AustSafe Super swallows Canegrowers Retirement Fund
AustSafe Super will merge with the Canegrowers Retirement Fund (CRF) in March 2013, granted due diligence is met.
The new fund will retain the AustSafe brand and insurance provider while JANA will step in as investment consultant on the CRF Capital Stable investments, which will continue to be retained as an investment option by CRF.
AustSafe announced it would target scale, alluding to the possibility of future fund mergers, while CRF said industry pressures had created a need for scale.
AustSafe chief executive, Craig Stevens said: "This merger further consolidates our position as the industry super fund for rural and regional Australia. As our second merger in a matter of years, it probably won't be the last merger we undertake as part of a desire to derive the right scale to deliver the best value for members."
AustSafe merged with Sugar Manufacturers of Australia Retirement Trust (SMART) in July 2008.
CRF board chairman Alf Cristaudo said although the current super reforms would strengthen the system, they had created a need for scale.
"Unfortunately, the cost of complying with these changes is high, and when a smaller number of members have to foot the bill, it's prohibitive.
"The merger with AustSafe Super will allow the costs to be spread over a larger membership. Our members will be significantly better off in terms of fees and other benefits. There's no doubt this move is in our members' best interests," he said.
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