In a statement on Thursday afternoon, Qantas Super said its board has signed a successor fund transfer deed, allowing for the “successful” completion of the fund’s merger with ART.
As part of the transfer, more than 25,000 members and approximately $9 billion in funds under management will move from Qantas Super to ART from 29 March.
“Australian Retirement Trust is a profit-for-members superannuation fund and this foundation motivates its member-centric culture and approach. Throughout the merger process, Australian Retirement Trust has demonstrated its strong commitment to taking care of our members and their best financial interests,” said John Atkin, chair of the Qantas Super trustee.
Qantas Super’s 25,000 members will join ART’s existing 2.4 million members in benefiting from the latter’s global investment capability, financial advice services and dedicated member support, said Andrew Fraser, chair of ART.
“We acknowledge Qantas Super’s long history and the care with which it has served its members, and we’re proud to take on this responsibility and support its members to awaken their future,” Fraser said.
Qantas Super first voiced its intention to explore merger options in September 2023, before announcing it had entered into an agreement with ART in July last year.
“On behalf of the current trustee board and management team, and recognising the contribution of all those who came before us, I acknowledge the honour and privilege we have had in looking after the retirement savings of Qantas Super’s members for over 86 years,” Atkin said.
Back in July, Fraser declared FY2023–24 the “biggest year of transitions” for ART, during which the mega fund undertook four successor fund transfers and corporate transitions, totalling some $19 billion.
“Not only does this cement our position as an industry leader in the merger and transition space, but it is evidence that trustees and corporate Australia are choosing us, and we are incredibly proud of this,” Fraser said at the time.
Last year it was suggested that the tides are shifting against corporate funds in a highly competitive superannuation industry.
Speaking to InvestorDaily back in May, SuperRatings’ insights manager, Joshua Lowen, said: “Historically, larger employers have seen corporate plans as a way to tailor and enhance their value proposition to employees. By having a large enough group of relatively homogenous members, insurance rates, in particular, could be customised to fit specific demographics while still benefiting from group insurance arrangements.
“Often, fees would be lower than in ‘standard’ superannuation offering although this is less true now as competition and high levels of fee scrutiny from the regulator have compressed fees across the market. Corporate sponsors also would subsidise fees or insurance premiums for employees.”
However, amid increased competition and regulatory reform, corporate funds are struggling to meet the size and scale necessary to keep their doors open.
“Combined with the reducing fee benefits as standard fee rates decline, they are losing their points of difference with large, easily accessible open funds,” Lowen said, adding that operating a corporate fund often comes with a cost to the employer.
“Benefits are reducing and costs are increasing, it has made greater sense for these funds to merge.”
