UniSuper and Australian Catholic Superannuation have signed a Heads of agreement, announcing a merger is in the best financial interests of their respective members.
The funds had announced the exploration of a merger and the signing of a memorandum of understanding in December 2021.
UniSuper chief executive, Peter Chun, said: “We are really pleased to announce that following an extensive due diligence process and independent review, each board has concluded that the merger is in the best financial interests of their respective members.
“The board and management of the two funds have worked collaboratively to reach this milestone of executing Heads of Agreement.”
A planning process commenced to ensure a smooth transition for Australian Catholic Superannuation (ACS) members to migrate across to UniSuper.
“At UniSuper we have the members at the forefront of our minds every day. Ensuring a smooth and easy transition for ACS members is vitally important. We look forward to welcoming them to UniSuper and helping them to create futures worth retiring for that don’t cost the earth,” Chun said.
ACS CEO, Greg Cantor, said: “Our fund’s strategy to achieve greater scale is part of our commitment to act in the best financial interests of our members.
“The proposed merger with UniSuper will provide our members access to one of the few funds in Australia with over $100 billion in funds under management and one that is well positioned to help them achieve the retirement outcomes they desire.”
The next stage would be to work through a detailed planning process, with the merger anticipated to be finalised by the end of the year. UniSuper and ACS said they would continue to communicate with their members, employees, employers, and key stakeholders to keep them updated as the merger progresses.