Industry super funds MTAA Super and Tasplan have finalised an unconditional agreement to merge on 1 October 2020.
MTAA Super oversees over $13 billion in retirement savings for workers in the motor trades and allied industries. Tasplan is a multi-industry not-for-profit fund managing $10 billion in assets.
The merger will create a combined national super fund with more than $23 billion funds under management and approximately 335,000 members.
The decision follows a comprehensive due diligence process ensuring both parties are satisfied the agreement is in the best interest of members of both funds. The combined fund’s corporate and trustee functions will be based in Canberra, with satellite offices in Tasmania and other locations, in recognition of the merger’s ‘best of breed’ approach. MTAA Super’s administration services will be moved in-house to Tasplan’s Hobart facilities.
Fund Chairs, John Brumby of MTAA Super and Naomi Edwards of Tasplan, said the merger was driven by shared values and a desire to secure better member outcomes.
“Our organisations have a lot in common. We were both recently awarded Platinum status by SuperRatings as ‘best value for money’ funds, and we both have a strong focus on excellence. By combining our strengths, we are creating a multi-industry fund providing quality, customised service to members and employers across the country,” said Edwards.
The combined fund’s scale will provide efficiencies that can be passed on to members through improvements to products and services, low fees and strong returns.
“Scale will help drive efficiencies and provide greater buying power,” said Mr Brumby. “This merger will enable us to negotiate top quartile investment management fees and take advantage of fee scale discounts. This means better value for money for our members.”
The merger comes as super funds face increased pressure to ensure they have sufficient scale to provide competitive products and services into the future.
The Chairs believe the merger will achieve a significant capability uplift and place the fund in a highly competitive position both now and into the future.
“The current political and legislative landscape will likely mean an increase in super fund mergers over the next few years,” they agreed. “By merging now, MTAA Super and Tasplan have chosen to be on the front foot and stay in control of our destiny, and member outcomes."