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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
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