Two Australian superannuation funds, AustSafe Super and Sunsuper, have agreed to merge. The boards of the two funds, both based in Brisbane, Australia, expect the merger to close by April 2019.
The combined fund would have more than A$58 billion ($43.1 billion) in assets under management, 130,000 employers and 1.4 million participants, putting it in the top 10 of Australia's superannuation funds.
No decisions about how SunSuper and Austsafe's investment teams will be combined have yet been made, said SunSuper spokeswoman Rebecca Chivers. AustSafe spokeswoman Judith Buchan said executives of the two funds are working out details of the transition.
"This is a particularly well-suited match and good cultural fit for both organizations," said Henry Smerdon, AustSafe Super's independent chairman, in a news release announcing the merger. "Both funds started in Queensland within a year of each other, are based on a profit-for-member model, provide industry-leading services and have a passion for rural and regional Australia."
Andrew Fraser, chairman of Sunsuper, said in the news release that the merger would drive greater efficiencies, foster a stronger competitive position in the market, and ultimately generate greater value for both funds' customers in the form of enhanced services and lower fees.
Sunsuper has more than 1.3 million participants and A$55 billion under management; AustSafe Super has more than 100,000 participants and A$2.5 billion.