On a final note, can I say that I am not really a fan of rent-a-letter, but if some of the more than one million members of AustralianSuper want to copy the following letter I am sending to Heather Ridout, the chairwoman of AustralianSuper, feel free to do so. - See more at: httOn a final note, can I say that I am not really a fan of rent-a-letter, but if some of the more than one million members of AustralianSuper want to copy the following letter I am sending to Heather Ridout, the chairwoman of AustralianSuper, feel free to do so. - See more at: http://www.theaustralian.com.au/opinion/columnists/ive-got-some-news-for-you-not-with-my-super-you-dont/story-fnbkvnk7-1226761301295#sthash.nELZt0kd.dpuf
Dear Heather,
I am writing in relation to AustralianSuper's investment in The New Daily website, information which has become publicly available only this week. I am very concerned about the wisdom of this investment, particularly in view of comments made by Bruce Guthrie, the newly appointed editorial director of the website.
According to him, the venture will lose money for the next three to five years but may make a modest profit after that. He has also declared that the superannuation funds that have invested in this new venture "have made it clear they will never charge for journalism".
There are several questions that need to be satisfactorily answered lest I withdraw my funds from AustralianSuper, namely:
Do the trustees consider they are meeting the sole-purpose test by investing in such a marginal investment in an industry that is generating such poor returns?
Were there more attractive investments that were discarded to invest members' funds in this risky venture?
Do the trustees consider it appropriate to foist promotional material on members (via their email accounts) for this venture without the express consent of the members?
Why are the other companies in which AustralianSuper is invested not given the same opportunity to promote their products and services in the same way or directed not to charge for their products or services, for that matter?
Have the trustees considered the potential conflict of interest that arises from The New Daily's coverage of superannuation matters and how this will be handled?
You should not take these questions to be my only ones. And the fact the sum of money committed by AustralianSuper is small relative to the overall quantity of members' funds is not the point - it is the principle.
Clearly, the plan to establish and invest in this website has been afoot for many months. What I can't understand is why the majority of the trustees didn't object to this investment, both on principle and on the grounds of inadequate return.
I will wait for your reply before shifting my funds.
Yours sincerely,
Judith Sloan
Member, AustralianSuper. - See more at: http://www.theaustralian.com.au/opinion/columnists/ive-got-some-news-for-you-not-with-my-super-you-dont/story-fnbkvnk7-1226761301295#sthash.nELZt0kd.dpuf
