Industry superannuation funds Cbus and CONNECT, which both manage a combined $14.7 billion in funds, have today revealed plans to merge by October this year.
Superannuation Fund Chairmen Steve Bracks of Cbus and Mac Russell of CONNECT confirmed that a heads of agreement had been signed detailing the planned merger, subject to a due diligence process.
Mr Bracks highlighted that the in-principle agreement represents a real and very tangible win-win situation for all members and employers.
"There is a natural fit for the two funds coming together," Mr Bracks said. "We have a strong shared vision for our industry, and are committed to delivering the best retirement outcomes and services - for both our members and employers," he said.
"As we move towards becoming one fund I look forward to the opportunity for the merged Funds to offer the improved member benefits that come with being one of Australia's largest industry funds to all CONNECT members and employers," said Mr Bracks.
CONNECT Chairman Mac Russell agreed.
"This merger is about serving the best interests of our members and employers," he said. "Both funds' members and employers will reap the benefits of greater economies of scale, efficiency and an even stronger overall market position."
Established in 1984, Cbus is the industry superannuation fund for the construction, building, infrastructure and allied industries. With almost $14 billion in funds under management, more than 577,000 members and 67,000 participating employers, Cbus is one of Australia's largest and most successful super funds.
CONNECT is the superannuation fund for electrical and communications industry contractors. Since its establishment in 1985 Connect has grown to over $700million in funds under management, more than 27,000 members and 4,000 participating employers.
CONNECT brings its strong electrical industry heritage with it to build on Cbus' own history of achievement in the construction and building industries. A due diligence process is currently underway.
