The merger is not with Aust Ethical Ltd, but Christian Supers members will move over to the Aust Ethical super funds, which are managed by a wholly owned subsidiary of AEF. So the influence on AEF's operations will be negligible or minor. From the ann. is seems that AEF will remain the sole manager. Maybe they will set up a separate "christian" super fund option - just guessing.
Christian Super have been forced by the regulator to merge with another fund due to poor performance of the CS fund over the last two reporting periods. So a merger has been forced on them (see the CS website). I see it as positive that AE Super has been chosen as the funds to merge with. If it goes well, others may follow.
Neither party mention a charge for the merger. This needs to be clarified. Given that CS has been forced into a merger, I can't see how they can drive a hard bargain. If there is any meger payment from AEF to facilitate the merger (if any), I'm not sure who would get it - the old CS manager, or the CS super members?
Christian Super has $2 billion in funds - a handy increase in FUM (and additional fees) to AEF. (But I expect that CS super members would get the option to individually decide if there funds are transferred to AEF or to another fund. But they have to transfer somewhere and AEF would seem to be in a good position to take over most of the funds transferred,)
AEF Price at posting:
$7.07 Sentiment: Hold Disclosure: Held
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