The West Australian Government Employees Superannuation Board (GESB) has sought resignations from two staff, reprimanded another and continues to investigate 10 more following last year’s switching scandal.
GESB chief investment officer, Paul Edmondonson, is on indefinite leave from the fund – Sharon Hicks is acting CIO – however GESB chief executive, Michelle Dolin, refused to comment on whether Edmondson’s absence was related to the investigation. She said many of the 10 staff still subject to investigation, by an “;independent expert”;, continued to attend GESB’s office. Actuaries contracted by GESB have reported that 171 fund members, including 15 fund staff, gained a total of $6.3 million from the loophole. The rorters took advantage of the fact that GESB strikes its unit prices on a daily historic basis, and previously promised to fulfil switching requests within two working days. Dolin said with the use of published indices data, the rorters could “;with reasonable certainty”; time a switching request and be almost guaranteed a financial gain. The fulfillment of switching requests has since been extended to five days, which the actuaries had advised “;delivered a sufficient lack of correlation with published indice data”;, Dolin said. Two staff have so far been cleared by the investigation, after they were determined to be unaware of the loophole. Dolin had originally hoped the investigation would be finished before Christmas, but its adherence to “;robust”; Government guidelines meant it would continue for some time yet, she said.
As super fund CIOs return to work for 2025, all eyes are on two things: Donald Trump’s presidency, and inflation. But they’re not the only issues that will drive investment decisions and returns, and some of them may present an unfamiliar set of challenges for a cohort of investment professionals that has grown up experiencing a particular set of market and economic conditions.
Simon HoyleJanuary 7, 2025
