Australian superannuation funds Cbus Super and Media Super are merging to form a A$60 billion (US$41.5 billion) fund with more than 800,000 members.
Due diligence for the exercise has commenced and they will combine their investment and administration operations and launch a joint retirement platform next year, the funds say in a statement on July 9.
But their individual branding will be maintained.
Cbus Super is a A$54 billion superannuation fund for the building and construction sectors.
Media Super is nine times smaller, overseeing around A$6 billion of retirement assets for workers in the printing, arts, media and entertainment industries.
“By increasing our size, we can provide access to a greater range of investment opportunities and provide a better deal through cost savings, potentially reducing the investment fees,” Media Super Chair Gerard Noonan says in the statement.
“This is an exciting opportunity for both funds as they have similar history and connection with their members,” Cbus Super Chairman Steve Bracks adds.
Australia has around 500 superannuation funds with A$2.7 trillion of total assets as of March 2020, according to figures from the Association of Superannuation Funds of Australia.