Advocacy on behalf of pension funds in the United States may have recently centered around investments in firearms companies, but overseas, it's politics that guides decisions.
Bloomberg reports that a $1.8-billion Australian pension fund for pulp, paper and furniture workers has opted to pull out its holdings in Rupert Murdoch's News Corp., citing desires for a more independent board of directors.
Murdoch, head of the $60-plus-billion international media empire which includes Fox TV, the Wall Street Journal and the New York Post, continues to hold the predominant voting stake in the company, with 40 percent of Class B shares.
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Whe combined with a 7 percent share held by a member of the Saudi royal family – friends of the Murdoch family – the First Super pension fund claims that it's nearly impossible to make changes to News Corp.'s board of directors.
"The interests of minority shareholders have too often been compromised," said Michael O'Connor, co-chairman of the pension fund, adding that executives of the corporation are paid "outrageous amounts of money."
The Australian pension funds' sentiment is shared by another major investor, the California Public Employees' Retirement System, which has also asked that the chairman and CEO roles at Newscorp. be officially split apart.
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