Fund Company Update

Company Updates

Perpetual executives take six-month pay cut

Chief executive Rob Adams and chair Tony D’Aloisio are taking a 20 per cent pay cut to their base salaries for six months as of 1 July 2020, with other cuts due to the pandemic. The group executive team and board of directors are to see a 10 per cent pay cut. The group executive is also missing out on cash bonuses for FY20, with variable remuneration across the company reduced.

First State Super, StatePlus and (maybe) VicSuper rebranded Aware Super

As of September, First State Super and StatePlus will be known as Aware Super after a merger of three industry superannuation funds. VicSuper’s brand will be kept for a while longer, to be reviewed in the future. First State Super’s chief executive Deanne Stewart said the rebranding was because there were other similar-sounding funds, and the need for differentiation had arisen, plus cost savings in having just one brand.

ARP Investments launches in Australia

United States’ investment company ARP Investments is entering the Australian market via a partnership with Axius Partners. ARP manages US$2 billion in assets.

Cbus and Media Super start merger process

Cbus Super and Media Super have signed a memorandum of understanding, starting the due diligence process. The pair of industry super funds are hoping to have their joint agreement working in 2021. Both funds will retain individual branding but merge investments and administrative operations. Both brands have a long and close history with members, so keeping the branding has been important while benefiting from the scale of merging.

Powerwrap merging with Praemium

A bid of $55.6 million has been offered from Praemium to acquire Powerwrap in an off-market conditional takeover. A bid implementation agreement was entered into on 9 July 2020, unanimously supported by the board of directors at Powerwrap.