Catholic Super and Equipsuper have merged to create a $26 billion venture, while hinting at potentially further consolidating with other superannuation funds.
The now operating combined body manages funds for 150,000 members, with plans to almost double its size by 2025.
The trustee indicated it would maintain both brands rather than merging them into one, with a full amalgamation planned following a successor fund transfer at the end of 2020.
Equipsuper chair Andrew Fairley, who has taken the role of chairman of the new entity, said the tie-up will set the scene for further amalgamation.
“This is a new dawn and a new era for super mergers as we scale up to benefit members under an extended public offer (EPO) license,” Mr Fairley said.
“At a time when funds are being urged to merge, Equip and Catholic Super have a rare opportunity to be one of the industry’s great growth stories.
“We’re open for business with an APRA-approved license, attractive to funds that are keen to drive down costs while maintaining their distinctive brands and member engagement that they’re always known for.”
The EPO license was licensed three years ago.
“While other funds are talking about merging, Equip and Catholic Super are getting on with it,” Mr Fairley commented.
“The Catholic Super board has had the courage to embrace the model, breaking new ground while being agile, innovative and aware of the reform backdrop that is shaping the future of our super industry.”
The merged trustee board has 12 directors, including seven from the Equipsuper board and five from Catholic Super.
Computershare senior executive Scott Cameron was confirmed as the chief executive of the joint venture in August, replacing outgoing Equipsuper chief Nick Vamvakas and Catholic Super acting CEO David O’Sullivan.
Catholic Super chief investment officer Anna Shelley has been appointed as the CIO across both funds.
Danny Casey, deputy chair of the joint venture and former Catholic Super chair, said the merger and the new business model would benefit members.
“As trustees we have a firm obligation to act in our members’ best interests,” Mr Casey said.
“With the industry being challenged to consolidate further, funds that are seeking to ensure they can deliver sustainable member outcomes are encouraged to be part of this new and innovative approach.”
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
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