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CareSuper open to future mergers
The merger between CareSuper and Asset Super is based on a cultural fit and a shared set of values - and there could be more mergers in the future, according to chief executive Julie Lander.
"We're not closed to further mergers, where they make sense and where there's alignment. Our value proposition is not just to be big, it is to have scale and to produce and sustain a quality product," said Lander.
She added that CareSuper and Asset Super shared similar membership bases, which would make communicating the details of the merger with members much easier.
The two super funds also share service providers: AAS and NAB Asset Servicing provide administration and custodial services to both Asset Super and CareSuper, Lander said.
The synergies between the two funds would help streamline the merger of the two funds, which she said was expected to be completed by September 2012.
Four of the Asset Super directors will be joining the CareSuper board, leading to a larger board for the merged entity, Lander said. Whether the investment strategy of the newly merged fund would differ from CareSuper's "strong investment strategy" would be up to the new board, she said.
For his part, Asset Super chief executive John Paul was confident that the merger would add scale and reduce compliance costs for the merged entity.
"I've got 15 staff in the Asset office, and [Julie's] got 30 at Care, so we'll obviously get a reduction in the staffing costs when it comes to compliance," Paul said.
He added that Lander would be the chief executive of the merged fund.
"Julie Lander will probably be the CEO going forward. They're the larger fund. I'm 63 next year, and you can only have one CEO in an organisation, so it's only fair I move aside," said Paul.
Asset Super has $1.6 billion in assets and 85,000 members, while CareSuper has $4.6 billion in assets and 200,000 members.
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