Major funds signal potential merger
Two leading industry super funds have announced they are entering early state merger discussions, having signed a non-binding memorandum of understanding to explore the benefits of potentially joining forces.
The funds, VicSuper and First State Super, cited their “shared heritage, values and strength” provided a strong basis for merging. If combined, the funds would become one of Australia’s largest super funds, managing for than $110 billion in funds for over 1.1 million members.
Unsurprisingly given the focus of both the Banking Royal Commission and the Productivity Commission on mergers and members’ interests, VicSuper chief executive, Michael Dundon, pointed to the benefits of scale to growing member returns as a key advantage of merging.
“The priority for both funds is to continue to develop leading products and services that help deliver the best outcomes for our members,” he said.
“Merging with First State Super would enable us to achieve greater benefits of scale, including access to a broader range of investment opportunities and an even greater ability to generate strong, sustainable returns over the long term.”
A recommendation to each fund’s boards was expected around the middle of this year.
Recommended for you
State Super has begun its partnership with Frontier Advisors, transferring investment staff and taking a major equity stake to support long-term capability.
The fund has recorded double-digit MySuper gains over the year to 31 October, outperforming market medians and highlighting global equities and private credit positioning.
The regulator invited industry feedback on stamp duty and private debt disclosure reforms following its targeted review of investment reporting.
The winners have been announced for the 2025 Super Fund of the Year Awards, held in Melbourne on 26 November.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
220.82 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
110.57 3 y p.a(%)
3
Quay Global Real Estate Fund (Unhedged) Active ETF Hedged
89.04 3 y p.a(%)
4
SGH Income Trust Dis AUD
80.18 3 y p.a(%)
5
Global X 21Shares Bitcoin ETF
76.11 3 y p.a(%)
