Super Review (May 2012)

AUSTRALIA’S LEADING SUPERANNUATION MAGAZINE

WWW.SUPERREVIEW.COM.AU

VOLUME 26 - ISSUE 4

MAY 2012

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ROUNDTABLE

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

Planning and super set to grow closer

METLIFE SURVEYIndustry votes on default

fund regime p18 >

A TARNISHED LEGACYThe Government’s super tinkering

is a world away from the Hawke/

Keating grandeur p10 >

Feature

GO TO PAGE 12 >

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APRA opens door for MySuper cost-benefit analysisBY MIKE TAYLOR

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

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

the consultation arrangements.It said that respondents were

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

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

costs,” the discussion paper said.Commenting on the release

of the discussion paper, APRA deputy chairman Ross Jones said the proposed authorisation requirements had been care-fully aligned with the legislative requirements.

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

www.superreview.com.au MAY 2012 SuperReview 3

High earners’ contributions tax an administrative nightmareBY CHRIS KENNEDY

The Government’s plan to increase the

concessional contributions tax to 30 per cent

for workers earning over $300,000 will create

an administrative nightmare for super funds

attempting to work out how much tax to deduct

from each individual member, according to

Minter Ellison partner Maged Girgis.

The increased tax will affect around 128,000

people or 1.2 per cent of the total of people

making contributions, according to Girgis.

Because it’s a singular cut-off rather than a scaled

tax, someone making $299,000 would be far better

off than someone making $301,000, he said.

He compared the tax increase to the

superannuation surcharge introduced on super

by the Liberal party in 1997 that was eventually

abandoned because the administrative costs

outweighed the benefits.

Super funds are essentially taxed on their

overall income (including investment returns

and contributions) minus deductions such

as insurance premiums and legal fees. The

remaining taxable income is taxed at 15 per cent,

and funds can deduct a flat 15 per cent from their

entire member base.

But he said under the proposed changes

funds will need to pay 30 per cent tax on

contributions for a portion of their member

base – requiring funds to “unscramble the egg”

to work out how much each member is earning.

This would require a lot of legwork and a lot

of communication between each fund and the

Australian Taxation Office, Girgis said.

The other option would be for the Government

to implement it as a new tax, similar to the 1997

surcharge. This method would mean the liability

of the new tax sits with the individual rather

than the fund, but is payable by the fund while

that money sits with the fund. But if the member

moves to a new fund, so does the liability, and if

the money is paid out the liability moves to the

individual, Girgis said.

With the time delay between contributions

payments and tax returns, this could create a time

lag of up to two years for self-employed people

– in which time the member could move funds,

retire or pass away, he said.

There are additional complications, he said.

“What if it’s a defined benefit fund? What if it’s an

underfunded defined benefit fund? What if it’s a

Commonwealth scheme where no contributions

are ever made? What if it’s a parliamentary

scheme or a state scheme that’s not subject to

tax?” he asked.

Returns should drive default fund selection: ISNBY TIM STEWART

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

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

Members of FWA should be joined by “a panel of recognised superannuation experts to assist in such deliberations”, said the ISN.

“Each application from an eligible fund should be considered in the context of the relevant award and the industry it serves,” said the ISN.

“FWA should consider the views of the representatives of those who pay (employers) and those who receive superannuation payments (employees) and the ability of the fund to provide relevant members and employer services to potential members covered by the relevant award, including the appropriateness of the insurance offering for that demographic,” said the ISN.

The ISN also recommended that a typical modern award should have a minimum of two and a maximum of six default funds, since doing so “will ensure that employers are not overloaded by choice and that em-ployees are protected by having more than one option to rely on”.

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

Ross Jones

Government extends CGT rollover reliefBY TIM STEWART

The Government has heeded calls from the industry to

provide capital gains tax (CGT) rollover relief for merging

superannuation funds, effective from 1 July 2012 to 1 July 2017.

The mandatory transfer of default members’ balances to

a MySuper product in another complying fund will also be

eligible for the tax relief, as of 1 July 2013 to 1 July 2017.

A Financial Services Council (FSC) statement said the

existing tax laws required losses during the global financial

crisis to be crystallised when two funds chose to merge.

“Trustees could not – in accordance with their legislative

duty to act in the best interest of members – go ahead with a

merger under those circumstances,” said the FSC.

