an unlisted asset?

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

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

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

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

For each year of the past decade:

a. How many 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?

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?

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?

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?

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?

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?

Over the past five years:

a. How many employees have been cautioned for misconduct?

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

c. How many employees have been terminated for misconduct?

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

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

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

Responses to Questions 51-60

(26 May 2020)
(PDF387KB)

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

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

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

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

a. recent decline in the share market?

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

Liquidity management:

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

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

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

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

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

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

Responses to questions 61 - 74

(24 June 2020)
(PDF541KB)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

c. And please provide copies.

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

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

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

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

d. What prompted any switch to these definitions?

e. What the prior definitions were before any switch?

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

a. Your board of directors?

b. Your investment committee?

c. And if not, why not?

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

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

a. And if not, why not?

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

c. And if so, on what timeframe?

Do you currently have an art collection?

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

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

Do you engage proxy advisers?

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

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

c. Does their advice get provided to the board?

d. How often is advice submitted to the board?

e. Is their advice formally adopted by the board?

f. Are their positions publicly stated?

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

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

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

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

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

Response

(Publication date)

Over the last five financial years:

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

b. What were the total assets under management?

c. What are the total number of employees?

d. What are the total number of contractors?

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

Responses to Questions 1-50

(22 April 2020)
(PDF1,646KB)

Over the last five financial years:

a. What is the total number of member accounts?

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

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

d. What was the average member balance?

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

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

Over the last five financial years:

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

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

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

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

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

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

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

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

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

Over the last five financial years:

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

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

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

In the context of building investments:

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

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

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

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

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

Governance:

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

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

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

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

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

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

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

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

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

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

k. Does your board have gender balance?

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

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

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

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

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

a. Investment fees

b. Administration fees

c. Indirect costs

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

e. An aggregate total of all fees mentioned above.

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

a. Investment fees

b. Administration fees

c. Indirect costs

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

e. An aggregate total of all fees mentioned above.

For the past five years:

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

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

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

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

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

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

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

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

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

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

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

a. Google?

b. Facebook?

c. Twitter?

d. Instagram?

e. A non-Google search engine?

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

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

a. Google advertisements

b. Google search terms.

How will the overall fund performance be affected if:

a. The income return of unlisted assets declines?

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

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

Valuation methodologies:

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

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

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

d. Have you ever calculated whether there would be a difference between valuations if unlisted assets were listed?

a. How many unlisted assets do you hold in the fund?

b. What value share are unlisted assets of the fund’s:

i. total value?
ii. total property value?

Discount rates:

a. For unlisted assets, do you use a consistent discount rate for income across all unlisted assets, or an asset-specific discount rate?

b. What is the discount rate you apply to the income from unlisted assets, and has it changed over the past decade, and if so, when and why?

Over the past decade:

a. Have you ever devalued an unlisted asset?

b. Have you ever devalued an unlisted asset by more than $10 million?

c. Have you ever devalued an unlisted asset by more than $50 million?

d. Have you ever devalued an unlisted asset by more than $100 million?

e. Please advise the companies and/or individual valuers that have valued your unlisted assets.

For each year of the past decade:

a. How many 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?            

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?

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?

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?

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?

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?

Over the past five years:

a. How many employees have been cautioned for misconduct?

b. How many employees have had a penalty (such as, but not limited to, loss of bonus) for misconduct?

c. How many employees have been terminated for misconduct?

d. How many employees have been cautioned for misconduct, as a share of all employees over that timeframe?

e. How many employees have had a penalty (such as, but not limited to, loss of bonus) for misconduct, as a share of all employees over that timeframe?

f. How many employees have been terminated for misconduct, as a share of all employees over that timeframe?

Responses to questions 51 - 60

(17 June 2020)
(PDF823KB)

Listed companies holding infrastructure assets have had write downs of around 40 per cent:

a. How does this compare to your write down of unlisted assets?

b. If there is a difference, why is there a difference?

