The two funds signed off on their memorandum of understanding last week and due to start a process of due diligence.
On Tuesday morning the pair declared the planned merger would ensure the future security and sustainability of both funds, deliver improved services to members alongside benefits from economies of scale.
The resulting combined fund would have around 200,000 members in the independent and Catholic school and community sectors.
Australian Catholic Super has 85,000 members and 15,000 employers, holding $9 billion in funds under management (FUM) while NGS Super has around 120,000 members, with $12 billion in FUM.
Australian Catholic Super chair David Hutton said that his fund had looked to strengthen and better service the interests of its members, within a larger like-minded education industry fund.
NGS Super chair Dick Shearman added the merger had been driven by synergies between the funds.
“Our members’ interests are at the core of this merger which represents the continued growth and improved ability of our fund to secure the financial futures of all our members,” Mr Shearman said.
The merger is subject to finalisation of comprehensive due diligence and assessment of member benefits.
Sarah Simpkins
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
