Jim Chalmers (Rankin, Australian Labor Party, Shadow Parliamentary Secretary to the Leader of the Opposition) Share this | Link to this | Hansard source

) ( ): My question is to the Prime Minister. I refer to the Prime Minister's previous answers and to a new report that he has divested his interest in a vulture fund which profited from foreclosing on the homes of Hurricane Katrina victims. Why has the Prime Minister now suddenly decided to avoid investing in funds that exploit vulnerable people, and will the Prime Minister finally sell his holdings in managed funds which invest in 7-Eleven, a company which is notorious for exploiting workers?

Government Members:

Government members interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The members on my right. The Minister for Urban Infrastructure will cease interjecting. The member for Bowman will cease interjecting.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

The honourable member would be well aware, no doubt, that I cannot speak for his own investments, but many of his colleagues are invested in AustralianSuper—

Dr Chalmers interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Rankin will not interject.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

a company with which his leader was a director of.

Dr Chalmers interjecting—

Government members interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The Prime Minister will resume his seat for a second. The member for Rankin has a nasty habit of interjecting as soon as he is asked a question. He has been warned. If he interjects again, he will be hearing the rest of the answer outside the chamber. Members on my right will cease interjecting as well.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I think I have explained to the House before, the approach that Lucy and I take to our investments. They are allocated by a financial adviser and, for the most part, they are concentrated in managed funds were we have no say in the underlying assets. That is for obvious reasons, so that it is accountable, it is transparent, but it also involves any personal involvement that can create conflicts of the kind that honourable members and the public would be concerned about.

As far as 7-Eleven is concerned, it is a part of the Japanese index, so any fund that has an investment in the Japanese index, as most big managed funds do, will therefore have a derived and very small investment. The honourable member asked the question. Many honourable members opposite have superannuation in AustralianSuper. Unless there has been a very recent change, they will find AustralianSuper has an investment in 7-Eleven's holding company. I would also note that perhaps many honourable members opposite would be very familiar with, if not invested in, Cbus, which is the Construction and Building Unions Superannuation fund. It is backed by the CFMEU. Indeed, Cesar Melhem was a director of it until 2013. According to Cbus's total private equity holdings as at 30 June last year, Cbus held investments in a number of distressed opportunities funds, Siguler Guff Distressed Opportunities Fund III and II. Those funds are obviously ones which invest in distressed assets.

The reality is that all of these big managed funds have a variety of assets and the important thing is they are accountable—

Dr Chalmers interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Rankin will leave under 94(a). He cannot help himself.

The member for Rankin then left the chamber .

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

and they are transparent, and I think honourable members should examine carefully the nature of their own invests in the funds they invest in before they engage on this sort of program of smearing.