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LGsuper and City Super confirm merger
Brisbane-based public sector super funds LGsuper and City Super have completed a due diligence process on a proposed merger that has now been agreed to by both trustee boards.
The merger should be completed by 30 June, 2011, creating a $5.5 billion fund, with LGsuper chief executive David Todd to lead the merged fund and City Super chief executive Karen Gibson to take a senior management role, the funds said in a joint statement.
A new transitionary board will include the current LGsuper directors, two City Super directors and two independent directors, while staff from both funds have begun the transition project with project management provided by PricewaterhouseCoopers, the funds stated.
Todd said that staff retention will be critical to a successful merger and did not foresee any retrenchments as a result of the merger.
Gibson said the boards of both funds had appointed JP Morgan as custodian and Towers Watson as asset consultant prior to the merger to assist in rationalising investments.
Mercer, City Super’s current administrator, will assist with the transition to internal administration of the combined fund and current insurance arrangements will remain in place, the funds stated.
AUTHOR
Mike Taylor
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