Two of Australia’s superannuation funds have signed a nonbinding memorandum of understanding to merge and create a fund worth approximately A$254 billion ($179.34 billion), with more than 1.4 million members.
Aware Super and Prime Super are conducting due diligence to ensure the proposed successor fund transfer is in the best financial interests of their respective members. The merger presents the potential to provide “stronger retirement outcomes, enhanced financial guidance and advice, and a member experience that combines the best of both funds,” according to the announcement
Pending the outcomes of due diligence, the merger would be completed toward the end of 2027.
Prime Super Chair Nigel Alexander explained the rationale behind the merger.
“Prime Super has built a proud legacy based on trusted relationships, personalized service and a deep connection to regional Australia,” Alexander said in a statement. “In Aware Super, we have found a potential partner that shares those values and has the scale, capability and financial strength to help deliver even better outcomes for our members into the future.”
Aware Super Chair Christine McLoughlin said she believes the consolidation of the two super funds would create meaningful benefits for members.
“Through shared values, enhanced investment capability and a broader range of retirement solutions, we believe this potential partnership could support stronger long-term outcomes for members of both funds,” McLoughlin said in a statement.
While the due diligence process is underway, both funds have confirmed they will continue to operate independently with no disruption to members or employers.
Prime Super is a multi-industry, profit-to-members superannuation fund open to all Australians. Aware Super, founded in 1992 as First State Super for public sector employees, it is now open to all Australians.
A version of this article originally appeared in our sister publication, Financial Standard, which like CIO is owned by ISS STOXX.
Tags: Australia, Aware Super, Mergers and Acquisitions, Prime Super, Superannuation Funds