The consolidation of Australia’s A$4.2 trillion (US$2.6 trillion) superannuation industry is continuing with CareSuper reported to be planning to merge with the Meat Industry Employee’s Superannuation Fund (MIESF).
CareSuper, which manages $56 billion for 590,000 members, was expected to announce it had entered a binding arrangement to combine with the MIESF, which manages $1.04 billion for 17,000 employees, according to the Australian Financial Review (AFR) newspaper.
By the time of writing, Azzet had received no response to its request for comment from representatives of Care Super or MIESF.
In an article, the AFR quoted CareSuper Chairwoman Linda Scott and MIESF’s Chris White as saying the deal was a “critical and positive step forward in serving our members’ best financial interests”.
“Having undertaken the required due diligence processes, we are confident a shared future is the best way forward to continue delivering competitive fees and outstanding values,” Scott and White were quoted as saying in a statement.
The super industry has undergone significant rationalisation in recent years with larger funds merging with their smaller rivals to reap economies of scale, creating mega-funds like AustralianSuper ($367 billion), Australian Retirement Trust ($309 billion) and Aware Super ($189 billion).
CareSuper still remains outside the top 15 funds based on assets under management with this merger and allowing for its tie-up with Spirit Super in November 2024.
The number of funds regulated by The Australian Prudential Regulation Authority (APRA) with more than six members has fallen over the last 10 years from 227 to 93 at 31 December 2024, according to APRA data.
