TWUSUPER said on Thursday it called off the merger because it was not in the best interests of its members.<\/p>\n
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A merger between TWUSUPER and EISS has collapsed. <\/span>Credit:<\/span> <\/cite><\/p>\n \u201cTWUSUPER\u2019s motivation in entering merger discussions with EISS was the potential benefit members of both funds would achieve from greater scale,\u201d said a spokesman for the fund, which is named after the Transport Workers Union. \u201cWe also felt EISS members would benefit from TWUSUPER\u2019s strong investment performance.\u201d<\/p>\n \u201cFollowing extensive due diligence TWUSUPER will not proceed with a merger with EISS at this time. Any merger must be in members\u2019 best interest. TWUSUPER is now pursuing other growth options.\u201d<\/p>\n However, EISS also said its board had decided to review the merger.<\/p>\n \u201cIn mid-September, the EISS Board made a decision to place the merger with TWUSUPER on hold while it reviewed EISS\u2019 broader merger strategy,\u201d a spokesman said.<\/p>\n \u201cEISS remains committed to pursuing a merger that is in the best financial interests of our members and are actively exploring a range of merger opportunities.\u201d<\/p>\n Both funds are relatively small superannuation funds managing about $5.5 billion each. The Australian Prudential Regulation Authority has ramped up pressure on smaller funds, especially underperformers, to merge. EISS was named one of the country\u2019s 13 worst performing super funds by APRA last month.<\/p>\n The collapsed negotiations follow the abrupt resignation of EISS\u2019s chief executive, chair and three directors last month amid allegations the fund excessively spent members\u2019 money on staff parties, overseas junkets and questionable sponsorship deals.<\/p>\n