Hostplus is in discussion with Statewide Super about a potential merger which would create a super fund with $77 million in assets under management.
The two industry funds intend to sign an exclusive heads of agreement that supports the funds commencing a reciprocal due diligence process “to determine if a merger is in the best interests of their respective members”. This process was due to be completed over the next few months.
South Australia-based Statewide Super had 142,000 members and managed over $10.8 billion while Hostplus had 1.25 million members and $66 billion in funds under management.
The agreement followed an “extensive consideration” by Statewide Super on the long-term benefits of entering into a merger.
Statewide Super’s chief executive, Tony D’Alessandro, said: “The engagement and discussions between the funds to date have been most encouraging and I’m very optimistic that the common ground, strengths and synergies we’ve already identified suggest that pursuing a merger of our funds will realise and deliver significant benefits for both funds’ members
“This includes ensuring Statewide Super retains its unwavering commitment to South Australia and the Northern Territory, where we will continue to provide our excellent local member services.
“We will be assessing this merger against its ability to deliver greater value and enhanced products and services for our members.”
David Elia, chief executive of Hostplus, added: “Our early discussions have highlighted a fundamentally strong alignment between our two funds, from our similar industry fund ethos and beliefs, to our dedication and passion for our members, which provides an excellent foundation for establishing a successful merger.
“We are genuinely excited about the prospect of a strong, positive and collegiate union of our funds. We are confident that our collective members, contributing employers and associated communities would strongly endorse our merger and immediately benefit from the resulting economies of scale.”
Last week, Hostplus announced a merger with Intrust Super.