First Super seeks risk advice

First-Super/risk-advice/industry-fund/

21 February 2017
| By Malavika |
image
image
expand image

Industry superannuation fund, First Super, has sought risk advice from four equity managers it invests through on investing in franchise model companies following recent employment wage scandals.

The super fund has asked for a “please explain”, and has questioned the strategy of investing in companies which earned revenue from the franchise operating model following wage scandals at 7 Eleven and Domino’s Pizza.

First Super chief executive, Bill Watson said the fund was concerned about possible emerging investment risk.

“We are now very concerned about the sustainability of franchisee businesses, the implications for their staff and contractors, and what this means for investment risk,” he said.

“We believe that over the long-term, companies and organisations that adopt best practices across environment, social and governance [ESG] deliver better returns and can assist with risk mitigation.

”The fund has requested the Australian Council of Superannuation Investors, which advises super funds and international asset owners on ESG, to prioritise this issue when it advises on how to vote during listed company annual general meetings (AGMs).

The concerns follows reports on 7 Eleven which exposed the amount owning to under-paid franchise employees exceeded $100 million, while Domino’s share price had dropped following reports of wage exploitation

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 4 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 4 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 2 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND