Mercer Super is looking to participate in superannuation merger activity as it looks for growth, its head, Tim Barber says.
Barber said the fund was well placed as an independent player that serviced the super industry in a number of ways through its super services, administration, consulting and its Mercer Superannuation Trust.
“We think we're well placed to be a good home for the members of other funds where they're looking for a different future than what they've had in the past. So, we're very much active in participating in that for sure,” he said.
“We have chats with people and we’re open for business in terms of growth, including through mergers. So, we do have conversations but there's nothing at a stage that I can talk publicly about at the moment.”
Barber said using size to increase scale was an important factor along with an organisation that had cultural alignment with Mercer.
“Something that complements our business model. Mercer has a strong foothold in the market with large corporate employer clients and that tends to be our strength. If we were to merge with a firm that had different strengths in terms of a target customer segment, a part of the market that they serviced, or complementary distribution/customer segment that are well known to their brand, or funds with really good member experience and technology – that would be attractive,” he said.
“But at the end of the day, a fund that has a similar view of the future, what's good value for the members and in amongst all of that, a good cultural alignment in terms of the people and leadership. I think that's probably the most critical element.”