Kinetic Super and Sunsuper boards have signed a successor fund transfer deed to authorise the merger of the funds.
This has followed the completion of a due diligence process which began in April.
The merged entity will have more than $45 billion in funds under management and around 1.3 million members.
Kinetic Super chair, Frank Gullone, said: “The comprehensive due diligence process has clearly demonstrated that a merger between the funds will be in the best interests of all members, delivering a reduction in fees whilst also enhancing the products and services available”.
Also commenting, Sunsuper chair, Ben Swan said the fund believed they had an opportunity to set the standard for the industry in best practice for fund merger outcomes.
“The cultural synergies between both funds have certainly enabled us to successfully come together to complete the due diligence phase,” Swan said.
“As we start to shift gear and plan for transition over the next 12 months, both funds will work together in partnership to deliver the best outcome to members and employers.”