CareSuper and Spirit Super in merger talks
Significant mid-sized industry superannuation funds, CareSuper and Spirit Super, have confirmed they are in merger discussions.
A merger of the two funds would create a fund with a combined 500,000 members and over $45 billion in Funds Under Management (FUM).
In a joint statement issued following an enquiry from Financial Newswire, the chair of CareSuper, Linda Scott and the chair of Spirit Super, Naomi Edwards said that both funds had identified a shared common vision to potentially create a mid-sized fund that provides a distinct point of difference in the market.
“Both funds will now undertake extensive due diligence before any decision is made,” their statement said.
It said the process would take several months and that in the meantime the funds would continue to operate independently with no disruption to operations.
My recollection is that Spirit Super used to be the old MTAA, based on the motor industry. Famous for owning the building lease by the Department of Foreign Affairs in Canberra, and for some years providing outrageous returns. Recently a client showed me his return from Spirit Super, for which I have never provided advice, and for which he is most unhappy about recent returns. One hopes that unification might improve that outcome