LGIASUPER MARCHES AHEAD WITH MERGERS

8 News

www.fssuper.com.au

Volume 13 Issue 02 | 2021

LGIAsuper picks custodian

Kanika Sood

LGIAsuper, which is merging with Energy Super and recently bought Suncorp’s superannuation assets, has appointed a new custodian for the total $28 billion in assets.

The merged industry fund will use NAB Asset Servicing as its custodian, siding with Energy Super and Suncorp Portfolio Services’ current custodians and moving away from LGIAsuper’s current custodian J.P. Morgan.

LGIAsuper reviewed custodians for the merged fund, including the two incumbents.

NAB Asset Servicing was slated for a June 1 start. It will provide custody, administration, middle office services and centralised portfolio management.

The Energy Super merger was slated for a July 1 completion while the Suncorp acquisition will be finalised on 31 March 2022.

“NAB’s client-centric model and ability to improve operational efficiency for members were key factors in our decision, along with the organisation’s strong trackrecord of excellent client service,” LGIAsuper chief executive Kate Farrar said.

“As the custodian of both funds, NAB’s extensive knowledge of SPSL will be invaluable as we transition the business.”

NAB Asset Servicing is the only remaining custodian aligned with a big four bank. It was the largest custodian for Australian investors’ assets until June 2016.

It has since slid to the fourth spot ($538.5 billion) at the most recent count from December 2020 end, and has been overtaken by J.P. Morgan ($973.2 billion), Northern Trust ($660.9 billion) and Citigroup ($589.7 billion). fs The quote

It's important that employers are abreast of any changes to their obligations...

Rest in-houses advice

Karren Vergara

The $59 billion industry superannuation fund is shaking up its advice and employer units by internalising its general advice service and hiring several managerial positions to the employer division.

From July, Rest’s general advice team will work in-house, a service currently provided by Link Advice.

The changes were slated for a July start, with the fund planning to move away from Link Advice to in-house.

The general advice team will sit within the advice and education unit, and the broader umbrella of the employer and industry engagement group.

Group executive for employer and industry engagement Deb Potts said providing general advice in-house will build the fund’s internal capabilities and help connect members with the full range of advice and information on offer.

“This team will support our members according to their needs, whether it’s providing them with information, directing them to our online tools, or booking them in for a session with our personal advice team. It’s another step toward maximising the reach of our services,” she said.

Rest also announced its efforts to build a workplace superannuation unit.

Rest has created the role of national manager of business solutions, which will be responsible for supporting the fund’s long-term new business growth aspirations.

The leadership roles will report to general manager of workplace superannuation Richard Millington.

These changes will be complemented by a new phone-based service team to aid and information to small-and-medium-sized employers, Potts said.

“There have been significant changes to superannuation and insurance in the past two years, and there are potentially more on the way in the coming months. It’s important that employers are abreast of any changes to their obligations and are able to access the right information to share with their employees,” she said. fs

UniSuper opens fund to public amid travel ban

Annabelle Dickson

The $95 billion industry fund for higher education and research sector has opened the fund to the general public.

From July 5, UniSuper allows new members to join the fund, growing its 450,000-member base.

UniSuper chief executive Kevin O’Sullivan said as the fund opens to all Australians its purpose remains to deliver greater retirement outcomes for all members.

“We’re delighted to offer more Australians the opportunity to join one of the country’s largest and best-performing super funds. We create real value for our members with strong long-term performance, excellent service and low fees,” O’Sullivan said.

“We are focused on, and driven by, members’ best interests in everything we do. That singularity of focus is embedded deep in our DNA and culture.”

O’Sullivan said opening the fund coupled with the fact that the higher education sector and super industry are undergoing disruption, will allow current and new UniSuper members to benefit from scale.

“Regulatory change and industry consolidation will significantly reshape the super sector in coming years. As the fifth largest super fund in the country and largest investor in ESG-themed strategies – with more than $10 billion in funds under management across these options – UniSuper is well placed to navigate the changing environment and welcome new members from outside the sector given our strong investment performance, leadership in sustainable investing, low fees and strong member focus,” he said.

The latest Rainmaker Information analysis recorded UniSuper balanced returning 22.6% per annum over one year, 9.1% over three years, 9.2% over five years and 8.7% over 10 years.

In May, UniSuper named Aware Super's Peter Chun as O'Sullivan's successor, effective September 6. fs