Call for probe into industry funds

The federal opposition has raised concerns that industry superannuation funds may be using members' retirement savings to support the Gillard government. The concern arose after reports that a business owned by 16 industry super funds is planning a multimillion-dollar advertising campaign highlighting clean energy investments timed to coincide with the government's carbon tax ads.

Opposition finance spokesman Andrew Robb has urged the Australian Prudential Regulation Authority (APRA) to investigate whether industry super funds have used retirement savings for political purposes. According to the article, an APRA spokesman did not return calls on the matter.

Industry Funds Management, an asset manager owned by the nation's 16 industry superannuation funds, is reported to be fronting the campaign. The article says the advertising blitz is about $2 million and is being described as a multimillion-dollar effort to highlight clean energy investments.

The article states that Industry Funds Management owns a number of clean energy companies, including Pacific Hydro and wind farms, and the planned advertising campaign would highlight those clean energy investments.

Andrew Robb and critics argue transparency is often inadequate because many industry superannuation funds have union officials and former politicians on their boards and are widely seen as having close links to the Labor Party. They say there must be no suggestion members' funds are used for political purposes, otherwise community confidence in superannuation could be undermined.

The article reports that combined industry super funds, including Australian Super, MTAA Super and CBUS, manage nearly $100 billion of workers' retirement savings.

Everyday investors may want to watch for official statements or investigations by APRA, disclosures from their superannuation fund about the purpose of any advertising or corporate activity, and any governance or transparency updates from funds such as Industry Funds Management, Australian Super, MTAA Super and CBUS as reported in the media.

According to the article, an APRA spokesman did not return calls last night, so no response from APRA was reported at the time.