The super mergers set to reach completion in 2024
There are at least four superannuation fund mergers expected to finalise this year.
2023 was a busy year for super mergers and it is looking like 2024 will be no exception to this with at least four deals due to complete this year.
Money Management rounds out the progression of the biggest deals so far:
Active Super and Vision Super
Most recently, Active Super provided an update on the progress being made in the fund’s merger with Vision Super.
With an expected completion date forecast for late 2024, the merger will form a combined entity of approximately $28 billion in funds under management.
“Following the signing of a heads of agreement in June, our merger discussions with Vision Super continue to progress. Active Super and Vision Super have a similar history as super funds servicing current and former local government employees in our respective states of NSW and Victoria,” said Donna Heffernan, Active Super acting chief executive.
The merger was first discussed between the two funds in June 2022 and a heads of agreement was signed between the two funds a year later.
Mine Super and TWUSUPER
Mine Super and TWUSUPER’s merger is set to be finalised in mid-2024. In December 2023, the two funds unveiled the combined entity will be called Team Super upon completion.
“The name Team Super reflects the existing industry base of both funds – transport, energy, and mining workers and a deep ongoing commitment to the history and service to these sectors,” explained Mine Super chair Christina Langby and TWUSUPER chair Nick Sherry.
The merger was first announced in December 2022 and will create a fund with over 150,000 members and $20 billion in funds under management. A successor fund transfer (SFT) was then signed at the end of September 2023 and Vasyl Nair, CEO of Mine Super, was named as the head of the new combined fund.
AvSuper and ART
The merger between AvSuper and Australian Retirement Trust (ART) has set a date for a SFT to take place on 1 May 2024.
The two funds signed a memorandum of understanding (MOU) in February 2023 after a possible deal with Commonwealth Super Corporation (CSC) fell through and completed its due diligence and signed a heads of agreement in August.
In an update shared in November 2023, Michael Sykes, CEO of AvSuper, said the merger’s completion will make 2024 one of the most important years in the fund’s history.
“While 2023 was a big year, we now look forward to one of the most important in AvSuper’s history. We will not take our foot off the accelerator, we will continue to work hard for our members until the transition. After 33 years of loyalty from our members, we owe it to them to close out the fund on a high,” he described.
Alcoa Super and ART
Australia’s second-largest super fund is also set to merge with Alcoa Super, as ART works towards completing the SFT by 1 March 2024.
ART first signed a MOU with Alcoa Super in March 2023. Alcoa Super had more than 5,000 members and $2 billion in funds under management.
“Mergers and transitions are just one aspect of our growth channels, which also include pursuing growth through member direct and retail financial advisers,” commented ART CEO Bernard Reilly at the time.
AUTHOR
Jasmine Siljic
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.
Add new comment