AUSTRALIA - Asset Super and CareSuper are in discussion about a possible merger, their chairmen have confirmed.
David Michaelis, chairman of Asset Super, and Michael O'Sullivan, chairman of CareSuper, said against the background of the "stronger super" proposals and other industry-wide factors, both funds are looking at opportunities to maximise economies of scale to deliver favourable outcomes for their members and long-term sustainability for a merged entity.
The process will take some months and the funds will work together to determine the optimal arrangements for members through a merged entity, the two said in a joint statement. Appropriate due diligence would be required before a merger could take place, they added.
Asset Super and CareSuper are both multi-industry funds and while Asset Super's members are predominantly located in New South Wales, CareSuper has a national membership base with offices in Melbourne, Sydney and Brisbane. Both funds share common service providers, with back office administration through Australian Administration Services (AAS) and custodianship through National Asset Servicing (NAS).
Asset Super was established in 1987 and provides services to small to medium-sized businesses across a range of industries and not for profit organisations, with almost 85,000 members and A$1.6bn in assets.
CareSuper was established in 1986 and is the largest industry fund for professional, managerial, administrative and service occupations, with 200,000 members and A$4.6bn in assets.
The talks are the latest in a record period of industry fund mergers as trustees respond to growing cost and performance pressures amid ongoing regulatory reform.
To read more about the growing trend for mergers between Australia's industry superannuation funds click here
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