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IFAA appointed to administer the new ESI Super and SPEC Super merged entity.
... The agreement follows the completion of the recent legal and tax due diligence process, undertaken by independent advisors Corrs Chambers Westgarth, Minter Ellison and KPMG, which confirmed there were no material impediments to the merger.
The merger, which is expected to be completed by the end of March 2011, will see the creation of one of Australia's largest energy industry funds.
ESI Super and SPEC Super Chairman Bob Henricks said the merger would deliver strong benefits to the members of both funds.
The benefits identified include:
- Larger funds under management and enhanced cash flow contributing to greater scale, allowing the merged fund to access more investment opportunities at a lower cost
- Estimated cost savings of approximately $2 million a year due to shared services and access to cost savings through economies of scale
- Member synergy as both funds maintain a focus on employees in the energy and resources industry as well as being a public offer fund for self-employed contractors, family and friends
- Opportunity for enhanced member services and benefits from larger scale, including access to more competitive insurance policies
"The decision to merge is not a decision we have made lightly, but follows an intensive review and planning process spanning many months," Mr Henricks said.
"On the surface, ESI Super and SPEC Super share many common attributes - we are both industry super funds with a track record of consistent returns. While we both maintain a focus on employees in the energy industry, we are also public offer funds which can accept membership from the general public.
"As we go through the process of merging, we are committed to keeping our members and stakeholders informed and involved to ensure the best possible outcome."
Mr Henricks said the proposed structure would adopt SPEC Super's streamlined administration model, while ESI Super's existing expert team would be responsible for the fund management and financial services of the new merged fund.
"In the meantime, both funds will ensure their focus remains on delivering consistent returns, relevant and cost-effective products and services, and tailored financial advice to our members," he said.
ESI Super is a platinum-rated*, $2.8 billion industry superannuation fund. Founded in 1995, ESI Super provides complete retirement planning solutions to its 21,000 members across Australia. The fund offers superannuation, income stream, insurance and income protection products and access to financial advice.
SPEC Super is a gold-rated* industry super fund which has been operating more than 21 years for people working in the electro-technology and allied industries. It has more than $500 million in investments and more than 24,000 members.
SPEC Super website named "Best in Class"
The SPEC Super website (www.specsuper.com.au) was awarded “Best In Class” at the Interactive Media Awards under the 'Mutual Fund' category for excellence in the design, development and implementation.
Independent Fund Administrators & Advisers (IFAA), the administrator of SPEC Super, engaged digital agency Zeroseven for the project.
IFAA has also used SPEC Super’s award-winning internet platform for the websites of other superannuation funds it administers, including Club Super and QIEC Super.
To win an award, the SPEC Super website passed through a comprehensive judging system which scored it on design, content, feature functionality, usability, and standards compliance & cross-browser compatibility.
IFAA Marketing Services Manager Bart Black said it was important for superannuation funds to embrace the latest internet technology to ensure they engaged with members of all ages and backgrounds.
“Since the launch of this new website in February 2010, it is now without a doubt our number one member touchpoint with up to 300 unique visitors a day,” he said.
“In designing and implementing the new website, we desperately wanted to move away from the ‘data dump’, and develop a much cleaner website with a logical site architecture to deliver a better user experience.
“For those engaged members, we need to be able to satisfy their immediate information needs, while for less engaged members we want a site which is enticing and encourages exploration. Reflecting the fact that the website is for our members, we also regularly showcase our members and employers.
“While this award recognises that the website is among the best of its kind, more importantly it demonstrates how super funds can use the internet more effectively to reach their members.”
ENDS. For more information, images or interviews contact:
Matthew Hart, BBS, 07 3221 6711