HostPlus and Club Super in merger talks

HostPlus, Australia's top-performing pension fund, is moving forward with a merger with the smaller ClubSuper.

Hostplus, which manages about $43 billion of retirement savings from hospitality, recreation, sport and tourism workers, is now undertaking due diligence on a merger, the funds said in an emailed statement Tuesday.

It represents over 1.2 million worker and 180,000 employers.

In a letter to stakeholders, ClubSuper Chair Sharron Caddie recently advised "(with) a common focus on serving the hospitality, clubs, recreation, sport and associated sectors, both funds believe there is a strong core alignment between the organisations.

"This provides an opportunity to ahcieve a great scale, cost efficiencies and enhanced member choices, services and outcomes.

"We're keen to explore how a merger of our funds, based on shared values, our all profit to member philosophy, and focus and track record in serving the hospitality, clubs and allied sectors, would better serve our members and stakeholders both here in Queensland and nationally.”

Queensland-based Club Super, which manages around $560 million in retirement savings for 22,000 members working at sporting and recreational clubs, has a strong alignment with Hostplus, according to the statement.

Hostplus returned 10.88% per year in the three years to 30th April in its balanced investment option, is the nation's top performing in that category.

With Bloomberg.