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2010 ANNUAL REPORT
Australian Institute of Superannuation Trustees
“
TOWARDS A
PROFESSIONAL
INSTITUTE ”

Australian Insititute of Superannuation Trustees
Ground Floor 215 Spring Street
Melbourne VIC 3000
Copyright 2011, the Australian Institute of Superannuation Trustees (AIST). All rights reserved.
You may use this material for your personal, non-commercial use. Any other use of this content requires
written consent from AIST.

“
LEADERSHIP
IN SUPERANNUATION ”

CONTENTS 07 AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES
09 A MESSAGE FROM THE PRESIDENT
12 CEO’s REPORT
16 ORGANISATIONAL CHART
17 AIST BOARD
18 CMSF CONFERENCE COMMITTEE
20 FINANCE, AUDIT & RISK COMMITTEE
21 SPECIAL PROJECTS COMMITTEE
22 POLICY & RESEARCH COMMITTEE
24 EVENTS
27 CORPORATE SERVICES
28 LEARNING & PROFESSIONAL DEVELOPMENT
30 MEMBERSHIP SERVICES
32 TRUSTEE GOVERNANCE & PROFESSIONAL STANDARDS
33 MEDIA & COMMUNICATIONS
34 AIST STAFF
35 AIST ALLIANCES 2010
36 HIGHLIGHTS 2010
38 2010 AIST REGISTERED SUPERANNUATION FUNDS
40 AIST INDUSTRY PARTNERS 2010
43 2010 FINANCE REPORT

Not-for-profit funds serving
the super industry and nearly 2/3
of the Australian workforce
6

AUSTRALIAN INSTITUTE OF
SUPERANNUATION TRUSTEES
AIST
The Australian Institute of Superannuation Trustees is
a national not-for-profit organisation whose mission
is to promote and protect the interests of Australia’s
$450 billion not-for-profit superannuation sector. AIST’s
membership includes the trustee directors and staff of
industry, corporate and public-sector funds, who manage
the superannuation accounts of nearly two-thirds of the
Australian workforce.
As the principal advocate and peak representative body
for the not-for-profit superannuation sector, AIST plays a
key role in policy development and is a leading provider
of research.
AIST provides professional training, consulting services
and support for trustees and fund staff to help them
meet the challenges of managing superannuation funds
and advancing the interests of their fund members. Each
year, AIST hosts the Conference of Major Superannuation
Funds (CMSF), in addition to numerous other industry
conferences and events.
VISION
To play an integral role in the representative superannuation
industry and to assist the industry to achieve its
goal of building a better retirement for all Australians.
MISSION
To fulfil its vision, AIST will
»»
be an important part of the representative superannuation
sector (not-for-profit superannuation) contributing
to build a better retirement for all Australians; and
»»
deliver high quality, relevant services to the representative
superannuation sector (not-for-profit superannuation)
VALUES
All AIST board and committee members, staff, contractors,
and service providers promote the following values:
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Professional excellence
»»
Innovation
»»
Ethical behaviour and practices
»»
Accountability
»»
Trustworthiness
7

“As an organisation whose trustee members care
deeply about good governance, we buckled on
the armour and waded into the inquiry fray”
GERARD NOONAN
PRESIDENT

A MESSAGE FROM
THE PRESIDENT
and simultaneously created a vast pool of patient capital
which has underpinned financial stability in this country.
Revisiting and improving the experiment at the end of
the difficult decade of the Noughties deserves loud and
sustained acclaim. Assuming that Minister Bowen’s
successor, Bill Shorten, is able to steer the necessary
legislation through the parliamentary shoals in 2011, it will
be an achievement of great proportions.
Among all this wonder, 2010 also proved to be the year
of government-inspired inquiry: recently-retired Treasury
Secretary Ken Henry’s taxation inquiry, the Labor MP
Bernie Ripoll’s inquiry into shady dealings in the financial
advisory industry and former regulator Jeremy Cooper’s
inquiry into the shape and operations of Australia’s overall
superannuation system.
Gerard Noonan, President (FAIST)
SUPER’S ANNUS MIRABILI
2010 may be the postcode for Sydney’s feisty inner city
suburb of Darlinghurst, but for those of us in the superannuation
industry who take our trustee roles seriously,
2010 was the year of wonders, superannuation’s own
annus mirabili (year of wonders).
Wonders about whether the global financial crisis would
eventually abate and allow us to declare some positive
returns to our members.
Wonders about which government, or which political
party, or even which leader we needed to approach about
our concerns as trustees.
Wonders about whether the political class’s obsession
with changing the rules about superannuation would
diminish.
Wonders, too, whether the little-known, mild-mannered,
and relatively junior government Minister Chris Bowen
would be able to convince his own political masters that
2010 was the year, a decade and a half overdue, that
Labor’s great superannuation experiment should continue,
and that the super guarantee charge of 9 per cent should
become 12 per cent within a decade. The experiment first
hatched in the 1980s has already put Australia in the front
ranks of world players in retirement planning for its citizenry
As an organisation whose trustee members care deeply
about the good governance of that pool of capital on
behalf of millions of our members, we buckled on the
armour and waded into the inquiry fray.
Much of the preparation involved consultations with trustees,
staff and experts in our member funds and service providers
to ensure our own research and policy approaches were
rigorous, consistent and pithy.
Led by the AIST’s indefatigable CEO Fiona Reynolds,
the AIST policy and research team produced thousands
of pages of material in response to the Henry and Ripoll
inquiries and the three Cooper position papers that
appeared throughout the year.
Fiona was in constant demand by the Australian media
for a reasoned commentary on the progress of each of
the inquiries. She and other senior staffers at AIST, as
well as myself and other members of the AIST Board and
policy committee, were involved in protracted and intense
discussions throughout late 2009 and 2010 with Jeremy
Cooper, staffers of the Cooper inquiry, Ministers Bowen
and Shorten, Federal Treasury officials (who staffed the
Henry taxation review and had significant input into the
Cooper inquiry), parliamentarians, fellow trustees, employer
associations, unions, superannuation and governance
‘experts’, even the Federal Opposition’s changing guard
of superannuation spokesmen. The point To make sure
that the final reports of each inquiry reflected a principled
and practical result that advanced the cause of ‘all profits
9

to members’ superannuation and the better retirement
prospects for the millions of members of Australia’s
not-for-profit industry, government and corporate funds.
Were we successful On a scale of 1 to 10, I would
estimate that an 8 was a reasonable assessment.
There is now a genuine prospect that our long-held
concerns about superannuation adequacy will be
addressed by the decision to lift the super guarantee
charge to 12 per cent over the next nine years. Lower
paid workers will enjoy the benefits of a promised rebate
of up to $500 in their super accounts to compensate
for the fact the tax regime has previously discriminated
against them unfairly. The government intends to ban
the nefarious practice of trailing commissions charged
against unwitting super fund members. A new regime
of more sensible and affordable financial advice is in
the wings. The role and effectiveness of trustees in the
not-for-profit sector (which accounts for approximately
a third of the $1.3 trillion held in Australian superannuation
accounts) has been recognised by the government.
This is despite attempts by the Cooper inquiry’s final
report to undermine this highly successful model of fund
governance – with trustees drawn from employer and
employee representative groups - which has been one
of the most significant factors in putting Australia in the
global top ranks of retirement planning and management.
In all these areas, and a host of others, AIST has been
active in lobbying, persuading, cajoling and arguing
our case.
Throughout our annus mirabili of course, the fine work
by AIST’s other divisions has continued: in the extensive
training and professional development of fund trustees
and staff, in conference organising, including major
conferences such as the Conference of Major Superannuation
Funds (CMSF), the annual Australian Super
Investment Conference, as well as Global Dialogue which
was held in Hong Kong and China in 2010.
Cooper Review panel and offered wisdom, commonsense
and no-nonsense solutions to the theorisers. Andrew
Barr, AIST’s policy manager, decided to change career
course during the year. Former President Ian Robertson
continued to lobby on behalf of climate change awareness
in the face of dwindling political will to create appropriate
policy. To these and other Board, Policy and Finance
Committee members who are taking breaks from the
front lines, I extend thanks.
Finally, AIST has initiated a new status of ‘Fellow of
AIST’, to recognise the effort that many trustees put
in to develop and maintain their professional status.
Throughout all the inquiries and jawboning in which AIST
has engaged over the past year, one thing was always
apparent in discussions. We will be best able to retain
our not-for-profit status and our unique governance
structures if we are prepared to ally our practical, intelligent
and engaged approach with a determination to
continuously lift our skills and knowledge across the
vast area of superannuation. Each of us does not need
to be an expert in all areas of trust law, superannuation
legislation, asset management, investment products,
currency management, insurance conditions, conflicts of
interest, compliance, money laundering laws, governance
or business continuity legislation. But collectively we
need the wisdom and the skills to know what questions
to ask, how to smell the bulldust and when and how to
let management get on with its tasks.
I’d urge trustees to embrace the new order and realise
that we will all need to commit to continuous professional
development. It will no longer be good enough, in
a competitive world that is often envious of the positions
we hold, for us to rest on our laurels.
There are more than 30 staffers at AIST who work hard
on behalf of the organisation. My thanks to them all for
their efforts.
Special thanks should go to staffers and supporters who
have dug deeply over the years in the cause of not-forprofit
superannuation. Mavis Robertson, the doyenne of
superannuation, is contemplating her own retirement from
day-to-day engagement in super issues. Sandy Grant,
who stood down as chair of AIST’s policy committee,
took on the perhaps unenviable role as a member of the
10

