POWERED BY MOMENTUM MEDIA
AvSuper expectant of completing ART merger by Q1 2024
AvSuper is expecting to sign a heads of agreement to merge with Australian Retirement Trust (ART) this quarter.
In a May update webinar, Michael Sykes, chief executive at AvSuper, said the due diligence between the two funds is almost complete and the next stage would be signing a heads of agreement.
This is expected to be completed by the end of July.
The two funds signed a memorandum of understanding (MOU) in February after an earlier deal with Commonwealth Superannuation Corporation (CSC) failed to progress.
Sykes said: “To date, due diligence has progressed as expected with no significant issues uncovered and is now nearing completion.
“We are working with all relevant parties in planning for the transition.
“If we continue as we anticipate, we would look to sign a heads of agreement with ART within the next two months.
From there, we will be looking to finalise a date for the transition with our administrator Mercer.”
He acknowledged the administration change of member records would be the most time-consuming part of the merger but noted ART had already completed several recent mergers.
“ART have done a number of defined benefit scheme transfer and they have estimated six to nine months to execute that so I’m thinking, assuming we progress with the heads of agreement, we would be looking at early 2024, first quarter of 2024,” Sykes said.
Sykes also referenced comments from members who questioned why the merger is necessary when the fund is performing well.
“The impetus for the merger remains, regardless of accolades and positive numbers on spreadsheets. The phrase ‘past performance is not a indicator of future returns’ is relevant to the situation we are in,” Sykes said.
“Many things are factored into the long-term sustainability of a fund and changes in the overall landscape of the industry as well as changes in the demographics of our member base certainly impact our long-term sustainability.
“This is about sustainability, it’s becoming increasingly difficult for a small fund like us to remain competitive with the range of services and technology provided to members.”
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
The research house has hired an experienced product specialist for its Australasian team.
An experienced communications specialist is joining the industry group in a newly created role.
The $46 billion investment corporation owned by the government of South Australia has hired an experienced investment professional to its leadership.
The $300 billion fund has appointed a new CRO to drive its governance capabilities.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
