TWUSUPER, Australia’s super fund for the transport industry, has decided to call off the previously announced merger with EISS Super, following a period of extensive due diligence.
EISS Super is a Sydney-based superannuation fund overseeing some A$6 billion ($4.5 billion) of assets for Australia's energy sector.
The pension funds entered into merger discussions in April, with the view that members of both funds would benefit from greater scale. TWUSUPER specifically believed that EISS Super members would benefit from TWUSUPER’s positive investment performance.
For the 2020/2021 financial year, the fund’s balanced MySuper investment option — which most members are invested in — delivered 18.98 percent, while the fund’s high-growth investment option delivered 25.72 percent.
“Any merger must be in members’ best interests,” said the pension fund, in an Oct. 14 statement. “TWUSUPER is now pursuing other growth options.”