LOCAL SUPER AND STATEWIDESUPER IN DUE DILIGENCE

Local Super and StatewideSuper have commenced due diligence ahead of a potential merger, following in principle approval from the major shareholders of both funds.

The Chairman of Local Super, Ms Juliet Brown, and Chairman of StatewideSuper, Mr Nicholas Begakis AM, said shareholders Business SA, SA Unions, the Local Government Association, Australian Services Union and the Australian Workers Union had given their in principle support for the merger.

 

PriceWaterhouseCoopers, KPMG and Russell Investments have been appointed to undertake a shared process of due diligence which should be completed by the end of November, at which time a final report will be prepared for presentation to the Boards of both funds before the end of the year.

 

Local Super was established in 1984 to meet the superannuation needs of local government employees in SA and NT. It also manages the superannuation benefits for those with a historical link to local government. Local Super has around $1.7 billion in funds under management.

With around $2.4 billion in funds under management, StatewideSuper is the profit-for-members industry super fund for South Australians.

 

A merger of the two funds would result in the new fund becoming the pre-eminent industry fund in South Australia with funds in excess of $4 billion.

 

The Federal Government’s ongoing commitment to its Stronger Super initiatives make the merger of smaller funds more likely.

 

For further information, please feel free to contact our Member Services Team.

Prepared 19 October 2011