Industry super funds CareSuper and Spirit Super have begun exploring the possibility of merging, but the projected combined pool will be below APRA’s preferred fund size.

The merge, if undertaken, would create a combined fund with over 500,000 members and over $45 billion in funds under management, but that would still be below the $50 billion in FUM required for adequate scale according to APRA.

In a joint statement, CareSuper chair Linda Scott and Spirit Super chair Naomi Edwards said: “Both funds will now undertake extensive due diligence, before any decision is made, to ensure a merger is in the best financial interests for members of both funds. This process will take several months. In the meantime, the funds will continue to operate independently with no disruption to operations.”

Established in 1986, CareSuper looks after the superannuation of office-based employees. It currently has over 220,000 members and $20 billion in funds under management.

Spirit Super was established in 2021 when Tasplan merged with MTAA Super. It has over 324,000 members and $25 billion in funds under management.