A merger being considered by Auscoal and Maritime Super funds will definitely not proceed in the near future, the two funds have confirmed.
The funds determined there were greater savings to be made through existing alliances, which have generated various synergies and cost savings in investments, according to Auscoal chief executive Bruce Watson.
Over the past three years the funds have worked together on the Investec Global Aircraft Fund and the Wilshire Private Markets Asia Number 2, and also have a member education alliance, Watson said.
Maritime Super chair Paddy Crumlin said there is a natural fit between the two funds and there is much value to be gained through strategic partnership.
“We are keen to maintain and leverage this relationship and will continue to support existing joint projects and look for new ways to jointly provide value to members,” Crumlin said.
Auscoal Super chair Arthur Weston said that research shows the savings for both funds will be considerable, and the value split more equitable through a well structured and managed alliance rather than a merger.
Both funds are keeping their options open, Crumlin added.
“We have strong member loyalty and engagement thanks to each fund investing substantial time and effort in enhancing their offerings. Both funds have a suite of strategies designed to continually advance this offering, increase scale and remain highly competitive, with merger being but one option for growth,” he said.
Maritime Super chief executive Peter Robertson said the funds are currently exploring whether sharing financial advice and clearing house capabilities will bring greater value to members and employers.
Both funds agree that it’s imperative to maintain appropriate growth strategies and recognise mergers as a way to achieve that growth, and are open to merger discussions in the future, according to a statement from Auscoal.
