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Press at the helm as Vision and Equipsuper rationalise mandates
Following a merger between Vision Super and Equipsuper, Equipsuper chief executive Danielle Press will head the merged entity - and has outlined a process of rationalisation of many of the two funds' contracts and mandates.
Most of the operations will be brought together by February 2012, with success of fund transfer hopefully taking place in June, Press said.
An interim board of 17 members was appointed last week and will be reduced to nine following the fund transfer, which will include two member and two employer directors from Equipsuper plus an independent, two from the Australian Services Union, one from the Municipal Association of Victoria and one from the water industry, Press said. Vision Super's Paul Curtin will be the new fund's deputy CEO.
Cash and fixed income assets will be transferred into the funds' pooled superannuation trust in November, but equity assets will stay out at this stage due to the tax position. They will be moved in once the tax position allows, Press said.
Equipsuper currently uses JANA for investment consultancy while Vision uses Frontier. The merged fund will go to tender some time in the new year and use both consultants in the interim.
There will also be consolidation of investment mandates and the fund will also go through asset class by asset class, starting with the more liquid and listed assets.
"We're not going to fire sale any assets and we're not going to rush into consolidation," Press said. "Combined, we have upwards of 100 managers; that's too many so there will be consolidation within that asset base."
There will be a tender for insurance following success of fund transfer. Equipsuer currently uses Hannover Life and Vision Super uses CommInsure. While Equipsuper uses Mercer for administration, Vision Super is internally administered. There is currently a capability assessment process underway on Vision Super's internal platform, and the merged fund will make a decision on administration next year, Press said.
The merged fund will have assets of around $9.6 billion and more than 170,000 members.
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