UniSuper and Australian Catholic Superannuation sign Heads of Agreement
In December last year, UniSuper and ACS signed a Memorandum of Understanding to explore a potential merger.
Following an extensive due diligence process and independent review of both super funds, UniSuper and ACS have now signed a Heads of Agreement. Each fund’s due diligence revealed a strong case for merging and identified numerous benefits for their respective members. Importantly, each fund deemed a merger to be in the best financial interests of their respective members.
The Heads of Agreement outlines the agreed terms between UniSuper and ACS, with a range of conditions still to be met before a merger can be finalised. This includes a final decision for both boards to merge, regulatory and legislative approvals, and it will only occur if it is in the members’ best financial interests of each fund.
If all conditions are met and a merger is agreed, we expect it to be completed by the end of the year.
Read the media release:
Frequently Asked Questions
We’ve answered some common questions raised at these initial stages, and we’ll add more as the process continues.
What’s the process for deciding on a merger between UniSuper and ACS?
Following an initial assessment of the opportunity, we’ve signed a Memorandum of Understanding (MoU) with ACS to explore the potential merger.
Since that time each fund has completed a thorough due diligence process and deemed a merger to be in the best financial interests of their respective members.
Both funds will now commence a thorough planning process to ensure a smooth transition for ACS members to UniSuper. Providing that a number of conditions are met it is anticipated that the merger will be completed by the end of 2022.
UniSuper will continue to communicate with our members, our employees, our members’ employers, and our Consultative Committee to update them as they progress further.
What is a Memorandum of Understanding?
Memorandum of Understanding (MoU) is a formal agreement between two or more parties. While not legally binding, the MoU signals that a binding contract is imminent. The MoU between UniSuper and ACS essentially is an agreement for both funds to move to a formal due diligence process.
What is a Heads of Agreement?
Heads of Agreement is an agreement between two or more parties to proceed to merge, subject to conditions set out in the Heads of Agreement being met.
Have you alerted the regulators to the Heads of Agreement?
Yes. We recently advised APRA that UniSuper and ACS have signed a Heads of Agreement and are now planning for a smooth transition for ACS members to move to UniSuper.
When will the merger be finalised?
UniSuper will work with ACS to plan a smooth transition for members. Providing a number of conditions are met we anticipate that the merger will be completed by the end of 2022.
What does it mean for UniSuper members?
UniSuper does not aim to be the biggest fund; we aim to be the best. We need to ensure we keep growing so that our investment team continues to access great investment opportunities in an effort to maintain the superior investment performance we’ve provided our members. A merger with ACS will support that continued growth and ensure we deliver greater retirement outcomes well into the future.
Careful planning for a smooth transition will now commence, which will only continue to an outcome if it is determined to be in the best financial interests of our members.
What does it mean for Australia Catholic Superannuation members?
ACS members will transition across to a UniSuper account. The next phase will plan out this smooth transition. ACS will communicate with their members to ensure they understand the process. It is anticipated that the merger will be completed by the end of 2022.
ACS’s heritage in education aligns strongly with our links to academia and the higher education and research sector. ACS members will benefit from our great performance and low fees to help them create strong financial futures.
Can I join UniSuper now?
Yes, as an open fund, UniSuper welcomes new members anytime. It’s quick and easy to apply online.
Do members need to do anything?
No. A detailed planning process will now commence to ensure a smooth transition.
As we progress in this planning, we will communicate with our members, our employees, our employers, and our Consultative Committee to ensure we are keeping them informed.
Will UniSuper be changing its name?
No. We do not anticipate any changes to our name or the UniSuper brand. We are proud of our history of being the fund dedicated to the higher education and research sectors, now open to all Australians.
UniSuper is one of Australia’s largest superannuation funds and is run solely for the benefit of its members. For more than 35 years, UniSuper has been managing super for people employed in the higher education and research sector and is now open to all Australians. UniSuper currently invests around $105 billion on behalf of 500,000 members.
Find out more and join us.
Australian Catholic Superannuation
Australian Catholic Superannuation is the super fund of choice for the Catholic community in Australia and is open to anyone eligible for superannuation. Over 85,000 members and more than 15,000 participating employers nationally have selected Australian Catholic Super as their choice of superannuation fund. As a not-for-profit super fund, it exists solely for the benefit of its members, looking after over $11billion funds under management.