Two Queensland-centred superannuation funds have signed an exclusive memorandum of understanding (MoU) to explore joining forces and forming a $20 billion fund.
Energy Super and LGIAsuper will commence due diligence to explore the benefits for their combined 123,000 members of merging.
The MoU agreement has followed a period of discussions and assessment for both businesses.
Energy Super, which is an industry super fund catering to the energy industry, overlooks $8 billion in retirement savings. Meanwhile LGIAsuper, a fund for local government employees, reported it manages more than $13 billion.
LGIAsuper chair John Smith said both funds shared a history of serving Queenslanders, as well as an open fund status and focus on personalised service.
“LGIAsuper’s strategy over the past three years has been to look for opportunities to achieve the size and scale to continue to deliver excellent financial outcomes and outstanding service for our 75,000 members long into the future,” Mr Smith said.
“While the process with Energy Super is in the early stages, the areas of alignment are encouraging and warrant further exploration to see if we could better deliver for all members as a combined fund.”
Energy Super chair Richard Flanagan added the opportunity to grow through the merger could help the fund provide “enhanced services and broader investment opportunities”.
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.
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