A merger between Equip and Rio Tinto Staff Superannuation (RTSSF) is expected later this year, following completion of due diligence.
Equip confirmed merger discussions and said the new merged fund would manage assets of $13.5 billion for approximately 75,000 members.
The merger would see the Equip board move to a model of one-third independent, one third employer, and one-third member directors. Equip said that Rio would likely have the right to nominate one of the employer directors.
Equip chair, Andrew Fairley, said the merged fund would deliver significant benefits of scale to members and employers, as well as underpin the continued development of innovative product initiatives, improved employer and member services, and expand the fund's education programs for members.
Fairley noted that the important considerations for the merger were complementary fund cultures, a common fund administrator, and a shared custodian service provider.
Vanguard Super has reported strong returns across most of its investment options, attributed to a “low-cost, index-based approach”.
The fund has achieved double-digit returns amid market volatility, reinforcing the value of long-term investment strategies for its members.
Australian super funds notched a third consecutive year of strong returns, with the median balanced option delivering an estimated 10.1 per cent over the 2024-25 financial year, but an economist has warned that the rally may be harder to sustain as key risks gather pace.
AustralianSuper has reported a 9.52 per cent return for its Balanced super option for the 2024–25 financial year, as markets delivered another year of strong performance despite the complex investing environment.