After 2 short years as Spirit Super, it will merge with Caresuper to form a national, mid-sized super fund in late 2024.
👉 Background: You may not have heard of Spirit Super - that's because it was only formed in 2021 after a merger between Tasplan and the Motor Trades Association of Australia Superannuation Fund.
👉 What happened: But now, after 2 short years as Spirit Super, it will merge with Caresuper to form a national, mid-sized super fund in late 2024. Post-merger, the combined super fund will have more than 500,000 members and $45 billion in customer funds under management.
👉 What else: And there have been a fair few superannuation mergers recently:
And with so much regulatory scrutiny on super funds, it just makes sense to have the economies of scale.
💡Economies of scale refer to the cost advantages that a business can achieve due to its size and scale.
💡As a company scales up, and grows its revenue, it can spread its fixed costs over a larger number of units - and this reduces the average cost per unit.
💡Australia's super sector is expected to see more than 20 mergers a yearbetween now and 2025, according to JP Morgan. And that would cut the sector down from around 170 funds to just under 70.
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