THE construction industry fund Cbus and Media Super are in merger talks to create a beefed up $60 billion superannuation fund.
The $6 billion Media Super and $54 billion Cbus Super have signed a memorandum of understanding and will commence due diligence on a joint arrangement to be in operation in 2021.
The merged fund will have over 800,000 members with Media Super bringing over 77,000 print, media, entertainment and arts workers whilst Cbus has over 759,000 building, construction and allied industries professionals.
The partnership will see a merging of the funds’ investment and administration operations with both the Cbus Super and Media Super branding maintained.
Media Super said in a statement, “By increasing our size, we can provide access to a greater range of investment opportunities and provide a better deal through cost savings, potentially reducing the investment fees,”
“The partnership is conditional on a more detailed due diligence process taking place. This will provide an independent assessment proving confirmation that the joint arrangement is in the best interests of members for both parties.
“Both funds will not be making further public comments until the due diligence process has come to a conclusion,” Media Super said.