Why have NGS Super and Australian Catholic Super called off their merger?
Over the last 12 months we have had numerous discussions and extensively shared information with each other.
Since the announcement of the planned merger in August 2020, the regulatory and commercial environments have changed, including the introduction of the best financial interest duty for Trustees.
On examination, the Board did not believe the merger would be in members’ best financial interest.
Has the Your Future Your Super legislation influenced this decision?
There were a number of contributing factors that led to the decision not to proceed with the merger. These included how this legislation will change the superannuation landscape into the future, encouraging boards to think even longer term.
Weren’t the funds a good match?
Both funds entered into the merger negotiations in good faith and believing that it was an excellent opportunity to combine our strengths. Ultimately, however, this merger was not in our members’ financial best interests.
Why did NGS put so much work into a merger that didn’t happen?
The often time-consuming steps involved in a merger are designed to ascertain the appropriateness of proceeding to completion. It is a very big decision to merge and the process needs to be thorough.
Is NGS Super going to look for a new merger?
The Board will continue to assess any opportunity that will improve member outcomes and be in members’ best financial interest.
Will there be an impact to the Fund in the short term?
It will be business as usual for our members, employers and staff.