Have you had any liquidity issues in honouring your obligations to members as a result of the:

a. recent decline in the share market?

b. permission by the Federal government to allow members to remove up to $10,000 per financial year if they lose their job?

Liquidity management:

a. What is your fund’s process for complying with APRA’s prudential framework which requires trustees to have a liquidity management plan?

b. How is the plan being reported to the trustee directors?

c. Who is responsible for the day-to-day liquidity management for the fund?

Since 12 March 2020, has your fund provided any liquidity to:

a. REST?
b. Hostplus?
c. any other superannuation fund?

If so, for each fund, can you provide details of the amount, the date and the terms?

Responses to questions 61 - 62

(17 June 2020)
(PDF155KB)

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?

Response

(Publication date)

Please provide the details of any fund member briefings where it was possible to ask fund managers, executives or directors questions over the past five years.

Responses to Questions 1-62

(21 April 2020)(PDF4,774KB)

For the past five years the total value in dollars and as a percentage of the total value of a fund:

a. Listed investments.

b. Unlisted investments.

c. Total investments.

For the past five years the total value in dollars and as a percentage of the total return for the fund:

a. Listed investments.

b. Unlisted investments.

c. Total investments.

Details of each individual asset currently held at a value other than available listed market prices (an unlisted asset) wholly owned by the fund or funds under your control, including:

a. The asset name and location.

b. The frequency of the revaluation of the asset.

c. The most recent valuation.

d. A copy of that valuation.

e. The methodology used for its valuation.

f. Whether the valuation was completed internally or externally.

g. The details of any external party involved in the valuation.

Details of each individual asset currently held at a value other than available listed market prices (an unlisted asset) partly owned by the fund or funds under your control, including:

a. The asset name and location.

b. The frequency of the revaluation of the asset.

c. The most recent valuation.

d. A copy of that valuation.

e. The methodology used for its valuation.

f. Whether the valuation was completed internally or externally.

Details of costs for advertising campaigns for the past five years, including:

a. The companies invited to tender for all or parts of any advertising campaign.

b. The companies awarded campaigns.

c. The total cost of each campaign.

d. The cost of the campaign’s development.

e. Broadcasting (television, radio and internet) and publishing costs.

f. Assessment reports of the efficacy of campaigns in either retaining or gaining new members.

Over the last five financial years:

a. What is the total budget for all costs associated with the fund?

b. What were the total assets under management?

c. What are the total number of employees?

d. What are the total number of contractors?

e. What are the total number of externally hired contracts, and their value?

Over the last five financial years:

a. What is the total number of member accounts?

b. What is the total increase in the number of members as a result of the fund’s default status?

c. What is the total increase in the number of members through voluntary adoption or switching?

d. What was the average member balance?

e. What was the average dollar amount deducted in insurance fees per member, across all fund products in dollar terms and as a share of a member account?

f. What was the total number of inactive accounts? (Please use the APRA definition: no contributions for two years)

Over the last five financial years:

a. What was the average dollar amount deducted for administration and asset management fees per member, across all fund products? (please do not include insurance fees)

b. What was the cost (%) of fund administration expenses as a proportion of funds under management?

c. What was the total cost of in-house administration expenses?

d. What was the cost of in-house administration expenses as a proportion of funds under management?

e. What was the total cost of any external administration expenses?

f. What was the cost of any external administration expenses as a proportion of funds under management?

g. What was the total cost of any external administration expenses to Related Parties?

h. What was the cost of any external administration expenses to Related Parties as a proportion of funds under management?

i. How many staff are employed in roles considered part of the administrative cost?

Over the last five financial years:

a. The number of rollover requests that the fund did not pay out to another fund for each year?

b. The average dollar value of a rollover for each year?

c. The value of any clawback accounts and/or funds held that is used to hold funds between financial years?

a. Does the fund maintain a reserve at least partially funded through insurance premiums, rebates from an insurance company (such as profit share arrangements) or tax benefits that have arisen from insurance?

b. The total value of that reserve?

c. The total value of tax rebates received from the ATO on insurance premiums?

