Aware Super and the Victorian Independent Schools Superannuation Fund said Thursday they are looking to merge by the end of the year.
The decision comes almost five months after Sydney-based Aware, one of Australia's biggest superannuation funds with roughly A$150 billion ($110.9 billion) in retirement assets, and Melbourne-based VISSF, one of the country's smaller funds with A$900 million in assets, said they were exploring a merger.
"With increasing regulatory reform and growing trustee obligations, we recognize the importance and advantage of scale and size in the current environment," VISSF Chairman Peter Sharples said in a joint news release.
VISSF represents about 70 independent schools in the state of Victoria with 6,700 members, the release said.
Due diligence in recent months "has confirmed the benefits for VISSF members across investment choice, fees, returns and ultimately their long-term retirement savings," he said.
Aware Super has more than 1 million participants.