First State Super CEO to continue after merger with VicSuper

VicSuper and First State Super have confirmed their intention to merge, effective 1 July 2020.

The merged fund will be one of the largest in Australia, representing more than 1.1 million members with $125 billion funds under management.

Current First State Super CEO Dianne Stewart will be CEO of the merged fund.

VicSuper's CEO Michael Dundon will become the Deputy CEO.

Stewart says that the merger will set the new fund apart from the rest, providing the scale and reach they need to deliver market-leading superannuation, advice, and retirement services. "Over time, our members will benefit from more diversified investment opportunities and lower operating costs that can only be generated through scale and we'll leverage the strength of our combined service and expertise to help our members", she said.

The board will be restructured to reflect the membership of the merged fund, with an equal number of member and employer representatives.

There will be 14 directors initially, with that number winnowed to 10 in 2022. Four of the directors will come from VicSuper's current board.

Current First State Super chair Neil Cochrane will be the chair of the merged organisation. "The comprehensive due diligence process we have completed has highlighted how much we share in common with VicSuper. We share a strong cultural alignment and have very similar values, and this has helped our people collaborate effectively and efficiently through the due diligence phase of this project."