TelstraSuper merger with Aware creates big 5 | Australian Markets
A big 5 is quickly evolving within the Australian superannuation market, with Aware Super making certain it’s half of that evolution through a merger with TelstraSuper.
If the merger proceeds as anticipated, the tip outcome will likely be a superannuation entity boasting $228 billion in funds underneath management and with 1.3 million members.
To put this in context, Australia’s largest industry superannuation fund, AustralianSuper, boasts $365 billion and three.5 million members, whereas the Australian Retirement Trust (ART) manages $330 billion for two.4 million members, Hostplus manages $130 billion for 1.86 million members, HESTA manages REST manages round $99 billion for 2 million members and UniSuper manages $149 billion for 650,000 members.
Aware Super began off life as First State Super in NSW and comes with a robust observe report and is viewing the merger with Telstra Super as enhancing its penetration into the company superannuation market.
Commenting on the merger prospects, TelstraSuper chair, Anne-Marie O’Loghlin described Aware Super as extremely regarded and with the dimensions to help ship improved retirement outcomes to members.
“It is expected the proposed merger will deliver lower fees, an expanded investment menu and a national servicing footprint to help TelstraSuper members further enhance their planning and transition to retirement,” she mentioned.
Aware Super chair, Christine McLoughlin mentioned TelstraSuper’s legacy of personalised service and member loyalty aligned with Aware Super’s focus.
“We also look forward to welcoming TelstraSuper’s strong corporate employer relationships and specialised capabilities that will significantly accelerate our corporate super offering,” she mentioned.
The merger with Aware Super represents a substantial step up in scale than that which might have been delivered by Telstra Super’s proposed merger with Equip Super which was solely aborted in mid-May.
While the Telstra Super board by no means particularly spelled it out, scale was all the time the difficulty with the Equip Super proposals.
The board of TelstraSuper mentioned on 20 May that it had determined to terminate the heads of settlement that proposed to merge with EquipSuper as a result of it had concluded it was not within the best pursuits of TelstraSuper members.
The assertion mentioned: “Bringing together two medium-sized funds is a complex process. As the merger process has progressed, and particularly in the period since the binding agreement was signed, it has become evident that TelstraSuper is unlikely to achieve our objectives for the merger, in the best financial interests of the Fund’s members”.
