ESI Super and SPEC Super have announced that they haveagreed to merge and create a A$3.4 billion fund.
The merged fund will adopt SPEC Super’s administrationmodel while ESI Super’s funds management and financial services team will beused to manage assets.
The decision follows the completion of legal duediligence on both funds by Corrs Chambers Westgarth and Minter Ellison, and taxdue diligence by KPMG.
The Corrs team, led by partner Christine Maher andspecial counsel Joanne Dwyer, advised the Project Steering Committee inrelation to strategy and implementation as well as advising ESI Super inrelation to the successor fund arrangements.
Minter Ellison's team, led by partner Maged Girgiswith senior associate Andrew Bradley, advised SPEC Super on strategy andimplementation and in relation to the successor fund arrangements.
The merger will provide a number of benefits tomembers including more funds under management, presenting more investmentopportunities at a lower cost and cost savings of around A$2 million per year.
The merger is expected to be completed in March 2011.