Another Merger on the Cards in Australia’s Superannuation Industry

By Nick Hedley

CareSuper and Spirit Super are considering a merger as they seek to build scale, the funds said in a joint statement.

Regulators have been encouraging consolidation in the Australian superannuation industry, with a view to enhancing outcomes for retirement fund members.

A merger between CareSuper and Spirit Super would create a fund with 500,000 members and A$45 billion (US$29 billion) under management.

In a joint statement, the chair of CareSuper, Linda Scott, and the chair of Spirit Super, Naomi Edwards, said: “Both funds have identified a shared common vision to potentially create a mid-sized fund that provides a distinct point of difference in the market.”

The funds will undertake a due diligence process before making a decision, a process that will likely take several months, they said.

CareSuper was established in 1986 to cater for office-based employees. It has 220,000 members and A$20 billion (US$13 billion) under management.

Spirit Super was established in 2021 through the merger of Tasplan and MTAA Super. It has 324,000 members and A$25 billion (US$16 billion) under management.