Sunsuper and QSuper have agreed to merge into what’s going to turn into one of many nation’s largest tremendous funds as soon as the deal is finalised. In the event you’re with both of them, you is perhaps questioning what modifications you possibly can count on to see to your account, the charges you pay, your investments and the insurance coverage cowl you’ll have by your tremendous. Right here’s what we all know to this point.
Sunsuper and QSuper have been in talks since late 2019 to presumably merge the 2 retail tremendous funds collectively and create an entire new ‘Goliath’ tremendous fund. And that deal is now one step nearer to completion, with the 2 funds having introduced they’d signed a Heads of Settlement on Monday 15 March, 2021.
The merged fund might rival and even change AustralianSuper as the largest tremendous fund within the nation, with Sunsuper and QSuper saying they have been on observe to create a $200 billion fund with 2 million members. AustralianSuper presently has round $191.42 billion value of belongings and round 2.1 million members, based mostly on the most recent knowledge from business regulator the Australian Prudential Regulation Authority (APRA).
Following this newest announcement, the 2 tremendous funds are actually about midway by the method of merging. Having mentioned that, the entire deal continues to be contingent on a lot of circumstances needing to formally undergo, with the ultimate merger slated for September. Right here’s what we all know to this point.
What’s the timeline for the merger?
If the merger passes circumstances together with regulatory, legislative and last board approvals, the brand new merged tremendous fund will launch in September 2021. The timeline has simply handed the ‘Heads of Settlement’ checkpoint, which suggests each Sunsuper and QSuper have signed an settlement outlining the important thing phrases of the proposed merger and what the merged fund will appear to be.
Subsequent steps will embrace ‘integration planning’ within the coming months, adopted by plans for the merger to formally go forward in September. From then, the precise integration of the funds will start, which might take one to 2 years.
There might be a special identify for the brand new tremendous fund, to be determined through the integration planning taking place between now and September. The brand new tremendous fund is ready to be headquartered in Brisbane.
What’s going to the merger imply for Sunsuper and QSuper members?
Based on the tremendous funds, members don’t must do something presently and the funds will hold you up to date of any modifications. Sunsuper and QSuper declare the brand new tremendous fund may have the size to ship “excellent companies, better efficiencies and decrease prices” for members.
The merger is a part of a broader development sparked by calls from APRA for tremendous funds to cut back complexity for members by merging. The regulator was given stronger powers to take motion in opposition to the trustees of underperforming funds in early 2019, following suggestions made within the banking royal fee.
Listed here are solutions to a couple key questions you’ll have as a present Sunsuper or QSuper member.
What’s going to occur to my account?
On the date of the merger, your account will switch into the merged fund. Sunsuper or QSuper will get in contact with you beforehand to let you realize the date and supply any particulars about how your account can be transferred.
Will there be any modifications to charges?
Sunsuper has mentioned it expects prices for members to cut back over time on account of the merger with QSuper, however neither fund has specified if there can be any fast modifications in charges.
Will there be any modifications to my investments?
Present Sunsuper or QSuper members might expertise modifications to their funding returns on account of the merger. The funds say they plan to create an funding technique and a spread of funding choices that construct on the perfect of their present choices.
What’s going to occur to my insurance coverage cowl?
At this stage, the funds have mentioned members’ current insurance coverage cowl will stay the identical through the integration starting stage of the merger, over the subsequent few months to September. Any future modifications to insurance coverage cowl supplied by the brand new merged tremendous fund can be communicated to members.
Verify the data pages at Sunsuper or QSuper or get in contact together with your fund to search out out extra about how the merger might influence you.