Catholic Super will merge with Equip Super in a ground-breaking merger of private superannuation funds in Australia.
The two non-profit super funds on 1 May announced their decision to join forces to create a $26 billion fund by 2020 which will make it one of the country’s largest.
Between them they will initially manage funds through a joint venture trustee for around 150,000 members, comprising the current 75,000 members served by Catholic Super and 72,000 members belonging to Equip.
Chair of Catholic Super Danny Casey said he was delighted to announce the news and that the joint venture, when finalised, will have many benefits for all concerned. “[It] is the perfect pathway, bringing our members the benefits of scale while retaining the Catholic Super identity and strong connection with those working in Catholic institutions and communities,” he said.
“Catholic organisations are one of our country’s largest employer groups who care for and educate millions of Australians every day.
“For nearly 50 years Catholic Super has invested wisely to grow the life savings and retirement income for our members, many of whom are hard-working teachers and nurses. We are committed to continuing this member-driven focus.”
Equip Super chair Andrew Fairley also expressed delight at signing the memorandum of understanding with a “like-minded fund”. “This joint venture would contain costs and improve efficiency, bringing real benefits to members,” he said.
The partnership comes at a time when the recently-published Productivity Commission Superannuation Report commissioned by the Federal Government has called for Australia’s superannuation system to adapt to meet the needs of a modern workforce.
At the same time funds are being encouraged to merge to reduce member costs and reduce administration costs.
Both funds have consistent track records. Catholic Super was recently ranked by Canstar as one of Australia’s six top funds, while Equip gained a top ten super fund ranking from SuperRatings over all points from 31 December 2008-2018.