POWERED BY MOMENTUM MEDIA
AustralianSuper merger will lock in growth, says AGEST
The merger with AustralianSuper will provide AGEST Super with strong membership growth, good cash inflows and scale efficiencies, according to AGEST chief executive Cath Bowtell.
"It's not just about being big, it's about being a fund that has strong cash inflows and strong member growth," Bowtell said.
Both funds share a similar investment philosophy, and AustralianSuper has a "good suite of products" that is similar to AGEST's offering, she added.
The selection of AustralianSuper as a merger partner followed a tender process that AGEST commenced in September 2011.
The two funds will now negotiate the implementation of the merger and conduct due diligence on each other, Bowtell said.
"Our board will have to be convinced that the costs to our members are outweighed by the benefits to our members," she said.
One big potential cost in a merger is the potential loss of deferred tax assets, Bowtell said. AGEST has sent a submission to the Government requesting capital gains tax rollover relief to resolve the issue.
But while there are execution costs involved in undergoing a merger, failing to merge could also cost AGEST money, Bowtell said. She cited regulatory costs and the establishment of operational risk reserves in particular.
AGEST has 130,000 members and funds under management (FUM) of $4.3 billion.
The merger will further cement AustralianSuper's position as the largest industry fund in the country, bringing its FUM to $46 billion.
Recommended for you
In its pre-election policy document, the FSC highlighted 15 priority reforms, with superannuation featuring prominently, urging both major parties to avoid changing super taxes without a comprehensive tax review.
The Grattan Institute has labelled the Australian super system as “too complicated” and has proposed a three-pronged reform strategy to simplify superannuation in retirement.
Super funds delivered a strong 2024 result, with the median growth fund returning 11.4 per cent, driven by strong international sharemarket performance, new data has shown.
Australian Ethical has seen FUM growth of 27 per cent in the financial year to date.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.72 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
27.64 3 y p.a(%)
