Industry super fund-owned IFM Investors and ISPT are considering merging at the behest of their common shareholders, the fund managers said in a joint statement on Friday as asset owners look to cut management fees amid lower returns.

“A potential merger recognises that IFM and ISPT have complementary businesses and capabilities. They also have an extensive common shareholder base,” they said.

“Any merger must create value for the shareholders and unitholders of IFM Investors and ISPT and deliver strong financial outcomes for their members.”

While more than $200 billion of assets under management both on- and offshore, IFM Investors invests in the infrastructure sector across private assets, listed equities and infrastructure debt while the smaller ISPT with over $20 billion of assets, is focused on the property sector.