In the context of building investments:

a. Have you completed assessments of the prevalence of flammable cladding across some properties?

b. Have you completed assessments of the prevalence of flammable cladding across all properties?

c. Have you taken any remediation to reduce your exposure to risk to identify flammable cladding, and if so, what?

d. Have you taken any remediation to reduce your exposure to risk to remove flammable cladding, and if so, what?

e. Do you hold any properties where insurance has been refused or are uninsured due to defective building construction such as cladding?

Governance:

a. How many trustee board members did the fund have?

b. What was the total salary of all trustee board members?

c. What was the average salary of all trustee board members?

d. Are there any performance-based assessments that determine trustee board remuneration, and if so what are they?

e. What was the salary of the trustee board chair?

f. What was the average length of service of all trustee board members?

g. What is the length of service of the longest serving trustee board member?

h. Are trustee board members asked whether they have conflicts of interest at each meeting, and if not, why not?

i. What is the conflict of interest policy for trustee board members?

j. Does your fund have a policy on gender diversity and/or balance for listed companies?

k. Does your board have gender balance?

In the context of the ACCC’s legal action and question for competition in monopoly infrastructure entities:

a. What are the implications for infrastructure investment returns if the ACCC is successful in its legal action?

b. Have you analysed your infrastructure investment portfolio to examine the risk of ACCC action to reduce anti-competitive monopoly of oligopoly pricing?

c. If so, can you provide details of the likely impact, and what is the project impact on revenue and income?

In dollar terms, for each of your superannuation products, can you please provide annual data for the past five financial years on average, for a member with a balance of $6,000, $50,000 and $150,000?

a. Investment fees

b. Administration fees

c. Indirect costs

d. Any other cost to a member which is incurred or foregone by way of a lesser return pre-unit price (but not included in the indirect cost ratio) including any other costs, charges, fees, direct or indirect benefits including any benefit by way of rebate, set-off, commission, in-kind, tax credit/offset retained, interest (or interest rebate) retained by any party involved in the management, custody, review, compliance, administration, servicing, asset consulting, valuation, operation and maintenance, financing, auditing, brokerage, execution, settlement, or otherwise of the assets in the fund, or their underlying assets.

e. An aggregate total of all fees mentioned above.

As a percentage of the value of the member account, for each of your superannuation products, can you please provide annual data for the past five financial years on average, for a member with a balance of $6,000, $50,000 and $150,000?

a. Investment fees

b. Administration fees

c. Indirect costs

d. Any other cost to a member which is incurred or foregone by way of a lesser return pre-unit price (but not included in the indirect cost ratio) including any other costs, charges, fees, direct or indirect benefits including any benefit by way of rebate, set-off, commission, in-kind, tax credit/offset retained, interest (or interest rebate) retained by any party involved in the management, custody, review, compliance, administration, servicing, asset consulting, valuation, operation and maintenance, financing, auditing, brokerage, execution, settlement, or otherwise of the assets in the fund, or their underlying assets.

e. An aggregate total of all fees mentioned above.

For the past five years:

a. What was the total cost of all advertising and/or marketing?

b. What was the total cost of all advertising and/or marketing per member?

c. What was the total cost of all advertising per new (FY19) member?

d. What was the total cost of all television advertising and/or marketing?

e. What was the total cost of all radio advertising and/or marketing?

f. What was the total cost of all print advertising and/or marketing?

g. What was the total cost of all online advertising and/or marketing?

h. How many in-house staff are employed in advertising and marketing roles?

i. How much was spent on engaging external advertising and marketing consultants?

j. Do you advertise and/or directly financial contribute to the New Daily?

Can you provide details if you have purchased the following over the past decade:

a. Google advertisements

b. Google search terms.

