New corporate bucks trend
One of Australia’s oldest listed companies Washington H Soul Pattinson and Company has bucked the industry trend away from corporate super by announcing plans to launch its own fund to its more than 3,500 employees nationwide.
The firm, which traditionally operated as a chain of chemist shops, has now evolved into a diversified investment group and last year took a controlling stake in Veritas Funds Management (now Souls Funds Management).
WHSP Superannuation Fund, as the fund will be known, will have its trustee services provided by Trust Company Superannuation Services, while its administration and asset consulting requirements will be through the Aon Group.
The move goes against the industry grain with the number of corporate super funds continuing to decline largely due to the rising costs of compliance.
WHSP chairman Rob Millner says Souls Funds Management will manage the fund’s Australian equities component while external managers will be responsible for other asset classes, with the objective of the fund being to focus on long term returns rather than matching short term indices.
“The WHSP group has a track record over many years of providing steady earnings and dividends to its shareholders. This is the method of operation we want to bring to superannuation, combining sound administration and a competitive fee structure,” Millner says.
Last week the group announced an after tax profit before non-regular items of $81.5 million - up 3.6 per cent, while after non-regular items of $74.4 million were taken into account, profits were up 76.6 per cent to $155.9 million.
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