“Our members felt that strong and nonconflicted
voices were required to represent
the unique perspectives of not-for-profit
superannuation funds - of all shapes and sizes”
FIONA REYNOLDS
CHIEF EXECUTIVE OFFICER

CEO’s REPORT
and unsettling recommendation that the SG remain at
its current level of 9 per cent.
Fortunately, the industry didn’t have to wait long for the
Government to reject the argument. On May 2nd - the
same day that the final Henry recommendations were
aired - the Government unveiled its landmark super reform
package, the central plank of which was a seven-year
timetable to lift the SG to 12 per cent by 2019, along
with a rebate for low income earners.
AIST, along with just about everybody else in the super
industry, was elated. But we also knew that with a looming
Federal Election, 12 per cent was far from guaranteed.
Indeed, with the cashed-up mining industry fiercely
opposed to the Government’s proposed Resource Super
Profits Tax, the super industry had a mighty challenge on
its hands.
Fiona Reynolds, CEO (FAIST)
The past year has seen AIST intensely involved in
helping shape the Government’s reform agenda.
Not since the introduction of compulsory super
have those working in superannuation had to
contemplate so many potential changes to the
super landscape.
TOWARDS 12 PER CENT
Of course the biggest change of all – and one that was
most welcome – concerned the Government’s proposal
to lift the Superannuation Guarantee to 12 per cent. While
this announcement in May came as a surprise to many,
AIST had already begun the year with a strident call for
12 per cent following the release of the Intergenerational
Report. This report highlighted the escalating costs of
Australia’s ageing population and contained the worrying
forecast that, even by 2050, most retirees would still be
heavily reliant on the age pension.
Not surprisingly, few Australian workers were happy with
this prospect. Public opinion polls conducted by AIST
suggested that not only were an overwhelming majority
of Australians in favour of lifting the SG to 12 per cent but
most were prepared to pay for this rise out of their wages.
But not everyone was convinced that 12 was a good
number. When the Henry Tax Review’s long-awaited
report was finally released, it included the controversial
AIST immediately sprang into action with a public
campaign. We called for bipartisan political support for
12 per cent, and we requested that the Coalition release
its super policy. We called on Tony Abbott to explain
how his party planned to tackle the nation’s retirement
funding challenge.
AIST was equally vocal in explaining to employer groups,
who claimed that 12 per cent would damage business
and cause an economic downturn, that they had nothing
to fear. We cited data that showed wages and profits
had actually flourished during previous years of rising
compulsory super contributions. The sky hadn’t fallen in.
Similarly, when the Minerals Council of Australia released a
spate of advertisements claiming that worker’s super was
at risk, AIST pulled no punches. We accused the miners
of misleading consumers and called on the Australian
Securities and Investments Commission to investigate.
One week later, during her maiden speech as the new
leader of the Labor Party, Julia Gillard called on the miners
to drop the offending advertisements.
Another win for AIST during the year was our success
in persuading the Government to re-think its proposed
reduction of the concessional caps for older workers.
As one of several measures to improve the equity and
fairness of our super system, the Government adopted
AIST’s recommendation to the Henry Review to retain
the concessional cap limit of $50,000 for older workers
with retirement balances of less than $500,000. AIST
has long-argued that older workers who missed out on a
working lifetime of compulsory super and whose balances
remained low should be encouraged to top up their super.
12

Similarly, the Government’s decision to introduce a
low-income super rebate was in line with AIST’s recommendation
to improve the equity of the super system.
RISING TO THE COOPER CHALLENGE
At the same time as we were lobbying on the 12 per cent,
AIST was also busy on the Cooper front. Hardly a day went
by without some aspect of the Super System Review being
debated in AIST offices, at member briefing sessions, and
with Treasury and other government officials.
At the start of the year, AIST’s chief concern was the
Review’s recommendation to ban cross subsidisation
through its so-called ‘Choice Architecture’ model. In our
very detailed submission - as well as in opinion pieces and
media interviews - AIST strongly argued that the model
was flawed. We also used our submission to call for a
solution to Australia’s $16 billion lost super problem; the
removal of hidden fees and commissions on compulsory
super contributions; and a switch in focus from short-term
to long-term returns. We strongly argued against moves
to legislate for fund size and instead called for the removal
of barriers to gaining economies-of-scale through collective
investing.
When the final MySuper proposal was released in May,
we were relieved to see the Cooper panel had abandoned
its original ‘Choice Architecture’ model.
But the debate on Cooper’s many other recommendations
had only just begun. While a raft of measures to
improve system efficiency - such as the adoption of
the tax file number as a key identifier - were broadly
welcomed, the industry was divided on many other
key elements of the Cooper package. Many of our
member funds were confused as to where MySuper
was heading and that MySuper would simply end up
being a more costly version of what they were already
providing. In numerous meetings and policy briefings
with our members, the Government and other industry
stakeholders, AIST worked hard to ensure that these
and other concerns of the not-for-profit sector were
clearly articulated.
WORTH FIGHTING FOR
Of particular concern to AIST was Cooper’s recommendation
to effectively water-down the equal representation
system of governance. While most other industry
associations were conspicuously silent on this issue,
AIST was persistent and consistent in arguing that our
unique system of governance had the runs on the board.
We gathered independent evidence about the pivotal role
played by the representative trustee system in delivering
superior returns to members and we presented this
evidence to journalists and other industry commentators.
Behind the scenes we held many meetings with the
Government – first with the then Minister for Superannuation,
Chris Bowen, and from August onwards, with
the Assistant Treasurer and newly-elected Minister for
Superannuation Bill Shorten.
“It’s the not-for-profit sector that
has driven the reform agenda of the
past 25 years and driven it in the
right direction”
Both Ministers turned out to be good listeners. By
December, when the Government had released its formal
response to the MySuper recommendations, the equal
representation system had emerged intact. Importantly,
it will continue to play a key role in delivering low-cost,
commission-free, default super to Australian workers
through the MySuper model. The Government also
rejected the notion of ‘non-associated’ directors and
confirmed once and for all that there would be no ban
on cross-subsidisation within MySuper funds. Common
sense also reigned on the issue of fund size. There
will be no forced mergers and it will be left up to funds
and trustees to determine what is in the best interest
of fund members.
FEE RESEARCH WELL RECEIVED
AIST was also successful this year in helping drive debate
on fund manager fees. After completing a research project
with Rice Warner on the issue, AIST called for a re-think
on fund manager fee structures. Our study clearly showed
the existing industry-wide practice of rewarding fund
managers for the size of assets under management had
failed to deliver value to super fund members.
The study’s spotlight on fund manager fees was timely,
particularly as the Cooper Review – whilst recognising that
investment fees were the biggest cost in the super system
– stopped short of recommending any major changes to
the way these fees were structured. The study has been
13

