Vision Super and Active Super have signed a merger heads of agreement and announced who will be chief executive of the combined fund.
This would create a entity with $27 billion in funds under management and 170,000 member accounts.
Stephen Rowe, current chief executive of Vision Super, would be appointed as chief executive of the merged fund, which first announced its intention to merge the two profit-for-member funds in June 2022.
Vision Super chair, Lisa Darmanin, said: “Stephen has experience with multiple transitions, and we are delighted to announce he will be leading the new fund. Stephen’s vision and drive will serve the merged fund well as we look to capitalise on our growth and cement our position as one of the best funds in the market”.
The current Active Super chief executive, Phil Stockwell, would be leaving the fund and Active Super deputy CEO, Donna Heffernan, would become acting CEO until the merger was complete.
Stockwell had been CEO for the past three and half years and delivered the fund’s rebrand from Local Government Super to Active Super.
Darmanin, and Active Super chair, Kyle Loades, said: “Our two funds have a lot in common. The combined strength of a single fund across NSW and Victoria, with a focus on delivering strong retirement outcomes for members, will serve our members in local government and beyond for decades to come. We’ll be stronger together, without losing the focus of both funds on exceptional service and strong returns.
“It is exciting to be moving to the next stage of the merger process. Our funds share a common heritage in local government and remain committed to delivering sustainable, long-term returns for members.
“We’ve modelled the benefits of the merger, which found a range of synergies. Over time, combining the funds, streamlining our offerings and moving onto Vision Super’s internal administration platform will translate into lower costs, improved member services and innovative technology. We expect to see cost savings and greater economies of scale as time goes on. Those synergies will mean strong benefits to members of both funds.”
The merger is expected to be completed around mid-2024.