Association of Superannuation Funds of Australia (ASFA)

chief executive Pauline Vamos also welcomed the change,

which comes after intense lobbying by ASFA.

“Super funds are currently carrying deferred tax assets

equivalent to between 1 and 3 per cent of member account

balances,” Vamos said.

“Without the CGT rollover relief, the fund member would

bear the brunt of the outcome, as efficiency gains from a

merger would not be realised,” she said.

MLC and NAB Wealth Group executive Steve Tucker also

welcomed the announcement.

“The extension of this relief for merging superannuation

funds will result in a better outcome for members’

retirement benefits,” Tucker said.

Self-managed superannuation funds will be excluded

from the tax loss relief “because the MySuper require-

ments do not apply to them”, according to the Government.


Assessing fund manager failures vitalBY BELA MOORE

Poorly performing investments can be

as revealing as successes for assessing

fund manager skill, according to Towers

Watson Australia head of investment

research Hugh Dougherty.

Assessing investment skill required

a comprehensive understanding of the

fund manager’s investment philosophy,

process, and execution of process,

Dougherty said.

“It is important to recognise that

mistakes are an inevitable consequence

of taking risk where uncertainty exists,

and the identification of these mistakes

in a portfolio, in the context of broader

understanding of an investment

manager, can be very helpful in

determining the presence of genuine

skill,” Dougherty said.

He said it was possible for a genuinely

skilled manager to generate poor returns

for an extended period of time due to their

patience, a key characteristic of great

investors according to Dougherty. He said

skilled managers understood that building

long-term wealth required resisting

the temptation to follow the excitement

that builds around out-performing

investments.

“Effective investors are equipped

with the strength of personality to resist

hyperbole and often invest in less popular

areas. They do not conform to popular

market strategy, and build teams of

colleagues who will challenge their ideas

and investment philosophies,” he said.

He said detailed examination of

investments within a portfolio and

inconsistencies with processes and

investments that contradict processes are

all indicators of fund manager skill.

“Getting inside the minds and hearts of

managers requires an understanding of

the investment drivers and key issues for

reaching investment decisions on selected

investments,” Dougherty said.

He said finding investment skill

represented a material cost to most firms,

but the benefits of choosing a skilled fund

manager were worth the effort.

MySuper legislation does not address corporate adviser concernsThe MySuper legislation does not address the services provided by corporate superannuation advisers, according to Corporate Superannuation Specialist Alli-ance (CSSA) president Douglas Latto.

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

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

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

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

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

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

Latto said CSSA submissions to the Parliamentary Joint Com-

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

Douglas Latto

Pauline Vamos

Website disclosure in next Stronger Super trancheBY TIM STEWART

The next tranche of Stronger Super will see the launch of

the product ‘dashboard’, which will include a requirement

to disclose portfolio holdings, according to Treasury

principal adviser Jonathan Rollings.

The tranche will also include director and executive

remuneration, along with new data collection powers

for APRA.

Speaking at the Association of Superannuation Funds

of Australia (ASFA) Compliance Summit in Sydney,

Rollings said the soon-to-be announced features were

a legacy of the Cooper Review, and have the in-principle

support of the Government.

“The product disclosure dashboard is intended to be a

simple representation of key aspects of products offered

by super funds. Those key aspects being investment

return targets, a measure of investment risk, a measure

on liquidity, and another metric around average fees paid

by members in relation to that product,” said Rollings.

Australian Securities and Investment Commission

(ASIC) senior executive leader Ged Fitzpatrick said

ASIC anticipated the product dashboard would “provide

forward-looking information in relation to matters such as

risks, fees and fund objectives”.

Superannuation funds will also be required to list

the details of their portfolio holdings on their websites

– something that is already required in international

jurisdictions such as the US, Fitzpatrick said.

“We’re aware of the work by ASFA and the Financial

Services Council to develop industry guidance ahead of

any Stronger Super reforms on this issue. We’re keen to

take a pragmatic view,” Fitzpatrick said.

“ASIC encourage issuers to make relevant and

complete disclosures. It plays an important role in

investors’ decisions to invest, remain invested or to exit

the product,” he added

ASIC will also be adding information about upcoming

Stronger Super changes to the MoneySmart website for

the benefi t of consumers, Fitzpatrick added.

