State Super is to gain the economies of scale of sharing a common administration platform, due diligence, manager appointments and reporting with TCorp and the Safety, Return to Work and Support Division.
The NSW treasurer and the minister for finance and services have announced the merger of activities to gain greater cost efficiencies for each entity, though each will still control their own asset allocation, risk management, investment staff and trustees.
The three institutions are the largest New South Wales government controlled investors.
The new combined arrangements will cover $65 billion of assets, of which $39 billion belongs to State Super and is managed by chief investment officer Mike O’Brien.
The announcement by NSW treasurer Mike Baird hinted that some of the cost savings will be used in the retention and attraction of key staff. He said: “Today’s announcement provides a great opportunity for NSW to harmonise its funds management arrangements, by leveraging the substantial capabilities that exist across the three agencies.
“It enables the pooling of investment management expertise and intellectual property within an integrated platform, and will make it easier to retain, develop and attract high quality investment professionals.”
Michael Cole has been appointed as an independent expert to oversee the amalgamation.