Pension funds Media Super and Cbus Super said on Thursday they will explore a joint arrangement to potentially manage retirement savings of more than 800,000 Australians.
The two superannuation funds, which have signed a memorandum of understanding, said the partnership intends to merge their investment and administration operations with an aim to be operational in 2021.
Both the Cbus Super and Media Super brands will be maintained, they added.
Media Super currently oversees roughly A$6 billion ($4.19 billion) in retirement savings for workers in the print, media, entertainment and arts industries, according to the statement.
Cbus, formed in 1984, has more than 759,000 members and manages more than A$56 billion of financial assets, according to its website.
"By increasing our size, we can provide access to a greater range of investment opportunities and provide a better deal through cost savings, potentially reducing the investment fees," Media Super Chair Gerard Noonan said in a statement.
($1 = 1.4304 Australian dollars)
(Reporting by Shashwat Awasthi in Bengaluru; Editing by Shailesh Kuber)