MySuper fl exibility makes

tailored offerings unnecessaryBY BENJAMIN LEVY

Treasury has told super funds that the

insurance and fee fl exibility included in

MySuper makes it unnecessary to offer

separate tailored MySuper offerings for

large employers.

In an address to the Association

of Super Funds of Australia super

compliance summit, audience members

were told that while super funds were

allowed to create and tailor additional

MySuper products for large employers,

the fl exibility in the original MySuper

product made it unnecessary.

Flexibility with insurance

arrangements and administration fees

at the workplace level may lead super

funds to think they can tailor different

products for large employers, but given

the fl exibility in the original offering

they may want to ask if that was really

needed, according to principal

adviser for the superannuation,

fi nancial systems division

of Treasury, Jonathan

Rollings.

Super funds can instead

create one MySuper

product and white-label

it to refl ect different

workplaces, he said.

A large employer

must have at least 500

employers, Rollings said.

“You can replace the default insurance

schemes in the MySuper product

with different schemes in different

workplaces, and the legislation also

allows for different administration fees to

apply to different workplaces, to refl ect

any administrative effi ciencies that may

be accruing,” he said.

Rollings also emphasised that

MySuper is not a separate fi nancial

product for the purposes of the

Corporations Act, and therefore there is

no need for super funds to have separate

accounts for members during the

transition phase.

“It should be able to operate akin to a

current default investment option, and

can sit within a member’s single account

as an investment option,” Rollings said.

Treasury will await any feedback

about the issue, he added.

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

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

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

The fund in question had in-creased its total and permanent disability (TPD) coverage and intro-duced bulk, opt-out salary continu-ance coverage for members as of 1 July 2011.

The complainant saw her TPD premium increase from $25 to $40 a month, in addition to her new salary continuance premium of $34 a month – taking her total premium from $25 to $74.

“[The complainant] said that when the fund wrote to her they were well aware that they were more than

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

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

“Because the fund was introduc-ing salary continuance coverage for the first time, it must have been increasing premiums – for all mem-bers – in relation to the salary con-tinuance component,” said Furlan.

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

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

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


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A tarnished legacy?

If there has been a common theme to

research conducted in the fi nancial services

industry over the past decade, it is that

government tinkering with the superannua-

tion policy settings only serves to undermine

investor confi dence in superannuation.

Putting aside issues of investor confidence,

the Government’s Budget night changes have

also served to increase the workload on both

superannuation funds and administrators as

they seek to accommodate the new, differential

taxation approach.

This extra burden on funds and administra-

tors comes on top of that already being carried as

the industry attempts to cope which the changes

fl owing from the Government’s Stronger Super

agenda, not least the requirements around

MySuper, SuperStream and initiatives such as

auto-consolidation.

As the roundtable published in this edition of

Super Review makes clear, the challenges being

confronted by almost all the superannuation

stakeholders and service providers are consider-

able and will require a good deal of time and effort

to bed down.

What is disturbing about the changes announced

in the Federal Budget is that it is hard to accept

that they are not an almost totally politically expe-

dient exercise – a part of the Government’s efforts

to fulfi ll its undertaking to return the Budget to

surplus in the 2012-13 Budget year.

Just how politically expedient this exercise has

proved to be is underlined by the fact that the

Government’s critics have claimed that it lacks

legitimacy, based on the ultimate size of the

forecast surplus and the manner in which it is

being achieved.

Indeed, it is hard to argue with those who

maintain that the inherent costs of tinkering with

super are such that they will ultimately outweigh

the economic benefits the Government believes

will be achieved from returning the Budget to a

technical surplus.

In again fi ddling with the superannuation

settings in the 2012-13 Budget, the Gillard Govern-

ment has again made the mistake of ignoring the

consistent fi ndings of intergenerational reports by

seeking to pursue narrow political objectives and

by treating the industry as a revenue milch cow.

While every intergenerational report produced by

the Federal Treasury has pointed to the danger of

retirement incomes shortfalls and the consequent

adverse impacts on Budgets in the out-years, the

Treasurer has looked to meet shorter-term, highly

political imperatives.