well-received by the investment community and other
stakeholders, including regulators. AIST will continue to
work with funds and the investment community on this
critical issue.
TOWARDS A PROFESSIONAL INSTITUTE
As well as working on external policy issues in 2010, AIST
undertook a strategic review of its operations, role and
services. We conducted this review with the assistance
of an external consultant who conducted confidential and
arms-length interviews with a range of AIST members and
stakeholders. In addition, we conducted a confidential
member survey to obtain a ‘member view’ of AIST.
A number of papers were then produced for the AIST
Board and Executive to discuss and consider. We looked
at everything: from what we do well; what we could be
doing better; where we have gaps; and ultimately asked
if we should still exist or whether we should consider
merging with other ‘like’ organisations.
What we heard from our members was encouraging.
Members felt that strong and non-conflicted voices were
required to represent the unique perspectives of not-forprofit
superannuation funds - of all shapes and sizes. It
the post-Cooper world. Members felt there was a great
deal more that could be done in the area of governance
and in lifting professional standards across the industry.
After listening carefully to this feedback, AIST conducted
an extensive review of its key priorities and future direction.
It was decided that AIST would enhance and elevate its
status by moving from an ‘industry body’ to a professional
institute, with our central mission to provide leadership
in superannuation. To that end, we have established a
new Trustee Governance and Professional Standards
Department to expand our capabilities. We have also
established two new Board Committees – an Education
Committee and a Trustee Governance and Professional
Standards (GPS) Committee to be chaired by Cate Wood
(Education) and Gerard Noonan (Governance and Professional
Standards).
We will be discussing this further with members and
announcing new initiatives throughout 2011.
Super fund diversification pays dividends
For the millions for Australians with their super invested
in not-for-profit funds, the most important issue for 2010
was probably not Cooper, not fund manager fees, nor
even 12 per cent: it was their own fund’s performance. All
in all, the year was a reasonable one for fund members,
with the average balanced option returning 5.5 per cent.
The result serves to highlight the benefits of a welldiversified
superannuation portfolio, with the Australian
share market finishing the year only marginally higher.
More importantly, longer term results show solid growth
with Australians seeing their super grow by 6.5 per
cent each year since 2003. Once again, not-for-profit
funds, both small and large, dominate the long-term
top ten tables.
THANK YOU
can be easy to get caught up in a “one voice” mantra.
However, it is important to remember that the not-forprofit
sector has driven the reform agenda of the past
25 years. And, importantly, it has driven it in the right
direction: in the interests of members of funds rather
than shareholders of banks or life companies.
But members did think AIST needed to distinguish
itself from other organisations if we were to thrive in
AIST is fortunate in having a dedicated group of staff
who not only deliver excellent services to members
and the industry at large, but are passionate supporters
of not-for-profit superannuation. Behind every AIST
event, conference or training session, are people who
understand that not all super funds are the same and
that Australian workers are best served by having their
super in not-for-profit funds. AIST’s staff are committed
to delivering intellectually rigorous submissions and
relevant research that informs policy debate and product
14

design. Our highly experienced training staff ensure that
members are kept up-date and informed while our event
staff always strive to do their best.
The loyal AIST family is also supported by the AIST
Board, particularly our President Gerard Noonan and
Deputy President Angela Emslie, who provide me with
encouragement, wisdom and guidance. Thank-you also
to our committee members and particularly committee
chairs including David Coogan and Mavis Roberston.
Mavis has now stood down from all her official roles and
it goes without saying that she will be missed by everyone
at AIST, particularly by me. Mavis has played a key role
in the super industry including the establishment of AIST,
CMSF and Women in Super. She has been a passionate
advocate for the not-for-profit sector and for the right of
all workers to retire with dignity. As an industry we have
much to thank Mavis for.
And, as always, thank you to the member funds who
support AIST and particularly those who actively participated
in the many consultative meetings and policy
briefings held throughout the year.
THE YEAR AHEAD
With a minority Labor Government and an Opposition
that seems intent on rejecting both the mining tax and
the super reform package, 2011 is shaping up to be a
make or break year for superannuation adequacy. As
Minister Shorten has repeatedly stated, the 12 per cent
proposal is just that – a proposal. At the very least, all
of the Independent parliamentarians – each of them
with very different political perspectives – must come
on board for this critical measure to see the light of
day. Of course, once the legislation gets through the
House of Representatives, it must then be supported
and passed in the Senate. With the tax summit to be
held in 2011, the issue of raising the SG will continue to
be contested. We can expect the Coalition to reiterate
its call for a review of the Henry recommendations –
recommendations that the Government has rejected.
AIST has carefully analysed the Henry Review and we
believe the Government’s approach is both simpler and
fairer, as well as being far easier for both funds and
employers to administer.
If the Government fails to get the all-important 12 per
cent through the Parliament, it may be years before
anyone has the guts to try again. In this very different
and difficult political environment, AIST will intensify its
advocacy and lobbying efforts to all parliamentarians as
well as the public at large. The prize – a much-improved
retirement for Australian workers – is worth the effort.
The next few months will also be a critical period for
selling the need to go to 12 per cent to the wider public.
AIST is already working on a number of communication
projects to bring a fresh angle to the message and – as
the Minister continues to stress - we also need to be
reiterating the message to fund members.
Our work on Cooper is also far from over. The Government’s
response was light on detail and the protracted
timetable for many of the reforms has created lots of
wriggle-room. There is plenty of potential for costly
delays and further uncertainty.
The only major reform set for legislation in 2011 centres
on the tax file number becoming the primary identifier
for member accounts – something we all know can’t
come soon enough.
To ensure that the reform timetable continues to move
ahead in 2011, AIST will be establishing a number of
working groups. We invite trustee directors and fund staff
to be active participants in these groups so that these
voices are heard and fed through to the many consultation
committees that the Government aims to set up in the first
few months of 2011.
AIST will be actively involved in the ongoing debate
concerning the selection of default funds through our
industrial award system. We have already made it clear
to the government that we are unconvinced of the need
for radical change. We believe the current system of
default fund selection has played a key role in protecting
Australian workers from paying too much for their super.
We will also continue to strongly argue that decisions
about default funds are best left up to Fair Work Australia
and the industrial parties involved.
We will also be actively involved in the stronger super
reforms. AIST has positions on the peak consultive
committee chaired by Paul Costello, as well as the
Government’s MySuper, Superstream, Governance and
SMSF working groups.
After a year of debating, waiting and debating some
more, the next 12 months will be about getting down to
business. We look forward to 2011 with optimism and
a sense of purpose.
15

ORGANISATIONAL CHART
AIST Board
Policy & Research Committee
CEO
Special Projects Committee
Finance, Audit & Risk Committee
Conference Committee
General Manager
Membership Services
Events
Media & Communications
Policy & Research
Learning & Professional Development
Corporate Services
16

AIST BOARD
PRESIDENT
Gerard Noonan
Media Super
VICE
PRESIDENT
Angela Emslie
Vision Super
HESTA Super Fund
CARE Super
BOARD MEMBERS
Robyn Buckler
HOSTPLUS
Greg Cantor
Australian Catholic
Superannuation & Retirement Fund
Ann Drohan
HESTA Super Fund
Debora Jackson
Holden Employees
Superannuation Fund
Andrew Proebstl
legalsuper
Alix Sachinidis
MTAA Super
David Whiteley
AustralianSuper
17

