Retirement
Australia’s latest mega super fund revealed
Two Queensland superannuation funds are on the verge of a merger that will create a new mega fund, with close to $200 billion in assets and over 2 million members.
Australia’s latest mega super fund revealed
Two Queensland superannuation funds are on the verge of a merger that will create a new mega fund, with close to $200 billion in assets and over 2 million members.
QSuper and Sunsuper have announced that they have signed a head of agreement, which will see the two funds combine in September 2021.
QSuper has about $120 billion in assets, while Sunsuper has about $75 billion.
Together, they will become close to Australia’s largest superannuation fund, Australian Super, which has an estimated $200 billion in assets and 2.4 million members.
QSuper will remain the Queensland government’s default superannuation option for public service members in the state.
According to conditions set by the Palaszczuk government, the merger will take effect as long as both parties remain in Queensland along with the chief executive officers.
Queensland Treasurer and Minister for Investment Cameron Dick said the government had ensured the interests of fund members would be protected through the merger process, should it proceed.
“The Palaszczuk government supports this proposal because it aligns with our vision to reinforce Queensland’s position as a preferred investment destination,” he said.
“The merger of QSuper and Sunsuper would create one of Australia’s largest super funds, headquartered in Queensland with 2 million members and $200 billion in assets.”
The CEO of the merged fund will be current Sunsuper CEO Bernard Reilly. Prior to Sunsuper, he was a member of the board investment committee at NSW Treasury Corporation and brings more than 25 years’ experience with State Street Global Advisors to the role.
“This historic agreement will pave the way for the creation of an unquestionably strong superannuation fund with the scale to deliver outstanding services, greater efficiencies and lower costs for members,” said QSuper chair Don Luke and Sunsuper chair Andrew Fraser.
“The combination of QSuper’s public sector heritage in Queensland and Sunsuper’s national employer base combined with commitment to partnering with external financial advisers will create a diversified and resilient organisation investing on behalf of 2 million members.”
All staff below senior management at both organisations have been given commitments of employment security for at least two years.
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