Equity Trustees and Aon are to merge their superannuation operations in a move that will create a $5.2 billion fund.

The move will see Aon’s  Master Trust and join forces with Equity Trustees’ Executive Superannuation Fund, subject to the approval of the both funds’ trustee boards.

Under the alliance, Equity Trustees will assume responsibility for the trustee services (subject to approval from the regulator) and Aon will handle products and distribution.

Equity Trustees managing director Mick O’Brien said the alliance would merge the strengths and capabilities of each organisation and was consistent with Equity Trustees’ strategy to focus on its core fiduciary capability.

“With $130 billion in funds under management globally, Aon brings international expertise to superannuation solutions at a time when the industry is increasingly moving to a global outlook,” Mr O’Brien said.

Aon Hewitt Pacific Chief Executive Officer Steven Gaffney said the alliance would allow Aon to offer alternative, flexible and independent solutions to its members. “Equity Trustees brings its specialist independent trustee skills to an industry that is growing, and increasingly dependent on capable and trustworthy oversight,” he said.

“The relationship with Equity Trustees means we can empower our members and provide access to a broader range of products and services to secure a better future for themselves.”

“The increased breadth and depth of the fund means we will be positioned to offer even greater advantages for our members, including lower costs and increased buying power to provide superior investment options,” Mr Gaffney said.

Aon is a professional service and insurance broking firm specialising in  risk, retirement and health solutions. The Aon Master Trust offers superannuation, retirement and lifestyle products and services to corporate clients, self-employed individuals and individual savers.

Equity Trustees is an old and well recognised specialist trustee company that operates The Executive Superannuation Fund.