Active Super and Vision Super are now entering the home stretch of a drawn-out merger process that will create a new $29 billion fund with 170,000 member accounts.
The NZ Superannuation Fund has made half-a-dozen fresh investments over the previous few months across an eclectic range of strategies including US timber, a quant trend-follower and a life science specialist.
How Treasury Group is taking on the world
(Pictured: Andrew McGill)
by Penny Pryor
A chance encounter in London last year and a subsequent meeting of the minds has led to an alliance that will form one of the largest independent boutique incubator, or multi-affiliate, firms in the world. Treasury Group is to merge with Northern Lights Capital Group.
Treasury Group shareholders will come away with a 61 per cent interest and majority board representation. The Australian listed company’s chief executive, Andrew McGill, will become CEO of the joint enterprise.
“By and large we have been an Australian based group, where as now this does transform us into an international group,” McGill said last week. “Merging with another firm had never been an explicit high priority for Treasury Group and had always been “at the bottom of the list”.
Higher on the agenda were the goals of diversifying the portfolio and increasing and enhancing distribution capabilities. But a merger with a major US player, which has a big distribution team, is a big breakthrough in achieving all those strategic goals, according to McGill.
Last year a Treasury Group distribution director happened to meet with managing director of Northern Lights, Tim Carver, in London which eventually led to meetings with McGill.
Further discussions led to the final negotiations but neither party was “on the hunt”.
After the merger is completed, slated for October, products of each group will be available for distribution in the other’s market.
Northern Lights Capital Group managers are currently not available in Australia, according to McGill.
The fund manager Treasury Group is most excited about being able to expand distribution for internationally is RARE Infrastructure.
Northern Lights Capital Group managers that could be of interest to Australian institutional investors include global equity managers Blackcrane Capital, and EAM Investors and Raven Capital Management and Aether Investment Partners in the alternatives space.
McGill is not too fazed by his expanded role but does expect to be spending more of his time in the US. A dual listing is on the cards in three years time.
The merged company will have total staff of 37 but Northern Lights’ 20 people also includes nine focussed on distribution, compared to Treasury Group’s five.
“From a small base that’s a significant enhancement of the executive team,” McGill says. “It’s likely to make my life easier, not difficult.”
