Australia-based pension funds- QSuper and Sunsuper Pty have joined hands in a merger with A$200 billion (155 billion USD) worth pension pot consolidate.
In a joint statement, both the funds stated a merger in September that will pave way for a historic agreement and the subsequent creation of an unquestionably strong superannuation fund that will deliver outstanding services, affordability for members, and greater efficiencies.
The merger is one of the testaments of growing together and stronger by big industry players and firms with industry consolidation, quite otherwise to the proposals of regulators and policy makers—who encourage mostly poor-performing and smaller funds to merge.
QSuper is responsible for managing retirement savings for Queensland state government employees—with nearly A$120 billion in funds under administration. Sunsuper manages around A$80 billion in savings for corporate employees, like Virgin Australia and Unilever Plc.
In efforts to bolster returns and weather increasing pressure to cut fees, the Australian pension industry worth A$3 trillion is coming together against all odds.
On Monday, the Queensland state government gave its support to the merger on a condition that the chief executive and the combined fund are based in Brisbane.