Public sector fund AGEST has signalled it may take until the middle of next year before it knows whether it has found a suitable fund with which to merge.
AGEST chief executive Cath Bowtell has written to members saying the process of identifying a potential partner was underway and that the fund had received a number of positive responses from potential merger partners.
However she said the fund’s board would not proceed with any merger unless it was confident, after a comprehensive cost/benefit analysis, that the benefits arising from such a merger were in the best interests of AGEST members.
The fund announced in September that it would be exploring merger opportunities.
Bowtells’ letter to members said the fund board would be guided solely by the objective of delivering increased value to members and that any decision “will require the support of AGEST’s shareholders”.
AGEST has 130,000 members and assets of $4.3 billion.
