11 Jan 2013

Super fund to sell investment in News Corp

9:10 am on 11 January 2013

The First Super superannuation fund is to sell its investment in News Corporation due to concerns about the company's corporate governance.

In October, News Corp chairman and chief executive Rupert Murdoch was challenged by funds over his dual role at the helm of the company.

First Super has 72,000 members in the timber, paper and furniture industries and controls $A1.7 billion of retirement savings.

The ABC reports it is partly controlled by the Construction, Forestry, Mining and Energy Union.

First Super co-chair and CFMEU national secretary Michael O'Connor said the company will sell its holding over the next few months.

"We believe there should be more independent directors, and we believe that the role of the chief executive officer and the chairperson should be separated," he said.

At the time of the annual meeting, Mr Murdoch advised investors who were unhappy about News Corp's governance structure to sell out of the company.

Mr O'Connor said First Super is heeding that advice.

''Our fund has made a decision to disinvest because they (News Corp) don't meet our standards of good corporate governance," he said.