Media Super has signalled it is eyeing an offer made by Cbus as it considers joining forces with a larger fund.
Media Super, which has 78,000 members across the printing, media, arts and entertainment sectors, holds around $6 billion in funds under management (FUM) while the construction and building industry fund has 556,00 members and $53 billion in FUM.
Media Super chair Gerard Noonan issued a statement saying the media industry fund has been talking with a number of entities in recent months about the possibility of “gaining the benefits from a merger with a larger, like-minded fund”.
“Our board met recently and considered an offering made by Cbus, through an entity called United Super, to access the benefits of scale while maintaining our identity – so we would continue to operate under the Media Super brand,” Mr Noonan said.
“We’re only at the very early stages of discussion and it will take several months of due diligence to ensure the offering stacks up and is in the best interests of our members.”
When asked about the Media Super talks, a spokesperson for Cbus said the fund does not comment on any merger discussions, but they did confirm the fund is considering teaming up with others.
“Cbus Super is actively exploring merger opportunities with a range of potential super fund partners,” the spokesperson said.
In April, longstanding Media Super chief executive Graeme Russell stepped down from his role after seven years at the helm.
Rice Warner chief executive Andrew Boal also recently told Investor Daily he expects super fund mergers will be accelerated through and after COVID-19 – with some to shave years off the process.
A KPMG report also projected there will be 60 per cent fewer super funds in the coming decade, as funds partner up.
Meanwhile First State Super and VicSuper are looking to complete their merger next month.
First State Super recently refuted claims that the merger will result in an advice fee hike for fund members.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
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