POWERED BY MOMENTUM MEDIA
Link’s McMurtrie rebuts takeover consortium’s claims
Link Administration outgoing managing director, John McMurtrie has defended the company against suggestions that it has lost ground in the superannuation administration market through the loss of mandates.
Addressing the company’s annual general meeting, McMurtrie pointed to suggestions contained in a private equity-led takeover bid that the loss of mandates had weighed on the company.
He noted that the issues raised by the consortium included $800,000 of lost contract accounts including TWU Super, Care Super, Austsafe and Kinetic Super and reduced client accounts resulting from Protecting Your Super (PYS) and Early Release Super (ERS).
As well, he pointed to the Government’s recently announced Budget initiative Your Future, Your Super which would see the stapling of existing super accounts to an individual member to prevent account duplication.
“While we recognise that these have had an impact on the financial results, I would add the following additional context, McMurtrie said. “In the past 18 months we have resigned 15 clients on long-term contracts including AustrlaianSuper, REST and HESTA.”
“Together these clients represents approximately 6.3 million members and over 70% total annual contracted revenue earned in Australia.”
McMurtrie said the financial impacts of PYS and ERS had been highlighted in all the company’s results presentations and were well understood.
“By the time we enter the next financial year, we expect the majority of this immediate financial impact to be behind us. Conversely, we anticipate that the recent volume of regulatory change and increased regulatory oversight will create further opportunities for us, as we are able to offer superannuation funds a high-quality outcome underpinned by our leading technology, scale and breadth of service,” he said.
Recommended for you
Australia’s corporate regulator has been told it must quickly modernise its oversight of private markets, after being caught off guard by the complexity, size, and opacity of the asset class now dominating institutional portfolios.
ASIC chair Joe Longo has delivered a blunt warning to superannuation trustees, cautioning that board-level ignorance of member complaints and internal failings will not be tolerated and could trigger enforcement action.
ART has cautioned regulators against imposing overlapping obligations on superannuation funds already operating under APRA’s comprehensive framework, saying that additional oversight should be “carefully targeted to address potential gaps in other parts of the market”.
The super fund has appointed Simone Van Veen as chief member officer.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
