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Mercer Super says it intends to keep growing amid another merger

3 minute read

The super fund is set to welcome members of Holden’s employee super fund next month after earlier mergers with BT Super and Lutheran Super.

Holden Employees Superannuation Fund (HESF) is set to transition into the Mercer Super Trust via a successor fund transfer following an agreement between HESF and Mercer.

The move follows two significant mergers for Mercer Super in the past year with BT Super and Lutheran Super, which has left the super fund with 850,000 members and a total of $63 billion in assets under management.

A spokesperson for Mercer Super told InvestorDaily that the fund, which now ranks as one of the 15th largest super funds in Australia, was pursuing a strategy of growth.

“Continuing to grow our local scale, combined with our growing global scale, is a key ingredient in providing a great value proposition for members,” the spokesperson said.

When asked whether the fund was planning to pursue additional mergers in the future, the spokesperson said: “Our intention is to keep growing and investing in Mercer Super, both organically and inorganically, for the benefit of our members.”

As of its annual report in 2022, HESF had 1,753 members and $313.5 million in total assets.

In a statement, Mercer Super chief executive Tim Barber said that the fund was looking forward to supporting HESF members with their retirement outcomes.

“We’re very proud of the partnership we’ve built with HESF over many years, and look forward to welcoming HESF members to Mercer Super in the coming weeks,” he said.

“Mercer Super is on a growth trajectory, and our intention is to keep growing and investing in Mercer Super for the benefit of our members.”

Mr Barber pointed out that scale would provide a number of natural flow-on effects to Mercer Super’s members, with the “identifiable benefit” being competitive fees.

“But there are broader, less tangible benefits that are equally important, such as enhanced education, engagement, expanded choice and an improved member experience, all of which add value to members,” he added.

“We have an ongoing commitment to improving our capability and capacity to help even more Australians through their retirement journey.”

Mercer Super indicated that the HESF successor fund transfer is expected to take place on or around 1 June.

Early last month, Mercer announced the completed merger of BT Super into the Mercer Super Trust and claimed to have created one of Australia’s most competitive super funds.

Commenting on the merger at the time, Marsh McLennan Pacific CEO and Mercer Pacific president David Bryant said that it would transform the superannuation industry to the advantage of Australians.

“We promised members that we would deliver them a market-leading offering in terms of benefits, performance, and pricing and, today, we’re delivering on that promise,” said Mr Bryant.

“Leveraging our global scale and the insights of our team of approximately 2,000 investment professionals around the world, Mercer Super members will benefit from being part of one of the most competitive super funds in Australia, and this is only the beginning.”

Jon Bragg

Jon Bragg

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.