AIST BOARD COMMITTEES
The Board has the authority to establish committees to
assist its work, but retains its overriding responsibility
for any delegated activity. The AIST committees provide
an opportunity for both trustee director and fund staff
members to work together to deliver AIST’s mission and
achieve its vision.
Each committee has a charter approved by the Board
which, among other things, establishes its role. Members
can access the Board charters from the AIST website. In
2010, AIST had the following formal committees:
CMSF CONFERENCE COMMITTEE
Maryann Mannix-White, CMSF
Conference Committee Chair
Maryann Mannix-White [Chair]
AIST
Mark Ashby
HESTA Super Fund
Debi Bruce
AIST
Louise Davidson
Cbus
Andrew Dawson
FTV
Michael Dwyer
First State Super
Nathan Fabian
IGCC
Chris Field
State Street Australia
Rachel Gallagher
AIST
Keith Griffiths
BNY Mellon Asset
Management
John Hamer
Pengana
Happy 20th Birthday CMSF! The focus for the 2010 CMSF
Conference Committee was looking at the future – yes, it had
been 20 years since the first CMSF was held in Wollongong
and the industry has experienced massive change and
growth, from infancy to young adulthood. The original steering
committee consisted of Ross Christie (Local Authorities
Super Board), Sandy Grant (Assistant General Manager,
Jacques Martin), Murray Jamieson (Manager Superannuation,
BHP), Mike McKay (Chairman of BUS and AUST), and
Mavis Robertson. There were 13 sponsors, 23 exhibitors
and 383 delegates. The conference had 16 plenary and
workshop sessions with 47 speakers. The keynote address
was given by then Treasurer, Paul Keating.
Fast forward …
CMSF 2010 had 41 plenary and workshop sessions and
50 speakers, 21 Industry Partners, 37 exhibitors and 1150
delegates. Now that we’d reached the 20-year milestone, the
Committee considered what the next 20 years would look
like. At the first CMSF, a large proportion of the audience
didn’t have mobile phones, communication was largely still
via telephone, fax and mail, and the internet was only being
used by universities – my, how far we’ve come!
The Committee was on a mission, debating topics, posing
ideas, discussing the theme and potential speakers – all with
a view to challenging, educating, supporting, and building
greater knowledge amongst delegates.
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01 CMSF CONFERENCE COMMITTEE
02 FINANCE, AUDIT & RISK COMMITTEE
03 SPECIAL PROJECTS COMMITTEE
04 POLICY & RESEARCH COMMITTEE
Greg Johnson
Dimensional
Liz Krajewski
Colonial First State
Global Asset Management
Erik Mather
Regnan
John Meagher
AMP Capital Investors
Robert Nunez
IFS Insurance Broking
Fiona Reynolds
CEO, AIST
Katherine Seymour
BlackRock
Colin Tate
Conexus Financial
Peter Treseder
AustralianSuper
Daphne van der Oord
Man Investments
Justin Walsh
State Street Global Advisors
Paul Watson
Military Super
Andrew Whiley
IFS
Nicole Williams
AIST
2010 WAS THE YEAR WE ….
»»
continued the discussion about the GFC;
»»
talked about the much-anticipated Cooper Review and
other Government reviews;
»»
looked at social networking and, how and if funds
could use it;
»»
discussed post-retirement issues;
»»
heard about the growing prevalence of superannuation
fraud;
»»
got serious about shareholder activism;
»»
heard from funds about their experiences during
mergers;
»»
were informed about the challenges of the ageing
workforce; and
»»
watched an amazing array of industry and non-industry
speakers.
Thanks to all the dedicated and hard working members of
the CMSF 2010 Program Committee – your time, effort,
inspiration and humour is gratefully appreciated.
»»
learnt about climate change post-Copenhagen;
19

FINANCE, AUDIT & RISK COMMITTEE
David Coogan [Chair]
PricewaterhouseCoopers
Greg Cantor
Australian Catholic
Superannuation & Retirement
Fund
Ann Drohan
HESTA Super Fund
Maryann Mannix-White
AIST
Stephen Miller
AIST
Andrew Proebstl
legalsuper
Fiona Reynolds
AIST
Katiana Velcek
AIST
David Coogan, Finance, Audit & Risk
Committee Chair
The audited accounts for the year ended 31 December
2010 are included with this report.
Income for the year was $7,090,725 compared to
$5,919,974 in the 2009 financial year. This included
membership income of $822,059 (2009: $630,415), event
registrations and sponsorship income of $4,756,846
(2009: $3,797,674) and training and compliance income
of $1,148,810 (2009: $1,035,798).
Income for the 2010 year increased on the previous
year due to an increase in income (from CMSF, ASI etc)
together with income from the Global Dialogue, which
did not occur in 2009.
The overall result for the year was a surplus of $278,110
compared with a loss of $26,579 in 2009. This is a very
good result for AIST and our members who have supported
the organisation and will help fund further trustee
training initiatives in future years.
AIST’s balance sheet includes net assets of $1,911,235
(2009: $1,633,125).
At a Finance, Audit and Risk Committee level we held six
meetings in 2010 with the committee not just focussing on
financial management issues, but also risk management
and compliance matters. I would like to thank the committee
members for their active contribution during the year.
Expenditure for the year was $6,787,605 (2009: $5,921,608).
This expenditure included $2,977,909 (2009: $2,782,255)
in office salary and wages expenses and event-related
expenditure of $1,753,991 (2009: $1,463,048).
20

SPECIAL PROJECTS COMMITTEE
Mavis Robertson [Chair]
AIST
Robyn Buckler
HOSTPLUS
John O’Flaherty
Statewide Super
Megan McAlpine
Health Super
Fiona Reynolds
AIST
Cate Wood
AGEST, CARE Super
Peter Gebert
Cbus
Mavis Robertson, Special Projects
Committee Chair
A highlight of AIST’s 2010 program was the third Global
Dialogue, held in Hong Kong from May 30 to June 4.
With the assistance of Andrew Dawson, the staff of
AUSTRADE, our sponsors and our staff we put together
an amazing program which kept all 70 or so participants
busy learning and discussing the views of retirement
income providers from Hong Kong, China, South Korea,
Malaysia, Vietnam, Britain, Canada and the USA.
The one day visit to Shenzhen in China provided opportunities
to see and hear about the pace of industrialisation
and of ambitious plans for development. In our many
discussions throughout the Dialogue, participants learnt
about the difficulties and rewards to be found in investing
in China and in Asia generally. Many of us had our first
introduction to Islamic finance, a topic not yet widely
discussed in Australia.
Our guest speakers from Asia gave us considerable
insights, while we shared Australia’s experiences in the
provision of superannuation through our compulsory
system.
funds, and to consider the ways funds can develop their
investment programs, separately and together, in some
of the most dynamic markets in the world.
Everyone commented favourably on the variety of speakers
– women and men – and on the fact that everything
proceeded seamlessly (in reality it was the AIST events
team, Debi Bruce and Nicole Browne, who made sure
that everything worked so well).
Some of the feedback from participants was so good
that many wanted AIST to consider the idea that the
Global Dialogue should be an annual event. In practice
AIST wants to keep this part of our education program
special. The Global Dialogue will take place next in 2012.
The time gap will help ensure that those who planned the
program and found speakers to cover a wide range of
topics will maintain the high standards achieved in 2010.
Special thanks to all those who contributed to the program.
The Global Dialogue provided not only opportunities
for education and training, but also the opportunity for
participants to learn from each other, to hear the experiences
of trustees and senior staff from all participating
21

POLICY & RESEARCH COMMITTEE
Gerard Noonan [Chair]
Media Super
Andrew Barr
AIST
Cristina Cifuentes
First State Super
Alissa Harnath
AIST
David Haynes
AIST
Julie Lander
CARE Super
Bruce McBain
Corporate Super Association
Beth Mohle
HESTA Super Fund
Damien O’Connor
AIST
Fiona Reynolds
AIST
Gerard Noonan, Policy Committee Chair
AIST’s policy activities were dominated throughout
the past year with responses to government-inspired
inquiries. As anticipated, there was much to do on the
Cooper front. Barely had the ink dried on our third weighty
submission to the Cooper review – delivered in February
2010 – before we set to work responding to Cooper’s
controversial ‘Choice Architecture’ and various other
proposals for MySuper and SuperStream.
By mid-year, when the review panel had been persuaded
to drop some of its more undesirable and unworkable
proposals, it was time to turn our attention to the government
and its view of Cooper. As part of our ongoing
engagement with the Assistant Treasurer and Minister
for Superannuation, Bill Shorten, and his policy team,
AIST prepared a final Cooper response, which included
our concerns about the Review’s plans for the equal
representative trustee system, the selection of default
funds, and certain aspects of the MySuper criteria.
When the Government released its ‘Stronger Super’
response just before Christmas, we were pleased to
see that most of our concerns had been addressed.
That doesn’t mean that our policy work on Cooper is
over – far from it. As the saying goes, the devil is in the
detail and AIST will continue to work closely with the
Government and other stakeholders on the implementation
of the key reforms.
But in between concocting hundreds of thousands of
words to deal with our political masters, there was time
to develop good policy and conduct fresh research on
a surprisingly wide range of super issues.
FUND GOVERNANCE
The Policy Committee and AIST’s researchers spent
much time developing a set of ideas to guide trustees
in looking after their funds.
What’s in a name Well actually, quite a lot. Unlike the
pattern of recent government legislation - which uses
cute names like ‘Work Choices’ or ‘Simpler Super’ to
describe (and often mis-describe) the nature of the law
being debated – we’re being dull but accurate by naming
the document Fund Governance Guidelines. Thank goodness
trustees generally understand their tasks and know
what good governance is all about. We’re confident the
guidelines will offer a practical and thoughtful way trustees
can grapple with the more contentious issues they face
as they manage the billions of dollars they hold in trust
for their members.
22

