[MELBOURNE] Aware Super, one of Australia’s largest pensions, confirmed plans to merge with smaller rival TelstraSuper to form a A$235 billion (S$201 billion) fund.
The two pensions have signed a binding Heads of Agreement, and will merge towards the end of the current financial year, according to a statement from Aware Super on Tuesday (Oct 7).
The funds, which have a combined 1.3 million members, said in July that they were exploring a tie-up.
Regulators have been pushing funds in Australia’s A$4.3 trillion pension industry to merge and seek economies of scale to offset costs.
A report from Mercer in March forecast Australia to have 47 funds by 2029, down from the 89 currently regulated by the Australian Prudential Regulation Authority.
Mercer expects that number to drop to about 20 by 2049. BLOOMBERG
