TWUSUPER has decided not to proceed with a merger with EISS Super, following extensive due diligence.
In a statement, a TWUSUPER spokesperson said: “Any merger must be in members’ best interest. TWUSUPER is now pursuing other growth options.
“TWUSUPER’s motivation in entering merger discussions with EISS was the potential benefit members of both funds would achieve from greater scale. We also felt EISS members would benefit from TWUSUPER’s strong investment performance.”
The two funds entered into a memorandum of understanding for a merger in April. However, EISS Super had recently come under scrutiny after its ex-chief executive, Alex Hutchison, resigned after investigations into sponsorship and bullying complaints.
Hutchison claimed his resignation was a result of a “smear campaign” and its former chair, Warren Mundy, departed the fund shortly after Hutchison.
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 transfers.
Insignia’s Master Trust business suffered a 1.9 per cent dip in FUA in the third quarter, amid total net outflows of $1.8 billion.
While the Liberal senator has accused super funds of locking everyday Australians out of the housing market, industry advocates say the Coalition’s policy would only push home ownership further out of reach.
Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed.