AvSuper seeks merger partner

Aviation-focused superannuation fund, AvSuper, has set out an expression of interest for a potential merger partner.

The fund, focused on the aviation industry, had $2 billion in funds under management and 6,500 members.

In a statement, the fund said it was getting harder to sustain the costs of running the fund as a small player.

“Because we’re a small super fund with a small number of members, it’s getting harder for us to sustain these costs,” it said.

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“So, we’re about to ask a select group of super funds to express an interest with partnering with us in the future.”

Funds would need to demonstrate their ability to maintain the fund’s defined benefit scheme and insurance coverage for its specific member occupations. They would also need to demonstrate an equal to or greater net benefit to members, be a tailored service model and offer alignment with key stakeholders.

It said it expected responses from funds in early 2022 and, if successful, a change would happen between October 2022 and April 2023 following a due diligence process.

“Strategic decisions, such as a merger, are made by the AvSuper Trustee, who is charged with delivering the best it can for members,” it said.

“Of course, we will continue to engage with employers including Airservices, employee bodies and other stakeholders in respect of any merger activity.”

This was the latest in a series of super mergers with Aware Super completing its merger with VISSF and Hostplus finalising its merger with Intrust Super.