The performance of Funds SA is being investigated by the Legislative Council’s Statutory Authorities Review Committee.
Funds SA is the SA Government owned corporation which invests more than $18 billion on behalf of South Australia’s public superannuation funds and approved public authorities such as the Motor Accident Commission.
“Given the massive increase under a Labor Government in the state’s unfunded liabilities from $3.2 billion in 2001 to $13.5 billion this year the investment performance of Funds SA is obviously a critical issue,” Shadow Finance Minister Rob Lucas said.
“Clearly the interests of South Australian taxpayers will be best served when Funds SA’s investment performance is consistently outperforming industry averages.
“This would help reduce the level of taxpayer funding required to meet the $13.5 billion unfunded liabilities.
“The Committee will also be considering whether other government bodies like WorkCover should be managing their own investments, or whether Funds SA would do a better job in managing WorkCover investments.”
Advertisements calling for submissions to the inquiry will appear in major newspapers tomorrow. Terms of reference for the inquiry are:
That pursuant to section 16(1)(c) of the Parliamentary Committees Act 1991, the Statutory Authorities Review Committee inquire into and report on Funds SA with particular regard to:-
(a) The general capabilities of Funds SA to invest and manage funds having particular regard for:-
• Investment strategies adopted by the corporation and their alignment with Funds SA client’s needs, objectives and risk appetite.
• The financial management structures put in place to ensure appropriate returns are achieved having regard for Funds SA client’s needs, objectives and risk appetite.
• The potential of Funds SA to more efficiently manage funds on behalf of other SA Government agencies.
(b) The performance of Funds SA against industry benchmarks in particular the fund’s performance over the past 1, 3, 5 and 10 years.
(c) Any other relevant matters