POWERED BY MOMENTUM MEDIA
Cost savings more than expected for Equip
In response to better than expected cost savings following its merger with the Rio Tinto Staff Superannuation Fund in July 2017, Equip expects to announce more fee reductions later this year.
Equip originally estimated the total savings would amount to around $10 million a year, however the fund now expects annual savings to reach up to 20 per cent more.
Chief Executive Officer, Nick Vamvakas, said the cost savings would be of substantial benefit to the 75,000 members.
“By 1 July, 2018, we believe our fees will be among the lowest in the industry, with potential through future mergers to push them even lower,” Vamvakas said.
Vamvakas said the fund worked with KPMG to model the merger, but that cost saving projections were proving to be conservative.
“Delivering cost benefits for members and our defined benefit employers was a cornerstone requirement for us to merge. The trustee of the Rio Tinto Staff Superannuation Fund also saw this as a core criterion,” he said.
Vamvakas said while it is relatively easy to model the bigger terms of mergers, like custodian and administration costs, lots of incidental savings can often fly under the radar.
“Such things as membership and licensing fees, technology enhancement and new opportunities for greater utilisation of internal resources and services are the sort of things that add considerable commercial value to the merging funds,” he said.
Vamvakas added that the success of the merger with the Rio Tinto fund was just the beginning of Equip’s growth journey.
“This is a working model for ourselves, our commercial partners and advisers. Throughout this merger, we have been actively engaging with other funds by proactively modelling potential benefits for funds of all different membership profiles,” he said.
Recommended for you
Governor Bullock took a more hawkish stance on Tuesday, raising concerns over Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