Alix Sachinidis
MTAA Super
Janet de Silva
AIST
Sacha Vidler
ISN
Andrew Whiley
IFS
David Smelt
Local Super SA/NT
Hans Van Daatselaar
Superpartners
RESEARCH
During the year, AIST also produced a number of briefing
papers and other submissions where the name Cooper
barely received a mention. Our pre-budget submission
called for a lift in the Superannuation Guarantee to 12 per
cent and a re-think on concessional cap limits, while other
submissions included a response to the Government’s
Financial Services Working Group on a draft short form
PDS and a submission to Treasury on the Governance
of Australian Superannuation Schemes Bill 2010.
To give added impetus to the Government’s push for a
12 per cent SG rate by 2019, AIST’s recently appointed
economic analyst, Damien O’Connor, completed a detailed
paper examining how the government’s approach to
adequacy has intellectual rigour and addresses inequities
in Australia’s retirement incomes.
AIST was also active in addressing its concerns about the
high fees paid to fund managers, completing a significant
research project which looked at the fees that almost
all equities managers charge super funds. Determined
that the global financial crisis should cause a shake-up
in the lop-sided way fees are charged, AIST developed
research with actuaries Rice Warner which revealed
major flaws in the current fee approach. This has seen
fund managers able to charge on an ever-expanding
revenue base, regardless of whether increased tasks or
risks were involved, or the performance of the manager.
AIST’s Investment Manager Fees project proposed a
new model for active portfolios which is a hybrid of a
low dollar base fee with a risk-adjusted performance
fee. Resistance to change from the fund manager world
has been intense. No great surprise there. Watch this
interesting space over the next few years.
AIST also presented a project on the governance of
administration in superannuation at the Fund Governance
Conference in May.
AIST has developed projects on the experience of
women in retirement, and the pattern of superannuation
payments in regional Australia, to be finalised in 2011.
Work has also commenced with Russell Investments
on the development of a member engagement index,
with details to be released at CMSF 2011.
THANK-YOU
Finally, AIST would like to thank the dedicated members
of our Policy & Research Committee for all their hard
work throughout the year.
23

EVENTS
Climate Change Advisors who provided an update on
the climate challenge and Satyajit Das, a risk consultant
and author who delivered a very interesting session on
the GFC, all rated very highly.
The 2010 Exhibition held in conjunction with CMSF also
attracted a record number of exhibitors, several exhibiting
at CMSF for the first time. In line with our carbon
neutral project, the ’Green Award’ for the exhibitor who
demonstrated a commitment to excellence and leadership
in environmental performance went to Colonial First
State Global Asset Management. AIST also congratulates
Superpartners, winners of the ‘People’s Choice Award’
for the second time.
Debi Bruce, Events Manager
AIST organises conferences and luncheons to build
on industry knowledge by securing expert speakers to
address current topics and to encourage debate and
idea-sharing within the industry.
AIST’s commitment to offsetting our carbon footprint
continued in 2010, with an additional saving of 70,000
tonnes. This project was sponsored by Deutsche Asset
Management. AIST will continue to reduce CMSF’s
carbon footprint wherever possible and we encourage our
attendees to purchase offsets for their flights to assist.
Each year at CMSF we publicly acknowledge the commitment
and dedication of trustee directors through the
Trustee of the Year Award. We congratulate David Leggo,
Chair of AvSuper and recipient of the 2010 Award.
CONFERENCES
A total of 2,345 people attended our conferences and their
feedback was highly positive. This is the largest number
of attendees and the highest representation of trustees
and fund staff to date for AIST conferences.
CMSF
The Annual Conference of Major Superannuation Funds
(CMSF) was held at the Brisbane Convention and Exhibition
Centre from 15 – 17 March and we celebrated its 20th
Anniversary. This conference is an important event on the
superannuation calendar and attracts international and
local experts, government representatives and industry
regulators. Our speakers stimulated plenty of debate
from the floor and contributed to on-going discussion on
everything from Cooper and climate through to shareholder
activism and fund manager fees.
Feedback from our conference survey was extremely
positive: Justice Michael Kirby, who discussed social
inclusion and the ageing workforce, Mark Fulton, Global
Head of Climate Change Investment Research at DB
“Our speakers stimulated plenty of
debate from the floor on everything
from Cooper and climate through
to shareholder activism and
fund manager fees”
SPECIALIST ONE DAY CONFERENCES
In 2010 AIST held four specialist one day conferences:
»»
Fund Governance Conference
»»
Superannuation Administration Symposium
»»
Inaugural Member Services Symposium
»»
Superannuation Insurance Symposium
Over 570 delegates attended these specialist one day
events. Feedback was extremely positive and we are
pleased to advise that all events will continue in 2011,
with the Fund Governance Conference to be held in
Sydney for the first time.
24

Registration at CMSF 2010
AUSTRALIAN SUPER INVESTMENT
CONFERENCE
Themed ‘Investments – on the move post –Cooper’,
the Australian Super Investment (ASI) Conference was
held at the Sheraton Mirage Resort on the Gold Coast
from 6 – 8 September. With its focus on investment
issues and trends, ASI continues to grow attracting 380
attendees in 2010.
ASI supports SuperFriend through a golf fundraising event
and, despite heavy rain on the day, golf enthusiasts were
not deterred in raising funds to improve the wellbeing and
health of our members. SuperFriend’s goal is to reduce
the incidence of suicide and the impact of mental illness
on individuals, workplaces and families.
EXTERNAL EVENTS
The events team also managed the logistics of the annual
Australian Council of Super Investors (ACSI) Annual
Conference, and the Chartered Financial Analysts (CFA)
Annual Melbourne Dinner.
LUNCHEON SERIES
During 2010, AIST luncheons and breakfasts addressed
a broad range of topics and drew more than 2,330
attendees. Speakers included Jon Faine, Steve Bracks,
David Galbally, Garry Weaven, Ged Kearney, Rebecca
Huntley, Cath Bowtell and Jeff Bresnahan. Panel discussions
proved popular and high profile panelists attracted
large crowds.
GLOBAL DIALOGUE
Trustees and senior fund representatives from leading
industry and public sector funds attended the Global
Dialogue in Hong Kong and China from May 30 to June
4. The 2010 Dialogue explored investment opportunities,
challenges, and pitfalls of investments with our Asian
neighbours. Participants had the benefit of hearing from a
number of Asian experts, with China being a major focus.
The week-long event was deemed an overwhelming
success with many claiming it as the “best conference
they have ever attended”.
25

THANK YOU
Particular thanks to all our luncheon industry partners
for their contribution to the success of these events.
Special thanks also to our President, Gerard Noonan, for
hosting our luncheon series and many of our conferences
during the year.
We would also like to thank all our industry partners and
speakers for their contribution to a successful 2010, and
the members of our numerous conference committees
who worked hard sourcing speakers and coordinating
conference sessions.
SUPPORTING OTHERS
2010 was AIST’s second year supporting the United
Nations High Commission for Refugees (UNHCR) by
providing donations in lieu of speakers’ gifts at all our
events. AIST’s contributions will help create a better life
for the many people living within the Nakivale Refugee
Settlement in Uganda through funding of education, youth
services and much needed infrastructure development.
AIST has been involved with Women in Super and the
Mother’s Day Classic since its inception. The Mother’s
Day Classic was established to raise funds and promote
awareness of breast cancer research. At CMSF each year
AIST raises funds for both the National Breast Cancer
Foundation and the Prostate Cancer Foundation of
Australia through the charity golf day, raffle and silent
auction. This year we raised $52,935.84.
We also support the SuperFriend Foundation, an industry
initiative that promotes awareness of mental illness.
All three charity organisations sit under an umbrella
organisation formed by the superannuation industry,
known as Superlife and representatives from industry
funds and AIST meet regularly to discuss and plan ways
to help raise awareness and funds for the charities.
2011
As AIST continues to grow in 2011 I have taken up a
new role and challenge at AIST as Partnership & Projects
Manager. I have enjoyed my time working in the Events
team but also look forward to a new exciting role.
26

