Hostplus and Club Super have released a joint statement, reporting that the two funds have entered into a memorandum of understanding to formally pursue discussions and undertake a comprehensive due diligence process for a possible merger.
Hostplus was founded in 1988 by the Australian Hotels Association and United Voice. It boasts of more than 1 million members with approximately $43 billion of funds under management.
Queensland-based Club Super is an industry super fund for community clubs incorporating sporting, returning services, recreational and associated industries.
Both superannuation funds said they anticipate that this process will lead to Hostplus and Club Super’s trustees signing a successor fund transfer deed approving such a merger.
All affected members and employers will be kept informed of the outcomes of the funds’ discussions once the merger opportunity has been fully explored, it was reported.
The industry funds believe there is a strong alignment between the organisations, which, when combined, are expected to deliver greater benefits and outcomes for their members, their statement said.
They also acknowledged their sharing of a common member profit heritage and history, as well as a focus on serving the hospitality, tourism, recreation and sporting sectors.
For Hostplus chief executive David Elia, the due diligence phase will allow Hostplus and Club Super to more formally evaluate a merger proposal.
He said Hostplus is looking forward to working with Club Super through the discussion phase “during which our funds’ members and their employers will continue to receive the same high-quality service and outcomes they have come to expect of us”.
Sharron Caddie, chair of Club Super, added that they are also keen to explore “how a merger of our funds, based on shared values, our ‘all profit to member’ philosophy and focus and track record in serving the hospitality, clubs and allied sectors, would better serve our members and stakeholders both here in Queensland and nationally”.