The $11 billion Public Superannuation Scheme and Commonwealth Superannuation Scheme (PSS/CSS) ended a busy 2001 with several major announcements, including that it had appointed Westpac Investment Management (WIM) as primary governance adviser for its $3 billion Australian share investments.
WIM will provide ongoing advice to the PSS/CSS boards on environmental, social and corporate governance, and on how companies in their portfolios rate on these factors.
PSS/CSS CEO Steve Gibbs notes: “To appoint a governance adviser is hardly a radical step. It’s simply best practice risk management… It is well-known that poor environmental practices, disconnection with community views, and poor corporate governance practices can all lead to a decline in shareholder value.”
The PSS/CSS boards also decided to maintain their association with Towers Perrin’s Total Risk Management (TRM), their former sole asset consultant.
The boards have added John A Nolan to help with manager selection and to monitor Australian and international equities, fixed interest and Australian property. Wilshire Australia will advise on Australian private equity investments.
The boards have also decided to invest $100 million in hedge funds, split between Harris Associates and Financial Risk Management.
