A proposed successor fund transfer (SFT) between Prime Super and Aware Super has moved a step closer after the two profit-to-member funds signed a non-binding memorandum of understanding to explore a potential transaction.The proposed SFT would create a combined fund managing approximately $254 billion on behalf of more than 1.4 million members.
Both organisations will now undertake a comprehensive due diligence process to determine whether the transaction is in the best financial interests of their respective members.
Pending the outcome of that process, the funds anticipate the successor fund transfer would be completed towards the end of 2027.
During the due diligence period, Prime Super and Aware Super will continue to operate independently with no disruption to members or employers.
The funds said the proposed transaction has the potential to combine Aware Super’s scale, retirement expertise and market-leading digital capability with Prime Super’s trusted relationships, regional heritage and personalised service, with the aim of delivering stronger retirement outcomes, enhanced financial guidance and advice, and an improved member experience.
Prime Super chair Nigel Alexander said the fund had identified Aware Super as a partner with aligned values and complementary capabilities.
“Prime Super has built a proud legacy based on trusted relationships, personalised service and a deep connection to regional Australia.
“In Aware Super, we have found a potential partner that shares those values and has the scale, capability and financial strength to help deliver even better outcomes for our members into the future.”
Aware Super chair Christine McLoughlin said the proposal could provide meaningful benefits by bringing together the strengths of both organisations.
“This is an opportunity for two strongly aligned funds to bring together their complementary strengths in a way that could create meaningful benefits for members.
“Through shared values, enhanced investment capability and a broader range of retirement solutions, we believe this potential partnership could support stronger long-term outcomes for members of both funds,” McLoughlin added.