Equip Super and Catholic Super announce joint venture
The trustees of Equip Super and Catholic Super have signed a Memorandum of Understanding, which, subject to completion of final due diligence, will establish a Joint Venture Trustee – initially managing over $26 billion in funds for about 150,000 members.
The move comes as funds seek to improve member outcomes and best interests through the economies of scale consolidation can deliver.
Equip Super Chair, Andrew Fairley AM (pictured left), said he was delighted to enter into the MOU with a like-minded fund that focused on profits solely for the benefit of members, and endorsed a skills-based selection of trustees – one third from members, one third from employers and one third independent.
“This joint venture would contain costs and improve efficiency, bringing real benefits to members,” Fairley said. “It is positive proof the Extended Public Offer (EPO) model provides a solution to funds who value their brands and connection to community, while enabling economies of scale.”
Chair of Catholic Super, Danny Casey (right), said: “The Joint Venture is the perfect pathway, bringing our members the benefits of scale while retaining the Catholic Super identity and strong connection with those working in Catholic institutions and communities,” he said.
This Joint Venture brings the opportunity for significant growth for both funds with expectations of a combined valuation of $40 to $50 billion by 2025.
Andrew Fairley AM and Danny Casey
VicSuper and First State Super commence early stage merger discussions
VicSuper and First State Super have announced they have signed a non-binding memorandum of understanding to explore the benefits of a potential merger.
VicSuper’s CEO, Michael Dundon said, “the priority for both funds is to continue to develop leading products and services that help deliver the best outcomes for our members. Merging with First State Super would enable us to achieve greater benefits of scale, including access to a broader range of investment opportunities and an even greater ability to generate strong, sustainable returns over the long term.”
First State Super CEO, Deanne Stewart said initial discussions indicated a strong cultural alignment between the two funds.
“We share a lot in common with VicSuper. We both have a member-first culture and a heritage in the public sector. Many of our members work in education, community services and health and we’re both seeing strong private sector growth. Importantly, we believe quality financial advice can help our members make the most of their retirement savings.”
VicSuper and First State Super have served workers in Victoria and New South Wales for more than 30 years. If combined, they would be managing more than $110 billion in retirement savings for over 1.1 million members.
A recommendation to the respective boards is anticipated around the middle of 2019.
Sunsuper and AustSafe Super merger finalised
Sunsuper has announced its successful merger with AustSafe Super, which means that one in five Queenslanders are now Sunsuper members.
Sunsuper’s Chair, Andrew Fraser, said the merger was driven by both funds’ shared values, commitment to rural and regional Australia and drive for better member outcomes.
“Like AustSafe Super, Sunsuper has a long heritage of supporting rural and regional areas and we remain committed to the strong foundations AustSafe Super has built in these communities over the last 30 years,” Fraser said.
“The merger will deliver many benefits to both AustSafe Super and Sunsuper members, including a combined $10 million per annum in savings.”
Through the completed merger, Sunsuper is now well positioned to continue AustSafe Super’s legacy and commitment to rural and regional Australia.
AustSafe Super’s Chair, Henry Smerdon AM, said the success of the merger reinforced the board’s decision to partner with Sunsuper.
“This is a particularly well-suited match for both organisations,” said Smerdon. “Both funds started in Queensland more than 30 years ago, are based on a profit-for-member model, provide industry leading products and services, deliver strong and consistent long-term returns, and have a passion for rural and regional Australia.”
Millennials financially confident but inadequately insured
While most millennials (92 per cent) feel confident about their future financial situation, they may be unprepared for the possibility of unemployment due to injury or illness. New research from MetLife reveals that six in ten (63 per cent) millennials without an adviser and five in ten (54 per cent) advised millennials could only maintain their current lifestyle for a maximum of six months if they suffered illness or injury.
Commenting on the findings, Matt Lippiatt, MetLife Australia Head of Retail Sales, said there was a clear mismatch between millennials’ level of confidence in their finances and their attitude to insurance.