HESTA and Mercy Super are set to merge their two funds, having signed a letter of intent to merge via successor fund transfer.
This would see 13,000 Mercy Super members transferred to HESTA and create a fund with almost $70 billion in funds under management.
Subject to conditions, the funds aimed to complete the merger before the end of 2022.
HESTA chief executive, Debby Blakey, said: “I’d like to acknowledge the excellent service Mercy Super provides its members and the strong alignment we share through our focus on delivering better retirement outcomes for members and our dedication to serving the health sector.
“This merger is the start of a wonderful new chapter of our growth that we believe will benefit members and continue to position HESTA as the fund of choice for those wanting their super to have impact.”
Mercy Super chief executive, Wendy Tancred, said the merger had been strategically planned as the next logical step to ensure that their members’ super remained strong and sustainable into the future.
The Mercy Super board chose to enter into exclusive discussions with HESTA due to its strong track record of performance, future sustainability and deep links to the health sector.