CORPORATE SERVICES
»»
The in-house development and management of the AIST
Awards for Excellence website (www.aistawards.asn.au)
»»
Coordinated advertising of AIST services in both
mainstream and industry press
»»
The Corporate Services data management team
received acknowledgement at the Annual NiUG
Conference for industry-leading data integrity and
effective online capabilities
»»
The upgrade of AIST’s financial management software
to enable more efficient and comprehensive reporting
»»
Introduction of extensive process improvements in the
areas of finance, data management, marketing and
human resources
Katiana Velcek, Corporate Services Manager
CORPORATE SERVICES
Since its establishment in August 2009, Corporate Services
has continued to deliver high quality internal services that
underpin all of AIST’s well-established activities as well as
new initiatives introduced in 2010.
»»
Development and implementation an organisational
Risk Management Framework
»»
Development and implementation an organisational
Business Continuity Plan
»»
Introduction a structured employee engagement
program including staff volunteering days, team
building activities, facilitated information sessions and
outstanding achievement awards for staff
“The Corporate Services data
management team continues to
deliver industry-leading data integrity
& effective online capabilities”
2010 was a year of significant change within Corporate
Services and all team members look forward to continuing
their efforts into 2011 and beyond, to deliver outstanding
service to AIST and its members.
Some of the key projects delivered by Corporate
Services during 2010 include:
»»
The launch of the new AIST website (www.aist.asn.au)
»»
The launch of profile management - a new website
feature giving AIST members the ability to control the
personal information stored on the AIST database and
to customise their communication preferences
»»
The launch of an iPhone/Blackberry App for CMSF 2011
»»
The in-house design and end-to-end production of
all AIST publications including the Global Dialogue
conference booklet, Supertalk, and the Annual Report
to Members
27

LEARNING & PROFESSIONAL
DEVELOPMENT
AIST’s Certificate of Foundations in Trustee Governance
continues to receive excellent feedback. This course
provides a comprehensive overview for trustee directors,
and contributes to meeting their fit & proper requirements.
For participants who are interested in furthering their
qualifications, AIST’s course is recognised by Victoria
University as an elective unit of their MBA program, and
forms part of the university’s Graduate Certificate in
Superannuation Management.
Rachel Gallagher, Learning & Professional
Development Manager
“Increased demand by clients for
in-house training sessions saw AIST
boost its RG146 training by 50 per cent”
Having delivered more than 300 public and in-house
training courses in 2010, AIST has firmly established
itself in the superannuation industry as the preferred
provider of quality education for both trustee directors
and fund staff.
AIST training is for all superannuation professionals and
in 2010 a wide cross section of industry participants
attended the highly regarded training sessions. Feedback
indicated that AIST’s training courses comprehensively
met the needs of participants.
TRUSTEE DIRECTOR EDUCATION
AIST’s Trustee Toolkit, Trustee Twilight and Hot Topic
training series have continued to be well received by
trustee directors and other superannuation professionals.
Topics covered in 2010 included: transition to retirement
and ageing workforce considerations for employers;
government review updates; the popular trustee refresher;
superannuation fraud; group and trustee indemnity
insurance; complex death benefits and the SCT; and
investment fee research.
In 2010 AIST launched the new Board Insights series in
response to increasing demand for tailored board training.
The Board Insights series consists of one-hour training
sessions on a range of topical issues, which are designed
to be delivered in-house at board meetings. These
sessions have been highly successful and sought after,
as boards can choose a relevant topic and a convenient
time to meets their needs. This service has received
excellent feedback from the funds who have participated.
COMPLIANCE AND SUPERANNUATION
TRAINING
Increased demand by clients for in-house training
sessions saw AIST boost its RG146 training by 50 per
cent. Demand for RG146 Refresher training has also
increased. Participants completing AIST’s RG146 course
are halfway to a Diploma of Financial Services (Financial
Planning) or to AIST’s Diploma of Financial Services
(Superannuation).
AIST continues to assist many funds nationally with
their ongoing licensing obligations through our wellestablished
AFSL and RSE Compliance and Professional
Development Program.
The AFSL program includes induction training and
testing so that representatives understand their regulatory
obligations; an annual verbal skills assessment to
identify any training needs that may exist; and quarterly
half-day training sessions. There is now a choice of
attending either the Professional Development sessions,
designed for representatives who provide general advice,
or the Quarterly Adviser workshops, a new initiative in
2010 designed for staff who provide personal advice.
AIST has received extremely positive feedback on this
new initiative. A panel of industry participants provides
AIST with direction on suitable topics.
28

In 2011 AIST will expand its AFSL Compliance and
Professional Development Program to incorporate audits
for representatives who provide limited personal advice.
SPECIALISED TRAINING COURSES
Funds are benefiting from increased skills in the
areas of:
»»
Claims assessment, by participating in AIST’s Assessing
TPD and Death Claims course
»»
Investment principles, by participating in AIST’s Core
Investment Principles, Advanced Investment Principles,
and ESG courses
»»
Communication skills, through AIST’s various communication
& presentation skills, media, and negotiation
skills training courses
»»
Business development, by completing AIST’s Strategic
Key Account Management course
All AIST courses can be delivered in-house to meet
your needs.
ACCREDITATION PROGRAM
AIST members are now recognised for their commitment
to furthering their education with new designations: Affiliate,
Associate and Fellow.
AIST’s program automatically records all continuing
professional development (CPD) completed with AIST and
members are invited to submit details of CPD completed
with other providers. AIST fully recognises any relevant
qualifications completed with any Registered Training
Organisation, TAFE or university.
The program has received favourable feedback from
members, and many have commenced using their designations
on their business documents.
AIST 2010 SUPER TRAINEES
The 2010 super trainees participated in a comprehensive
one-year training program including completion of the
Diploma of Financial Services (Superannuation), ongoing
professional development, as well as gaining exposure
to a range of industry experts across the board.
29

MEMBERSHIP SERVICES
John Carlile, Deputy Chair at LUCRF Super successfully
applied to undertake a four-day course presented
by EUROMONEY (and facilitated in Paris) on ‘Modern
Corporate Governance’. Sam Hallab, Deputy CEO at
Australian Catholic Super & Retirement Fund (ACSRF)
successfully applied for a four-day course (conducted
by Harvard Business School in the US) on ‘Performance
Measurement for Effective Management of Non-Profit
Organisations’.
Further to the two awards sponsored by Tyndall/Suncorp
Investment Management, AIST provided an award for our
associate member category. This was presented to Rabia
Akbar, a customer service consultant with Superpartners,
to undertake AIST’s RG146 course.
AIST AWARDS FOR EXCELLENCE
Meredith Wall, Membership Services Manager
MEMBERSHIP
As expected, the process of fund consolidation continued
in 2010. Whilst this could be seen to be detrimental to
the strength of AIST’s membership, our member funds
are taking the option of enrolling all of their directors and
staff into membership as a sign of their support of the
not-for-profit superannuation industry.
In 2010, AIST’s membership grew overall by 22 per cent.
AIST’s associate membership grew by 200 per cent and
our fully engaged, 31+ memberships grew by 67 per
cent. The largest increase in membership was through
our fund staff membership.
A total of five mergers were completed and a further
seven announced with completion pending.
AIST EDUCATIONAL SCHOLARSHIPS
Tyndall/Suncorp Investment Management partnered with
AIST for the fourth consecutive year in 2010 providing
$20,000 towards educational scholarships. Tyndall’s
continued partnership enables two AIST members to
undertake training relating to and assisting with the
growth of funds, thereby strengthening knowledge in
the not-for-profit sector.
The future leaders of the not-for-profit sector shone again
at AIST’s third annual ‘Awards for Excellence’ evening.
AIST recognised the industry’s top performers in several
categories. The winners are listed below:
Communication Awards
»»
Platinum: Health Super
»»
Gold: First State Superannuation Fund
»»
Silver: AMIST
»»
Bronze: HESTA Super Fund
»»
Operations/Administration Award: Ms Kelly Cantwell,
Executive Manager – Administration, HOSTPLUS
»»
Finance Award: Ms Aine Henry, Senior Accountant,
AUSCOAL Superannuation
»»
Member Services Award: Employer Relations Team,
Equipsuper
»»
Investment Award: Mr Robert Fowler, Executive
Manager – Investments & Governance, HESTA Super
Fund
»»
Marketing Award: Mr Peter Theodorakopoulos, General
Manager – Marketing & Client Services, CareSuper
30

