POWERED BY MOMENTUM MEDIA
Three-way merger talks end without success
Statewide Super, Tasplan and WA Super have ditched plans for a potential merger to create a $24 billion super fund, with Statewide today confirming that it would be pursuing other opportunities.
The three funds entered a Memorandum of Understanding (MOU) to consider a merger in March, but Statewide Super today confired that it would not continue its discussions with the other two funds.
It appeared that the decision to withdraw was led by Statewide Super, with a Tasplan spokesperson saying to Super Review: "Tasplan has today been advised by Statewide Super of their withdrawal from the triparted MOU process."
The fund said it did so while keeping in mind that the Australian Prudential Regulation Authority (APRA) had urged funds to assess merger opportunities, and said that it would actively pursue both inorganic and organic growth. It pointed to its recent successful tender for Northern Territory Government superannuation as an example.
“We have a member-first culture and we are open to merger propositions as long as it is proven to be in member’s best-interest,” Statewide Super chief executive, Tony D’Alessandro, said.
“Statewide Super has a positive position in the marketplace and this means the breadth and scale of a merger would need to make sense for the fund and our members.
“We will continue to look for ways to deliver greater value, improve returns, and negotiate better insurance cover, and we know that sometimes mergers are the best way to deliver this.”
WA Super had already undergone a merger recently, successfully merging with Concept One in February, 2018, adding over 20,000 members from the latter to the fund.
Recommended for you
The two funds have announced the signing of a non-binding MOU to explore a potential merger.
The board must shift its focus from managing inflation to stimulating the economy with the trimmed mean inflation figure edging closer to the 2.5 per cent target, economists have said.
ASIC chair Joe Longo says superannuation trustees must do more to protect members from misconduct and high-risk schemes.
Super fund mergers are rising, but poor planning during successor fund transfers has left members and employers exposed to serious risks.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.24 3 y p.a(%)
4
Pengana High Conviction Equities B
40.36 3 y p.a(%)
5
Pengana High Conviction Equities A
40.34 3 y p.a(%)
