VicSuper, Vision Super talks collapse

Superannuation giants VicSuper and Vision Super have terminated merger talks that would have created a $16 billion, 350,000 member-strong retirement savings behemoth, according to The Australian Financial Review.

The two funds, which both target Victorian state and local government staffers, had been in negotiations for nine months and the collapse of talks marks the second failed merger effort for Vision Super after a planned tie-up with Equipsuper fell apart a year ago after 12 months of talks.

The federal government and the Australian Prudential Regulation Authority have both been urging superannuation funds to pursue mergers to help exploit economies of scale to produce bolstered returns.

“While we identified some areas where a merger would benefit our members, at this stage we have been unable to reach a mutually agreed position with Vision Super on the important topic of investment strategy,” Vision Super's acting chief executive, Peter Rowe, told the fund's members, according to the AFR.