IFS seeks scale through group merger
By Mike Taylor
IndustryFund Services(IFS) is incorporating two of Australia’s largest eligible rollover funds in a bid to generate “genuine capital scale” in preparation for its plans to integrate all IFS entities into its banking arm — Members Equity.
The two funds — the Development Australia Fund (DAF) andAUSfund— are already part of a group of IFS-affiliated businesses, which includes superannuation administratorSuperpartners, however, they are now being fully incorporated into IFS prior to a broader move to operate under a single entity for the group.
According to IFS executive chair Garry Weaven, the ultimate objective is to create an organisation with the genuine capital scale needed to move forward.
Describing the initiative as “a major milestone”, Weaven says the integration of the DAF and AUSfund into IFS will occur almost immediately, with arrangements now in place to enable integration with Members Equity in 2006, “thus creating a single, unified institution of considerable substance”.
The far-reaching integration was announced barely a month after Members Equity revealed it was launching a multi-million dollar advertising campaign aimed at attracting more industry super fund members to use its service.
Weaven says the absorption of IFS into Members Equity makes good sense when a financial institution of scale requires a wealth management division.
AUTHOR
Mike Taylor
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