Industry funds AustralianSuper and AUST(Q) Super have announced an ‘in principle' agreement to merge.
The proposed merger would see AUST(Q) Super's 17,000 members and over $204 million in funds under management (FUM) transferred to AustralianSuper.
The decision to merge would allow AUST(Q) Super members to leverage AustralianSuper's size and scale and provide the capability to access its investment performance and low fees, AustralianSuper chief executive Ian Silk and AUST(Q) Super chief executive Bob Henricks said in a joint statement.
"With growing competitive pressure and increasing demands on the super fund industry, we believe our members will be best served by the scale of a larger fund such as AustralianSuper, who can also provide a strong Queensland presence," Henricks said.
Silk said the fund would be looking to increase its presence in Queensland further to provide its expanded Queensland member base of 260,000 with improved services.
AustralianSuper currently has over two million members and over $62 billion in funds under management.
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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