AustralianSuper and LUCRF Tremendous have entered an settlement to merge within the first half of subsequent 12 months, topic to the deal clearing some last hurdles.
The tremendous funds introduced on Tuesday they’d signed a Memorandum of Understanding (MOU), which is a doc outlining an settlement to merge, and the primary of many steps within the merger course of.
It’s anticipated the merger may very well be accomplished within the first half of 2022, pending due diligence checks.
Canstar understands the 2 trade funds intend to undertake a successor funds switch, which might contain the switch of all LUCRF members and their advantages to AustralianSuper, and the top of the LUCRF Tremendous model. The merger would see AustralianSuper prolong its lead because the nation’s greatest tremendous fund.
AustralianSuper is already the most important tremendous fund within the nation, holding greater than $225 billion in retirement financial savings on behalf of greater than 2.4 million members on the time of writing, whereas LUCRF Tremendous has roughly $7.4 billion in funds below administration on behalf of round 132,000 members.
LUCRF at the moment represents employees within the warehousing, logistics, pharmaceutical, manufacturing and meals manufacturing industries and describes itself as Australia’s first trade tremendous fund.
LUCRF Tremendous Chief Govt Officer Charlie Donnelly mentioned the merger would make sure the fund was assembly members’ greatest pursuits, a authorized requirement which was highlighted in a latest Productiveness Fee report that really helpful smaller funds merge when vital.
“LUCRF Tremendous has specialised in taking good care of the retirement financial savings of a big proportion of the lowest-paid employees in Australia for greater than 4 many years and we’re sure {that a} merger with AustralianSuper will proceed to supply the very best worth and advantages to members,” Mr Donnelly mentioned.
AustralianSuper can also be at the moment in talks to merge with hospitality and neighborhood golf equipment trade fund, Membership Plus Tremendous, having signed a separate MOU with it in Could.