The funds intend to shortly sign an exclusive Heads of Agreement that supports the funds commencing a reciprocal due diligence process to determine if a merger is in the best interests of their respective members.
With its origins in the hospitality, tourism, recreation and sports sectors, Hostplus continues to evolve and grow as the lifetime fund of choice for Australians and employers from a broad range of backgrounds and industries. Today, Hostplus is one of the largest and best-performed super funds in Australia, with over 1.25 million members, 233,000 contributing employers and $66 billion funds under management.
The South Australian based Statewide Super has more than 142,000 members, 24,000 employers and manages over $10.8 billion in funds. Statewide Super is one of the top-performing funds in Australia over the long term, and one of only five funds nationally to have a 5-Star Rating with CANSTAR for both their pension and accumulation products.
A successful merger between the two leading profit-for-member Industry superannuation funds would create a significantly broader, multi-sector, national fund with over 1.4 million members, 258,000 contributing employers and more than $77 billion in funds under management.
Statewide Super’s CEO, Tony D’Alessandro said today’s announcement followed a period of extensive consideration by Statewide Super as to the longer-term strategic benefits to be realised for its members in exploring a merger with another prominent and well-performed fund.
“After undertaking an extensive and robust process we identified Hostplus as our preferred merger partner.”, said Mr. D’Alessandro.
“The engagement and discussions between the funds to date have been most encouraging and I’m very optimistic that the common ground, strengths and synergies we’ve already identified suggest that pursuing a merger of our funds will realise and deliver significant benefits for both funds’ members”, he added.
“This includes ensuring Statewide Super retains its unwavering commitment to South Australia and the Northern Territory, where we will continue to provide our excellent local member services, including the Statewide Super Hub in Victoria Square and the office in Darwin, and preserve local jobs.
“We will be assessing this merger against its ability to deliver greater value and enhanced products and services for our members.
Hostplus’ CEO, David Elia, said “we are delighted that Statewide Super’s board has identified Hostplus as its preferred merger partner. Our early discussions have highlighted a fundamentally strong alignment between our two funds, from our similar industry fund ethos and beliefs, to our dedication and passion for our members, which provides an excellent foundation for establishing a successful merger”.
“We are genuinely excited about the prospect of a strong, positive and collegiate union of our funds. We are confident that our collective members, contributing employers and associated communities would strongly endorse our merger and immediately benefit from the resulting economies of scale”, said Mr Elia.
Once having signed the Heads of Agreement, the two funds expect to commence the detailed due diligence phase over the coming months ahead of executing a Successor Fund Transfer Deed should both funds’ trustee boards consider a merger as being in the best interests of both funds’ members.