Sunsuper and QSuper merger update: Frequently asked questions

Sunsuper and QSuper have signed a Heads of Agreement to merge and create a $200 billion superannuation fund with two million members.

The merger remains subject to a range of conditions, including regulatory, legislative and final board approvals.

A Heads of Agreement confirms the intent or agreement of both funds to merge and includes detail around the major terms of the agreement and what the merged fund will look like. During integration planning, the funds will work together to agree the merged organisation’s structure and how operations will deliver material benefits to both fund’s members.

The merger remains subject to a range of conditions, including regulatory, legislative and final board approvals.

Each board believes that signing the Heads of Agreement is in their members’ best interests. That is, both boards are confident that the Trustee of the merged fund will be able to deliver benefits to members — outstanding services, greater efficiencies and lower costs.

Open to all Australians, the merged fund will be unquestionably strong, with world-class capability and the scale that comes from a membership base of two million Australians and $200 billion in funds under management.

The merged fund will continue both Sunsuper’s and QSuper’s focus on working for members, not shareholders, aiming to deliver strong, long-term investment returns, and providing the tools and advice to help members feel on top of their super.

QSuper shares our focus on working for members, not shareholders, aiming to deliver strong, long-term investment returns, and providing the tools and advice to help members feel on top of their super.

In addition, both funds have simple and transparent fees, award-winning products and services, and proven investment philosophies.

The combination of Sunsuper’s national employer base combined with a commitment to partnering with external financial advisers, and QSuper’s public-sector heritage will create a diversified and resilient organisation.

The merger is planned to proceed in November 2021 with integration to occur over one to two years. The merger remains subject to a range of conditions, including regulatory, legislative and final board approvals.

We now move to the integration planning phase of the merger.

Under the Heads of Agreement, both organisations will now work together to agree the merged organisation’s structure and how operations will deliver material benefits to both fund’s members, with the details to be shared with members of each fund during coming months.

This will be determined during integration planning.

This agreement will pave the way to create a market-leading $200 billion superannuation fund with the scale to deliver outstanding services, greater efficiencies and lower costs for members.

Sunsuper and QSuper have signed a Heads of Agreement to merge and create a $200 billion superannuation fund with two million members. This agreement will pave the way to create a market-leading $200 billion superannuation fund with the scale to deliver outstanding services, greater efficiencies and lower costs for its members.

The merged fund will continue both Sunsuper’s and QSuper’s focus on working for members, not shareholders, aiming to deliver strong, long-term investment returns, and providing the tools and advice to help members feel on top of their super.

Members’ accounts will transfer into the merged fund on the merger date.

We’ll write to you prior to the merger date to advise you of the date and provide details on how your account will be transferred.

We expect costs to reduce as a result of the merger as the merged fund achieves efficiencies over time.

Both funds have strong investment capabilities and a record of delivering solid, long-term investment returns to members. During integration planning, both funds will determine a consolidated investment strategy and range of investment options that will build on the best of the funds’ current offerings.

Sunsuper’s and QSuper’s investment performance over the long-term is comparable , with both Sunsuper and QSuper delivering strong, long-term returns to members. Sunsuper’s Balanced option for Super-Savings accounts returned 8.2% p.a. over the 10 years to 31 December 2020, with QSuper’s returning 8.1% p.a. over the same time period. Both funds’ Balanced option returns have also outperformed the industry average over 5, 7 and 10 years (to December 2020).

Source: SuperRatings Fund Crediting Rate Survey - SR50 Balanced (60-76) Index, December 2020. Past performance is not a reliable indicator of future performance.

Existing insurance cover will continue through integration planning and at the SFT date. Any future changes to insurance cover offered by the merged fund will be communicated to members.

No, we’ll continue to manage your account through the integration and keep you updated on the progress of the merger.

No, under law, the decision to merge is taken by the Board of the Sunsuper Trustee on behalf of members. You can rest assured that the merger will only go ahead if we determine it is in members’ best interests.

Your binding nomination will continue in the merged fund.

The Chair of the Board of the merged fund will be Don Luke, current Chair of QSuper, and the Chief Executive Officer will be Bernard Reilly, current CEO of Sunsuper. Both have extensive experience as leaders of fund management and superannuation organisations.

The Board of 13 directors has been drawn from the existing boards of the two organisations. The members of the Board of Trustees of the merged fund will be:

• Don Luke (Chair)
• Michael Clifford
• Bruce Cowley
• Mary-Anne Curtis
• Andrew Fraser
• Mark Goodey
• Elizabeth Hallett
• Shayne Maxwell
• Sandra McCullagh
• Beth Mohle
• Kate Ruttiman
• Michael Traill, AM
• Georgina Williams

You can read the full biographies of the merged fund’s board of directors on our website.

The merged fund’s Board will legally come into effect on the merger date (SFT date). They will meet before then as needed to make relevant decisions.

The appointed executives have the right mix of expertise and experience to deliver outstanding services, greater efficiencies and lower costs for the merged fund’s two million members and their $200 billion in retirement savings.

The executive team members appointed so far are:

• Chief Member Officer – Karin Muller
• Chief Growth Officer – Dave Woodall
• Chief Investment Officer – Ian Patrick
• Chief Risk Officer – Anne Browne
• Chief Technology Officer – Rod Greenaway
• Chief Strategy Officer – Teifi Whatley
• General Counsel – Deanne Wilden
• Chief of QInsure – Phil Fraser

An external selection process is underway to confirm the appointments of the two remaining executive team positions, Chief Financial Officer and Chief People Officer.

Two additional executives have been appointed to roles that will form part of the merged fund’s broader leadership group:

• Deputy Chief Investment Officer – Charles Woodhouse
• Chief of Staff – Lachlan East

Appointments to the merged fund’s executive team will be effective from the merger date. Until the merger date, executives at both funds will continue in their existing roles, delivering for our members, and working on the integration planning phase of the merger as needed.

There is no immediate change to the investment options or member accounts of QSuper and Sunsuper as a result of this announcement. Both funds have delivered strong, long-term returns for members. The appointed Chief Investment Officer will now work to combine the strengths of both funds’ investment menus to best deliver for the merged fund’s combined membership.

There is no immediate change to the investment philosophies, strategies or options of QSuper and Sunsuper as a result of this announcement. Both QSuper and Sunsuper have delivered strong, long-term returns for members. The appointed Chief Investment Officer will now work to combine the strengths of both funds’ to best deliver for the merged fund’s combined membership.

There is no immediate change to the investment options of QSuper and Sunsuper as a result of this announcement so the announcement will have no impact on returns. Both funds have delivered strong, long-term returns for members. The appointed Chief Investment Officer will now work to combine the strengths of both funds’ investment options to best deliver for the merged fund’s combined membership.

We don’t expect any changes to the current service model for employers. Your Sunsuper contacts will remain the same through the integration.

Both trustee boards have a very clear obligation at law to act in the best interests of their members.

The due diligence process demonstrated a strong business case for merging the funds with achievable efficiencies and savings, and both funds’ boards have formed the view that entering into the Heads of Agreement to progress the merger is in members’ best interests.

We’ll continue to keep you informed of progress through your regular Sunsuper contacts.