14 April 2021
TWUSUPER and EISS Super are pleased to announce that the two funds have entered into a Memorandum of Understanding (MOU) to commence a formal due diligence process exploring whether a merger of the two funds is in the best interests of their respective members.
Initial discussions have been very positive and indicate that building on the shared values and strengths could provide significant benefits to the members of both funds.
Frank Sandy TWUSUPER’s CEO said “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. This merger can provide greater scale for both funds and has the potential to deliver cost savings to members across trustee services, administration and investments, while also providing members with better services, solid long-term investment returns and improved financial outcomes at retirement.”
EISS Super CEO Alexander Hutchison said “We have an obligation to our members, to consider the benefits of a potential merger and to proceed with that merger if it is in their best interests. It’s early days, but we’re seeing a lot of potential benefits for members, so a merger looks promising.”
As profit to member funds, TWUSUPER and EISS Super are strongly aligned, sharing a member first ethos. Both funds are committed to helping members secure their financial future through great service, solid investment returns and low fees.
The funds’ memberships also share some similarities with a high portion of members working in high-risk occupations, meaning both funds place great importance on providing quality insurance that is tailored to the needs of their members. Finally, there is alignment in the belief that, like all businesses, super funds have a social licence to improve the communities within which they operate and should seek to do so.
A merger between TWUSUPER and EISS Super would bring together two industry super funds, creating a fund with over $12 billion in funds under management and approximately 130,000 members across Australia.