More available and flexible income-protection insurance is a key reason why the Asset Super and CareSuper merger is good for Asset members, says the fund’s chief executive, John Paul.
Both funds today formally announced their deal would proceed, with the new $6.5-billion fund formally merging on October 26.
Both boards gave in-principle support for the merger in September, and the deal has been given the green light with the completion of due diligence.
The new fund will have 267,000 members and $6.5 billion under management.
“This will give our members a much broader insurance offering, particularly in income-protection insurance,” said Asset’s John Paul in a telephone interview.
“CareSuper has automatic acceptance of income-protection insurance, while IP is not taken up currently by many Asset members.
“That, and the larger scale the merger will give us, should make this a much better outcome for our members.”
Paul also pointed to some innovations post-merger, with the likelihood that the fund would offer a share-trading option for members as funds compete against the attractiveness of self-managed super.
CareSuper will be the successor fund, with Asset members merging into CareSuper.
Julie Lander, pictured right, will continue as chief executive after the merger.