Fund Company Updates

IOOF halts AET purchase

IOOF has announced that it will not be pursuing an offer to purchase Australian Executor Trustee, IOOF’s retail trustee business. IOOF received an expression of interest in August 2020. Two years ago, IOOF made an announcement it was selling AET to Sargon (now Certes Corporation) for $51.6 million. IOOF retained the corporate trust business, providing private client trustee services, estate planning and compensation trusts.

WA Super and Aware Super merger complete

The combined entity of WA Super and Aware Super (formerly First State Super) now has $135 billion in assets and a million members, with its merger now complete.

S&P to buy out analytics provider competition for $60bn

S&P Global is to buy data and analytics provider IHS Markit, with the two companies to merge by the end of 2021. A definitive merger agreement has been entered into by the two firms, unanimously approved by both boards, pending approvals. S&P’s current shareholders will own just shy of 68 per cent of the combined company, while IHS Markit shareholders will own just under a third.

HESTA and Australian Unity partner through social impact trust

HESTA, the industry fund for health workers, and Australian Unity have partnered to create a new capital source for the For Purpose, Mutual sector. HESTA is putting $20 million as a cornerstone investment in Australian Unity’s first issuance of Mutual Capital Instruments (MCIs).

HESTA is making its investment via its Social Impact Investment Trust, managed by Social Ventures Australia. The trust looks to create a funnel of impact investments that earn returns while also having a positive, measurable social impact.

BlackRock to acquire equity index firm

BlackRock is to buy investment manager Aperio, a company offering customised index equity portfolios that seek to make the most of tax positions. Aperio joins forces with financial advisers and builds custom portfolios for ultra-high-net-worth investors. Aperio has US$36 billion in assets under management, as a subsidiary of Golden Gate Capital in San Francisco. Aperio will still be operated as a separate brand in the USA.

Australian Unity owes employees at least $4.25m

A review has been undertaken by Australian Unity to determine the extent of underpayments to staff, which has amounted to $4.3 million. Aged care and disability services staff were underpaid $4.25 million in wages, with the superannuation and interest element still not calculated. There were instances of both under and overpayments discovered, in the midst of shift loadings, allowances and wages paid to current and past staff in the independent and assisted living business.

Wells Fargo eyeing up Australian superannuation funds

Wells Fargo Asset Management is in talks with large superannuation funds, with an aim to solidifying itself as a major Asia Pacific player. The firm said the region has been one of the fastest-growing for the company in the past five years. Wells Fargo will be focused on offering ESG-centric small-cap, all-cap and global small-cap options.

Hostplus outsources service centre to Link Group

From March next year, Hostplus’ contact, communications, complaints and employer service centre will be run by Link Group, with current staff to transition to Link. There will be no redundancies.