Super funds agree merger

Hostplus, Club join forces to benefit members

SUPERANNUATION funds Hostplus and Club Super have passed a key milestone in their merger, signing a member transfer agreement.

Hostplus and Club have signed a so-called successor fund transfer deed as they push ahead with the merger flagged in July. The deed is effectively an agreement to transfer members of Club to Hostplus.

Hostplus, which is focused on workers in the hospitality and tourism sectors, is among Australia’s major superannuation funds, with about 1.2 million members and $42 billion in funds under management.

Club, based in Queensland, is a comparably small fund and is focused on workers in sport and the broader recreational industry.

It has $600 million in funds under management on behalf of about 22,000 members.

Hostplus chief David Elia (pictured) said the merger marked a “proud moment for both of our organisations”.

The decision to merge had “not been made lightly”, Mr Elia said in a statement. “We will continue to focus on ensuring our merged funds continue to deliver high-quality products and services, investment performance and retirement outcomes for our 1.2 million members and their families.”

Both funds believed that combined, they could provide better outcomes for their members, Hostplus said in a statement.

Club chair Sharron Caddie said that in signing the member transfer agreement, the fund was “actively helping to bring enhanced services and benefits to our members and employers”.

It was also “continuing to recognise and support the community and sporting clubs they work so tirelessly in”, Ms Caddie said.

The funds said members and employers would soon receive a detailed overview of the merger process and the next steps. Hostplus and Club are targeting a completion date for the merger of November 1.

It comes amid a push by the prudential regulator, the Australian Prudential Regulation Authority, for smaller super funds to merge, reducing complexity in the super system.

In April, following the financial services royal commission, legislation passed the federal parliament giving APRA enhanced powers to force underperforming funds to merge.

The same month, VicSuper and First State Super – funds focused on state government employees in Victoria and NSW respectively – announced plans for a merger that would create a $110 billion industry titan.