Asset Super, a $1.6 billion multi-industry superannuation fund, says it is not in any hurry to merge.

“It’s not something we haven’t considered but scale is sometimes perceived as an end game in itself,” says John Paul, Asset Super chief executive. “But it’s all about returns.”

Paul says there is “a lot of pressure for superannuation funds to merge” as taxation, custody and compliance costs are increasing.

“Merging is a hot topic,” he says. “We don’t believe it’s imperative to be a certain size.”

Paul says market volatility this month was “understandable” given the fragile state of economies and markets following the global financial crises.

He has sought to ensure Asset Super members are informed about the consequence of investment decisions they make when markets are volatile.

Paul doesn’t see the need to diversify his fund’s investments. He says equal representation on a superannuation fund’s board still serves it well.

 “I don’t believe the equal representation model is passed its used by date,” says Paul. “I don’t believe there is a push to invest more money offshore.”