Perth-based resources company Worsley Alumina has outsourced its $180 million corporate superannuation fund to Corporate Combined Superannuation (CCSL).
"This is the tip of the iceberg for us. We expect to get more corporate superannuation funds on board as they begin to realise how costly regulation is under the Australian Prudential Regulation Authority (APRA) licensing regime," CCSL chief executive Nicholas Brookes said.
The firm now has 10 clients and manages $700 million in funds under management, since it was established in January 2006.
The tendering process was managed by PricewaterhouseCoopers, and Brookes said such firms are recognising the benefits of the CCSL business model.
"Our business model allows super funds to outsource their administration and compliance to us while retaining the brand," he said.
Mastertrusts are another potential client group for the firm.
"The master trust sector is worth about $300 billion. This sector does not see us as competition. We are more like joint venture partners in their business. We will most likely get 3 per cent of that market for our client base," Brookes said.
From July 1 2006, APRA required all superannuation funds to hold a responsible superannuation entity licence. More than 900 trustees that exited the industry in the lead up to the deadline were from stand-alone corporate superannuation funds. To date, APRA has issued 307 of these licenses.
