Vision Super and Active Super sign merger heads of agreement

Vision Super and Active Super, which have signed a merger heads of agreement, will create larger entity with around $27 billion in funds under management (FUM), 170,000 member accounts and a broader geographic presence across NSW and Victoria.

The merged fund will be led by Vision Super’s current Chief Executive Officer, Stephen Rowe, who has been appointed as chief executive of the merged fund.

The current Active Super CEO, Phil Stockwell, will be leaving the fund and Active Super Deputy CEO, Donna Heffernan, will become acting CEO until the merger is complete.

“It is exciting to be moving to the next stage of the merger process. Our funds share a common heritage in local government and remain committed to delivering sustainable, long-term returns for members,” Vision Super Chair Lisa Darmanin and Active Super Chair Kyle Loades, said.

“We’ve modelled the benefits of the merger, which found a range of synergies. Over time, combining the funds, streamlining our offerings and moving onto Vision Super’s internal administration platform will translate into lower costs, improved member services and innovative technology.

“We expect to see cost savings and greater economies of scale as time goes on. Those synergies will mean strong benefits to members of both funds.”

Commenting on Rowe’s appointment, Darmanin stressed he had experience with multiple transitions and his vision would serve the merged fund well as it looked to capitalise on growth and cement its position.

“Donna is a well-respected member of the executive leadership team. She has been with the fund since 2010 and will continue to work with the Active Super Board and leadership team to oversee the completion of the merger process. We look forward to Donna’s continued contribution through transition and beyond,” Loades added.