The move, subject to approval, will allow the funds to take advantage of broader investment opportunities, lower investment management fees and other cost and scale benefits from a larger asset pool.
The partnership combining Maritime Super’s assets under management (AUM) of around $6 billion with Hostplus’ $55 billion via Hostplus’ Pooled Superannuation Trust would come into effect from 30 April.
For Maritime Super, the scheme is expected to afford its members long-term investment opportunities not usually available to smaller funds, including in unlisted, “tier 1” assets, such as property, infrastructure, private equity and venture capital.
Maritime Super chief executive Peter Robertson said the strategy was a “win-win” for both funds’ members.
“It will afford our fund the opportunity to access some of the best investment opportunities and returns available while retaining our ability to focus on the exceptional and tailored services our members expect and deserve from a niche fund such as ours,” Mr Robertson said.
“This importantly, extends to insurance cover specifically customised to maritime occupations, a national network of experienced financial planners and a worksite visitation program that keeps the funds close and accessible to its members. We’ve worked closely with Hostplus to establish this strategic partnership and we’re excited to be the first industry fund to leverage this innovative facility.”
Hostplus CEO David Elia added the fund’s Pooled Superannuation Trust’s structure provided a clear and viable alternative to mergers and acquisitions, particularly for smaller funds that other than having larger scale, were well performing.
“Hostplus’ PST provides other APRA regulated funds, and especially smaller funds, a viable and effective alternative to a merger by extending their outsourcing operating model to now include the management of their investments alongside one of Australia’s largest and long term well-performing profit to member funds, while maintaining full control of their fund’s strategy and member and employer relationships,” he said.
