S&P/ASX100 boards okay, say instos

13 August 2013
| By Staff |
image
image image
expand image

Institutional investors have given S&P/ASX100 boards quite good ratings in terms of their relevant business experience, accountability to all shareholders and oversight of financial reporting.

Across 17 questions, those three categories scored the highest vote of confidence among the 41 institutions surveyed for the Australian Council of Superannuation Investors (ACSI's) inaugural board confidence report, rating 3.53, 3.36 and 3.23 out of 5 respectively.

ACSI said 3 indicated a neutral rating.

However, respondents rated independence from management the lowest of all the indicators, followed closely by oversight of mergers and acquisitions.

Interestingly, the lack of confidence in oversight regarding M&A did not extend to the category of other capital management activities, ACSI found, with M&A scoring 2.96 compared with 3.13.

ACSI chief executive Ann Byrne said the survey offered a way to shift the conversation between boards, investors and shareowners from director independence towards competence, stewardship and the environment directors work in.

"Boards that enjoy high levels of investor confidence could be expected to attract capital at a lower cost than boards that are trusted less," Byrne said.

"Similarly, the level of trust placed in the entire cohort of listed company directors plays a role in capital formation and deployment throughout the wider economy."

ACSI will use the results of its survey to drive conversation among shareholders about investor perception of board performance.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year 6 months ago
Kevin Gorman

Super director remuneration ...

1 year 6 months ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year 6 months ago

Vanguard Super has reported strong returns across most of its investment options, attributed to a “low-cost, index-based approach”. ...

5 hours 25 minutes ago

The fund has achieved double-digit returns amid market volatility, reinforcing the value of long-term investment strategies for its members....

5 hours 59 minutes ago

Australian super funds notched a third consecutive year of strong returns, with the median balanced option delivering an estimated 10.1 per cent over the 2024-25 financia...

6 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
3