Further consolidation is about to occur in the industry funds sector, with Prime Super and HIP announcing their intention to merge effective from the beginning of May.
The chief executives of the two funds, Prime Super's Lachlan Baird and HIP's Ross Bernays, confirmed yesterday that they were close to formalising the merger arrangement for the two funds and pointed to the benefits which would flow from the consequent economies of scale and capacity to deliver improved member and employer benefits and services.
Bernays pointed out that the HIP brand would continue alongside that of Prime Super after the merger to "underline the continuity of focus on services to the health industry, and as recognition of the strong loyalty and connection that HIP has on its existing membership and employers".
"We're happy that we've been able to find a super fund to partner with that has the same core values that we do," Baird said. "We're also grateful to everyone that has worked together in a collegiate manner to create the opportunity for this new exciting strategic partnership."
The merger will be carried out as a Successor Fund Transfer, with HIP member accounts scheduled to be transferred to Prime Super on 1 May 2014. From this date, HIP members will become members of the "HIP Super" division of Prime Super. The trustee of the merged fund will be Prime Super Pty Ltd.
The announcement said Prime Super CEO Lachlan Baird will be the chief executive of the merged fund while Ross Bernays, the current HIP CEO, will be appointed CIO of the merged fund.
The composition of the trustee board will also change, with four HIP directors joining the five existing directors from the Prime Super Board, ensuring that the ongoing representation and stewardship from the previous boards is maintained. Alan Bowman, the current independent chair of Prime Super, will continue as chairman of the combined entity.
