Superannuation funds should assert their shareholdings
Superannuation funds need to consider being named on company share registers to give their members a more transparent and an important vote when considering decisions regarding the listed companies they invest in, according to chief executive of the Australasian Investor Relations Association, Ian Matheson.
Superannuation funds - the biggest owners of company assets - are for the most part not visible on listed company share registers, causing super fund members to be forced further and further away from the companies they invest in, Matheson said at the Australian Council of Super Investors conference.
"Some of the largest beneficial owners [of company assets], many of whom are in this room, are not known by the boards and the management of the companies you own," Matheson told delegates.
Superannuation funds have no ability to directly communicate with the companies, and therefore no direct relationship when it comes to voting, Matheson said.
The lack of transparency was even causing suspicion between company boards and asset owners, he said.
Major funds need to consider being named on the company share register as a single designated account, Matheson said.
The lack of transparency was leading to all sorts of problems with the proxy voting system, he said.
There were more and more intermediaries being involved in the voting process, Matheson said.
This is becoming a more and more important issue as superannuation funds take back voting rights from fund managers, he added.
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