Active Super and Vision Super have announced they intend to merge to create a new, larger entity with around $27 billion in funds under management, 170,000 member accounts, and a broader geographic presence across NSW and Victoria.
A year after announcing they intend to explore a potential merger, the two funds have signed a merger heads of agreement.
Vision Super chair Lisa Darmanin and Active Super chair Kyle Loades said: “Our two funds have a lot in common. The combined strength of a single fund across NSW and Victoria, with a focus on delivering strong retirement outcomes for members, will serve our members in local government and beyond for decades to come. We’ll be stronger together, without losing the focus of both funds on exceptional service and strong returns”.
“It is exciting to be moving to the next stage of the merger process. Our funds share a common heritage in local government and remain committed to delivering sustainable, long-term returns for members”.
Having modelled the benefits of the merger, the funds are said to have “found a range of synergies”.
“Over time, combining the funds, streamlining our offerings and moving onto Vision Super’s internal administration platform will translate into lower costs, improved member services and innovative technology. We expect to see cost savings and greater economies of scale as time goes on. Those synergies will mean strong benefits to members of both funds.”
Following the merger, Stephen Rowe, Vision Super’s current chief executive officer, will assume the role of CEO of the merged fund.
In welcoming his new appointment, Ms Darmanin said: “Stephen has been with Vision Super for nine years. Over that time, his focus on driving down costs for our members and achieving strong risk-adjusted returns has seen Vision Super become one of the most efficient super funds in Australia”.
“Vision Super’s MySuper option is currently top quartile over all periods to 10 years, as well as ranked in the SR50 MySuper top 101 — and our MySuper fees and costs sit favourably in the lowest quartile according to APRA data.”
“On top of that record of strong performance and lowering costs, Stephen has experience with multiple transitions, and we are delighted to announce he will be leading the new fund. Stephen’s vision and drive will serve the merged fund well as we look to capitalise on our growth and cement our position as one of the best funds in the market.”
The current Active Super CEO, Phil Stockwell, will be leaving the fund and Active Super deputy CEO, Donna Heffernan, will become acting CEO until the merger is complete.
Members will be kept informed as the proposed merger progresses, which is expected to be completed around mid-2024.
