Sunsuper and QSuper finalise merger, fee cuts expected for 2 million members

Two of Australia’s biggest superannuation funds have finished their merger, coming together to create the Australian Retirement Trust with a combined fund total of $230 billion.

The Australian Retirement Trust (ART) represents the largest super fund merger in the Australian industry, with more than 2,5000 employees adding to over 140 years’ combined superannuation experience.

The merger has been in motion since March 2021, with due diligence taken over the last 12 months by executives to ensure the proposal was in the best interests of each fund’s members.

And for the two million Aussie members of the newly created ART, they may be curious as to how this merger could impact their balances. Your superannuation investment products will remain the same and, in good news for members, ART has committed to delivering a fee reduction from 1 July 2022.

The fixed weekly administration fee for ART Super Savings account members will be reduced to $1.20 per week from $1.50, and for ART QSuper account members, it will be reduced to 0.15% from 0.16% p.a.

Australian Retirement Trust’s Chief Executive Officer Bernard Reilly said: “As the second largest super fund in the industry, we’ll leverage our size and scale to seek out world-class investment opportunities for our members and deliver enhanced products and services and lower fees.”

“Australian Retirement Trust will be a force for good to make our members’ world better, guiding them to and through retirement to ensure they’re secure, confident and protected,” he said.

“We’re open to and inclusive of all Australians, no matter where they live or what industry they work in; and as a super fund that works for members, not shareholders, our members can trust that we’ll always work in their best interests.”

“Over the next two years, we will also continue to fully integrate the two funds, including our investment portfolios and technology platforms,” said Mr Reilly.

Long-term investment strategies for younger members

The newly merged fund has 75% of its membership based in Queensland and appears to be popular with younger Australians. Around 40% of members are aged under 35 years, and a further 40% aged between 35 and 55 years.

In an interview with Investment Magazine, Bernard Reilly said the fund’s younger membership cohort also “gave it the capacity to make long term investment decisions”.

“It means that we have long periods to retirement, the money is locked up for long periods of time, which allows you to be able to invest for the long term,” he said.

ART will be able to make longer investments in “infrastructure and other privately owned assets”, taking advantage of “economies of scale” thanks to this younger demographic and annual cash inflow of $14 billion.

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