Catholic Super and Equip are set to enact one of the largest mergers of not-for-profit superannuation funds, with the new body to manage more than $26 billion in funds for around 150,000 members.
The trustees of the two funds have signed a Memorandum of Understanding, subject to final due diligence, will establish a joint venture trustee.
The merger comes after First State Super and VicSuper have said they are in consolidation talks, and following the amalgamation of major Queensland funds Sunsuper and AustSafe Super.
The marriage of First State and VicSuper would create the second largest fund in Australia behind AustralianSuper.
Both Catholic Super and Equip are profit to member funds, with Equip noting the consolidation will bring benefits to members scale can offer.
A third of the new fund’s directors will be independent.
“This joint venture would contain costs and improve efficiency, bringing real benefits to members,” Equipsuper chair Andrew Fairley said.
“It is positive proof the Extended Public Offer (EPO) model provides a solution to funds who value their brands and connection to community, while enabling economies of scale.
“This joint venture will be ideally positioned for future growth. This structure will drive stronger performance through efficiencies and scale of investments.”
Danny Casey, chair of Catholic Super added: “The joint venture is the perfect pathway, bringing our members the benefits of scale while retaining the Catholic Super identity and strong connection with those working in Catholic institutions and communities.”
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