NSW-based industry superannuation fund, EISS Super has confirmed it has entered into a Memorandum of Understanding (MOU) for a merger with TWUSuper.
A successful merger would see the creation of a fund with 130,000 members and over $12 billion in funds under management.
The two funds said today that initial discussions on the merger had been very positive.
Commenting on the move, EISS Super chief executive, Alexander Hutchison, said he believed the fund had an obligation to its members to consider the benefits of a potential merger and to proceed if it was in their best interests.
“It is early days, but we are seeing a lot of potential benefits for members so a merger looks promising,” he said.
For his part, TWUSuper chief executive, Frank Sandy, said that there appeared to be strong synergy between the funds operationally.
“This merger can provide greater scale for both funds and has the potential to deliver cost savings to members across trustee services, administration and investments,” he said.
Both noted that the funds’ memberships shared similarities with a high proportion of members working in high-risk occupations meaning both funds placed great importance on providing quality insurance that was tailored to the needs of their members.