Equipsuper and the Rio Tinto Staff Superannuation Fund are set to merge pending the completion of due diligence by both parties.
A successful merger with Rio Tinto Staff Superannuation Fund would see $8 billion industry fund Equipsuper almost double in size to $13.5 billion.
The newly merged fund would have approximately 75,000 members, with 47,000 from Equip and 28,000 from Rio Tinto's fund.
Factors in favour of the merger are a common fund administrator (Mercer) and custodian (NAB Asset Servicing).
In a statement about the potential merger, Equip chair Andrew Fairley pointed to the complementary cultures of the two super funds.
The merger will give Equip a national footprint, expanding its member base from Victoria, South Australia and NSW to Western Australia and Queensland.
“The Rio Tinto Staff Superannuation Fund is one of Australia’s largest and most respected corporate superannuation plans. Success in this project will clearly reinforce Equip’s reputation as a trusted provider of superannuation benefits and financial advice for employers and their employees," Mr Fairley said.
A successful completion of the merger will see the Equip board move to a model of one-third/one-third/one-third independent, employer and member directors.
"As a profit-for-member fund, Equip has an absolute commitment to putting members’ interests first. Our fund embodies robust governance, proactive risk management and a skilled investment framework, and these attributes have been critical in our discussions with Rio," Mr Fairley said.
Following the completion of due diligence, the merger is expected to be completed later in 2017.
Read more:
Future Fund wary of ‘fragile’ markets
Islamic fund manager wins court case over name
‘Episodic’ volatility ahead in 2017
The superannuation minister has said the superannuation discourse needs to pivot to how members spend rather than accumulate savings, as the...
The architect of the Retirement Income Review (RIR) has hit back at critics and accused former prime minister Paul Keating of sowing fear ov...
Treasurer Josh Frydenberg has weighed in on the superannuation debate in the clearest sign yet that the government may be considering a free...
Get notifications in real-time for staying up to date with content that matters to you.
Read More