Merged super giant Australian Retirement Trust reveals big ambitions

The new $230bn super fund created from the merger of QSuper and Sunsuper has unveiled a new brand name that reflects ambitions to double in size by the end of the decade.

Australian Retirement Trust plans to double in size.

The new $230bn super fund created from the merger of QSuper and Sunsuper has unveiled a new brand name that reflects ambitions to double in size by the end of the decade.

The combined Brisbane-based fund will be called Australian Retirement Trust reflecting a move to a more nationally-focused organisation.

Bernard Reilly, who will be chief executive of the fund from February 28, said the organisation would remain Brisbane based but seek more members outside of Queensland.

“Our heritage is Brisbane,” said Mr Reilly, currently boss of Sunsuper. “But the growth opportunities are outside of Queensland, with a quarter of the combined fund’s membership currently residing interstate.”

Mr Reilly said it would take up to two years to fully integrate the back-office systems of both funds but the immediate focus would be on reducing fees for members.

“From day one, will have funds under management of $230bn and by the end of the decade aim to have $500bn,” said Mr Reilly.

Australian Retirement Trust plans to double in size.

The merged entity would also reflect a younger demographic, with 60 per cent of members aged under 45. “We will have the scale and the cash flow to move quickly,” said Mr Reilly

Queensland’s two biggest super funds announced plans to merge in 2019 to create the country’s largest pension fund managing $230bn in retirement savings for more than two million people. The pension fund goliath will be able to take on southern state industry giants such as AustralianSuper and retail funds run by the big banks.

The logo for the new Australian Retirement Trust.

Founded in 1912 to manage the retirement nest eggs of public servants, QSuper now has more than 620,000 members with over $133bn in funds under administration.

Sunsuper began in 1987 and manages $96bn for its 1.4 million members. QSuper, which lost the monopoly to operate the state’s public service pension fund in 2017, has in recent years faced competition from Sunsuper.

Regulators are calling on more super funds to merge to reduce complexity in the super system and cut costs. In 2019, VicSuper and First State Super – funds focused on state government employees in Victoria and NSW respectively – announced plans for a merger while in Queensland LGIA Super and Energy Super have merged in recent months.

Australian Retirement Trust chief executive Bernard Reilly

Australian Retirement Trust has flagged plans to reduce membership fees after the merger, with details to be unveiled by June next year.

Sunsuper’s current 1.4m members will become members of Australian Retirement Trust as will all members not connected to the Queensland Government. The QSuper brand will continue to provide products and services to Queensland government employees and their families.

Originally published as Merged super giant Australian Retirement Trust reveals big ambitions