CISF Super chooses AUSCOAL for potential merger
AUSCOAL Super and CISF Super have signed a memorandum of understanding to assess whether a merger between the two superannuation funds would be in the best interests of members.
But CISF board chairmen Frank Sciarrone said the decision had little to do with Stronger Super legislation and the demand for scale, despite the fund having only 1200 members and $161 million in funds under management (FUM).
"From CISF's perspective we have been keeping track of changes, however they were not influential in the decision to merge," he said.
The merger discussions were the outcome of CISF's strategic review process, he said, which was conducted in conjunction with PricewaterhouseCoopers.
CISF reviewed three options: to remain the same, outsource third-party functions, or find a suitable merger agreement, Sciarrone said.
A merger was determined to be in the fund's best interest through the economies of scale that a larger player could bring, he said. AUSCOAL was chosen through a tender process.
AUSCOAL Super is currently developing a MySuper product, although Sciarrone said CISF would not need to if the merger went ahead on 1 July 2013, the proposed introduction date of MySuper. Sciarrone said many members were part of the company's Defined Benefit scheme, so this was not an immediate concern.
Sciarrone said the funds were currently undertaking due diligence where the best interests of members would be assessed. The provision of functions, including administration, custody, insurance and financial advice, would also need nutting out, as the funds do not share providers.
"We believe there is a natural fit for the two funds coming together which we are keen to explore," Sciarrone said.
"There are obvious synergies between the two funds, and a close relationship between our employers, members and unions."
"CISF and AUSCOAL Super Boards share a common vision of delivering the best retirement outcomes for our members," said AUSCOAL Super board chairman, Arthur Weston.
The merger would create a fund with $6.6 billion FUM and 74,200 members.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Australia’s largest super funds have deepened private markets exposure, scaled internal investment capability, and balanced liquidity as competition and consolidation intensify.
The ATO has revealed nearly $19 billion in lost and unclaimed super, urging over 7 million Australians to reclaim their savings.
The industry super fund has launched a new digital experience designed to make retirement preparation simpler and more personalised for its members.
A hold in the cash rate during the upcoming November monetary policy meeting appears to now be a certainty off the back of skyrocketing inflation during the September quarter.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
215.17 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
118.15 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
75.00 3 y p.a(%)
4
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
61.11 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
60.93 3 y p.a(%)