Further, the Government’s actions in the

2012-13 Budget need to be viewed against the

background of its earlier tinkering with superan-

nuation, particularly around co-contributions,

concessional contribution caps and its half-

hearted attempt to remedy the excessively punitive

regime around excess contributions.

Looked at harshly, the current Labor Govern-

ment has left itself open to being accused of

having tarnished the fi ne legacy left by the Hawke

and Keating Governments which oversaw the

introduction of award superannuation and then the

implementation of the superannuation guarantee.

Some might, in fact, argue that the Treasurer

Wayne Swan and the Minister for Financial Serv-

ices, Bill Shorten, might have been well served in

reviewing the original objectives of the superan-

nuation guarantee and the manner in which their

Labor predecessors envisaged relieving pressure

on Australia’s future social welfare system.

The bottom line, however, is that the superan-

nuation industry must now hunker down to ensure

that administrative systems can cope with the new

complexity generated by the Budget changes, at

the same time as making sure things are ready

with respect to the major changes from the

Stronger Super initiatives.

Assuming Australian political events adhere to

the traditional calendar, then this ought to have

been the penultimate Gillard/Swan Budget before

the next Federal Election. If so, it does not repre-

sent a glowing legacy in terms of its contribution

to sound superannuation policy.

– Mike Taylor


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

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Marketing and Communications

Planning and super set to grow closer


T

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


continued on page 14 >

> continued from page 13


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

– Anthony Rodwell-Ball

To subscribe



“But, at the other end of the spectrum, we also have quite sophisticated inves-tors who have sig-nificant balances ...”

– Paul Watson


Damian Hill

SR


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

– Damian Hill


The latest Metlife Super Review survey has revealed strong support for some fundamental changes to the default funds under modern awards regime.

D Super fund stress test needed

58.0%

YES38.0%

NO

The Productivity

Commission has

indicated it will consider

recommending that all

MySuper funds should

be eligible as default

funds. Do you approve of

this move?

61.1%

YES36.0%

NO

The Productivity

Commission is

reviewing default funds

under modern awards.

Do you believe the

implementation of

MySuper should be

delayed until the PC

tables its report?

54.0%

YES42.0%

NO

Under the default funds

under modern awards

regime, the industrial

judiciary in the form of Fair

Work Australia plays a

crucial role. Do you believe

the industrial judiciary

should be involved in

superannuation?


Survey respondents find APRA data useful

Industry split on super fund numbers Insurers must make

claims handling a priority

84.1%

YES14.2%

NO

The Australian Prudential

Authority delivers a range

of data on superannuation

fund performance.

Thinking about your fund,

do you find that data

useful?

77.0%

YES22.2%

NO

A number of specialist

ratings houses such as

SuperRatings and Chant

West produce monthly

data on superannuation

fund performance. Do you

find this data useful?

34.1%

APRA

4.0%

Chant West

50.0%

SuperRatings

Which fund performance

do you find most timely

and useful?

49.2%

YES47.6%

NO

Do you believe there

should be fewer but larger

superannuation funds in

Australia?

87.3%

YES9.6%

NO

Do you believe

superannuation funds

should be required to

undergo annual

stress-testing to ensure

they have adequate levels

of liquidity?

IN CONJUNCTION WITH


Stronger Super

Super Review Roundtable

SPONSORED BY

Left to right: Gavin Lai, Anthony Rodwell-Ball, Russell Mason


Mike TaylorCHAIR

Russell MasonPARTNER, DELOITTE

Anthony Rodwell-BallCEO, NGS SUPER

Tim BuskensCIO, AAS

Margaret StewartPOLICY DIRECTOR, ASFA

Peter BeckCEO, PILLAR ADMINISTRATION

Gavin LaiSENIOR PRODUCT MANAGER, TAL

Sean WilliamsonHEAD OF CUSTOMER SOLUTIONS, TAL

PRESENT

The challenges confronting the superannuation industry in implementing the Government’s Stronger Super agenda, including auto-consolidation are considerable. A Super Review roundtable identified the hurdles and how the key parties are approaching them.


SPONSORED BY

Q


SPONSORED BY


What sort of transition time is needed?



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

– Anthony Rodwell-Ball

Margaret Stewart and Sean Williamson

Q

Q


SPONSORED BY


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

– Russell Mason Russell Mason

Left to right: Gavin Lai, Anthony Rodwell-Ball, Russell Mason


SPONSORED BY


Nanny state approach?Q


SPONSORED BY


Tim Buskens and Peter Beck


SPONSORED BY

Are the insurers communicating?


