Companies’ superfund performances are coming under increasing scrutiny.
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Commonwealth Bank of Australia (ASX: CBA) shares are in the green in late afternoon trading.
The CBA share price is up 0.6% to $101.94 per share.
If it can hold onto the gains through market close, this will mark 3 consecutive days of positive moves for the CBA share price.
CommBank closed lower on Monday and Tuesday.
What happened with CommBank this week?
CommBank was in the news for both good reasons and bad this week.
First, the bad.
On Tuesday the bank was called out for the poor performance of its superannuation fund under the government’s new ‘Your Future Your Super’ reforms.
Under the reforms, companies providing a default ‘MySuper’ offer need to pass a yearly performance test judging their returns and fees.
Unfortunately for CommBank, and its superannuation clients, the bank was among the 16% that failed the assessment. It will now need to send letters to customers informing them of the poor performance and advising them that they should consider moving to a different superannuation product.
The CBA share price closed down 0.3% on Tuesday, to $110.12 per share.
On a brighter note for CommBank this week, yesterday the bank reported on its ongoing commitment to sustainable energy solutions.
CBA is one of 5 banks helping finance the $330 million development of the 180MW Dulacca Wind Farm in Queensland. On completion in 2023, the project will have 43 wind turbines. That’s reported to be enough to power some 124,000 households. The turbines have a 30-year design life.
Commenting on the development, Sally Reid, CommBank’s executive general manager of global client solutions, said:
Helping our clients advance Australia’s transition to a more sustainable future is a strategic priority for CBA, and we’re very proud to be able to help RES Group and Octopus Investments Australia expand our nation’s renewable energy generation.
Grant Willis, the bank’s managing director, natural resources and energy added, “CBA is delighted to partner with RES Group and Octopus Investments Australia in the development of a high quality renewable energy project.”
RES Group is the developer and asset manager for the Dulacca Wind Farm. Octopus Investments Australia is the project’s long-term owner.
CBA share price snapshot
CBA’s share price is up 22% year-to-date, compared to a gain of 13% posted by the S&P/ASX 200 Index (ASX: XJO).
Over the past month the CBA share price is up 0.5%.
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The CBA (ASX:CBA) share price is now trading on a 3.46% fully-franked dividend yield
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.