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(March-2002) The Super confidence builder
This year’s theme at CMSF, Setting the Agenda for Super Confidence, is aimed at arresting the waning level of confidence in the superannuation system.
Executive chair of CMSF Mavis Robertson says the theme was chosen based on feedback from surveys that highlighted the need to combat the negative impressions being portrayed about the Australian super system. This negativity is the result of some high profile corporate collapses and press reports which have questioned the safety of superannuation, the performance of trustees and whether they should be replaced by professional trustees.
“What we believe is, while everything can be improved, Australia’s super system is a good system, as is the trustee system, and we really need to have confidence in it because it works,” she says.
Adding to the problem has been the weakened global economy throughout 2001 and the tragic events of September 11 last year. These events dampened the ability of super funds to deliver high returns to members and ended a prolonged period of double-digit growth.
Because of this, CMSF’s opening session is entitled ‘Rebuilding Confidence — Post September 11’ and will be presented by Mike Musuraca, a trustee from the New York Employees Retirement System.
“Considering what took place, [Musuraca] will be able to discuss first-hand experiences of the tragedy, how the fund is dealing with the members it lost and the implications for the fund itself, and how it is handling the issues,” CMSF manager Fiona Reynolds says.
Robertson, who has previously met Musuraca, adds: “He is a colourful speaker who will talk about how, as a trustee, he is dealing with the interests of [the fund’s] members in a difficult time, the notion that pension funds — as they are called there — have to consider if they have a role to play in rebuilding what was destroyed, and how pension funds look after people in retirement and deal with death and disability.”
In the following session, called ‘Building Confidence in a Low Return Environment’, Ray King, director of Sovereign Investment Research, will discuss where the superannuation industry is headed over the next five to 10 years and what investments options are likely to gain popularity among super funds.
Due to popular request, the session will also focus on improving communications with members, and how funds can help members understand the reasons for poor returns and market cycles.
This theme will be complemented by a more practical session, entitled ‘How to build Confidence’, addressed by Dr Glen Singleman, a motivational speaker and the joint holder of the world base-jump record, and developed further in a session called ‘Building Confidence Through Effective Structures’, chaired by Australian Retirement Fund CEO Ian Silk.
“The session will take a broad view of super, focusing on a mythical country — in light of Australia’s experiences — and what a country starting a new system might learn from Australia, the number of funds, the relationships they have with other service providers, and how funds can best relate to members,” Silk says.
Reynolds adds that the conference will also hold two individual sector-based workshops for industry and public sector funds, to allow those in these sectors to discuss their specific challenges and issues with their peers.
“We got some feedback asking for more opportunities to have discussions and input, and not be just provided with information. These sessions aim to give people more of a chance to do so,” she says.
Based on requests from feedback, CMSF has made another change: this year’s recipient and the past two winners of the Excellence Award for Communications will hold a seminar discussing their winning entries.
Also expected to draw in the crowds is the session entitled ‘Strengthening Confidence through Effective Governance’, which will provide trustees with a compliance guide to the Financial Services Reform (FSR) Act, as well as environment and labour requirements.
The speakers at this session include Australian Council of Trade Unions secretary Greg Combet and the Australian Conservation Foundation’s Don Henry.
There will also be an update on various legislative changes including the FSR Act, privacy laws and the licensing of trustees, given by APRA general manager of policy development and statistics Greg Brunner and ASIC consultant Louise De Pre.
“The conference will offer a broader, more public policy orientated view and less day-to-day relevance for some trustees. But it will be more useful in the long-term to look at the broader perspective than is typically done at industry conferences,” says Silk.
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