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.”