LGIAsuper appoints new CIO ahead of Suncorp super-acquisition

The recently merged LGIAsuper and Energy Super have appointed a new chief investment officer, ahead of the planned acquisition of the superannuation business of Australian financial services giant Suncorp this year.

Mark Rider will take on the role of CIO at the combined entity in February 2022, which had approximately A$24 billion ($17.3 billion; €15.2 billion) in assets under management on 30 June 2021. Rider most recently served as CIO of Christian Super and held roles at the Reserve Bank of Australia and UBS, as well as the position of CIO for wealth and private banking at ANZ.

Rider takes over from Troy Rieck, who had held the CIO role since September 2019 and will depart in January. LGIAsuper was not able to provide information on Rieck’s next role. He previously worked in investment roles at Suncorp in two separate stints

LGIAsuper announced in April 2021 that it would acquire Suncorp’s superannuation business for approximately A$45 million, including a fixed amount of A$26.6 million plus regulatory reserves. The deal will take the combined fund to around A$28 billion of AUM.

LGIAsuper confirmed that the acquisition was on track to reach financial close in the second half of this financial year, which ends on 30 June in Australia.

“This acquisition, combined with the Energy Super merger, will ultimately deliver all of our members an ideal, sustainable fund size, while maintaining our status as a boutique and personal superannuation provider,” CEO Kate Farrar said in a statement, adding that the amalgamation of the funds would give LGIAsuper “a unique opportunity to reconfigure our investments to ensure that we are delivering the best possible outcomes and future security for our members”.

The fund intends to keep the Suncorp funds operating as a standalone entity under its existing branding initially, with its own trustee board, management and team. LGIAsuper and Energy Super still exist as separate brands but operate as a single fund that is managed by the LGIAsuper trustee.

According to its 2021 annual report, the most recent available, which covers finances prior to the completion of the merger with Energy Super, LGIAsuper had 9.7 percent of its AUM allocated to infrastructure, amounting to approximately A$1.4 billion.

Current commitments include an A$505 million mandate with Palisade Investment Partners across multiple holdings, A$356 million committed to I Squared Capital, A$122 million committed to multiple EQT Infrastructure funds and A$88 million invested in the Lighthouse Infrastructure Fund Trust. It also has A$194 million invested with Westbourne Capital as part of an alternatives bucket.

The portfolio includes a range of Queensland assets including the Gold Coast Light Rail, North Queensland Gas Pipeline, the Central Queensland Livestock Exchange and the Sunshine Coast Airport.

Energy Super’s 2021 annual report, the final report prior to the merger, sets out a 6.47 percent allocation to infrastructure fund managers, amounting to more than A$580 million.

Its investments included a A$290 million commitment to The Infrastructure Fund, managed by Macquarie Infrastructure and Real Assets, A$120 million committed to QIC’s Global Infrastructure Fund and a co-investment sidecar, A$61 million invested in First Sentier Investors’ European Diversified Infrastructure Fund III, and A$17 million in the QIC Infrastructure Fund.