Two of Australia’s largest industry super funds, Spirit Super and CareSuper, have announced a merger agreement. The combined entity will have more than 500,000 members and $45 billion in funds under management (FUM).
The merger is expected to be completed by the end of 2024.
In a joint statement, the chairs of Spirit Super and CareSuper said the merger would create a “stronger, more diversified fund that can better serve the needs of our members”.
“This merger is a natural progression for both funds,” said Linda Scott, chair of CareSuper. “We have a shared commitment to providing our members with high-quality services and investment returns, and this merger will allow us to deliver on that commitment even more effectively.”
Jason Murray, CEO of Spirit Super, will become CEO of the combined fund.
“I am excited to lead this new fund,” said Murray. “We have a great opportunity to create a truly outstanding super fund for our members.”
The merger is the latest in a series of consolidations in the Australian super industry. In April, Mercer Super and Westpac’s BT Financial Group merged, creating a fund with $63 billion in AUM. And last week, Brighter Super was expected to complete its merger with the SPSL Master Trust, creating a fund with $29 billion in FUM.
The mergers are being driven by a number of factors, including the rising cost of compliance, the need for scale to compete with the big banks, and the desire to provide members with a wider range of services.
The merger of Spirit Super and CareSuper is expected to create a more competitive player in the Australian super industry. The combined fund will have the scale and resources to offer its members a wider range of services and investment options, and it will be better positioned to compete with the big banks.
The merger is also expected to deliver cost savings for members, as the combined fund will be able to reduce administrative costs.
The merger of Spirit Super and CareSuper is a positive development for the Australian super industry. It will create a more competitive player in the market, and it will deliver cost savings for members.
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