Australia's Largest Pension Fund in the Making?
QSuper and Sunsuper are in early-stage discussions to merge as regulatory pressure drives consolidation in the industry. Their merger could form the country's largest pension manager.
A merger of the two Australian funds would create a fund managing over A$183 billion ($126 billion) in assets, based on their respective investment books. QSuper currently has over A$113 billion in funds under administration while Sunsuper manages about A$70 billion in assets, according to its website.
If they merge, their assets would surpass the A$160 million managed by AustralianSuper, currently the country’s largest fund.
End Goal
The two Australian funds, locally known as superannuation, said they were «engaged in preliminary, non-binding discussions about a possible partnership,» based on a statement on Monday. The end-goal of the talks was to merge, «Reuters» reported, quoting a person familiar with the matter.
A public inquiry into Australia’s compulsory A$2.9 trillion pension system last year unveiled large fees charged by some managers. In the aftermath of the inquiry, the regulator stepped up pressure on funds to find ways to deliver better returns to savers, including encouraging consolidation in the industry.
