AustralianSuper, the $42 billion fund, may seek to merge with public sector funds.
“We think there are opportunities in the public sector,” says Paul Schroder, general manager, growth and new opportunities, AustralianSuper. “Governments will review their role in super. We want to grow in the public sector.”
This month AustralianSuper says it will merge with AGEST Super, a $4.3 billion fund that manages money for current and former Commonwealth and Territory public sector employees.
AustralianSuper’s merger with AGEST will be completed next year. It will be the third merger for AustralianSuper since July 1, 2006 when it was created through a three-way merger.
Schroder says the number of industry funds has shrunk to 65 from 165 in the last 10 years.
“Consolidation and reduction in funds is the future,” he says.
AustralianSuper has about 1.8 million members. AGEST has about 130,000 members.
“Every fund is dealing with the increasing demands of employers, members and regulators so it makes sense to merge,” says Schroder.