Aware Super and The Victorian Independent Schools Superannuation Fund (VISSF) have entered into merger talks.
The two funds have signed a non-binding Memorandum of Understanding to explore the benefits of a merger.
VISSF has a more than 60-year history as the default fund for teachers at independent schools across Victoria.
Aware Super has nearly 200,000 members working in the education industry and the fund believes the potential merger will help it build scale in the sector.
Aware Super said it hoped to complete the due diligence process in the coming weeks.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
While some superannuation funds have gone down the route of internalisation, others say they favour ‘smart partnering’ with external managers for diversification appeal.
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