Financial services industry-specific super fund Finsuper plans to merge with the giant Superannuation Trust of Australia (STA).

A strategic review by Finsuper’s board has concluded the merger would position the fund to provide better products and services at lower costs for its members.

Finsuper has $426 million in funds management and more than 30,000 members, and will be established as a division within STA, specialising in super for people in the financial and insurance industries.

Finsuper CEO Debora Jackson said the board chose STA because of its considerable scale and cost benefits, and strong performance records.

“The merger into STA is a ‘best of both worlds’ outcome, in which our members retain the key benefits we have forged for them, plus the lower costs and extra benefits that a fund of STA’s size can deliver,” she said.

The merger is expected to be complete by June next year.