How will the overall fund performance be affected if:

a. The income return of unlisted assets declines?

b. The fund can no longer purchase unlisted assets onshore?

c. The fund can no longer purchase unlisted assets offshore?

Valuation methodologies:

a. Have you compared your valuation methodologies and assumptions for unlisted assets with other superannuation funds, and if so, what are the differences?

b. Are you confident that your valuation methodologies and assumptions for unlisted assets reflect their value to the fund, and how often are they reviewed?

c. How do you compare your valuations to listed investments, including, but not limited to, whether there is a cross check to stock prices for similar assets?

d. Have you ever calculated whether there would be a difference between valuations if unlisted assets were listed?

a. How many unlisted assets do you hold in the fund?

b. What value share are unlisted assets of the fund’s:

i. total value?
ii. total property value?

Discount rates:

a. For unlisted assets, do you use a consistent discount rate for income across all unlisted assets, or an asset-specific discount rate?

b. What is the discount rate you apply to the income from unlisted assets, and has it changed over the past decade, and if so, when and why?

Over the past decade:

a. Have you ever devalued an unlisted asset?

b. Have you ever devalued an unlisted asset by more than $10 million?

c. Have you ever devalued an unlisted asset by more than $50 million?

d. Have you ever devalued an unlisted asset by more than $100 million?

e. Please advise the companies and/or individual valuers that have valued your unlisted assets

For each year of the past decade:

a. How many fund members do you have?

b. How many financial planners do you have in total numbers, and as a member to financial planner ratio?

c. How many financial advisers do you have in total numbers, and as a member to financial planner ratio?

For each year of the past decade:

a. How much is charged for financial planning annually to fund members, and what is the average per fund member?

b. How much is charged for financial planning annually to funds, and what is the average per fund member?

c. How much is charged for financial advice annually to fund members, and what is the average per fund member?

d. How much is charged for financial advice annually to funds, and what is the average per fund member?

For each year of the past decade:

a. What is the cost of general advice annually, and what is the average per fund member?

b. What are the aggregate value of bonuses provided for general advice, and what is the average per adviser?

For each year of the past decade:

a. What is the cost of scaled advice annually, and what is the average per fund member?

b. What are the aggregate value of bonuses provided for scaled advice, and what is the average per adviser?

For each year of the past decade:

a. What is the cost of comprehensive advice annually, and what is the average per fund member?

b. What are the aggregate value of bonuses provided for comprehensive advice, and what is the average per adviser?

For each year of the past decade:

a. What is the cost of intra-fund advice annually, and what is the average per fund member?

b. What are the aggregate value of bonuses provided for intra-fund advice, and what is the average per adviser?

Over the past five years:

a. How many employees have been cautioned for misconduct?

b. How many employees have had a penalty (such as, but not limited to, loss of bonus) for misconduct?

c. How many employees have been terminated for misconduct?

d. How many employees have been cautioned for misconduct, as a share of all employees over that timeframe?

e. How many employees have had a penalty (such as, but not limited to, loss of bonus) for misconduct, as a share of all employees over that timeframe?

f. How many employees have been terminated for misconduct, as a share of all employees over that timeframe?

Responses to Questions 63-76

(1 May 2020)(PDF108KB)

Listed companies holding infrastructure assets have had write downs of around 40 per cent:

a. How does this compare to your write down of unlisted assets?

b. If there is a difference, why is there a difference?

Have you had any liquidity issues in honouring your obligations to members as a result of the:

a. recent decline in the share market?

b. permission by the Federal government to allow members to remove up to $10,000 per financial year if they lose their job?

Liquidity management:

a. What is your fund’s process for complying with APRA’s prudential framework which requires trustees to have a liquidity management plan?

b. How is the plan being reported to the trustee directors?

c. Who is responsible for the day-to-day liquidity management for the fund?

Response

(Publication date)

Responses to Questions 1-62

(20 April 2020)(PDF4,075KB)