POWERED BY MOMENTUM MEDIA
Super fund to renew board after involvement from APRA
Local Government Super (LGS) is seeking an independent chair and two new independent directors after ongoing discussions between its board and the Australian Prudential Regulation Authority (APRA), as well as a new chief executive.
The Board agreed to a constitutional change to enable these board appointments to better meet the regulator’s requirements around superannuation governance in an attempt to enhance the fund’s governance, performance and sustainability.
The change, which was approved by LGS shareholders last Tuesday, would enable the fund to recruit directors with new skills to supplement the experience of the existing directors, two of which would be displaced to make space for the new chair and two independent replacements. The size of the board would thus grow from eight to nine.
LGS chair, Bruce Miller, noted that expertise in the areas of business and investment management were especially needed in the new directors, in line with APRA’s recent guidance and expectations, and this would be a consideration in their selection.
“Bringing in independent directors with new skills, capabilities and perspectives will strengthen the Board’s ability to provide effective oversight to the execution of the Fund strategy including ensuring that the protection of the best interests of members and delivering strong member outcomes is the top priority in a challenging financial environment,” he added.
LGS expected the new chair and director to be in place by 31 August, this year. Recruitment for the new chief executive was already underway.
Recommended for you
In its pre-election policy document, the FSC highlighted 15 priority reforms, with superannuation featuring prominently, urging both major parties to avoid changing super taxes without a comprehensive tax review.
The Grattan Institute has labelled the Australian super system as “too complicated” and has proposed a three-pronged reform strategy to simplify superannuation in retirement.
Super funds delivered a strong 2024 result, with the median growth fund returning 11.4 per cent, driven by strong international sharemarket performance, new data has shown.
Australian Ethical has seen FUM growth of 27 per cent in the financial year to date.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.72 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
27.64 3 y p.a(%)
