Energy Super and LGIAsuper have signed a memorandum of understanding (MOU) to enter into merger discussions that would see the two form a $20 billion fund for 123,000 members.
The due diligence, the funds said, would explore synergies and benefits to members.
LGIAsuper chair, John Smith, said: “LGIAsuper’s strategy over the past three years has been to look for opportunities to achieve the size and scale to continue to deliver excellent financial outcomes and outstanding service for our 75,000 members long into the future.
“While the process with Energy Super is in the early stages, the areas of alignment are encouraging and warrant further exploration to see if we could better deliver for all members as a combined fund.”
Energy Super chair, Richard Flanagan, said a merger could help create better member outcomes through enhanced services and broader investment opportunities, and competitive fees.
Amid a challenging market environment, three super fund CIOs have warned against ‘jumping at shadows’.
The professional body is calling for the annual performance test to transition to a two-metric test, so it better aligns with the overarching duty of super fund trustees to act in the best financial interests of their members.
AustralianSuper, Rest, and HESTA agree on the need to retain and enhance the test, yet they differ in their perspectives on the specific areas that warrant further refinement.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
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