Corporate, industry fund merge

A 47-year-old corporate superannuation fund has merged with a $16 billion industry fund.

The Dow Australia Superannuation Fund (DowASF), home to just under 400 members, has merged with Equipsuper.

Established in 1972, DowASF is the corporate plan of Dow Chemicals Australia and its associated companies. When Dow was split into three companies this year, Dow Australia requested a review of the fund.

With the new companies unable to contribute to the fund, it was determined there would be fewer members in future.

As of October 1, all DowASF members' benefits were transferred to Equip on a successor fund transfer basis, with the industry fund adding close to $92 million in assets as a result, according to Equip.

Confirming the news, Equip chief executive Scott Cameron told Financial Standard: "The transfer has gone very smoothly and we look forward to working with our new members and Dow Australia."

In the three years to December 2018, DowASF's growth option saw a return of 2.5%, while its conservative option saw 2% over the same period.

According to Rainmaker data, the average three-year return for MySuper offerings to December 2018 was 5.8%.

Equip is currently operating under an extended public offer (EPO) licence after entering a joint venture with Catholic Super.

Read more: Dow Australia Superannuation FundDow Chemicals AustraliaEquipsuperFinancial StandardMySuperRainmakerScott Cameron
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