Following its recently announced merger with Spirit Super, CareSuper’s chief executive Michael Dundon believes the fund could reach up to $70 billion within five years.
The two funds entered a binding agreement to merge in early June 2023, which will result in a combined number of more than 500,000 members.
Speaking to the Australian Institute of Superannuation Trustees (AIST), Dundon shared the fund’s aim to maintain its mid-sized position within the super industry.
“As the industry grows, we want to grow with it and that will require us to maintain our organic growth,” he said.
“If you allow for another five years of growth, you’re probably around the $70 billion mark.”
While organic growth could be the path forward, the CEO also hinted at further mergers and consolidation as a part of its long-term strategy.
CareSuper will continue with its initiatives proposed for its previous target of $30 billion in funds under management by 2025, which will be met due to the Spirit Super merger.
This includes:
- Employing resources to engage with third-party financial advisers
- Engaging in merger discussions with other super funds
- Establishing a dedicated business development team
- Developing a strategy and implementation team to respond to the Your Future, Your Super (YFYS) reforms
Dundon expressed plans for CareSuper’s products to be added to the approved product lists (APLs) of independent financial advisers. The fund hopes to form relationships with third-party advisers and will seek ratings for its MySuper products as well as other products.
Dundon joined the fund in March from a CEO role at ESSSuper but will only hold the role until the merger is completed, which is scheduled for late 2024. After that, the CEO of the new combined fund will be Spirit Super CEO Jason Murray.
The short tenure is fine with Dundon, he said, as he was keen to participate in the merger process having previously worked through the VicSuper and Aware merger in July 2020.
“Having been through at least three mergers in the superannuation industry, I was looking for the opportunity to participate in another merger so it was an ideal opportunity for me,” Dundon explained.
“I’ve done mergers in my previous career in financial services outside of super but the thing I’ve enjoyed about it in the super space is (seeing) the benefits that mergers bring through scale, combining resources, picking the best of both from each firm and implementing benefits for members.”
