Call for fund bosses to reveal pay
UNION-BACKED super funds are calling for sweeping new rules requiring fund managers to reveal their pay packets, with research showing the sector receives $6.2 billion a year for managing the nation's retirement savings.
UNION-BACKED super funds are calling for sweeping new rules requiring fund managers to reveal their pay packets, with research showing the sector receives $6.2 billion a year for managing the nation's retirement savings.Top fund managers - who super funds contract to manage the assets - can make between $500,000 and several millions of dollars a year.However, what individuals are paid is often kept secret, sparking calls for reform.In new research commissioned by the Industry Super Network, Rainmaker found almost a third of the $20 billion super members paid in fees each year - some $6.2 billion - went to fund managers.ISN's chief executive, David Whiteley, said this high share of fees underlined the need to extend laws that would require super funds to reveal more details about their board members to the funds management industry."It is appropriate that members know the names and backgrounds of directors and executives of their fund and their remuneration arrangements," he said. "It is equally appropriate that members are able to find the names, backgrounds and remuneration of board directors and senior executives of fund managers, platform operators and other service providers."Under upcoming laws, the government will push for some fund managers to pay back bonuses in the case of underperformance, but it has not committed to requiring all fees be disclosed.The Financial Services Council, which represents retail funds, has countered the call for tougher rules, saying the disclosure of total investment fees was more relevant.