Plum Financial Services has attributed some of its $4.7 billion of corporate super inflow over the past year to the government ‘window’ allowing the transfer of deferred tax assets, with a $500 million fund formerly administered by Mercer and invested with Russell the latest example.
The 2800-member, $500 million BP Australia Superannuation Fund decided to give up being a stand-alone fund following a review conducted by the Heron Partnership, and is presently transitioning to a sub-plan of the Plum master trust, which invests through the implemented consulting platforms of either MLC or JANA, and also uses Vanguard passive funds.
In relinquishing trusteeship, a BP Australia spokesperson said the organisation had “simplified its relationships and lowered costs” in relation to its employees’ super. It will retain a policy committee to oversee Plum’s performance.
In outsourcing to Plum within the past year, BP Australia’s corporate super fund joins the $600 million scheme of EDS (globally acquired by existing Plum client Hewlett Packard), the $180 million RACV scheme, $117 million corporate fund of Merck Sharpe & Dohme , plus the funds of BHP spin-off Queensland Nickel and Campbells-Arnotts.
Plum also took over administration of the $2.9 billion staff super fund of its parent, National Australia Bank Group, last November.
Plum’s general manager of client and member services, David Woodall, said part of that result was due to a renewed focus on superannuation by corporate Australia, following the “battening down of the hatches” required to survive the global financial crisis.
Another major factor was the Government’s temporary relief allowing super funds to retain any deferred tax assets as part of a successor fund transfer. That window, which will expire on June 30 next year, was especially valuable to the many stand-alone corporate funds which had incurred large losses during the crisis, Woodall said.
Plum now has $14 billion under administration, on behalf of 180,000 members of corporate super funds.