Retirement
Two industry funds explore merger
An industry super fund for the energy sector and another for the transport industry have entered into a memorandum of understanding towards a potential merger.
Two industry funds explore merger
An industry super fund for the energy sector and another for the transport industry have entered into a memorandum of understanding towards a potential merger.
A merger between EISS Super and TWUSuper would bring together two industry super funds, creating a fund with over $12 billion in funds under management and approximately 130,000 members across Australia.
In a joint statement released by the two superannuation funds, the pair confirmed they are currently implementing a due diligence process, with initial discussions proving “very positive” due to shared values.
TWUSuper’s CEO, Frank Sandy, noted that while negotiations have only just kicked off, there appears to be a strong synergy between the funds operationally, which should translate to better member outcomes.
“This merger can provide greater scale for both funds and has the potential to deliver cost savings to members across trustee services, administration and investments, while also providing members with better services, solid long-term investment returns and improved financial outcomes at retirement,” he said.
EISS Super’s CEO, Alexander Hutchison, said the funds’ memberships also share some similarities, with a high portion of members working in high-risk occupations, meaning both funds place great importance on providing quality insurance that is tailored to the needs of their members.
“We have an obligation to our members to consider the benefits of a potential merger and to proceed with that merger if it is in their best interests. It’s early days, but we’re seeing a lot of potential benefits for members, so a merger looks promising,” Mr Hutchison said.
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