Equity Trustees enters agreements with Colonial Mutual Life Assurance Society
SYDNEY: EQT Holdings has announced new agreements with The Colonial Mutual Life Assurance Society Ltd (CMLA), in which EQT subsidiary Equity Trustees Limited will take on the Trustee role for $10.5 billion of assets of CMLA.
Another subsidiary, Equity Trustees Superannuation Limited (ETSL), will become the Registrable Superannuation Entity (RSE) Licensee for $4.5 billion of superannuation funds. CMLA has entered an agreement with ETSL to continue to operate as administrator and life insurer of these funds.
The combined agreements will increase Equity Trustees' total funds under supervision to more than $100 billion.
EQT Holdings Managing Director Mick O'Brien said, "This is a significant announcement for Equity Trustees, cementing its position as the leading trustee in Australia.
"Equity Trustees is the company of choice because we have the resources and the capability to take these roles on.
"Each appointment is independent, and the funds will be overseen by separate specialist subsidiary trustee companies.
"In our superannuation and responsible entity businesses, our focus is on looking after the rights of members and unitholders within the funds, independent of all other parties.
"Our recent investment in resources, including senior personnel and technology, strengthens our ability to support opportunities such as this. We look forward to partnering with CMLA." Mr O'Brien said the agreements were part of the previously flagged pipeline of opportunities and confirmed that there had been significant investment to support the pipeline, and that earnings growth is expected to be weighted to the second half FY20. The appointments took effect from 1 October 2019.