Anna Shelley

Equip and Catholic Super have defied the worst market downturn since the Global Financial Crisis, delivering positive returns to members invested in the joint trustee’s flagship balanced options.

In a financial year end that saw COVID-19 market jitters push most super funds into negative territory, Equip’s Balanced Growth option captured a 1.7% return and Catholic Super’s Balanced option +0.52%. Both funds’ returns are above 8% p.a. over 10 years – proving once again that long term gets the returns.

Anna Shelley, Chief Investment Officer, said that the funds deployed a number of strategies to protect members’ retirement savings as COVID-19 disrupted financial markets.

“Global markets fell significantly and very quickly as the coronavirus pandemic hit back in March. Despite the initial panic, markets have significantly rebounded since then,” she said.

“As markets bottomed through March, the funds bought $1 billion of equities and, after markets had recovered substantially, $1 billion of equities was steadily ‘sold off’. Many small, conservative actions were implemented to protect and add to our members’ retirement savings.

“Put another way, while markets are still a bit lower than their record February highs, they’re back to late 2019 numbers.

“Equip and Catholic Super’s investment team is closely watching the markets and resetting strategies as conditions change during the pandemic, positioning members’ retirement savings for long-term growth as markets and economies reset and recover for life after the crisis.

“Both funds are known for their track record of delivering for members, particularly in tough times, so we are very pleased to achieve these results, supporting our members’ retirement outcomes. Our long term results show that investments require time in the market. The key is consistently strong results over many years.”

Scott Cameron, Equip and Catholic Super Chief Executive Officer, said managing both risk and opportunities to grow members’ wealth is essential, particularly at a time when consumers are seeking to chase returns.

“Both funds have a long-term growth plan to deliver competitive fees and performance. The results for the 12 months to June and a longer 10 year period show that the funds are growing members’ retirement savings during both difficult and more optimistic times,” he said.

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Andrew Fairley and Danny Casey

Two top-10, profit-to-member superannuation funds today successfully joined forces, paving the way for other funds to join. Governed by a new, skills-based board of 12 directors, Equip and Catholic Super’s $26 billion venture will manage funds for 150,000 members with an aspiration to be a much larger entity by 2025.

Andrew Fairley, Chairman, said the unique tie-up sets the scene for further industry consolidation. “This is a new dawn and a new era for super mergers as we scale up to benefit members under an extended public offer (EPO) licence,” he said.

“At a time when funds are being urged to merge, Equip and Catholic Super have a rare opportunity to be one of the industry’s great growth stories. We’re open for business with an APRA-approved licence, attractive to funds that are keen to drive down costs while maintaining their distinctive brands and member engagement that they’ve always been known for.

“While other funds are talking about merging, Equip and Catholic Super are ‘getting on with it’. The EPO licence was issued three years ago. The Catholic Super Board has had the courage to embrace the model, breaking new ground while being agile, innovative and aware of the reform backdrop that is shaping the future of our super industry.”

Danny Casey, Deputy Chair (former Catholic Super Chair), noted the new model’s member benefits. He encouraged other funds to follow suit and consolidate under a ground-breaking house-of-brands model that grows funds under management.

“As trustees we have a firm obligation to act in our members best interests. With the industry being challenged to consolidate further, funds that are seeking to ensure they can deliver sustainable member outcomes are encouraged to be part of this new and innovative approach. We’ve studied this model and unlocked the potential to join forces and maintain our super fund’s heritage. Those who join can retain their distinct identity that attracted members to their fund of choice in the first place. For example, our Catholic Super members, who care for and educate millions of Australians every day, will retain their high-performing brand and exceptional service from their award-winning, in-house service centre.”

Further bolstering both funds’ strong history of exceptional performance, consistently ranking in top-10* superannuation fund league tables, a new chief executive was announced in August to head both funds. Scott Cameron has extensive experience leading integrated operations and bringing diverse businesses together. More recently, Anna Shelley was confirmed as the inaugural Chief Investment Officer for both funds, managing assets and investments under the $26 billion joint venture model.

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Anna Shelley

Progress towards the ground-breaking joint venture between is continuing with the appointment of Anna Shelley as Chief Investment Officer for both funds.

Ms Shelley’s appointment follows last week’s announcement that Mr Scott Cameron, the former Chief Executive of Computershare in Australia and New Zealand, would head both funds and be CEO of the joint venture when it begins operating in October.  The opportunity to appoint a CIO for both funds was brought forward following the resignation of Equip’s current CIO, Troy Rieck last week.

Equip Super and Catholic Super are joining forces to create one of Australia’s largest profit-for-member superannuation funds.

Ms Shelley is currently CIO of Catholic Super. Equip Super Chairman Andrew Fairley AM, welcomed Ms Shelley’s appointment as another significant step towards a successful joint venture.

