media release
19 August 2022
HESTA and Mercy Super Boards agree to proceed with merger
After a thorough legal and due diligence process, the Trustee Boards of both Mercy Super and HESTA have agreed to proceed with the merger and signed a Successor Fund Transfer deed.
Subject to satisfying certain agreed conditions, HESTA and Mercy Super are targeting the merger to occur on 30 November 2022.
“It’s wonderful to reach this significant milestone in the progress towards merging our two funds that have such a proud legacy of serving our members,” HESTA CEO Debby Blakey said.
“Mercy Super and HESTA rounded out the 2021-22 financial year delivering some of the industry’s best long-term investment performance. Merging from such a position of strength means members will continue to benefit from being part of a leading superannuation fund.”
HESTA Balanced Growth, the MySuper default option, is in the top 10 balanced super funds for FY 2021-22 and over 10 years, according to independent ratings agency SuperRatings[1].
SuperRatings analysis of the risk-adjusted performance of balanced options also showed Mercy Super’s MySuper Balanced option in the top five funds over seven years[2].
Mercy Super CEO Wendy Tancred said: “We are delighted to reach this milestone confirming our selection of HESTA as the best strategic fit for our members, ensuring a strong and sustainable future for their retirement outcomes.”
The plans for the merger aim to create minimal disruption for Mercy Super members. Members will continue to be able to get help from the on-site location at Mater South Brisbane hospital campus. Mercy Super’s insurance arrangements introduced from 1 August 2022 and the current administrator will also be retained.
Ends.
About HESTA
HESTA is the largest superannuation fund dedicated to Australia’s health and community services sector. An industry fund that’s run only to benefit members, HESTA now has more than 950,000 members (over 80% are women) and manages over $68 billion in assets invested around the world.
HESTA is committed to creating a real difference to the financial future of every member. As a responsible steward of their members’ retirement savings, HESTA focuses on achieving strong, sustainable, long-term returns while making a positive difference to the world members will retire into.
About Mercy Super
Mercy Super was established in 1962 by the Sisters of Mercy Queensland to provide benefits for employees of Brisbane’s Mater Hospital and other Sisters of Mercy organisations. The fund was well ahead of its time with compulsory super not being commonplace in Australia for another 30 years.
Mercy Super’s core purpose and passion has remained unchanged – to build better retirement outcomes for a unique community of members. Caring for its exceptional members who are dedicated to caring for others, Mercy Super has been operating on-site from Mater Hospital’s South Brisbane campus ever since and has around 13,000 members who work in health, aged care, education, community welfare and approx. $1.6 billion in funds under management. Mercy Super is a Platinum rated super fund as assessed by ratings agency SuperRatings, with consistent above median investment performance delivered for its members[3].
[1] https://www.lonsec.com.au/super-fund/2022/07/15/best-performing-balanced-super-funds-for-2022-financial-year/ Investments may go up or down. Past performance is not a reliable indicator of future performance. Product ratings are only one factor to be taken into account when making a decisions about a financial product.
[2] Ibid
[3] https://mercysuper.com.au/ Investments may go up or down. Past performance is not a reliable indicator of future performance. Product ratings are only one factor to be taken into account when making a decisions about a financial product.