A successor fund transfer (SFT) deed has now been signed by Mine Super and TWUSUPER in what the two funds have described as a “major milestone” in their merger discussions.
In a joint statement issued on Thursday, Mine Super chair Christina Langby and TWUSUPER chair Nick Sherry indicated that strong and major progress has been made in merging the two funds, which the pair said is projected to deliver strong financial benefits for members.
“Signing the SFT deed is another meaningful step toward merging two culturally aligned and strong industry super funds that share a commitment to improving and protecting the retirement interests of members in the mining and transport industries,” Ms Langby and Mr Sherry said.
“Pleasingly, as our two funds have progressed the merger, we are establishing a stronger foundation for the future. We are more convinced than ever of the benefits members will see through the joining of our two funds with shared member first values.”
The funds signed a heads of agreement in April this year after entering into a preliminary non-binding memorandum of understanding to explore a merger in December last year.
The merger, which is still anticipated to be finalised early next year, will result in a combined entity which manages nearly $20 billion on behalf of 150,000 members.
As part of their latest statement, Mine Super and TWUSUPER confirmed that the final stage of the merger will be dedicated to ensuring a seamless transition for members while maintaining the ongoing high levels of service that members expect from each fund.
The merged entity will be co-chaired by Ms Langby and Mr Sherry. Mine Super chief executive officer Vasyl Nair will become the CEO of the combined fund, while TWUSUPER CEO Frank Sandy will work alongside Mr Nair during a transitional period.
“The new fund brings together leaders from both the funds reflecting a shared vision for the future fund and ongoing collaboration between the teams,” the funds said.
Mine Super, which was established in 1941, currently manages more than $12.5 billion on behalf of 55,000 members, while TWUSUPER, which was established in 1984, manages $6.5 billion on behalf of almost 100,000 members.
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.