Australia’s largest superannuation fund AustralianSuper and Club Plus Super are exploring a combination to form an even bigger fund with A$203 billion (US$156.31 billion) of assets.
It’s the latest merger plan in an industry with more than 185 funds of varying sizes and A$3.04 trillion of total assets as of December 2020, serving around 15 million members, according to data from the Association of Superannuation Funds of Australia (ASFA).
Many of the funds are looking to merge to cut costs, especially in the wake of the coronavirus pandemic. ASFA says around two-thirds of funds incurred a loss in the 12 months to June 2020 because of the pandemic.
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AustralianSuper and Club Plus Super are in talks to merge after a ‘rigorous process’ of due diligence, creating a $207 billion fund.
According to Club Plus Super, the two firms had signed a memorandum of understanding after identifying AustralianSuper as having “strategic, cultural and operational alignment” to provide the best outcomes for members.
This was echoed by AustralianSuper who said the two firms had an “alignment of values” and were focused on achieving long-term performance.
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AustralianSuper to gobble up $3b Club Plus
May 13, 2021 â 4.42pm
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AustralianSuper will gobble up the $3 billion Sydney-based superannuation fund Club Plus in the latest merger in the $3 trillion retirement savings sector.
The two funds on Thursday announced they had signed a memorandum of understanding to conduct due diligence for a potential merger.
AustralianSuper chief Ian Silk says initial discussions with Club Plus showed an alignment of values. Â
Rohan Thomson
The deal is a knock on the head for Hostplus, which is also understood to have been involved in discussions with Club Plus as the two funds serve similar customers.