“I think there is a role for the fund, the insurer, the administrator, to work together at a fund level.”

– Sean Williamson

Q


SPONSORED BY

TAL Life Limited ABN 70 050 109 450 AFSL 237 848, www.tal.com.au

Member communicationsMike Taylor


Q


SPONSORED BY

SR

Gavin Lai


“Just because they have less than $1,000 and they aren’t engaged, it doesn’t mean that they need insurance any less ...”

– Gavin Lai

Q

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

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

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

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

Tim Samway

MANDATES


In a move to boost its consultancy serv-ices for trustees, advisers and account-ants, Multiport has appointed Marjon Muizer as a technical services consultant.

Multiport technical services director Philip LaGreca said Muizer’s appoint-ment was consistent with the demand for Multiport’s services amid the growth of the self-managed superannuation fund sector.

Muizer previously worked at PKF Chartered Accountants and was also a manager in superannuation for Dixon Advisory and Superannuation Services.

“Marjon’s background working with accountants is essential in understanding advisers’ and accountants’ needs,” LaGreca said.

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

MLC names analystMLC Investment Management has appointed Greg Michel as senior

research analyst.Reporting to MLC head of fixed

income Stuart Piper, Michel has approximately 29 years experience managing fixed income portfolios.

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

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

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

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

Hyperion Asset Management has announced that Tim Samway will succeed Dr Emmanuel Pohl as managing director.

After founding the company 16 years ago, Pohl is stepping down from his role to set up a new private equity business at Hyperion, as well as focus on Hyperion Flagship Investments and the individually managed accounts.

Samway is currently Hyperion’s institutional business director and has been with the company since its inception. Hyperion stated that in his new role Samway would ensure the continuity of the firm’s strategy, investment process and team.

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

Libby Roy heads Multiport

Key Multiport appointment

Samway leads Hyperion

Received by Type of mandate Issued by Amount

Tuvalu Trust Fund Custody AMP Multi-Asset Fund $55 million

Aubrey Capital Management Custody Skandia Investment Group $30 million

Capital International Custody MLC Horizons n/a

BNP Paribas Custodian services AvSuper n/a


Comrades-in-Armani

Frequent fl yers bonus points bingo

Woodward’s 2-wood break no Bollywood

ROLLOVER notes that his erstwhile colleague Gerard Noonan has completed his two-

year term as president of the Australian Institute of Superannuation Trustees and will be

succeeded by Cate Woods.

Noonan, a former editor of the Australian Financial Review and stalwart of the union

representing journalists and jugglers – the Media, Entertainment and Arts Alliance –

ascended to the presidency of the Australian Institute of Superannuation Trustees (AIST)

via his long-standing involvement with the trustee board of what was once the Journal-

ists’ Union Superannuation Trust, which later became Media Super.

Noonan brought a particular flavour to his presidency of AIST, and Rollover particularly

noted his propensity to address assembled delegates at the Conference of Major Super-

annuation Funds as “comrades”.

It was reminiscent of former Labor Prime Minister Gough Whitlam, who despite his

background in the Sydney legal fraternity and the city’s well-heeled eastern suburbs also

frequently greeted his friends as “comrade”.

For his part, Rollover holds to the view that it is comrades who mount the barricades

and that anyone pulling down a Fairfax editor’s salary, or a Sydney barrister’s retainer,

should probably look to alter their vocabulary.

TIMES continue to be challenging in funds management land, and

Rollover has noted the number of senior executive types currently facing

uncertain futures and those who might be thought of as currently between

engagements.

Since the beginning of 2012, Rollover has noted the departure of Tyndall’s

Craig Hobart and Zurich’s Matt Drennan amongst others, and he hears tell

that the gates have been opened to the ‘departure terminals’ at a number of

other companies.

As the end of the financial year approaches, he is expecting to hear a good

deal more about imminent departures.

Then, too, there are those he expects will collect their bonuses before

charting their own destinies.

ROLLOVER wishes to send his best wishes for a speedy recovery to Pillar Administration’s Chris Woodward.

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

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

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

Super Review (May 2012)

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