Hesta and Mercy Super Boards proceed with merger

Following a due diligence process, the boards of both Mercy Super and Hesta have agreed to proceed with the merger and a Successor Fund Transfer deed has been signed, with an expected merger date to set for 30 November, 2022, subject to certain conditions.

The plans for the merger aimed to create minimal disruption for Mercy Super members, the companies said.

Hesta chief executive, Debby Blakey, commented: “It’s wonderful to reach this significant milestone in the progress towards merging our two funds that have such a proud legacy of serving our members.

“Mercy Super and HESTA rounded out the 2021-22 financial year delivering some of the industry’s best long-term investment performance. Merging from such a position of strength means members will continue to benefit from being part of a leading superannuation fund.”

Following this, Mercy Super’s members would continue to be able to get help from the on-site location at Mater South Brisbane hospital campus and Mercy Super’s insurance arrangements introduced from 1 August 2022 and the current administrator would be retained.

According to SuperRatings, Hesta Balanced Growth, the MySuper default option, was in the top 10 balanced super funds for FY 2021-22 and over 10 years and Mercy Super’s MySuper Balanced option was in the top five funds over seven years of the risk-adjusted performance of balanced options.