Australian Retirement Trust wraps up AvSuper merger

Australian Retirement Trust (ART) has completed its merger with AvSuper after the two super funds formalised negotiations in February 2023.

The $280 billion industry superannuation giant has gained 4800 new members and added $2.43 billion in funds under management because of its merger with AvSuper.

ART chief commercial officer Dave Woodall said onboarding AvSuper is an important step in the fund's expansion strategy.

"By continuing to grow our national footprint, we're well on the way to achieving our target of $500 billion in funds under management by 2030, all whilst helping our members retire well with confidence," he said.

AvSuper started hunting for a merger partner in December 2021, spurred by its default MySuper investment option failing the inaugural Your Future, Your Super performance test in August of that year.

"Following discussions with the board, team and external partners, we are now considering if AvSuper members would be better served in a different fund with more resources at its disposal," AvSuper chief executive Michael Sykes said at the time.

Six months later, AvSuper confirmed it would look to merge with Commonwealth Superannuation Corporation (CSC), a process that was reported to be progressing with due diligence and nearing finalisation.

However, the merger with CSC ultimately collapsed.

Today, Sykes said that ART was an attractive choice as a merger partner due to its similar culture and member-first alignment.

"We first commenced the thorough process of finding a suitable merger partner back in 2021 and were impressed by the value ART offered our members," he said.

"With this merge, we worked hard for the best outcome for our members. We believe ART will continue to manage their retirement benefits in their best financial interests as we have done for over 30 years."

It was confirmed that no AvSuper staff have joined ART in the merger.