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TWUSUPER cans merger plans

TWUSUPER has decided to not proceed with its planned merger with EISS Super, saying it will pursue other options.

In a statement this morning, TWUSUPER advised the merger will not go ahead, saying: "Any merger must be in members' best interest."

The viability of the merger has been in question for some weeks as EISS Super battles media scrutiny following its failure of the APRA performance test in August.

In recent weeks, EISS Super has been accused of partaking in dodgy sponsorship deals, frivolous spending and having a toxic workplace culture.

TWUSUPER said its motivation for considering the merger was the potential benefits greater scale would afford members, with the combined fund representing 130,000 members and $12 billion in retirement savings.

"We also felt EISS members would benefit from TWUSUPER's strong investment performance," TWUSUPER said.

The fund said it is now pursuing other growth options.

The merger discussions were first confirmed in April this year, with TWUSUPER chief executive Frank Sandy saying at the time: "Although early in the process, there appears to be a strong synergy between the funds operationally, which should translate to better member outcomes, as well as an alignment of our values and culture which is important for members."

At the time, then-EISS Super chief executive Alex Hutchison said the merger looked "promising".

Hutchison resigned on September 9 and was quickly followed by several of the fund's board directors, including the chair.

Read more: TWUSUPEREISS SuperFrank SandyAlex Hutchison