SunSuper has not decided whether it will attempt to grow Citistreet Australia’s client base of four (soon to be three) after the purchase of its administrator from ING finalises around the end of the month.
Observers of the member administration industry said it was likely that Equipsuper and Non-Government Schools Super would review their admin arrangements with Citistreet Australia (now known as CSA Retirement Services) once their contracts ran out, and change provider rather than effectively be run by a competitor super fund.
However the CEOs of those funds could not be reached for comment on the matter at presstime.
The fourth client of CSA Retirement Services, the Legg Mason Corporate Super Master Trust, is expected to move its administration to its new owner, which coincidentally is ING Australia.
Sunsuper chief executive, Tony Lally, said CSA Retirement Services had been purchased as a genuine direct private equity investment for the fund, and not merely a means of providing certainty over administration provision.
However he emphasised the cost savings that would arise from bringing SunSuper and CSA Retirement Services under the same umbrella, and said "not a lot of attention" had been paid to future client acquisition. The composition of CSA Retirement Services’ board and senior executive has also not been finalised pending finalisation of the purchase, however Lally said there was little overlap between the two businesses and he expected few job losses overall.
Lally would not disclose the price paid for CSA Retirement Services, which will remain a distinct legal entity from SunSuper.
