Equipsuper has announced a proposal to merge with Vision Super to form an A$8.6 billion (US$7.9 billion) superannuation fund.
Equipsuper said the two Melbourne, Australia-based funds would pursue the merger to harness the benefits of scale, which include enhanced investment and risk management, and cost-effectively expanding the range of services provided to employers and the expected 150,000 members.
Rob Brooks, Vision Super CEO, and Michael Strachan, Equipsuper chief investment officer, have been appointed the CEO and CIO, respectively, of an already created trustee company — Pooled Super Pty. Ltd. — that will receive the investment portfolios of both funds once the necessary licensing requirements have been completed.
Investment staff from both funds will manage the combined portfolios. The funds’ investment philosophies are similar, but they do use different asset consultants. The A$4.4 billion Equipsuper uses JANA Investment Advisers and Vision Super, with A$4.2 billion, uses Frontier Investment Consulting.
Simon Mumme is a reporter with Investment magazine in Sydney.