POWERED BY MOMENTUM MEDIA
Three-way merger talks end without success
Statewide Super, Tasplan and WA Super have ditched plans for a potential merger to create a $24 billion super fund, with Statewide today confirming that it would be pursuing other opportunities.
The three funds entered a Memorandum of Understanding (MOU) to consider a merger in March, but Statewide Super today confired that it would not continue its discussions with the other two funds.
It appeared that the decision to withdraw was led by Statewide Super, with a Tasplan spokesperson saying to Super Review: "Tasplan has today been advised by Statewide Super of their withdrawal from the triparted MOU process."
The fund said it did so while keeping in mind that the Australian Prudential Regulation Authority (APRA) had urged funds to assess merger opportunities, and said that it would actively pursue both inorganic and organic growth. It pointed to its recent successful tender for Northern Territory Government superannuation as an example.
“We have a member-first culture and we are open to merger propositions as long as it is proven to be in member’s best-interest,” Statewide Super chief executive, Tony D’Alessandro, said.
“Statewide Super has a positive position in the marketplace and this means the breadth and scale of a merger would need to make sense for the fund and our members.
“We will continue to look for ways to deliver greater value, improve returns, and negotiate better insurance cover, and we know that sometimes mergers are the best way to deliver this.”
WA Super had already undergone a merger recently, successfully merging with Concept One in February, 2018, adding over 20,000 members from the latter to the fund.
Recommended for you
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
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(%)
