Equip and Catholic Super will team up to manage funds for 150,000 members in a “unique tie-up” which chairman Andrew Fairley said sets the scene for further industry consolidation.

“This is a new dawn and a new era for super mergers as we scale up to benefit members under an extended public offer (EPO) licence,” he stated.

The merged venture will be governed by a new, skills-based board of 12 directors.

“At a time when funds are being urged to merge, Equip and Catholic Super have a rare opportunity to be one of the industry’s great growth stories,” Mr Fairley said.

“We’re open for business with an APRA-approved licence, attractive to funds that are keen to drive down costs while maintaining their distinctive brands and member engagement that they’ve always been known for.”

Equip is a fund that is already managing more than $15 billion in assets for more than 72,000 Australians.

Catholic Super manages almost $10 billion for 75,000 members.

The chairman said that “while other funds are talking about merging, Equip and Catholic Super are ‘getting on with it’”, having been issued with the extended public offer licence three years ago.

An extended public offer, or an EPO, enables participating funds to achieve economies of scale in administration and investments without losing their brand identity or control of relationships with members.

Under the model, funds share a single trustee, without affecting the status of participating funds as the nominated default fund in an employer network.

The EPO licence was issued to Equip Super three years ago, with Mr Fairley adding that “the Catholic Super Board has had the courage to embrace the model, breaking new ground while being agile, innovative and aware of the reform backdrop that is shaping the future of our super industry”.

Deputy chair of the new venture, and former Catholic Super chair Danny Casey, has encouraged other funds to follow suit and consolidate under the “ground-breaking house-of-brands model that grows funds under management”.

“As trustees, we have a firm obligation to act in our members’ best interests,” Mr Casey said.

With the industry being challenged to consolidate further, funds that are seeking to ensure they can deliver sustainable member outcomes are encouraged to be part of this new and innovative approach.”

The combined offering will be led by Scott Cameron in the position of CEO, with Anna Shelley confirmed as the chief investment officer for both funds.