VicSuper and First State Super have announced they will merge on 1 July 2020. The merger will create one of Australia’s largest superannuation funds, managing more than $125 billion in super savings on behalf of more than 1.1 million Australians.
A proactive decision
We know that size and scale creates opportunities that can make a real difference to members’ retirement savings over the long term. While we’ve long believed that the prospect of a merger had merit, it was important for us take a proactive role and seek out a merger partner that shared our Member First values.
The merger between VicSuper and First State Super presents us with an opportunity to do exactly that. The comprehensive due diligence process that we’ve completed has consistently highlighted how similar our two funds and the things we value really are.
After the merger on 1 July 2020, our two Trustees will merge to become one super fund. Our board will continue to reflect equal member and employer representation with one independent Chair and 14 Directors. Four directors will be from VicSuper’s current board.
The Chair of the Board will be Neil Cochrane and the Chief Executive Officer will be Deanne Stewart. VicSuper CEO Michael Dundon will be appointed Deputy CEO and will oversee the structural integration of the two funds.
Our investment approach is similar to First State Super in a number of ways. We both have a strong commitment to active ownership and responsible investing, and a shared focus on delivering strong, sustainable returns for our members. VicSuper and First State Super were both named in the PRI Leaders’ Group 2019 - two of just six Australian asset owners to be recognised in this way.
For now, our investments will continue to be managed separately. Over the coming months we’ll be developing a strategy to bring our investments together and harness our combined size in ways that will help us deliver strong, sustainable returns for our members.
How the two funds compare
- Profit-to-member means members come first
- Combined scale for greater value
- Shared values and a shared approach
- Common heritage; common future
- A shared commitment to quality advice
- Shared commitment to sustainable investments
First State Super is one of Australia’s largest industry funds providing superannuation, advice and retirement solutions to teachers, nurses, police and emergency service workers, government employees and others who care for our communities.
Established in 1992, First State Super has grown to become one of the country’s largest super funds, currently managing a combined asset pool of over $100 billion on behalf of 800,000 members located around Australia.
Once merged, the new fund will have a substantial national footprint. Victoria is VicSuper’s home state — member services, employer services and advice teams will remain throughout Victoria. Approximately 42% of the merged fund’s membership will reside in Victoria. First State Super also has local advice teams across the country, so combined, these local teams will provide extensive national coverage with 45 locations for our members Australia-wide.
Merger talks well received
To date, our merger discussions have been very well received by employers, members, government, media, industry commentators and ratings agencies. Here’s a snapshot of what they’re saying…
Acting in our members best interestsIndustry stakeholders understand that our motivation is to act solely in the best interests of our members — rather than reacting to regulatory pressure or other financial imperatives.
Two successful funds
VicSuper and First State Super are viewed as two funds that are highly successful in their own right. It’s broadly recognised that if we were to combine our resources, we would pave the way for new market leadership and innovation – with our members the beneficiaries.
A forward-thinking move
Independent ratings agency Chant West has recognised our discussions as progressive, and sees it motivated solely by the prospect of maximising outcomes for our members. In fact it was the key reason that Chant West jointly awarded VicSuper and First State Super Best Fund: Integrity for 2019.
It's business as usual
There’s nothing you need to do, and nothing will change in terms of what we do for you. The VicSuper and First State Super brands will continue to be used and above all, our members and employers will continue to be our number one priority.
Our commitment to Victoria remains as strong as ever. Our member services, employer services and advice teams will remain and together we’ll be stronger than ever. In fact following the merger, Victoria will represent approximately 42% of our total membership.
Over the coming months
Our teams will be working closely to bring our two funds together. We’ll keep you updated on our progress, and we look forward to bringing you news of the unique product and service improvements that we’re confident will be achieved through this merger into the future.Merger progress update (PDF 72kb) Frequently asked questions
Don't sit there wondering - our team members are here to help!