SPEC Super - generating wealth An Industry SuperFund

 

Media Release

26/7/2010

 

ESI Super and SPEC Super merger to proceed

 

 

Australian energy industry superannuation funds ESI Super and SPEC Super today formally agreed to the creation of a new $3.4 billion fund.

 

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 is committed to providing members and employers with regular updates on the progress of the merger via the SPEC Super website, our newsletters or by phoning SPEC Super on 1300 366 648.

 

In the meantime, SPEC Super's focus remains on generating future wealth for you today. For more information about ESI Super please log onto their website www.esisuper.com.au

 

You can even watch an online webcast by our Chairman Bob Henricks discussing the merger by clicking here.