Retirement
Nod of approval given to new super fund merger
A new merger will cement one fund’s status as the second-largest industry super fund in Australia.
Nod of approval given to new super fund merger
A new merger will cement one fund’s status as the second-largest industry super fund in Australia.
First State Super and WA Super have confirmed that they will proceed with a previously proposed merger.
Having undertaken an extensive due diligence process since March, it’s now expected that the merger process will be finalised by 30 November 2020.
According to a joint statement, First State Super and WA Super “share many important ingredients for a successful merger”.
“They have common values and cultural alignment, a similar member base, a shared understanding of the important role financial advice plays in supporting their members to achieve the kind of retirement they deserve, and an absolute commitment to putting members first.”
It comes after First State Super’s merger with VicSuper earlier this month, with this latest announcement preceding First State Super’s name change to Aware Super from mid-September 2020.
Commenting on the announcement, First State Super CEO Deanne Stewart expressed the belief that the merger “will provide the members of both funds with real benefits in the long term”.
She said recent market volatility and the economic downturn “have clearly demonstrated why we believe that size and scale matters”.
The CEO flagged that an increased Western Australian presence will see First State Super “look to strengthen our local services and support in the state”.
WA Super CEO Fabian Ross also commented on the merger, conceding that without such a move, it would be more difficult for the fund to continue to offer current levels of services, and members would be required to pay higher fees at some stage.
“We do not believe this would be in our members’ best interests in the long term, which is why a merger with First State Super is the right step to take, with the right culturally aligned partner.”
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