ESI Super and SPEC Super have agreed to merge and create a $A3.4 billion fund.
The merged fund will adopt SPEC Super's administration model and ESI Super's funds management and financial services team will be used to manage the assets.
The decision follows the completion of legal due diligence on both funds by Corrs Chambers Westgarth and Minter Ellison. Tax due diligence was completed by KPMG.
The Corrs team, led by partner Christine Maher and special counsel Joanne Dwyer, advised the Project Steering Committee in relation to strategy and implementation as well as advising ESI Super in relation to the successor fund arrangements.
Minter Ellison's team, led by partner Maged Girgis with senior associate Andrew Bradley, advised SPEC Super on strategy and implementation and in relation to the successor fund arrangements.
The merger will provide a number of benefits to members including more funds under management, presenting more investment opportunities at a lower cost, and cost savings of around $2 million per year.
The merger is expected to be completed in March 2011.