Vision Super CEO leads merged group

A year on from confirming merger discussions, Active Super and Vision Super have signed a Heads of Agreement and selected the chief executive of the combined fund.

The two funds first signed a Memorandum of Understanding in June 2022. Today, they confirmed the merger will go ahead, creating a $27 billion fund with about 170,000 members.

Vision Super chief executive Stephen Rowe will become chief executive of the merged entity, with current Active Super chief executive Phil Stockwell to leave the fund.

Active's deputy chief executive Donna Heffernan will act as chief executive until the merger is completed, expected to be mid-2024.

Commenting on the appointment, Vision Super chair Lisa Darmanin said Rowe's tenure with the fund has seen it become one of the most efficient super funds in Australia, citing fees and returns.

"On top of that record of strong performance and lowering costs, Stephen has experience with multiple transitions, and we are delighted to announce he will be leading the new fund. Stephen's vision and drive will serve the merged fund well as we look to capitalise on our growth and cement our position as one of the best funds in the market," she said.

Meanwhile, Active Super chair Kyle Loades said Heffernan, who has been with the fund for 13 years, is a well-respected member of the executive team and he looks forward to her continued contribution through the transition and beyond.

"On behalf of Active Super, I would like to congratulate Stephen on this appointment as we work to bring these two funds together. I would also like to offer my thanks to Phil Stockwell for his leadership as chief executive of Active Super over the past three and a half years," Loades added.

"Phil has successfully overseen substantial change in a short period of time. He led the fund through Covid, delivered a successful rebrand to Active Super (from Local Government Super), and returned the fund to net member growth while we continued to deliver solid investment returns for our members."

The chairs said the funds have a lot in common, including their local government heritage.

"We've modelled the benefits of the merger, which found a range of synergies. Over time, combining the funds, streamlining our offerings and moving onto Vision Super's internal administration platform will translate into lower costs, improved member services and innovative technology. We expect to see cost savings and greater economies of scale as time goes on. Those synergies will mean strong benefits to members of both funds," they said.