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NGS Super-and Cuesuper to merge
A proposed merger between NGS Super and Cuesuper would form a $3.5 billion, 90,000 member fund, with talks driven by a shared desire to collaborate and grow in the interests of members, the funds have announced.
The funds have similar membership profiles which would help a merged fund meet member needs, NGS Super chief executive Anthony Rodwell-Ball said.
NGS Super was not looking to grow for growth’s sake but to ensure scale and cost-efficiencies for members, he said.
Cuesuper executive officer Kathy Alexander said that the Cuesuper had undergone a detailed and rigorous process in selecting a merger partner.
“Cuesuper and NGS Super have a close strategic and cultural fit,” she said.
“The in-principle agreement will create a strong, national fund, and deliver improved services for the long-term retirement and insurance needs of member.”
A merger would also benefit member communication, she said.
Cuesuper members would automatically transition to their new arrangements within NGS Super with access to an expanded range of services, she said.
“Cuesuper members will gain access to a broader range of sophisticated investment strategies, enhanced insurance products, new member and financial planning services, and significant cost savings,” Alexander said.
Cuesuper employees will continue their employment in the merged entity, while two current Cuesuper board representatives will serve on the NGS Super board for at least the next three years, the funds announced. The funds also both outsource to Mercer, meaning that transition costs and issues will be minimised.
NGS Super has previously integrated 21,000 members into the fund after merging with the Catholic Church Staff Superannuation Fund in 2006, and the Independent Schools Superannuation Trust in 2005, Rodwell-Ball said.
The proposed merger would be finalised by April 2011.
AUTHOR
Mike Taylor
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