The $1 billion Legalsuper is set to merge
with two small funds in the legal sector in a bid to further increase scale and
cost efficiencies for members.
Andrew Proebstl, chief executive officer of
the industry fund for Australia’s legal profession, said the mergers were
expected to be completed by June 30 this year, if not before.
He would not confirm the names or asset
values of the two funds with which Legalsuper is merging, adding that the funds
wished to remain anonymous at this stage.
I&T News understands the funds have
combined assets of around $150 million.
“From our perspective as the receiving fund
it’s an opportunity to increase the proportion of the profession that we serve,
which is the legal profession,” Proebstl said.
“It’s an opportunity to increase our scale,
and very clearly as part of that we would expect some cost efficiencies to be
generated and therefore it’s very much in the best interest of each of our
respective membership groups.”
Proebstl said the 11 investment options
offered by Legalsuper would remain unchanged, and the investment managers would
transfer in specie to the fund’s trustee with a review conducted in due course.
Members of the two funds being amalgamated
with Legalsuper would have a wider choice of investment options, and access to
ancillary benefits such as death and TPD and income protection
Legalsuper has 35,500 members, and was
created in 2005 following the merger of the Law Industry Superannuation Trust
and the Legal Industry Superannuation Scheme.