In what represents one of the most significant mergers in the industry superannuation funds sector for many years, the financial services industry-based Finsuper has announced an in-principle decision to merge with the big Superannuation Trust of Australia (STA).
Finsuper, which boasts $426 million in funds under management and more than 30,000 members, said the decision to consider a merger with the STA had followed a review conducted by the fund’s board.
Finsuper chief executive, Debora Jackson said the objective was to position the fund to continue providing better products and services while maintaining low costs for members now and into the future.
Under the merger arrangement, Finsuper will be established as a division within STA specialising in providing superannuation solutions for people working in the financial services and insurance industries.
Commenting on the move, Jackson said the fund had chosen to partner with STA because of its considerable sale, cost benefits and strong performance.
“The merger into STA is a best of both worlds outcome in which our members retain the key benefits we have forged for them plus lower costs and extra benefits that a fund of STA’s size can deliver,” she said.
A Finsuper advisory board will be established, including representatives of employers and members in the financial services industry to oversee the operation of the division.
The advisory board will have broad powers to offer advice and make recommendations to the STA trustee.
The merger is subject to due diligence procedures by both funds — a process which has already begun.