By Nick Hedley
The proposed merger between UniSuper and Australian Catholic Superannuation (ACS), which would create a retirement fund with A$121 billion (US$85 billion) in assets, is moving forward after receiving in-principle approvals from both boards.
Melbourne-based UniSuper is looking to broaden its reach after announcing in July 2021 that it would open up to the public. The fund, which manages A$110 billion in assets on behalf of 500,000 members, was previously only focused on workers in the higher education and research sectors.
In December, UniSuper agreed to explore a potential tie-up with ACS, a not-for-profit fund based in Sydney with A$11 billion in assets and 85,000 members.
The funds have now signed a heads of agreement outlining the terms of the transaction, although regulatory and other approvals are still needed. If it goes ahead, the merger is expected to be complete by the end of the year, with ACS members migrating to UniSuper.
“We are really pleased to announce that following an extensive due diligence process and independent review, each board has concluded that the merger is in the best financial interests of their respective members,” UniSuper CEO Peter Chun said in a statement this week.
“Ensuring a smooth and easy transition for ACS members is vitally important,” Chun said.
ACS CEO Greg Cantor said that achieving greater scale was in the best interests of the fund’s members.
“The proposed merger with UniSuper will provide our members access to one of the few funds in Australia with over $100 billion in funds under management and one that is well positioned to help them achieve the retirement outcomes they desire.”