AGEST chooses AustralianSuper as preferred merger partner

Today AGEST Super announced AustralianSuper as their preferred merger partner.

A due diligence process will commenced shortly and if this proceeds as expected the two funds will merge later in 2012.

AGEST have over 130,000 members, $4.3 billion in FUM and over 17,000 employers.

If the merger proceeds, AustralianSuper will have almost 2 million members, over 160,000 employers and more than $46 billion in member funds. AGEST’s members will benefit from AustralianSuper's size, capability and expertise, which will make a real difference to their retirement outcomes.

AGESTs decision was influenced by AustralianSuper's consistent long-term investment performance, commitment to low fees, wide range of investment options and extensive ancillary services as well as extensive merger experience.

Commenting on the announcement, AustralianSuper Chief Executive, Mr Ian Silk said, “merging with AGEST represents a great fit for AustralianSuper. We are determined to play a leading role in shaping the future of superannuation in this country in the interests of members. We have a very strong vision and AGEST shares that vision.”

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  • I entrusted AustralianSuper with my entire pension fund on the basis of two critical facts. Fistly that the company has an excellent record of perfornance when weighed against the industry 'norms'. Secondly, that the company's commitment to a "low fee" structure has been rigorously adhered to over the years.If the merger goes ahead I trust that existing members will not be forgotten and that AustralianSuper will make the fee structure promise a non-negotiable part of the merger.

    Posted by Paul Lander 22 December 2011

  • Good questions about fees. Mergers help us maintain scale and thus keep fees low. In fact, back in October 2011, AustralianSuper announced it will be freezing its administration fee for the next three years.

    Posted by AustralianSuper 23 December 2011

  • What cost, if any, will AustralianSuper's members be slugged with if the merger goes ahead? Will our fees go up if the merger goes ahead?

    Posted by Chris Reinke 23 December 2011

  • I saw on television that the University Super schemes did not have enough money for members. I would be concerned at any merger that could mean that Australian Super ran out of money. Especially with government employees who have large pre-defined superannuation payments due in the next few years.

    Posted by Is this good for Australian Super or not? 23 December 2011

  • AustralianSuper’s Corporate Division does contain a number of company-based defined benefit sub-plans. Under AustralianSuper’s rules, the defined benefit liabilities in these individual sub-plans are “quarantined” from the rest of the Fund, so they don’t affect the money available to pay the benefits of other members. AustralianSuper monitors the financial position of defined benefit sub-plan very closely and works with employers and actuaries to ensure that these plans are funded at an appropriate level. More broadly, AustralianSuper is required to act in the best interests of all members. As such, mergers are subject to extensive due diligence and no merger would be entered into if it would disadvantage existing AustralianSuper members.

    Posted by AustralianSuper 26 December 2011

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