The firm also agreed to merge its unit BT’s personal and corporate superannuation funds with Mercer Super Trust. The merger does not cover superannuation held on Westpac’s BT Panorama and Asgard platforms.
The deals, whose financial terms were not revealed, are expected to be completed in the first half of 2023.
Westpac said that it expects the deals to result in an after-tax gain of $159.91 m (A$225m) over the remainder of this financial year and the next.
The move forms part of the bank’s ongoing strategy to exit non-core businesses.
BT’s personal and corporate superannuation funds had total funds under administration (FuA) of A$37.8bn at the end of March 2022.
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As part of the agreement, BT employees who support these funds will join Mercer.
The merged fund will manage over A$65bn and help more than 850,000 Australians invest for their retirement, according to the
Westpac’s Advance offers specialist funds management services and offerings, including for certain investment options available through BT Super’s personal and corporate superannuation funds.
The business had $43.7bn in FuM at end of this March.
Westpac Specialist Businesses CEO Jason Yetton said: “This is a further step in the simplification of Westpac and supports the Group’s focus on banking in Australia and New Zealand.
“It also provides significant benefits for BT Super members, new opportunities for our people and redefines the landscape of superannuation in Australia.”
Trustee chair Gai McGrath said: “The Trustee engaged broadly across the industry and after a robust and competitive process this merger will create a larger superannuation fund with the potential to deliver improved performance, lower fees, and broader member services. It also maintains continuity of knowledge and service for BT Super members.”