In a statement last week, Qantas Super said its trustee board has created a new merger committee – comprised of chair John Atkin, and directors Lorraine Berends, Luke Murray, Klair Safier, and Richard Garner – to guide the management team throughout the process.
Qantas Super first announced on 25 September that it is seeking a potential merger partner amid a rapid decline in the number of corporate super funds in Australia.
In a short statement issued at the time, Qantas Super said its readiness to explore a merger had been prompted by a recent review of its scale and prospects.
“After carefully reviewing Qantas Super’s scale, the fund’s growth path, and the legislative and regulatory environment, the trustee believes it is prudent to explore merger options for the future,” the fund said.
In an update to this initial announcement, Qantas Super said in addition to creating the merger committee, the fund’s CEO Michael Clancy and several directors met with various unions that count Qantas Super members among their members.
“We’ve also communicated with our various service providers and the Australian Prudential Regulation Authority. All of these exchanges have been useful for the trustee and we’re listening carefully to the feedback we’re receiving,” the fund said.
It also highlighted three key reasons for its merger plans, including competition, legislation and regulation, and sustainability.
“Taking all of the above factors and others into consideration, after lengthy deliberation the Trustee Board concluded that it would be best to explore merger options now, when Qantas Super is well positioned to do so rather than wait until circumstances might force us down this path in the future”.
Back in September, Qantas Super cited recent consolidations as having influenced its decision. Namely, as per the statement, over the past two decades, the superannuation industry has been rapidly consolidating and the number of corporate superannuation funds has declined rapidly, going from 761 in 2004 to just 11 in 2022.
Qantas Super, which has 26,300 members and $8.4 billion in assets under management, ranks as one of the country’s largest corporate super funds.
The fund was originally established in 1939 as the corporate super plan for current and former employees of Qantas Group.
Mergers and consolidation in the super industry have continued at pace in recent years, as funds are forced to respond to new regulations such as the Your Future, Your Super (YFYS) reforms, and seek out merger partners in the best interests of their members.
