Prime Super, Aware Super explore potential merger

The superannuation funds have signed a non-binding memorandum of understanding (MoU) for a potential successor fund transfer (SFT) to create an approximately $254 billion fund with more than 1.4 million members.

Aware Super and Prime Super are undertaking a comprehensive due diligence process to ensure the proposed SFT is in the best financial interests of their respective members.

The merger presents a potential to provide "stronger retirement outcomes, enhanced financial guidance and advice, and a member experience that combines the best of both funds."

Pending the outcomes of due diligence, it is anticipated the SFT would be completed towards the end of 2027.

Commenting, Prime Super chair Nigel Alexander explained the rationale behind the merger.

"Prime Super has built a proud legacy based on trusted relationships, personalised service and a deep connection to regional Australia. In Aware Super, we have found a potential partner that shares those values and has the scale, capability and financial strength to help deliver even better outcomes for our members into the future."

Aware Super chair Christine McLoughlin believes the consolidation of the two super funds would create meaningful benefits for members.

"Through shared values, enhanced investment capability and a broader range of retirement solutions, we believe this potential partnership could support stronger long-term outcomes for members of both funds," McLoughlin said.

While the due diligence process is underway, both funds have confirmed they will continue to operate independently with no disruption to members or employers.

Aware Super declined to comment when questioned by Financial Standard on the name of the potential combined fund.