Australian Retirement Trust (ART) entered into a Memorandum of Understanding (MoU) with Alcoa of Australia Retirement Plan (Alcoa Super) on 14 March 2023, ART’s third merger announcement since the start of the year.
The two funds will now commence a comprehensive due diligence process, and any potential merger, via a successor fund transfer (SFT), will only progress if both funds determine that doing so would be in each of their members’ best interest. Alcoa Super has more than 5,000 members and $2 billion in funds under management (FUM).
Australian Retirement Trust’s Chief Executive Officer Bernard Reilly said ART, one of the largest super funds in the country, was well on its way to achieving its target of $500 billion in FUM by 2030 and continuing to grow its national footprint for the benefit of our 2.2 million members across Australia.
“Our merger last year to become Australian Retirement Trust was really just the starting point and laid the foundation for our future growth strategy,” said Mr Reilly. “These most recent merger announcements cement Australian Retirement Trust’s position as an industry leader in the merger and transition space and the fund for corporate Australia.
“Over the last year alone, we’ve increased our member numbers by more than 200,000 and our funds under management by $40 billion.
“Since February 2022 we’ve completed 2 successor fund transfers (SFTs), 9 member consent transfers (MCTs) and announced several planned large corporate super transitions, including Woolworths Group, AvSuper, Commonwealth Bank Group Super, and now Alcoa Super. This is a testament to the confidence our merger partners have in ART to deliver for their members.
“Mergers and transitions are just one aspect of our growth channels, which also include pursuing growth through member direct and retail financial advisers.
“It’s important to acknowledge though that our focus isn’t on growth for growth’s sake. Rather, we’re looking at well-considered and strategic approaches to grow our fund in a way that benefits our members.
“We will only pursue growth opportunities where they’re in the best interests of our members, and we believe that the benefits of scale that our current growth pipeline provides us will help us seek out larger investment opportunities that were previously unattainable, deliver enhanced products and services to our members and drive down costs.”