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HESTA and Mercy Super proceed with merger

By Reporter
2 minute read

HESTA and Mercy Super have agreed to proceed with merger.

After announcing their intentions to merge in June, HESTA and Mercy Super have now inked a Successor Fund Transfer deal with the aim to merge on 30 November.

In a statement issued on Friday, HESTA confirmed that a “thorough legal and due diligence process” has been completed.

“It’s wonderful to reach this significant milestone in the progress towards merging our two funds that have such a proud legacy of serving our members,” HESTA CEO Debby Blakey said.

“Mercy Super and HESTA rounded out the 2021-22 financial year delivering some of the industry’s best long-term investment performance. Merging from such a position of strength means members will continue to benefit from being part of a leading superannuation fund.”

Mercy Super was established in 1962 by the Sisters of Mercy Queensland and has approximately $1.6 billion in funds under management (FUM).

The merger will see Mercy’s 13,000 members transferred to HESTA, with combined FUM said to reach almost $70 billion.

Mercy Super CEO Wendy Tancred said: “We are delighted to reach this milestone confirming our selection of HESTA as the best strategic fit for our members, ensuring a strong and sustainable future for their retirement outcomes.”

Back in June, Ms Tancred explained that the merger had been strategically planned and would be executed with the aim to ensure its members’ super remains sustainable moving forward.

“In HESTA, we have chosen a top-performing fund that shares our same commitment to the health sector and those working in it,” Ms Tancred said.

“We’re confident our members will continue to enjoy even better retirement outcomes through a winning combination of strong performance and low fees in a like-minded fund where the cultural fit is strong.

“We’ll keep our members informed as we work through the merger, and formal agreements are reached. In the meantime, it’s business as usual for our members.”

According to HESTA, plans for the merger aim to create minimal disruption for Mercy Super members.

Under the merger agreement, Mercy Super’s insurance arrangements introduced from 1 August 2022 and the current administrator will be retained.