Funds announce agreement to enter exclusive merger due diligence

From

John Smith

Two of Queensland’s leading profit-for-member superannuation funds have signed an exclusive Memorandum of Understanding (MOU) to enter into merger discussions.

Energy Super and LGIAsuper will commence due diligence to explore the benefits for their combined 123,000 members of joining forces to form a $20billion, Queensland superannuation fund.

The MoU agreement follows a period of high-level discussions and an assessment of both businesses.

The two funds are now commencing a detailed process of due diligence to further explore the synergies and benefits to members identified in the preliminary analysis.

LGIAsuper Chair John Smith said both funds shared a decades-long history of serving Queenslanders, strong investment track record, members-first philosophy, open fund status, and a focus on personalised service.

“LGIAsuper’s strategy over the past three years has been to look for opportunities to achieve the size and scale to continue to deliver excellent financial outcomes and outstanding service for our 75,000 members long into the future,” Mr Smith said.

“While the process with Energy Super is in the early stages, the areas of alignment are encouraging and warrant further exploration to see if we could better deliver for all members as a combined fund.”

Energy Super Chair Richard Flanagan said: “Energy Super is proud of its success in developing leading products and services for our members over many years. The opportunity to grow through a merger like this could help us create even better member outcomes through enhanced services and broader investment opportunities, while continuing to ensure competitive fees.”

Detailed work on the due diligence over the coming months will seek to confirm whether it is in the interests of both funds’ members to merge.

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