TRUSTEE OF THE YEAR
Each year, AIST presents a Trustee of the Year Award
to recognise the pivotal role that representative trustees
play in Australia’s $1.3 trillion superannuation industry.
The winner of the 2010 Award was David Leggo, the
outgoing chair of AvSuper. Accepting his Award, Mr
Leggo, who attended the first CMSF event in Woollongong
20 years ago, acknowledged the dedication of his fund
staff and the three CEOs he had worked with during his
long career as a super fund trustee director.
The Award was sponsored by QIC.
“Member funds are taking the option
of enrolling all of their directors and
staff into membership as a sign of
their support of the not-for-profit
superannuation industry”
TEAM AIST AT MOTHER’S DAY CLASSIC
AIST’s members continue to put their energy into
supporting the annual Mother’s Day Classic fun run.
They dress in trackies to run, walk or volunteer in every
state of Australia. Our members were at the forefront of
creating this wonderful fundraiser through AIST’s Women
in Super initiative in 1998, and AIST has been a national
gold sponsor since then.
AIST’S COMMUNITIES OF INTEREST
AIST’s Communities of Interest grew again in 2010.
Due to the interest in these groups, and in line with
AIST’s new strategic plan, Communities of Interest group
meetings will be held twice yearly in:
»»
Adelaide
»»
Perth
»»
Darwin
»»
Brisbane
»»
Canberra
»»
Wollongong
»»
Newcastle
»»
Hobart
We will also be introducing new Communities of
Interest groups in the following areas:
»»
Marketing
»»
Investment
»»
Technology
Melbourne and Sydney meetings will also cover:
»»
Business Development (BDM)
»»
Compliance
»»
Finance
»»
People and Development
»»
Young Super Network
The Mother’s Day Classic organisation extends thanks to
all members who have contributed their time and energy
in order to make the event an ongoing success.
31

TRUSTEE GOVERNANCE &
PROFESSIONAL STANDARDS
The Trustee Governance and Professional Standards
department aims to develop the professionalism and
integrity of the trustee community, while maintaining the
important roles which diversity and representation play
in fund governance.
With the Not-for-profit Fund Governance Framework for
superannuation funds to be launched in 2011 and the
first tranche of its Professional Standards to be released
later in that year, AIST is equipped to assist its members
in a wide range of governance and standards activities.
AIST provides guidance in the following areas:
»»
board structure, recruitment and succession planning
director competencies and training
»»
disclosing and managing conflicts of interest
Eva Scheerlinck, Trustee Governance & Professional
Standards Manager
AIST is committed to supporting the good governance
practices and culture of not-for-profit superannuation
funds. As such, AIST established a specialised Trustee
Governance and Professional Standards department
in December 2010 to develop guidelines and suitable
tools for its members, as well as assisting them with
monitoring, measuring and benchmarking governance
practices in the industry.
It has long been accepted that poor governance practices
are intricately linked with poor fund performance. Strengthening
governance practices therefore can only benefit fund
performance and member satisfaction. It is AIST’s aim
to link good financial returns with the good governance
practices inherent in not-for-profit fund structure, build on
those competencies and share best practice processes
and outcomes with the industry.
»»
board committees
»»
relationships with nominating bodies and service
providers
»»
remuneration policy and disclosure
»»
governance charters and codes of conduct
»»
assessment and monitoring of the fitness and propriety
standards
AIST will be working with its members to further develop
gold standard governance practices in the years ahead.
To complement strengthened governance practices,
AIST recognises that a robust framework of professional
standards will assist trustees to achieve optimal performance,
not only for their members but to ensure that
transparency and accountability applies to all business
practices of superannuation trustees. AIST is committed
to providing trustees with the tools to achieve greater
efficiency, accountability and sustainability into the future
through the professional guidance that this framework
will provide.
32

MEDIA &
COMMUNICATIONS
The other hot media issue for the year was the Cooper
Review and the Government’s response to the Review’s
recommendations.
During the year AIST fielded a host of enquiries on the
Cooper recommendations and we conducted many
interviews with key journalists about specific recommendations
of concern, such as Cooper’s controversial
Choice Architecture.
Towards the latter part of the year, we were particularly
vocal about Cooper’s efforts to dismantle the equal
representative system. Our concerns were highlighted
in several business press articles and an opinion piece
was written by AIST president Gerard Noonan.
Janet de Silva, Media & Communication Manager
AIST received a significant amount of media exposure
during 2010 as our opinion and commentary
was sought on a diverse range of issues.
The headline issue of the year and a key focus of our
media engagement strategy was the Government’s landmark
decision to lift the Superannuation Guarantee to 12
per cent and introduce reforms for low-income earners
and older workers.
AIST took every opportunity in its ongoing dialogue with
media commentators to raise awareness about the reform
package, explain its benefits, and counter arguments from
employer and other groups that the move to 12 percent
would be costly to implement.
This proactive media work included participating in joint
media conferences with other industry associations;
publicising AIST ‘Newspolls’ which showed overwhelming
public support for 12 per cent; and the publication
of our opinion pieces in national and other mainstream
newspapers.
AIST was also active in responding to the mining industry’s
campaign against the proposed mining tax. Our
comments on some of the inaccuracies of the campaign
were widely covered by the national press, television
and radio outlets.
As in previous years, AIST also sought to publicise the
outperformance of not-for-profit super funds. We used
data from APRA and the ratings agencies to highlight the
superior performance of our member funds compared to
other funds and we also made frequent use of various
independent research that exposed damaging conflicts
of interest in the ‘for-profit’ space.
We were equally energetic on the issue of the gender gap
in super savings and the need to increase the proportion
of women on super boards, ensuring that these issues
received attention by prominent journalists.
AIST’s lunches and conferences also enjoyed excellent
media coverage during the year as did the release of
AIST’s research with Rice Warner on fund manager fees.
COMMUNICATING TO MEMBERS
AIST’s regular online newsletter – The Advocate - continues
to be well-received. Timely and relevant policy updates
means this newsletter is increasingly valued as a member
benefit. This year members received additional issues as
we sought to respond quickly to the many reviews and
policy announcements.
Similarly, the response to SuperTalk continues to be
positive. Increasingly, member funds are realising that
this bi-annual member publication provides a wonderful
opportunity to spread their news and share ideas.
33

AIST STAFF
Fiona Reynolds
CEO
Secretariat
Joanne Crooks
PA to CEO
Maryann Mannix-White
General Manager
Corporate Services
Katiana Velcek
Corporate Services Manager
Stephen Miller
Finance Manager
Jennifer Zammit
Assistant Accountant
Brian Sprague
Accounts
Rob Demasi
Marketing Officer
Shae Cutajar
E-Marketing & Design Officer
Mark Li
Web & Design Officer
Hanina Rind
Database/IT Systems Administrator
Anne Chelvarajah
Data Processor
Rhonda Ison
Receptionist/Data Processor
Events
Debi Bruce
Events Manager
Nicole Williams
Senior Event Coordinator
Annmaree Lourey
Event Coordinator
Lee Miller
Event Coordinator
Elisabeth Pohl
Event Administrator
Policy & Research
David Haynes
Project Director
Damien O’Connor
Policy & Economic Analyst
Media & Communications
Janet de Silva
Media & Communications Manager
Alissa Harnath
Communications & Policy Officer
Governance & Professional
Standards
Eva Scheerlinck
Trustee Governance &
Professional Standards Manager
Richard Webb
Professional Standards &
Compliance Analyst
Membership
Meredith Wall
Membership Services Manager
Ben Weaven
Business Development &
Membership Services Administrator
Learning & Professional
Development (L&PD)
Rachel Gallagher
L&PD Manager
Nick Duffy
Senior Training Consultant
John Lynch
Superannuation Trustee Training
Consultant
Peter Tagg
Training Consultant
Jen Leeson
L&PD Coordinator
James Daffey
L&PD Administrator &
HR Coordinator
34

