Victorian super funds discuss merger plans

Two Victorian industry superannuation funds are in talks to merge, highlighting the benefits of scale to about 120,000 members.

Prime Super and Combined Super have signed a memorandum of understanding, announcing the two funds are in advanced merger discussions.

If it goes ahead, the merged entity would manage about $5 billion in funds and would see a number of Combined Super directors appointed to the merged board of Prime Super.

The proposed merger would deliver significant benefits of scale to members and employers, Combined Super chair George Kogios said.

"The synergies between Prime Super and Combined Super are strong and we see the ability to continue that small fund level of personal engagement as a strong positive for our members," Kogios said.

The merger will also enable a reduction in the fees currently paid by Combined Super members, he added.

Prime Super chair Alan Bowman said the important considerations for the merger were complementary cultures and a shared vision of the future of super.

"The merger would provide Prime Super with increased scale, while remaining a fund that is focused on delivering a quality product to members and the right level of services to contributing employers across a broad range of industries," he said.

Prime Super currently services about 33,000 employers across a broad range of industries, while Combined Super's membership largely comprises employees in the private education sector, charities, religious organisations and not-for-profit groups.

Combined Super's administrator, the ASX-listed Mainstream Group, said discussions were continuing about what admin arrangements would look like if the merger was completed.

Read more: Combined SuperMergerPrime SuperSuperannuationAlan BowmanASXGeorge KogiosMainstream Group
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