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APRA asked to explain mergers with under-performing funds
The Australian Prudential Regulation Authority (APRA) has been asked to explain how it is handling mergers which involve under-performing funds.
The regulator has been put on notice by Tasmanian Greens Senator Peter Whish-Wilson to explain its approach to mergers involving under-performing funds, including any examples which might have already occurred.
Whish-Wilson’s questioning took place during Senate estimates with APRA’s response expected to be gazetted next week.
Whish-Wilson asked: “Has APRA encountered examples where a lesser performing fund is seeking a merger partner, but is unable to find a willing successor fund?”
“Have APRA been approached by potential successor funds seeking advice or relief in order to receive underperforming assets in a merger with a lesser-performing fund?”.
He then asked what guidance APRA would offer to successor funds and lesser-performing funds which were considering a merger.
“Has APRA considered contingency measures to protect the value of (members) assets in underperforming funds that are unlikely to find a willing merger?” Whish-Wilson asked.
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TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
66.99 3 y p.a(%)
2
Hills International
59.27 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
32.82 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
32.44 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.01 3 y p.a(%)
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