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www.fssuper.com.au Volume 13 Issue 02 | 2021
GuildSuper chooses new administrator
EISS Super, TWUSUPER explore merger Kanika Sood
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Elizabeth McArthur
GuildSuper, the $1.8 billion retail fund catering to childcare workers, has chosen a new administrator which it says will enhance member experience. GuildSuper, which also trades as Child Care Super and offers Guild Pension for retirees, was slated to switch to IRESS in May. Previously, GuildSuper outsourced its administration to Mercer. A significant event notice to both Guild Super and Child Care Super members explained that by using IRESS as administrator, the fund could enhance its digital offerings. Members will be able to make contributions by direct debit by logging in online, they will be able to submit requests to change investment options or personal details online and will be able to receive electronic communication from the fund. The fund had also previously offered members access to Mercer Financial Planning services. With the change of administrator, members will no longer have access to a personal advice service. Rather, GuildSuper provided members with a phone number for general advice enquiries. Meanwhile, GuildSuper also altered its investment fees – resulting in slightly lower fees for most options. For example, the Building and Growing MySuper options fees decreased by one basis point each and the Consolidating MySuper option investment fee decreased by three basis points. Additionally, GuildSuper changed its policy on partial rollouts. Members can now only partially roll out their balance to another super fund if at least $6000 stays in their account. fs
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We have an obligation to our members, to consider the benefits of a potential merger and to proceed with that merger if it is in their best interests.
he two industry funds have signed a memorandum of understanding to weigh a potential merger. In a joint statement, they said they will commence due diligence, and initial discussions have been “very positive”. If the merger proceeds, the combined fund will have about 130,000 members and $12 billion in funds under assets. “We have an obligation to our members, to consider the benefits of a potential merger and to proceed with that merger if it is in their best interests. It’s early days, but we’re seeing a lot of potential benefits for members, so a merger looks promising,” EISS Super chief executive Alexander Hutchison said. TWUSUPER chief executive Frank Sandy said: “Although early in the process, there appears to be a strong synergy between the funds operationally, which should translte to better member outcomes, as well as an alignment of our values and culture which is important for members. “This merger can provide greater scale for both funds and has the potential to deliver cost savings to members across trustee services, administration
and investments, while also providing members with better services, solid long-term investment returns and improved financial outcomes at retirement,” Sandy said. EISS Super's MySuper option has returned: 3.8% over the year to February, 5.6% p.a. over three years, 7.2% p.a. over five years, 6% p.a. over seven years and 6.7% p.a. over 10 years. TWU's MySuper has slightly better performance: 7.1% over 12 months to February end, 5.7% p.a. over three years, 7.9% p.a. over five years, 6.8% p.a. over seven years, and 7.4% p.a. over 10 years. Both are below the median MySuper option's annual returns of above 8% over all time periods mentioned. In February, the Australia Post Superannuation Scheme (APSS) signed a non-binding heads of agreement to explore a merger with Sunsuper, which is committed to a merger with QSuper to create a $200 billion plus fund. Aware Super signed a Memorandum of Understanding with the $855 million Victorian Independent Schools Superannuation Fund (VISSF). Aware last year, completed mergers with VicSuper and WA Super. fs
Institutional mandates shrink in 2020 Local institutional investors appointed 313 mandates totaling $43 billion in 2020, down from $51 billion the year before, according to Rainmaker’s latest Mandate Chaser report. State Street was the biggest winner in institutional mandates in 2020, taking $5.1 billion from institutional investors, mostly across local and global equities. IFM Investors was next, winning $2.5 billion. Majority of this was across international equities and alternatives ($1 billion each), with smaller wins in cash, fixed income and Australian equities. It was followed by Macquarie ($2.4 billion), Alphinity ($2.1 billion), Lend Lease ($2 billion), First Sentier ($1.7 billion), WMC ($1.5 billion) and Robeco ($1.5 billion). Rainmaker’s Mandate Chaser report collects mandate data via investment surveys with non-profit
THE JOURNAL OF SUPERANNUATION MANAGEMENT•
superannuation funds (including industry, corporate, government funds), investment managers who appoint sub-advisors and implemented consultants. By asset classes, the individual managers winning the most mandates were: Australian equities (Alphinity, Macquarie and Hyperion), international equities (Robeco, State Street, BlackRock), Australian fixed income (Macquarie, Ardea, Coolabah), alternatives (LGT, Ardea and IFM). Asset consultant Frontier was associated with the mandates. Superannuation funds Australian Catholic Super (34, up from 23 in 2019), Aware Super, ESS Super, LGIAsuper and NGS awarded the most mandates in the year. Hostplus awarded the most mandates in 2019 with 35, but in 2020 it only gave out 12. fs
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