As previously reported, HESTA and Mercy Super announced that they had signed a letter of intent to merge, with the respective boards now agreeing to proceed with a merger and a signed Successor Fund Transfer deed with the aim to complete by November 30, 2022
A successful merger would see 13,000 Mercy Super members transferred to HESTA, creating a fund with almost $70b in funds under management.
“It’s wonderful to reach this significant milestone in the progress towards merging our two funds that have such a proud legacy of serving our members,” HESTA CEO Debby Blakey said.
“Mercy Super and HESTA rounded out the 2021-22 financial year delivering some of the industry’s best long-term investment performance. Merging from such a position of strength means members will continue to benefit from being part of a leading superannuation fund.”
HESTA Balanced Growth, the MySuper default option, is in the top 10 balanced super funds for FY 2021-22 and over 10 years, according to independent rating agency SuperRatings.
Mercy Super CEO Wendy Tancred said: “We are delighted to reach this milestone confirming our selection of HESTA as the best strategic fit for our members, ensuring a strong and sustainable future for their retirement outcomes.”
The plans for the merger aim to create minimal disruption for Mercy Super members. Members will continue to be able to get help from the on-site location at Mater South Brisbane hospital campus. Mercy Super’s insurance arrangements introduced from 1 August 2022 and the current administrator will also be retained.