Active Super and Vision Super have signed a Memorandum of Understanding to explore a potential merger between the two funds.
The two funds were both profit-to-member of a similar size with a history servicing former local government employees in New South Wales and Victoria.
Active Super was formerly known as LGS Super until its rebrand last May and had $13.8 billion in assets under management while Vision Super had $12.5 billion.
If a merger proceeded, the fund would manage around $26 billion in funds under management on behalf of members holding around 169,000 accounts.
Kyle Loades, chair of Active Super, said: “These merger discussions represent an opportunity to bring together two funds with a similar membership profile and an aligned responsible investment philosophy, delivering strong, long-term returns and quality service to their members.
“By exploring this potential merger we have an opportunity to achieve additional scale, greater resources for services and growth, as well as potential lower costs and fees for members. Our aim is to put all members in a better position when it comes to meeting their retirement objectives.”