“This CIO appointment is an opportunity to align the two funds from an investment perspective and strongly position us for further growth,” Mr Fairley said. “It brings greater business continuity and enhances our capacity to continue to deliver for members, with scope for additional expansion.”

Mr Fairley also expressed his appreciation to outgoing Equip CIO Troy Rieck for his contribution to the fund.

Peter Haysey, Acting Chair of Catholic Super, said: “I’m delighted that Anna Shelley has been appointed as the joint CIO of both Catholic Super and Equip Super. Anna is an experienced leader with an extensive investment management and business strategy background and has been impressive during her time at Catholic Super.

“Both investment teams have begun working extensively to bring together the two existing investment portfolios. We look forward to Anna leading the teams through the joint venture operating model as we prepare for a full merger”.

Ms Shelley said she was looking forward to bringing both teams together, with a common vision and strategy to assist the joint venture.

“Both Equip Super and Catholic Super are high-performing industry leaders,” Ms Shelley said. “By aligning our strategies and portfolios we will deliver the best outcomes for our superannuation members.”

Ms Shelley was appointed CIO of the $10 billion Catholic Super fund in April 2018. She has held several senior positions across the financial services sector. Before joining Catholic Super, she was General Manager, Product and Strategy at Perpetual, an Australian investment manager with assets totalling $30 billion. Prior to Perpetual, she was head of investment product at MLC Investment Management, where she was responsible for developing NAB’s MySuper strategy.

Ms Shelley has recently been invited to join Bloomberg’s New Voices initiative, promoting the inclusion of leading women in commentary about the financial sector.

The Equip Super and Catholic Super joint venture has been hailed as a ground-breaking move towards consolidation in the industry. Subject to completion of final due diligence, the Memorandum of Understanding will establish a Joint Venture Trustee managing funds for about 150,000 members.

The joint venture’s unique structure maintains both superannuation brands. At completion, the joint venture will have a combined funds under management (FUM) of $26 billion, making it Australia’s tenth largest profit-for-member fund in market.

Under the structure, funds will share a single trustee which will be led by a new, merged trustee board. This Extended Public Offer (EPO) model enables participating funds to achieve economies of scale in administration and investments, without loss of brand identity or control of relationships with members, employers and other stakeholders.

Mr Fairley said the license, which enables it to partner with other funds while allowing their brands to be retained, should assist the new fund to build to around $50 billion in funds under management by 2025.

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Andrew Fairley and Danny Casey

Two of Australia’s best-performing superannuation funds are preparing a ground-breaking Joint Venture that will be a significant move towards consolidation in the industry.

The trustees of Equip Super and Catholic Super have signed a Memorandum of Understanding, which, subject to completion of final due diligence, will establish a Joint Venture Trustee – initially managing over $26 billion in funds for about 150,000 members. Both funds have a history of exceptional performance, consistently ranking in the top ten of superannuation funds.

The move comes as funds in the superannuation industry seek to improve member outcomes and best interests through the economies of scale consolidation can deliver.

Catholic Super and Equip have reaffirmed their commitment to a skills-based governance structure focused on the interests of members, with a third of all directors to be independent. Both are profit to member funds and are aligned in terms of vision and values.

Equipsuper Chair, Andrew Fairley AM, said he was delighted to enter into the MOU with a like-minded fund that focused on profits solely for the benefit of members, and endorsed a skills-based selection of trustees – one third from members, one third from employers and one third independent.

“This joint venture would contain costs and improve efficiency, bringing real benefits to members,” Mr Fairley said. “It is positive proof the Extended Public Offer (EPO) model provides a solution to funds who value their brands and connection to community, while enabling economies of scale.”

“This joint venture will be ideally positioned for future growth. This structure will drive stronger performance through efficiencies and scale of investments.”

Equip boasts a consistently high investment performance, among SuperRatings’ top ten super funds over all periods in the decade to 31 December 2018.

Chair of Catholic Super, Danny Casey, said the Joint Venture had many benefits for all. “The Joint Venture is the perfect pathway, bringing our members the benefits of scale while retaining the Catholic Super identity and strong connection with those working in Catholic institutions and communities,” he said.

“Catholic organisations are one of our country’s largest employer groups who care for and educate millions of Australians every day. For nearly 50 years Catholic Super has invested wisely to grow the life savings and retirement income for nearly 75,000 super members – many of whom are hard-working teachers and nurses. We are committed to continuing this member-driven focus within the Joint Venture.”

Catholic Super also brings a top ten track record to the Joint Venture. It was recently ranked by Canstar as one of the six top funds in Australia across a broad range of consumer groups for its combination of investment returns, fees, insurance options and access to advice and information. Catholic Super won the Roy Morgan 2018 Customer Satisfaction Award for Industry Superannuation Fund of The Year.

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