Two of Australia's biggest pension funds, VicSuper and First State Super, have started discussions to explore the benefits of a merger.
The merged entity would become one of Australia’s largest superannuation funds, managing more than A$110bn ($79bn) in retirement savings for more than 1.1m members.
VicSuper said in a statement, “We’re in the early stages of discussions, however, we both believe a merger that builds on our shared heritage, values and strengths could provide significant benefits for our members.
“We have a lot in common. We’re both profit to member funds, put our members first and believe in the importance of financial advice to help our members make the most of their retirement savings, while also sharing members from similar industries.
“The opportunity to achieve greater scale through a merger like this could help us create even better member outcomes through enhanced services and broader investment opportunities delivering sustainable investment returns.”
Consolidation is gathering pace amid ongoing tightening regulation in the financial sector. A merger between Sunsuper and AustSafe Super was completed earlier this month.