AvSuper and Commonwealth Superannuation Corporation consider merger

5 May 2022
| By Liam Cormican |
image
image
expand image

AvSuper and the Commonwealth Superannuation Corporation (CSC) have entered a Memorandum of Understanding (MoU) to conduct due diligence to determine whether a merger is in members’ best interests.

The merger would require Government approval, along with the passage of appropriate legislation through Parliament.

Prior to the election being called, the Government agreed to CSC entering into this non-binding MoU with AvSuper to explore this merger.

CSC had a 100-year history of providing superannuation services to current and former Australian Government employees and Australian Defence Force employees and veterans. AvSuper was formed in 1990 and was dedicated to the aviation and aviation safety industries.

AvSuper chief executive, Michael Sykes said: “After a comprehensive and highly competitive Expression of Interest process, we see CSC as the right partner to manage our members’ superannuation into the future”.

The fund first announced it was seeking a merger partner last December as it said the costs of running a smaller fund were becoming harder to sustain.

Both funds said the best interests of members would be the deciding factor in the MoU talks, with CSC CEO, Damian Hill, saying: “AvSuper and CSC are a great fit and it is expected that a merger would benefit members of both organisations. We are both committed to ‘serving those who serve’.”

“For members, this merger will mean that the best features of both organisations were consolidated. AvSuper’s members will benefit from CSC’s $60 billion scale in investments and CSC members will see a larger, more diversified customer base.”

Both organisations currently partnered with Mercer Administration Services for provision of customer service and administration services, and with AIA Australia for customer insurance.

The organisations confirmed there would be no impacts to employees as due diligence and preparation for government approval was underway.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year 4 months ago
Kevin Gorman

Super director remuneration ...

1 year 4 months ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year 4 months ago

Future Group is set to take on nearly $1 billion in funds under management (FUM) and welcome more than 100,000 new members following two significant successor fund transf...

5 hours 8 minutes ago

The International Monetary Fund (IMF) has issued a sobering assessment of the global economic landscape in its latest World Economic Outlook, dramatically revised after D...

7 hours 44 minutes ago

Growth from the listed company’s key businesses has propelled Generational Development Group to new milestones in the three months to 31 March....

7 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND