POWERED BY MOMENTUM MEDIA
Two major industry funds announce joint venture
Catholic Super has finally confirmed rumours around a possible merger with another fund, today confirming it has signed a memorandum of understanding (MoA) with Equipsuper to move toward a joint venture.
The MoA would, subject to due diligence, establish a joint venture trustee that would initially manager over $26 billion in funds for about 150,000 members of the two funds.
The two funds brought similar values to the agreement, with both profit-to-member funds committing to keeping a skills-based governance structure focused on members’ interests, with a third of all directors being independent.
The announcement came as many funds look to consolidation, following recommendations from both the Banking Royal Commission and the Productivity Commission.
“This joint venture would contain costs and improve efficiency, bringing real benefits to members. It is positive proof the Extended Public Offer (EPO) model provides a solution to funds who value their brands and connection to community, while enabling economies of scale,” Equipsuper chair, Andrew Fairley, said.
“This joint venture will be ideally positioned for future growth. This structure will drive stronger performance through efficiencies and scale of investments.”
“The Joint Venture is the perfect pathway, bringing our members the benefits of scale while retaining the Catholic Super identity and strong connection with those working in Catholic institutions and communities,” Catholic Super chair, Danny Casey, added.
Recommended for you
The profit-to-member super funds are officially operating as a merged entity, set to serve over half a million members.
Super Review announced 21 winners at the annual Super Fund of the Year Awards, including the recipient of the prestigious Fund of the Year Award.
A research firm has given UniSuper a glowing review, praising its strong leadership and “compact team”, as well as its “creditable governance” structure.
Assistant Treasurer Stephen Jones has defended the government’s plan to modestly cut tax concessions for Australia’s wealthiest superannuation accounts, saying it is a “fairer outcome”.
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
32.57 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
32.09 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
27.42 3 y p.a(%)
