AUSTRALIA - The A$9bn Australian Retirement Fund (ARF) and the $8bn Superannuation Trust of Australia (STA) have confirmed they are to merge in June this year and be fully operational by 1 July.
The decision to merge was made after their consultants Rice Walkers Actuaries concluded in a very comprehensive report that a merger would be in the best interests of both members and employees.
According to ARF, the three key drivers behind the decision were the increased capacity to develop new products and services; greater economies of scale including in administration and investments and an enhanced capacity to successfully market a single large brand.
The CEO of the new merged fund will be Ian Silk, currently CEO of ARF. The deputy CEO and CIO will be Mark Delaney who is currently the CEO of STA.
Members of the two funds will have their investment choice selection transferred to the equivalent investment options in the merged fund. The merger will provide members with 15 different investment options.
By Daniel Flatt
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