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As at 30th June, 2018, a very large and very well known Industry Super Fund released the following information in a document dated March 2019.
Under the heading "Related party investments and transactions"
At 30 June 2018 the fund had:
* A 31% shareholding of ordinary shares valued at $1,710,775 in Frontier Advisors Pty Ltd
Frontier receives fees from the fund for investment consulting services.These fees were $3,721,731
A Director and Chair of the Board of this very super fund (as nominee of fund) is a Director of Frontier Advisors Pty Ltd.
and received fees of $14,442.
Here you have a Director and Chair of the Board of a massive Industry Super Fund of which that very same fund owned shares in a 3rd part related entity that provided investment consulting services to that fund of which that Director was remunerated by both entities !!
If this is not a conflict of interest then what is ???
In addition under the heading " Other shareholding and transactions" it reads..
As at 30 June , 2018 the fund had :
* A 17.7% shareholding in Industry Super Holdings Pty Ltd (ISH) valued at $147,657,984 .
Industry Funds Management Pty Ltd (IFM) is a subsidiary of ISH and manages investments totalling $10,232,508,108 on behalf of the fund.
And here's the kicker........This very super funds Director and Chair of the Board's life partner is also a Director of Industry Super Australia Pty Ltd (ISA), and Chair of Industry Super Holdings Pty Ltd (ISH) and Industry Funds Management Pty Ltd (IFM).
This Director and Chair of the Board of Directors of the very large Industry Super Fund was in that position from 1994 and interestingly resigned from those positions on 31/12/2018.
Just have a think about this for a minute and try and justify how on earth there is not a conflict of interest where life partners are intimately connected and receiving remuneration from not only the fund itself but multiple linked entities which also provide services to that super fund and for which that super fund also owns shareholding in some of those related entities.
This is not fiction...this was happening.
The money machine of Industry Super Funds and the related entities that provide services to them is massive.
There are a number of individuals who have benefited greatly from these arrangements over the years....the wealth is simply staggering.
The irony of course is the marketing mantra that has been on repeat for years that we are only run for the benefit of the members....we pay no commissions or fees etc etc............
Behind the scenes there are individuals who are benefiting at staggering levels off the back of mandated Super Guarantee contributions and the loyalty of a massive donation program to the trade union movement.
It is time the Government stood up and had the courage to expose the practices that really go on and level the playing field once and for all.