Statewide Super, Tasplan and WA Super have ditched plans for a potential merger to create a $24 billion super fund, with Statewide today confirming that it would be pursuing other opportunities.
The three funds entered a Memorandum of Understanding (MOU) to consider a merger in March, but Statewide Super today confired that it would not continue its discussions with the other two funds.
It appeared that the decision to withdraw was led by Statewide Super, with a Tasplan spokesperson saying to Super Review: "Tasplan has today been advised by Statewide Super of their withdrawal from the triparted MOU process."
The fund said it did so while keeping in mind that the Australian Prudential Regulation Authority (APRA) had urged funds to assess merger opportunities, and said that it would actively pursue both inorganic and organic growth. It pointed to its recent successful tender for Northern Territory Government superannuation as an example.
“We have a member-first culture and we are open to merger propositions as long as it is proven to be in member’s best-interest,” Statewide Super chief executive, Tony D’Alessandro, said.
“Statewide Super has a positive position in the marketplace and this means the breadth and scale of a merger would need to make sense for the fund and our members.
“We will continue to look for ways to deliver greater value, improve returns, and negotiate better insurance cover, and we know that sometimes mergers are the best way to deliver this.”
WA Super had already undergone a merger recently, successfully merging with Concept One in February, 2018, adding over 20,000 members from the latter to the fund.