Equity Trustees has announced it will acquire the OAMPS Super Fund from the Wesfarmers Group for approximately $10 million, which will include net assets, management rights and goodwill, according to Equity Trustees.
The acquisition will add around $265 million in funds under management (FUM) to EquitySuper, which had $624 million in FUM at 30 June, 2010 and currently provides superannuation services through Wealthpac Superannuation Service and the Freedom of Choice Superannuation Masterfund.
Equity Trustees managing director Robin Burns described OAMPS as a high quality fund that fits the EquitySuper business model very well.
“It provides additional scale and scope and it will be integrated very easily with our existing superannuation fund,” he said.
The fact that OAMPS is based in Melbourne may make the integration slightly more difficult but would also serve to expand the geographical scope of the Equity Trustees superannuation business, which is based in Sydney, Burns said.
“The OAMPS Super Fund has received favourable ratings in recent years and has undertaken significant and ongoing improvements to member services. We are committed to continuing these operational improvements already started, and protecting the best interests of the members of the OAMPS Super Fund,” he said.
“We intend to continue our emphasis on building scale in superannuation and this is an excellent opportunity to further build our operations by adding a highly compatible business.”
The acquisition is part of the company’s stated strategy of making bolt-on acquisitions to EquitySuper and would be funded from existing internal resources, meaning the Equity Trustees balance sheet would remain debt free and positioned for further expansion, Burns said.
Although there were no specific acquisition targets at the moment the manager remained interested if something suitable and appropriate became available, and would also be prepared to look at other larger funds, he said.