The $1.6 billion Asset Super and $4.6 billion CareSuper are in discussions about a possible merger, the chairmen of the two funds have announced.
The discussions take place against the background of the "stronger super" proposals and the 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 funds said in a joint statement.
The process is expected to take some months and the funds will work together to determine the optimal arrangements for members through a merged entity.
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 is an industry fund that provides services to a wide range of small to medium-sized businesses across a diverse range of industries and not for profit organisations, with almost 85,000 members.
CareSuper was established in 1986 and is the largest industry fund for professional, managerial, administrative and service occupations, with 200,000 members.
