Australian Ethical Super has signed a successor fund transfer agreement with Christian Super following an extensive period of due diligence.
It was first announced the two funds were in talks back in April after Christian Super failed the Your Future, Your Super performance test.
There would be no change to Australian Ethical’s investment philosophy or process, the fund said in a statement to the Australian Securities Exchange (ASX), and the board would remain unchanged.
Neville Cox, chair of Christian Super, said: “As we look to wind up Christian Super after nearly four successful decades of pioneering values-based investing in Australia, we are pleased to have found an alternative for our members that is not only in their best financial interests but also champions a similar purpose-driven approach”.
Steve Gibbs, Australian Ethical chair, said: “We’re delighted to welcome new members who share this vision and want to use the power of their money to support a more sustainable future”.
The move would see all members of the Christian Super move to Australian Ethical Super in late 2022 or early 2023.
It has since been announced Treasury would be conducting a review into how the YFYS performance test would work for faith-based super funds.