Australian Catholic Superannuation and UniSuper have moved a step closer to securing a potential merger by the end of this year. Source: The Australian.
The two funds announced yesterday they had both completed a thorough due diligence process and had signed a Heads of Agreement as they move into the next phase of a potential deal.
UniSuper CEO Peter Chun said the merger is in the best interests of both funds and members were a top priority in the decision.
It is anticipated the merger will be completed by the end of the year.
UniSuper has close to $110 billion in funds and more than half a million members, while Australian Catholic Superannuation is an $11 billion fund with more than 85,000 members.
It was first announced in December that the two funds were undertaking the due diligence process to determine if a merger would be in the best financial interest for members.
Both funds will now enter a detailed planning process that will involve creating a smooth transition for all members and ensuring that all records and financials are balanced.
An Australian Catholic Superannuation spokesman said the next step will be to transition its members to UniSuper.
Both funds will still be accepting new members throughout the transition process.
Australian Catholic Superannuation CEO Greg Cantor said the merger will help members achieve their financial goals.
It comes as the Australian Prudential Regulation Authority (APRA) continues to apply pressure to the Superannuation industry causing multiple super funds to consolidate in 2022.
UniSuper and Australian Catholic Superannuation merger reaches new milestone (By Kayla McLean, The Australian)