AIST ALLIANCES 2010
AIST collaborates with many organisations, both nationally and internationally, to support the growth of the superannuation
industry and to contribute to the community. Projects include research, advocacy, governance, training, fundraising,
conferences and events
AUSTRADE
Frontier Investment Consulting
National Seniors Australia
Australian Centre for
Financial Studies
Industry Funds
Forum (IFF)
Prostate Cancer
Foundation of Australia
Australian Council of
Super Investors (ACSI)
Industry Funds
Management (IFM)
Self-Managed Super
Fund Professionals’
Association of Australia (SPAA)
Australian Council of
Trade Unions (ACTU)
Industry Fund
Services (IFS)
Superannuation
Complaints Tribunal (SCT)
Australian Prudential
Regulation Authority (APRA)
IFS
Insurance Broking (IFSIB)
SuperFriend
Australian Security &
Investment Commission (ASIC)
Industry Super Network (ISN)
Superlife
Australian Taxation
Office (ATO)
International Corporate
Governance Network (ICGN)
United Nations
High Commission for
Refugees (UNHCR)
Association of Superannuation
Funds of Australia
(ASFA)
International Pension Funds
United Nations
Principles for Responsible
Investment (UNPRI)
The Climate Institute
Investor Group on
Climate Change (IGCC)
Victoria University
Department of Treasury
ME Bank
Women in Super
Financial Services Council (FSC)
National Breast
Cancer Foundation
35

HIGHLIGHTS
2010

I.
Record
attendance at CMSF
II.
Ground-breaking
research on fund
manager fees
III.
Ongoing engagement
with government
delivers results
IV.
Solid growth in
31+ membership
V.
New super diploma
launched
VI.
Biggest-ever Australian
Super Investment (ASI)
Conference
VII.
A record 300 plus
training events
VIII.
Inaugural member
services symposium
draws crowds
IX.
Increased member
involvement in
Communities of Interest
X.
Strong media presence
across tv, radio, print
and online
XI.
Opinion pieces on super
reform in major newspapers
XII.
Campaign to support
12% and a better deal
for low paid workers

2010 AIST REGISTERED
SUPERANNUATION FUNDS
ACP Retirement Fund
Clough Superannuation Fund
AGEST
Club Super
Akzo Nobel Coatings Superannuation Fund
Connect Superannuation Plan
AMIST Super
Cuesuper
ANZ Australian Staff Superannuation Scheme
Energy Industries Superannuation Scheme
ARIA
Equipsuper
AssetSuper
ESI Super
AUSCOAL Super
ESSSuper
AUSfund
Firesuper
AUST(Q)
First State Superannuation Scheme
Australia Post Superannuation Scheme
FIRSTSUPER
Australian Catholic Superannuation and Retirement Fund
Foster’s Group Superannuation Fund
Australian Christian Superannuation
GESB
Australian YMCA Superannuation Fund
Harwood Superannuation Fund
AustralianSuper
Health Industry Plan
AustSafe Super
Health Super Fund
AvSuper
HESTA Super Fund
BUSS(Q)
Holden Employees Superannuation Fund
CareSuper
HOSTPLUS
Catholic Superannuation Fund
IAG & NRMA Superannuation Plan
Cbus
IBM Australia Limited Superannuation Fund
Christian Super
IRIS Pension
38

legalsuper
SA Metropolitan Fire Service Superannuation Scheme
Local Government Super (NSW)
Shell Australia Superannuation Fund
Local Super (SA/NT)
SPEC Super
LUCRF Super
State Super (SAS Trustee Corporation)
Maritime Super
Statewide Super
Meat Industry Employees Super Fund
Sunsuper
Media Super
Super SA
Military Superannuation & Benefits Board of Trustees No.1
Tasplan
MTAA Super
Telstra Super
Nambawan Super Limited
Towers Watson Superannuation Pty Ltd
National Australia Bank Group Superannuation Fund
Toyota Australia Superannuation Fund
National Catholic Superannuation Fund
Transport Industry Superannuation Fund
NGS Super
TWUSUPER
NT Government Public Authorities’ Superannuation Scheme
UniSuper
NSF
Uniting Church in Australia Beneficiary Fund
Prime Super
VicSuper
Professional Associations Super
Vision Super
QIEC Super
WA Local Government Superannuation Plan
Quadrant Superannuation Scheme
Westscheme
RBF
REI Super
REST Superannuation
39

AIST INDUSTRY
PARTNERS 2010
GENERAL
BRONZE
Conference of Major
Superannuation Funds
Henry Davis York Lawyers,
Hyperion Asset Management
BNY Mellon Asset Management,
Pillar, SuperRatings
Australian Super
Investment Conference
AFM Investment Partners,
Babson Capital, Hastings
Funds Management,
Superpartners
AIST Fund
Governance Conference
PricewaterhouseCoopers
AIST Superannuation
Administration Symposium
AAS, Admin Partners
AIST Member
Services Symposium
AIST Superannuation
Insurance Symposium
IFS Insurance Broking
Awards for Excellence
Investment Award for Excellence: Deutsche Asset Management
Operations/Administration Award for Excellence: Superpartners
Finance Award for Excellence: KPMG
Marketing Award for Excellence: Shed Enterprises
Communications Awards for Excellence: ME Bank
Global Dialogue
Industry Partners: HSBC, IFM,
Invesco, MGPA,
State Street Global Advisors
Hospitality Partner:
MEPT Edgemoor LP
40

SILVER
GOLD
PLATINUM
DIAMOND
AMP Capital Investors,
State Street
AAS, Asset Management,
Deutsche, J.P. Morgan,
Lazard Asset Management,
ME Bank, QIC, T.RowePrice
AllianceBernstein, BlackRock,
Bridgewater Associates,
Superpartners
IFM
Hermes, Holding Redlich
Lawyers, HSBC
Challenger, Schroders
Investment Management
Australia Limited, ME
Bank, Pinnacle Investment
Management Ltd, QIC
AVIVA Investors, State Street
IFM
Rice Warner Actuaries,
Towers Watson
KPMG, DLA Phillips Fox,
Russell Investments
KPMG
Holding Redlich, Pillar,
Superpartners,
The IQ Business Group
ME Bank
AIA, AXA, MLC, Suncorp
CommInsure, Holding
Redlich Lawyers, TOWER
Australian Income Protection
MetLife
Luncheons
Industry Partners: Colonial First State Global Asset
Management, Deutsche Asset Management, KPMG,
Macquarie Funds Group, Russell Investments
Educational Scholarships
Tyndall/Suncorp Investment Management
Print
Currency Communications
Media
Investment Magazine
41

KEY DATES
FOR 2011
28 MARCH 2011
AIST Annual General Meeting
Gold Coast Convention & Exhibition Centre
28 – 30 MARCH 2011
Conference of Major Superannuation Funds (CMSF)
Gold Coast Convention & Exhibition Centre
4 MAY 2011
Superannuation Fund Governance Conference
Swissotel, Sydney
22 JUNE 2011
Member Services Symposium
Sofitel Melbourne On Collins
16 AUGUST 2011
Superannuation Administration Symposium
Sofitel Melbourne On Collins
7 – 9 SEPTEMBER 2011
Australian Super Investment Conference
Hotel Grand Chancellor, Hobart
42

2010 FINANCE REPORT
FOR THE 12 MONTHS ENDED 31 DECEMBER 2010
AUSTRALIAN INSTITUTE OF SUPERANNATION TRUSTEES
ABN: 19 123 284 275

CONTENTS 45 DIRECTOR’S REPORT
49 FINANCIAL REPORT
49 STATEMENT OF FINANCIAL POSITION
50 STATEMENT OF COMPREHENSIVE INCOME
51 STATEMENT OF CHANGES IN EQUITY
52 STATEMENT OF CASH FLOWS
53 NOTES TO THE FINANCIAL STATEMENTS
72 DIRECTORS’ DECLARATION
73 INDEPENDENT AUDIT REPORT

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“
LEADERSHIP
IN SUPERANNUATION ”
Australian Institute of Superannuation Trustees
Ground Floor 215 Spring Street
Melbourne VIC 3000
P 61 3 8677 3800
F 61 3 8677 3801
E info@aist.asn.au
www.aist.asn.au