Newspaper icon
The latest issue of Financial Standard now available as an e-newspaper

HESTA, Mercy Super look to merge

HESTA and Mercy Super are planning to undertake a successor fund transfer by the end of the year.

Mercy Super said the merger has been strategically planned for some time. If it goes ahead, the merger would bring HESTA's funds under management to more than $70 billion.

About 13,000 Mercy Super members would be transferred to HESTA, with the funds aiming to complete the merger by the end of the year.

Mercy Super was established in 1962 by Sisters of Mercy Queensland to provide benefits for staff and employees. It became Mercy Super in 1992. Today it has about $1.7 billion in FUM.

HESTA said the merger is part of a chapter of growth for the fund, intended to "continue to position HESTA as the fund of choice for those wanting their super to have impact".

"I'd like to acknowledge the excellent service Mercy Super provides its members and the strong alignment we share through our focus on delivering better retirement outcomes for members and our dedication to serving the health sector," HESTA chief executive Debby Blakey said.

"Mercy Super has built an incredible legacy since its creation in 1962. We're thrilled at the prospect that their members could be part of a merged fund that shares this long-term focus and commitment over many years to delivering strong, sustainable investment performance."

Mercy Super chief executive Wendy Tancred said the merger is the next logical step for the fund, ensuring strength and sustainability for its members.

She added that HESTA was selected due to its strong track record of performance, future sustainability and heritage in the health sector.

"We're confident our members will continue to enjoy even better retirement outcomes through a winning combination of strong performance and low fees in a like-minded fund where the cultural fit is strong," Tancred said.

"We'll keep our members informed as we work through the merger and formal agreements are reached. In the meantime, it's business as usual for our members."

Read more: Mercy SuperHESTAWendy TancredDebby Blakey