The merger has created a $75 billion super fund with nearly 850,000 members.
The merger between Cbus Super and Media Super has now been finalised following the completion of a successor fund transfer.
After originally announcing their intention to merge in 2020, the two super funds completed a “rigorous due diligence process” amid the challenges of the pandemic and regulatory change.
The merged fund will manage a total of $75 billion on behalf of nearly 850,000 members as of the end of last year.
Cbus CEO Justin Arter said the merger was a great outcome for both industry funds, which have 68 years of superannuation experience combined.
“The merger brings together two funds who share a commitment to maximising their members’ savings and to helping all members achieve better retirement outcomes,” he said.
“Media Super proactively responded to the rapid regulatory changes within superannuation that are driving consolidation, seeking out a strong performing fund to partner with. The merger will now bring many compelling benefits to Media Super members.”
Mr Arter said that the scale of being part of a larger fund would drive greater scope to manage fees effectively, drive substantial investments that contribute to stronger long-term returns and provide access to innovative products and services.
“We are all excited by the scale and strength achieved through this merger. The merged fund is on track to reach Cbus’ ambition to grow to $150 billion,” he said.
“We’ll leverage this to deliver enhanced products and services and to continue to seek out world-class investment opportunities for our 850,000 members.”
As part of the merger, the two funds’ investment, administration and operations have been brought together, while Cbus and Media Super will both retain their brands.
“Media Super members now benefit from merging with a top tier performer who shares a like-minded commitment to member outcomes, and from the greater efficiencies this final stage now brings,” said former Media Super CEO Tony Griffin.
“In this next chapter, members will benefit from Cbus retaining our brand, focus, and from the commitment of Cbus’ investment team to achieve the best outcomes from investing back into our industry. These fundamentals will now maximise opportunities and strong retirement outcomes.”
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.
Head of Mercer Super predicts super mergers will persist over the next few years. ...