Commonwealth Bank of Australia’s Group Super corporate fund has entered into a memorandum of understanding (MoU) with the Australian Retirement Trust (ART) to pursue a merger, the lender said on Tuesday.
The potential merger will see Group Super’s 67,000 members and A$12.3 billion ($8.48 billion) of funds under management (FUM) transfer to ART, which currently has over A$230 billion in FUM.
The companies did not mention any deal value.
“As a large, well-established fund, Australian Retirement Trust can offer a broader range of products and services at competitive fee levels for members,” said Rosemary Vilgan, chair of Group Super’s trustee board.
Just last week, ART signed an MoU with superannuation fund AvSuper in relation to a potential merger.
Australia has the world’s third-largest pension pool, as its superannuation funds have grown to more than A$3.3 trillion from A$148 billion over the last three decades.
Source: Reuters.com